The capital investment for a new highway paving machine is $838,000. The estimated annual expense, in year

Question:

The capital investment for a new highway paving machine is $838,000. The estimated annual expense, in year zero dollars, is $92,600. This expense is estimated to increase at the rate of 6.3% per year. Assume that f = 4.5%, N = 7 years, MV at the end of year seven is 15% of the capital investment, and the (in real terms) is 10.05% per year. What uniform annual revenue (before taxes), in actual dollars, would the machine need to generate to break even?
MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...