How much could BTU Oil & Gas Fracking afford to spend on new equipment each year for the next 3 years if it expects a profit of $50 million 3 years from now? Assume the company’s MARR is 20% per year.

What will be an ideal response?


A = 50,000,000(A/F,20%,3)
= 50,000,000(0.27473)
= $13,736,500

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