required to justify the project economically?

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Click the icon to view the GDS Recovery Rates $(r_k)$ for the $3-$year property class.

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Click the icon to view the interest and annuity table for discrete compounding when the MARR is $12\%$ per year.

The minimum amount of equivalent uniform annual revenue that is required to justify the project economically is

$$$ thousand. $($Round to the nearest whole number.$)$

Capital investment is $$990,000.($This includes land and working capital.$)$

The cost of depreciable property, which is part of the $$990,000$ total estimated

project cost, is $$460,000.$

Assume, for simplicity, that the depreciable property is in the MACRS $($GDS$)$

three$-$year property class.

The analysis period is three years.

Annual operating and maintenance expenses are $$607,000$ in the first year, an

they increase at the rate of $6\%$ per year $($i$.$e$.,\frac{?}{\text{b}\text{a}\text{r}}(f)=6\%)$ thereafter.

Estimated MV of depreciable property from the project at the end of three year:

$$230,000.$

Federal income tax rate $=21\%$; state income tax rate $=5\%.$

MARR $($after taxes$)$ is $12\%$ per year.

Use the half$-$year time convention for depreciation in the last year.

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