Question

Jubail Corporation purchased a vibratory finishing machine for $20,000 in year 0. The useful life of...

Jubail Corporation purchased a vibratory finishing machine for $20,000 in year 0. The useful life of the machine is 10 years, at the end of which, the machine is estimated to have a zero salvage value. The machine generates net annual revenues of $6,000. The annual operating and maintenance expenses are estimated to be $1,000. If Jubail's MARR is 12%, how many years does it take before this machine becomes profitable?

A. 4 years < n ≤ 5 years

B. 6 years < n ≤ 7 years

C. 5 years < n ≤ 6 years

D. None of these



give me final answer please

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