What is the minimum value of n that will ensure an after-tax

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Problem: Break-even analysis: 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%?

Reference no: EM133617039

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