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

Exercise 4

S. Steel is planning a plant expansion to produce austenitic, precipitation-hardened, duplex and martensitic stainless steel round bar (as well as various nickels) at is expected to cost $13 million now and another $10 million 1 year from now. If total operating costs will be $1.2 million per year starting 1 year from now, how much must the company realize in annual revenue in years 1 through 10 to recover its investment plus15% per year