Sony Corporation Has Invested $5

Short Answer

Sony Corporation has invested $5.6 million in developing super- thin TVs based on new, organic light- emitting diode technology. The company plans to market the OLED TVs in an 11- inch size and produce 24,000 units for the first five years. The annual production and operating cost is estimated at $350 per unit and will be sold at $400 per unit. Determine the internal rate of return for this investment if the study period is five years.