The Y Generation Soda Bottling Company purchased equipment for $$50,000$ that will reduce

costs by $$14,000$ each year for N years. After N years, there will be no further need for the

machine, and it will have no salvage value. Assume that the equipment will be depreciated

on a straight$-$line basis over five years. If the effective income$-$tax rate is $40\%,$ what is the

minimum value of N that will ensure an after$-$tax rate of return of at least $10\%?$ Hint: Use

Excel. Solution: $6$ years.