Holt Co. is considering investing in a new facility to extract and produce salt. The facility will increase revenues by $240,000, but will also increase annual expenses by $160,000. The facility will cost $980,000 to build, but will have a $20,000 salvage value at the end of its 20-year useful life.
Instructions
Calculate the annual rate of return on this facility.

Question

Quizplus · Accepted Answer

The Answer of Holt Co. is considering investing in a new facility to extract and produce salt. The facility will increase revenues by $240,000, but will also increase annual expenses by $160,000. The facility will cost $980,000 to build, but will have a $20,000 salvage value at the end of its 20-year useful life.
Instructions
Calculate the annual rate of return on this facility.

Holt Co Is Considering Investing in a New Facility to Extract