US. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex, and martensitic stainless steel round bars that is expected to cbst $14 million now and another $10 million 1 year from now. If total operating costs will be $13 million per year starting 1 year from now, and the estimated salvage value of the plant is virtually zero, how much must the company make annually in years 1 through 9 to recover its investment plus a return of 23% per year? The company must make $ 7.560 O million annually in years 1 through 9 to recover its investment plus a retum of 23% per year

US. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex, and martensitic stainless steel round bars that is expected to cbst $14 million now and another $10 million 1 year from now. If total operating costs will be $13 million per year starting 1 year from now, and the estimated salvage value of the plant is virtually zero, how much must the company make annually in years 1 through 9 to recover its investment plus a return of 23% per year? The company must make $ 7.560 O million annually in years 1 through 9 to recover its investment plus a retum of 23% per year

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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