What rate of return will the firm make on this investment

Reference no: EM13684685

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 savings of $90,000 in the first year. Savings are projected to increase by $3000 annually after Year 1. The salvage value ten years from now is projected to be $30,000. What rate of return will the firm make on this investment?

Reference no: EM13684685

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