What minimum annual revenue (in $M) must be generated to make the project worthwhile?

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter5: Inverse, Exponential, And Logarithmic Functions
Section5.3: The Natural Exponential Function
Problem 40E
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You are considering a project with the following financial data:

  • Required initial investment at n=0 : $50M

  • Project life: 10 years

  • Estimated annual revenue: $X (unknown)

  • Estimated annual operating cost: $15 M

  • Required minimum return: 20% per year

  • Salvage value of the project: 15% of the initial investment

What minimum annual revenue (in $M) must be generated to make the project worthwhile?

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