Question

5. U.S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex, and martensitic stainle

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Annual revenue required = 17m*(A/P,15%,12) + 10m*(P/F,15%,1)*(A/P,15%,12) + 1.4m

= 17m* 0.184481 + 10m* 0.869565* 0.184481 + 1.4m

= 6.14m

Add a comment
Know the answer?
Add Answer to:
5. U.S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex, and martensitic...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • U.S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex, and martensitic stainless...

    U.S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex, and martensitic stainless steel round bars that is expected to cost $14 million now and another $10 million 1 year from now. If total operating costs will be $1.4 million per year starting 1 year from now, and the estimated salvage value of the plant is virtually zero, how much must the company make annually in years 1 through 9 to recover its investment plus a return...

  • U.S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex, and martensitic stainless...

    U.S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex, and martensitic stainless steel round bars that is expected to cost $17 million now and another $10 million 1 year from now. If total operating costs will be $1.5 million per year starting 1 year from now, and the estimated salvage value of the plant is virtually zero, how much must the company make annually in years 1 through 11 to recover its investment plus a return...

  • U.S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex, and martensitic stainless...

    U.S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex, and martensitic stainless steel round bars that is expected to cost $17 million now and another $10 million 1 year from now. If total operating costs will be $1.6 million per year starting 1 year from now, and the estimated salvage value of the plant is virtually zero, how much must the company make annually in years 1 through 11 to recover its investment plus a return...

  • U.S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex, and martensitic stainless...

    U.S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex, and martensitic stainless steel round bars that is expected to cost $13 million now and another $10 million 1 year from now. If total operating costs will be $1.6 million per year starting 1 year from now, and the estimated salvage value of the plant is virtually zero, how much must the company make annually in years 1 through 12 to recover its investment plus a return...

  • U.S. Steel U.S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex, and...

    U.S. Steel U.S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex, and martensitic stainless steel round bars that is expected to cost $12 million now and another $10 million 1 year from now. If total operating costs will be $1.4 million per year starting 1 year from now, and the estimated salvage value of the plant is virtually zero, how much must the company make annually in years 1 through 9 to recover its investment plus...

  • US Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex, and martensitic stainless...

    US Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex, and martensitic stainless steel round bars that is expected to cost $15 million now and another $10 million 1 year from now. If total operating costs will be $1.4 million per year starting 1 year from now, and the estimated salvage value of the plant is virtually zero, how much must the company make annually in years 1 through 8 to recover its investment plus a return...

  • FYI: $7.17 OR APR $7.20 MILLION IS WRONG... U.S. Steel is considering a plant expansion to...

    FYI: $7.17 OR APR $7.20 MILLION IS WRONG... U.S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex, and martensitic stainless steel round bars that is expected to cost $17 million now and another $10 million 1 year from now. If total operating costs will be $1.3 million per year starting 1 year from now, and the estimated salvage value of the plant is virtually zero, how much must the company make annually in years 1 through...

  • please help

    U.S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex, and martensitic stainless steel round bars that is expected to cost $18 million now and another $10 million 1 year from now. If total operating costs will be $1.4 million per year starting 1 year from now, and the estimated salvage value of the plant is virtually zero, how much must the company make annually in years 1 through 8 to recover its investment plus a return...

  • Finance

    U.S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex, and martensitic stainless steel round bars that is expected to cost $17 million now and another $10 million 1 year from now. If total operating costs will be $1.6 million per year starting 1 year from now, and the estimated salvage value of the plant is virtually zero, how much must the company make annually in years 1 through 11 to recover its investment plus a return...

  • 1.Caspian Sea Drinks is considering the production of a diet drink. The expansion of the plant...

    1.Caspian Sea Drinks is considering the production of a diet drink. The expansion of the plant and the purchase of the equipment necessary to produce the diet drink will cost $27.00 million. The plant and equipment will be depreciated over 10 years to a book value of $3.00 million, and sold for that amount in year 10. Net working capital will increase by $1.05 million at the beginning of the project and will be recovered at the end. The new...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT