What is the nominal annual rate of return as percentage

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A project has the following costs and benefits. What is the payback period? Year Costs Benefits 0 $65,000 1-2 $15,000 3 $5,000 $50,000 4-10 $10,000 in each year 6.A cannery is considering installing an automatic case-sealing machine to replace current hand methods. If they purchase the machine for $5000 in June, at the beginning of the canning season, they will save $500 per month for the 4 months each year that the plant is in operation. Maintenance costs the case-sealing machine are expected to be negligible. The case-sealing machine is expected to be useful for five annual canning seasons and then will have no salvage value. What is the nominal annual rate of return as a percentage?

Reference no: EM131978132

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