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1. HydroKlean, LLC, an environmental soil cleaning company, borrowed $3.5 million to finance start- up costs for a site reclamation project. How much must the company receive each year in revenue to earn a rate of return of 20% per year for the 5-year project period?

2. A VMB pressure regulator allows gas suppliers and panel builders to provide compact gas handling equipment, thereby minimizing the space required in clean rooms. Veritech Micro Systems is planning to expand its clean room to accommodate a new product design team. The company estimates that it can reduce the space in the clean room by 7 square meters if it uses the compact equipment. If the cost of construction for a clean room is $5000 per square meter, what is the annualworth of the savings at 10% per year interest if the cost is amortized over 10 years?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91720005

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