Determine the annual revenue requirements for the experimental trial of an environmentally friendly waste separator used to segregate burnable, glass, ferrous, nonferrous metals, and plastic items. Details follow:

Initial cost: \(\$ 780,000\)

Useful life and planning horizon: 4 years Salvage value: \(\$ 0\)

Financial depreciation: straight line, no half-year convention Tax depreciation MACRS (3): special approval obtained for this experimental trial Income tax rate: 40 percent Maintenance: 5 percent of initial cost, per year Percentage of borrowed funds: 45 percent Interest on borrowed money: 11 percent Required return on equity: 14 percent