(4) [20 marks] National Laboratory developed a special alloy material used in solar cells. The new material is expected

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4 20 Marks National Laboratory Developed A Special Alloy Material Used In Solar Cells The New Material Is Expected 1 (46.9 KiB) Viewed 16 times

(4) [20 marks] National Laboratory developed a special alloy material used in solar cells. The new material is expected to have a 7-year life. To produce this alloy $950,000 is invested now. The expected revenue from this investment is $450,000 starting year 3, and amounts increasing by $50,000 per year through year 7. National Laboratory MARR is 6% per year. (a) Determine the Discounted Payback period. (b) Determine the Rate of Return for this investment. (c) Based on ROR and payback, which method to use in your investment selection? Why? (d) Would you accept this investment? And why?