Basics of Engineering Economy 2nd Edition by Anthony Tarquin,Leland Blank

Exercise 3

Environmental recovery company RexChem Partners plans to finance a site reclamation project that will require a 4-year cleanup period. The company will borrow $3.8 million now to finance the project. How much will the company have to receive in annual payments for 4 years, provided it will also receive a final lump sum payment after 4 years in the amount of $500,000 The MARR is 20% per year on this investment.