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A large company is planning to purchase equipment costing $250,000 and will depreciate it fully using straight-line depreciation over 5 years. The company expects that
A large company is planning to purchase equipment costing $250,000 and will depreciate it fully using straight-line depreciation over 5 years. The company expects that the investment will have an annual benefit of $64,000. Each use of the equipment will also provide a benefit of $30. In 5 years, there will be no salvage value for the equipment. The company's combined marginal tax rate is 30%. Based on 18% after-tax MARR, how many uses of the equipment must the company have each year in order to justify its investment? Question 5 Part H: What is the break-even value? Enter your answer in the form: 12345.67
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