Plasma are furnace has internal combustion temperature

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A plasma are furnace has an internal combustion temperature of 7, 000 degree C and is being considered for the incineration of medical wastes at a local hospital. The initial investment is $299, 000 and annual revenues are expected to be $179, 000 over the six-year life of the furnace. Annual expenses will be $105, 000 at the end of year one and will increase by $5, 000 each year thereafter. The resale value of the furnace after six years is $21.000. a. What is the simple payback period of the furnace? b. What is the internal rate of return on the furnace?

a. The simple payback period of the furnace is years.

Reference no: EM131303414

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