You have been given the following information on a project:
It has a 3-year lifetime
The initial investment in the project will be $21 million, and the investment will be depreciated straight line, down to a salvage value of $9 million at the end of the fourth year.
The revenues are expected to be $24 million next year and to grow 5% a year after that for the remaining two (0) years.
The cost of goods sold, excluding depreciation, is expected to be 56% of revenues.
Estimate the pre-tax return on capital, by year and on average, for the project.