ASM International, an Australian steel company, claims that a savings of 40% of the cost of stainless-steel threaded bar can be achieved by replacing machined threads with precision weld depositions. A U.S. manufacturer of rock bolts and grout-in fittings plans to purchase the equipment. A mechanical engineer with the company has prepared the following cash flow estimates.

Determine the expected rate of return per quarter and per year (nominal)

Quarter Cost, $ Savings, $0 -450,000 -1 -50,000 10,0002 -40,000 20,0003 -30,000 30,0004 -20.000 40,0005 -10.000 50,000