Basics of Engineering Economy 2nd Edition by Anthony Tarquin,Leland Blank

Exercise 9

The National Potato Cooperative purchased a deskinning 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 annual rev­enue for yearS₂through 8 equal to recover the investment, if costs are constant at $42,000 and a return of 10% per year is expected A salvage value of $20,000 is anticipated.