Question: You are considering purchasing a CNC machine which costs $200,000. This machine will have an estimated service life of 13 years with a net after-tax

You are considering purchasing a CNC machine
You are considering purchasing a CNC machine which costs $200,000. This machine will have an estimated service life of 13 years with a net after-tax salvage value of $20,000. Its annual after-tax operating and maintenance costs are estimated to be $44,000. To expect an 19% rate of return on investment, what would be the required minimum annual after-tax revenues? Click the icon to view the interest factors for discrete compounding when i = 19% per year. The required minimum annual after-tax revenues would be $| |thousand. (Round to one decimal place.) i More Info Single Payment Equal Payment Series Compound Present Compound Sinking Present Capital Amount Worth Amount Fund North Recovery Factor Factor Factor Factor Factor Factor F/P, i, N) (P/F, i, N) (F/A, i, N) (A/F, i, N) (P/A, i, N) (A/P, i, N) 1.1900 0.8403 1.0000 1.0000 0.8403 1.1900 1.4161 0.7062 2.1900 0.4566 1.5465 0.6466 U A W N - Z 1.6852 0.5934 3.6061 0.2773 2. 1399 0.4673 2.0053 0.4987 5.2913 0. 1890 2.6386 0.3790 2.3864 0.4190 7.2966 0. 1371 3.0576 0.3271 2.8398 0.3521 9.6830 0. 1033 3.4098 0.2933 3.3793 0.2959 12.5227 0.079 3.7057 0.2699 4.0214 0.2487 15.9020 0.0629 3.9544 0.2529 4.7854 .2090 19.9234 0.050 4.1633 0.2402 5.6947 0. 1756 24.7089 0.0405 4.3389 0.2305 6.7767 0.1476 30.4035 0.0329 4.4865 0.2229 8.0642 .1240 37.1802 0.0269 4.6105 0.2169 9.5964 0. 1042 45.2445 0.0221 4.7147 0.2121 11.4198 0.0876 54.8409 0.0182 4.802 0.2082 13.5895 0.0736 66.2607 0.0151 4.8759 0.2051 Print Done

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!