6.11 Chemco Enterprises is the manufacturer of Dry, a hydrophobic coating that will waterproof anything. Over a 5-year period, the costs associ- ated with the pilot test product line were as fol- lows: first cost of $30.000 and annual costs of $18,000. Annual revenue was $27,000 and used equipment was salvaged for $4000. What rate of return did the company make on this product? n0essful

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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6.11 Chemco Enterprises is the manufacturer of Ultra-
Dry, a hydrophobic coating that will waterproof
anything. Over a 5-year period, the costs associ-
ated with the pilot test product line were as fol-
lows: first cost of $30.000 and annual costs of
$18,000. Annual revenue was $27,000 and used
equipment was salvaged for $4000. What rate of
return did the company make on this product?
1 Cuccessful
Transcribed Image Text:6.11 Chemco Enterprises is the manufacturer of Ultra- Dry, a hydrophobic coating that will waterproof anything. Over a 5-year period, the costs associ- ated with the pilot test product line were as fol- lows: first cost of $30.000 and annual costs of $18,000. Annual revenue was $27,000 and used equipment was salvaged for $4000. What rate of return did the company make on this product? 1 Cuccessful
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