You are considering purchasing a CNC machine which costs $250,000. This machine will have an estimated service life of 14 years with a salvage value of $15,000. Its annual operating and maintenance costs are estimated to be $38,000. To expect an 15% rate of return on your investment, what would be the required minimum annual revenues

$81,301.80

This is the yearly reveneus required to break even the project at 15% return

Explanation:

We need to solve for the equivalent annual cost to break-even financially at 15%

PV of the salvage value

Maturity  $15,000.00

time  14.00

rate  0.15000

PV   2,119.9299

list price: 250,000 - quota: 2,119.93 = 247,880.07

Now we solve for the equivallent annuity payment for this:

PV247,880.07

time14

rate0.15

C  $ 43,301.795

Now, we add up the maintenance cost:

43,301.80 + 38,000 = 81,301.8

This is the yearly reveneus required to break even the project at 15% return

business modeling is correct

odd consecutive integers are odd integers that follow each other. they have a difference of 2 between every two numbers. if n is an odd integer, then n, n+2, n+4 and n+6 will be odd consecutive integers. the first number in the pattern is always the variable on its own or in this case, "n". examples.