Find the time to recover the investment

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Reference no: EM131985523

A small wastewater treatmentplant is using a subsurface areration system for his sludge aeration.The operational cost for this system $477 a year.

The plant is considering purchasing a new system that cost $1400 with an operational cost of $239 a year.

1-Find the time to recover the investment, assuming zero percent interest.

2- Should the plant purchase the new aeration system? Discuss.

3-Find the time to recover the investment, assuming 5.5% interest, financed over 3 years, monthly payments, and discuss.

Reference no: EM131985523

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