Emission of volatile organic carbons

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Switching to powder coating technology will reduce the emission of volatile organic carbons (VOCs) for a firm's production process. The initial cost is $200,000 with annual costs of $50,000 and revenues of $90,000 in the first year. Revenues are projected to increase by $2000 annually after Year 1. The salvage value 10 years from now is projected to be $30,000. What rate of return will the firm make on this investment? Contributed by Hamed Kashani, Saeid Sadri, and Baabak Ashuri, Georgia Institute of Technology.

Reference no: EM131806425

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