Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 48

An entrepreneur engaged in wildcat oil well drilling is seeking investors who will put up $500,000 for an opportunity to reap high returns if the venture is successful. The prospectus states that a return of at least 22% per year for 5 years is likely. How much will the investors have to receive each year to recover their money if an inflation rate of 5% per year is to be included in the calculation