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An equipment is to be purchased at a cost of $150,000. The operating and maintenance expenses for the first year is $5000, and every year
An equipment is to be purchased at a cost of $150,000. The operating and maintenance expenses for the first year is $5000, and every year the costs increase by $2500 from the previous year. The equipment generates a fixed revenue of X every year. The salvage value of the equipment drops by 50% from its previous year's market value. Ignore taxes, depreciation, and assume the rate of return is 10%. What is the break-even value of X that justify the project
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