Vebco Water and Gas received a contract for a seawater desalination plant wherein the company expected to make a 28% rate of return on its investment. (a) If Vebco invested $8 million the first year, what was the amount of its profit in that year? (b) What amount would have to be invested to realize the same monetary amount of return if the rate decreases to 15% per year?
Vebco Water and Gas received a contract for a seawater desalination plant wherein the company expected to make a 28% rate of return on its investment. (a) If Vebco invested $8 million the first year, what was the amount of its profit in that year? (b) What amount would have to be invested to realize the same monetary amount of return if the rate decreases to 15% per year?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Vebco Water and Gas received a contract for a seawater
desalination plant wherein the company expected
to make a 28% rate of
Vebco invested $8 million the first year, what was the
amount of its profit in that year? (b) What amount
would have to be invested to realize the same monetary
amount of return if the rate decreases to 15%
per year?
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