You work for a manufacturing firm and you are considering the purchase of a new CNC Milling machine. This will replace your current manual milling machine that you can sell for $25,000.

The new milling machine will cost $3XX, X00. You expect to keep it for 10 years and expect to be able to sell it for $40,000 at that time. Because of an increase in business you believe you can increase your profit by $150,000 per year.

However, you will need to hire a new operator (person) that will cost $ _____ (you decide) _____ including overhead. Upkeep will cost $5000 per year.

What term will you obtain from the equation? How will you decide if this will be profitable? Will it meet the criteria for the MARR hurdle?