Demonstrate return on the investment

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Reference no: EM131068942

When you anticipate that the facility will demonstrate a return on the investment (ROI): Capital costs of construction budget: $1,000,000 (5-year note) Capital cost of equipment budget: $1,000,000 (5-year) O&M budget: $500,000/year Forecasted revenue generation: $1,000,000/year Useful life of plant: 15 years minimum Loan interest rate: 5% (5 year note) Operating hours: Monday through Friday: 0800hrs – 1700hrs Available personnel: 4 staff members ($47/hr includes benefits). Need to see the formula for the ROI and how long will it take for the ROI to be realized.

Reference no: EM131068942

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