Freeport McMoRan engineers estimated that the capital investment necessary for recovering valuable metals (nickel, silver, gold, etc.) from a copper refinery’s wastewater would be $150 million. The equipment is expected to have a useful life of 10 years with no salvage value. The amount of metal currently discharged in the wastewater is 12,500 pounds per year. The recovered metals are expected to have a selling price of $250 per pound. The efficiency relation of the recovery operation is represented by X 0.5, where X represents the efficiency in percentage. What value of X is necessary for the company to break even? Assume i = 10% per year.
Freeport McMoRan engineers estimated that the capital investment necessary for recovering valuable metals (nickel, silver, gold, etc.) from a copper refinery’s wastewater would be $150 million. The equipment is expected to have a useful life of 10 years with no salvage value. The amount of metal currently discharged in the wastewater is 12,500 pounds per year. The recovered metals are expected to have a selling price of $250 per pound. The efficiency relation of the recovery operation is represented by X 0.5, where X represents the efficiency in percentage. What value of X is necessary for the company to break even? Assume i = 10% per year.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Freeport McMoRan engineers estimated that the
capital investment necessary for recovering valuable
metals (nickel, silver, gold, etc.) from a copper
refinery’s wastewater would be $150 million.
The equipment is expected to have a useful life of
10 years with no salvage value. The amount of
metal currently discharged in the wastewater is
12,500 pounds per year. The recovered metals are
expected to have a selling price of $250 per pound.
The efficiency relation of the recovery operation is
represented by X 0.5, where X represents the efficiency
in percentage. What value of X is necessary
for the company to break even? Assume i = 10%
per year.
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