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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Related Book For
Principles Of Engineering Economic Analysis
ISBN: 9781118163832
6th Edition
Authors: John A. White, Kenneth E. Case, David B. Pratt
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