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13 A manufacturing plant has been contracting snow removal at a cost of $410/day. The past 3 years have produced heavy snowfalls, resulting in the
13 A manufacturing plant has been contracting snow removal at a cost of $410/day. The past 3 years have produced heavy snowfalls, resulting in the cost of snow removal being of concern to the plant manager. The plant engineer has found that a snow-removal machine can be purchased for $27,000; it is estimated to have a useful life of 5.5 years, and a zero salvage value at that time. Annual costs for operating and maintaining the equipment are estimated to be $5,250. Determine the break-even value for the number of days per year that the snow removal is required in order to justify the equipment, based on a MARR of 14%. 334 days 79 days 31 days 43 days 286 days
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