Return on investment in new technology

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Reference no: EM13828142

Problem:

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?

Additional Information:

This question is from Finance as well as it is about a company investing in a new machinery which will be employed for 15 years and will scrapped at zero cost after that period. Now, an estimated rate of return upon this investment needs to be calculated.

Reference no: EM13828142

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