Calculate rate of return on percentage basis from expansion

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the estimated cost to finance an expansion is $15 million and net earnings from increased sales revenue are expected to be somewhere around 10%. The feds expand credit and lowered the interest rates, the real interest rate declined from 3.5% to 2.5%.

calculate the rate of return on a percentage basis from the expansion based upon the data using the formula ROR = RI - RIR

Reference no: EM13237877

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