Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 38

Five years ago, VistaCare spent $5 million to develop and introduce a new service in home health care for people who require frequent blood dialysis treatments. The service was not well received after the first year and was removed from the market. When reintroduced 4 years after its initial launch, it was much more profitable. Now, in year 5, VistaCare has spent a large sum on research to broaden the application of this service. Use the NCF series below to plot the PW versus i graph and estimate the ROR over the 5 years. NCF values are in $1 million units.