Consider a $20,000 investment with a 5 year life. The salvage

value is $4,000, and the minimal acceptable return is 8%. The

investment produces annual benefits of $10,000 at an operating

cost of $3,000. Suppose there is considerable uncertainty as to

whether the new machinery will survive 5 years of continuous

use.

Find the Break-Even Point, in terms of life(years), at which the

project just becomes economically viable.