Question
A clothing business is looking to get into the sustainable fashion sector of the industry. They would like to invest in a new facility dedicated
A clothing business is looking to get into the sustainable fashion sector of the industry. They would like to invest in a new facility dedicated to this. Below are their expected costs for the new facility. What is the rate of return of this investment? (NOTE: List % number, so a 20% Return = 20)
Initial Cost of Facility - $45,000,000.00
Initial Annual Sales - %18,000,000.00
Increase in Sales (annually) - 5.20%
Annual Operating Cost - $12,000,000.00
Annual Maintenance Cost - $5,000,000.00
Decrease in Maintenance Cost (annually) - 2%
Project Timeline - 7 years
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