Calculate the projected and actual roi

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1. An oil well can be purchased for $12,000,000 and is expected to produce $5,700,000 in annual revenue for the next 15 years. After the production ends, the owner will have to spend $1,500,000 to return the site to environmentally acceptable conditions. What is the ROI?

2. A quality control system is installed for $127,000. It is expected to save the owner $60,000 annually for 15 years with zero salvage value. The system actually becomes obselete after 8 years and is sold for $50,000. Calculate the projected and actual ROI?

Reference no: EM131973754

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