You have been given the following information on a project:
It has a 3-year lifetime
The initial investment in the project will be $23 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 7% a year after that for the remaining two (0) years.
The cost of goods sold, excluding depreciation, is expected to be 42% of revenues.
The tax rate is 0.39.
Estimate the after-tax return on capital, by year, to find the average for the project.