Question
engineering econ. 5-52) a plasma arc furnace has an internal combusion temperature of 7,000 celcius and is being considered for the incineration of medical wastes
engineering econ. 5-52) a plasma arc furnace has an internal combusion temperature of 7,000 celcius and is being considered for the incineration of medical wastes at a local hospital. the initial investment is $300,000 and annyal revenues are expected to be $175,000 over the six-year life of the furnace. annual expenses will be $100,000 at the end of year one and will increase by $5,000 each year thereafter. the resale value of the funace after six years is $20,000. (5.6,5.8)
a.) what is the simple payback period of the funace?
b.) what is the internal rate of return on the funace?
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