Problem
The G.Wiz Toy Co. has developed a new Twirly-Copter toy at a cost of $2,000,000. Projected profits from the sale of the Twirly-Copter for the next five years are: $300,000, $400,000, $500,000, $300,000, and $250,000. At the end of the fifth year, G.Wiz intends to sell all the production equipment associated with Twirly-Copter for $750,000.
A) Determine the rate of return (i*) that will result from the Twirly-Copter project
B) If the G.Wiz uses a MARR of 12%, is the Twirly-Copter a good investment?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.