A proposed 25 million dollar investment at a 70 mgy million, Business Economics

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A proposed 25 million dollar investment at a 70 mgy million

A proposed $2.5 million dollar investment at a 70 MGY (million gallons a year) facility will save the facility $800 k/ yr in energy costs. Assuming an interest rate of 5%/ yr, and equipment expected life of 10 years. Should the facility make this investment? Why or why not?

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Business Economics: A proposed 25 million dollar investment at a 70 mgy million

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