Contemporary Engineering Economics 6th Edition by Chan Park

Exercise 19

You are considering purchasing a CNC machine which costs $150,000. This machine will have an estimated service life of 10 years with a net after-tax salvage value of $15,000. Its annual after-tax operating and maintenance costs are estimated to be $50,000. To expect an 18% rate of return on investment, what would be the required minimum annual after-tax revenues