Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 70

The National Potato Cooperative purchased a de- skinning machine last year for $150,000. Revenue for the first year was $50,000. Over the total estimated life of 8 years, what must the remaining equivalent annual revenues (years 2 through 8) equal to break even by recovering the investment and a return of 10% per year Costs are expected to be constant at $42,000 per year, and a salvage value of $20,000 is anticipated.