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Question 1 Snow Valley Ski Resort has been contracting snow removal from its parking lots at a cost of $310/day. A snow-removal machine can be
Question 1 Snow Valley Ski Resort has been contracting snow removal from its parking lots at a cost of $310/day. A snow-removal machine can be purchased for $25,000. The machine is estimated to have a useful life of 6 years with a zero salvage value at that time. Annual costs for operating and maintaining the equipment are estimated to be $7,000. Determine the break-even value for the number of days per year that snow removal is required in order to justify purchasing the snow-removal machine. MARR is 12%/year. Break-even value: Carry all interim calculations to 5 decimal places and then round your final answer up to the nearest day. The tolerance is 1 Click here to access the TVM Factor Table Calculator days
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