A company is planning to add a new section to its manufacturing plant at a cost of $400,000, of which $100,000 is in a building (31.5-yr property) and $300,000 in equipment (7 year property). It is estimated that labor and materials will cost $200,000 per year.

The building will be financed by a 10 year loan at 12% interest, with principal repaid in 10 equal installments.

In addition, a $150,000, 5 year loan will be used to help finance equipment; this loan is at 14%, with principal to be repaid in five equal installments. - Equipment depreciation will be by the alternative SL method. - The useful life of the equipment is 10 years, at which time it will have zero salvage value.

The useful life of the building is nearly 30 years, but for purposes of analysis assume a salvage value equal to book value after 10 years.

The marginal tax rate is 40% and the company's interest rate is 10%. Determine an equal annual revenue stream that will result in a present value of zero for this project.

Please list series of steps used in determining your answer - provide a brief explanation for each step, as needed .