Snow Valley Ski Resort has been contracting snow removal from its parking lots at a cost of

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Snow Valley Ski Resort has been contracting snow removal from its parking lots at a cost of \($400/day.\) A snow removal machine can be purchased for \($25,000.\) The machine is estimated to have a useful life of 6 years with a zero salvage value at that time. Annual costs for operating and maintaining the equipment are estimated to be \($5,000.

Determine the break-even value for the number of days per year that snow removal is required in order to justify purchasing the snow-removal machine. MARR is 12 percent/year.

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Principles Of Engineering Economic Analysis

ISBN: 9781118163832

6th Edition

Authors: John A. White, Kenneth E. Case, David B. Pratt

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