Question: Amazon is considering adding a fleet of drones to its company. These drones cost $2,700 each. Each drone is expected to generate an annual revenue

Amazon is considering adding a fleet of drones to its company.

Amazon is considering adding a fleet of drones to its company. These drones cost $2,700 each. Each drone is expected to generate an annual revenue of $900 and has a useful life of 4 years. After 4 years of operation, it has negligible salvage value. What is the external rate of return for each drone? Assume Amazon's MARR is 11%. Click here to access the TVM Factor Table calculator. %

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