Barron Chemical uses a thermoplastic polymer toenhance the

Chapter 7, Problem 7.17

(choose chapter or problem)

Barron Chemical uses a thermoplastic polymer toenhance the appearance of certain RV panels. Theinitial cost of one process was $130,000 with annualcosts of $49,000 and revenues of $78,000 inyear 1, increasing by $1000 per year. A salvagevalue of $23,000 was realized when the processwas discontinued after 8 years. What rate of returndid the company make on the process? Solve bytrial and error and verify i* by spreadsheet.

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