What was the rate of return on the investment

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Western Play land and Aquatics Park spend $75,000 each year in consulting services for ride inspection. New actuator element technology enables engineers to simulate complex computer - controlled movements in any direction. How much could the amusement park afford to spend now on the new technology if the annual consulting services will no longer be needed? Assume the park uses an interest rate of 15% per year and it wants to recover its investment in 5 years.

$250,000

$251,415

$22,374

$51,415




An investment of $100,000, increased to $168,510 over a 5 year period. What was the rate of return on the investment?

10%

15%

20%

11%

Reference no: EM13265261

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