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In: Economics

Use compound interest factors and formulas to solve (NO EXCEL TABLES). Show work neatly. Barron Chemical...

Use compound interest factors and formulas to solve (NO EXCEL TABLES). Show work neatly.

Barron Chemical uses a thermoplastic polymer to enhance the appearance of certain RV panels. The initial cost of one process was $124,000 with annual costs of $47,000. Revenues are $77,000 in year 1, increasing by $1000 per year. A salvage value of $22,000 was realized when the process was discontinued after 8 years. What rate of return did the company make on the process?

The rate of return made by the company is _____ %.

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