Determine the exact ROR for this project.

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter26: Capital Investment Analysis
Section: Chapter Questions
Problem 4CMA
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A project has the following cash flows. Determine the exact ROR for this project.

 

Item

Cash Flow

First cost, $

250,000

Annual Revenues, $/year

16,000

Additional Revenue, year 20, $

600,000

O&M costs, $/year

2,500

Life, years

20

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