You are considering purchasing a CNC machine which costs $120,000. This machine will have an estimated life of 9 years with a net after tax salvage of $12,000. Its annual after tax operating and maintenance costs are estimated to be $46,000. To expect an 16\% rate of return, what would be the required minimum annual after tax revenue?Please refer attached file for the full solution with equations.Initial Cost=Co=$120,000
After tax salvage=S=$12000
Useful …Solution depicts the steps to estimate the after tax annual revenue in the given case.

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