The estimated cost of a completely installed and ready-to-operate 40-kilowatt generator is $32,000. Its annual maintenance costs

Question:

The estimated cost of a completely installed and ready-to-operate 40-kilowatt generator is $32,000. Its annual maintenance costs are estimated at $800. The energy that can be generated annually at full load is estimated to be 100,000 kilowatt-hours. If the value of the energy generated is $0.09 per kilowatt-hour, how long will it take before this machine becomes profitable? Take the to be 10% and the of the machine to be $2,000 at the end of its estimated life of 15 years.
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important... MARR
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