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What is the rate of return for this project

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Question - Rogue Fitness is considering investing in a new mold for the weight plates it sells. The equipment will cost Rogue $2,479,000. It would allow them to mold 150 weight plates per day and they operate 360 days per year. Each weight plate produced will make them a gross profit of $9.65, but the company has to pay 22% taxes on their profit. If we looked at everything on a yearly basis and the lifecycle of the mold is 9 years, what is the rate of return for this project?

Reference no: EM133094416

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