Five years ago, Logocom made a $5 million investment in a new high-temperature material. The product...
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Five years ago, Logocom made a $5 million investment in a new high-temperature material. The product was not well accepted after the first year on the market. However, when it was reintroduced 4 years later, it did sell well during the year. Major research funding to broaden the applications has cost $15 million in year 5. Determine the rate of return for these net cash flows (in $1,000 units). Year NCF, $1000 -5,000 1 4,000 4 20,000 -15,000 The rate of return is % per year. 23 Five years ago, Logocom made a $5 million investment in a new high-temperature material. The product was not well accepted after the first year on the market. However, when it was reintroduced 4 years later, it did sell well during the year. Major research funding to broaden the applications has cost $15 million in year 5. Determine the rate of return for these net cash flows (in $1,000 units). Year NCF, $1000 -5,000 1 4,000 4 20,000 -15,000 The rate of return is % per year. 23
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