An indium-gallium-arsenide-nitrogen alloy developed at Sandia National Laboratory is said to have potential uses in electricity-generating solar cells. The new material is expected to have a longer life, and it is believed to have a 40% efficiency rate, which isnearly twice that of standard silicon solar cells. The useful life of a telecommunications satellite could be extended from 10 to 15 yearsby using the new solar cells. What rate of return could be realized if an extra investment now of $940,000 would result in extrarevenues of $450,000 in year 11, $500,000 in year 12, and amounts increasing by $50,000 per year through year 15?The rate of return that could be realized was%.

Rate of return is expressed in terms of percentage which reveals the expected the return by…

Answered: An indium-gallium-arsenide-nitrogen…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A permanent endowment at a major university is established to award scholarships to engineering students. The scholarships will be awarded 11 years after the $19000000 lump-sum donation is made. If the interest from the endowment is to fund 100 students each year in the amount of $19000 each (for infinite years), what annual rate of return must the endowment fund earn?
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