You are considering purchasing a CNC machine that 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 after-tax, what
would be the required minimum annual after-tax revenues?

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The Answer of You are considering purchasing a CNC machine that 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 after-tax, what
would be the required minimum annual after-tax revenues?

You Are Considering Purchasing a CNC Machine That Costs $150,000