If the owner requires a 15 return on his or her investment, Mechanical Engineering

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If the owner requires a 15 return on his or her investment

The cost estimate of a project is $3.5 million. Annual costs for maintaining and operating the facility are forecast as $250,000 per year. After 8 years, it is anticipated the facility will be sold for $2.0 million. If the owner requires a 15% return on his or her investment, what net annual income must be received to recover the capital investment of the project?

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Mechanical Engineering: If the owner requires a 15 return on his or her investment

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Mechanical Engineering: If the owner requires a 15 return on his or her investment

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