What rate of return does this represent

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Reference no: EM131198966

Rubber sidewalks made from ground-up tires are said to be environmentally friendly and easier on peoples' knees. Rubbersidewalks, Inc. of Gardena, CA, manufactures the small rubberized squares that are being installed where tree roots, freezing weather, and snow removal have required sidewalk replacement or major repairs every three years. The District of Columbia spent $60,000 for a rubber sidewalk to replace broken concrete in a residential neighborhood lined with towering willow oaks. If a concrete sidewalk costs $28,000 and lasts only 3 years versus a 9-year life for the rubber side- walks, what rate of return does this represent?

Reference no: EM131198966

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