You purchased a stamping machine for $100,000 to produce a new line of products. The stamping machine will be used for five 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.(a) 5,000(b)4,739(c) 4,488(d)2,238

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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You purchased a stamping machine for $100,000 to produce a new line of products. The stamping machine will be used for five 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.
(a) 5,000
(b)4,739
(c) 4,488
(d)2,238

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