The expected salvage value of the machine

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You purchase a stamping machine at $100,000 to produce a new line of products. The stamping machine will be used for 5 years and the expected salvage value of the machine is 20% of the initial cost. The annual operating and maintenance costs amount to $30,000. If each part stamped generates $12 revenue, how many parts should be stamped each year just to break even? Assume that you require a 15% return on your investment.

Reference no: EM131392363

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