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undefined Q5: A cogeneration units project is suggested with an initial investment is ($ 470,000) with a (8) year life cycle. The operational cost at
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Q5: A cogeneration units project is suggested with an initial investment is ($ 470,000) with a (8) year life cycle. The operational cost at first year is ($ 15,000) and increased by ($ 4,500) thereafter. A refurbishment work should be made each three year with a cost of ($ 37,000). The salvage value for this units is ($ 73,000). Taking an interest rate is equal to 23.5%, What is the minimum annual revenue that need to justify use these unitsStep by Step Solution
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