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B. You purchase a new tractor for $110,000 and you expect that it will increase your...

B. You purchase a new tractor for $110,000 and you expect that it will increase your productivity enough to earn you $18,500 per year. The manufacturer has informed you that there is a maintenance cost for this machine of $8,050 after the first year, which increases by 1% each year thereafter. The salvage value is $80,000 minus 2% per year, would you have broken even on this investment after 5 years? Assume an APR of 6% compounded yearly.

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