Freeport McMoRan engineers estimated that the capital investment necessary for recovering valuable metals (nickel, silver, gold, etc.)

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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 X0.5, where X represents the efficiency in percentage. What value of X is necessary for the company to break even? Assume i = 10% per year.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...
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Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

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