Calculation Of Annual Rate Of Return On Investment
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Question
A corporation adds to its fixed assets by investing $60 Million in new high tech machinery. It expects to increase its annual net profits by $11 Million in each of the next 15 years (by then the machinery will be obsolete and will be scrapped at zero cost). What is the estimated annual Rate of Return on this investment in new technology?
Summary
The question belongs to Finance and it discusses about calculation of annual rate of return on the investment in new high-tech machinery by a company.
Total Word Count 97
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