A Texas chemical company had to file for bankruptcy because of a nationwide phaseout of methyl tertiary butyl ether (MTBE). The company is in the planning phase of reorganizing and expects to invest $50 million in a new ethanol production facility. Determine the revenue necessary each month to recover its investment in 3 years, plus interest at a rate of 2% per month, compounded continuously. Solve by (a) formula, and (b) spreadsheet function
A Texas chemical company had to file for bankruptcy because of a nationwide phaseout of methyl tertiary butyl ether (MTBE). The company is in the planning phase of reorganizing and expects to invest $50 million in a new ethanol production facility. Determine the revenue necessary each month to recover its investment in 3 years, plus interest at a rate of 2% per month, compounded continuously. Solve by (a) formula, and (b) spreadsheet function
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A Texas chemical company had to file for bankruptcy
because of a nationwide phaseout of methyl
tertiary butyl ether (MTBE). The company is in
the planning phase of reorganizing and expects to
invest $50 million in a new ethanol production facility.
Determine the revenue necessary each
month to recover its investment in 3 years, plus interest
at a rate of 2% per month, compounded continuously.
Solve by (a) formula, and (b) spreadsheet
function
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