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What was island return on the investment in the product

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Question 1: Island Corporation invested $1,000,000 in a new product on January 1, 2020. This product generated cash flows of $800,000 the first year, $400,000 the second year, and $200,000 the third year. At the end of the third year, Island abandoned the new product and disposed of the production equipment for $400,000 at the end of the third year. If these are the only cash flows from this new product, what was Island's return on their investment in this product?

Reference no: EM132578974

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