A company would like to purchase a machine for $375,000 with a life of 10 years. They estimate the salvage value to be 6% of the initial machine cost. Other operating costs are estimated to be $32,500 per year. The interest rate the company uses to justify their investments, namely the MARR is 18% per year compounded yearly.

What is the capital recovery cost?

What is the minimum amount of annual revenue ($ per year?) that makes this investment an attractive option for the company?

Please make it on Excel