Carver Corporation is planning to buy a machine costing $50,000, and it will depreciate it fully along a straight line over 5 years. The machine will generate unknown earnings before interest and taxes (EBIT), which will remain constant for the first 5 years and then drop to half that value during the next five years. The tax rate of Carver is 30%, and its discount rate is 10%. Calculate the EBIT for the machine to just break even, that is, have zero NPV.

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