Question: Facility A estimates that building a $16,000,000 manufacturing facility can enable it to handle its overhauling work by replacing its current contract of $55,000 per

Facility A estimates that building a $16,000,000 manufacturing facility can enable it to handle its overhauling work by replacing its current contract of $55,000 per machine per year with Facility B. it is estimated that the new facility will have a life of 20 years, a salvage value of $150,000 at the end of its life and handle the overhauling costs at $40,000 per machine per year. Annual costs (for both cases) are expected to increase 3.5% per year. Assuming an interest rate of 12%, find the least number of machines that Facility A must operate to economically justify building its own facility.

I need to know the lowest number of machines required to be able to justify running Facility A. I've been trying to work this out in an excel spreadsheet but cant get my formulas correct. if you could please show your work that would be greatly appreciated it!

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