What interest rate must the company obtain

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Reference no: EM131194925

A private company wants to construct a waste-to-energy plant that will have a capital cost of $20,000,000 and an operating cost of $300,000 per year. They expect to receive 300 tons of refuse per day, and the facility is to have a useful life of 15 years. The community insists that they will not pay more than $40 per ton to the company for disposal of their solid waste. What interest rate must the company obtain on their $20,000,000 loan just to break even? (You will need a set of interest tables, or a calculator with interest tables, to solve this problem.)

Reference no: EM131194925

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