In Problem 5.16, suppose Jason ends up with revenues of \($45,000\) and recaptured depreciation of \($1,200\) for the current year-end. Expenses were \($23,500,\) and depreciation expenses were \($11,575.\) What is Ted's taxable income?

Data from problem 5.16

Given the interest of the competitor in his laser cutter activity, Jason is considering not selling but quadrupling the production facility size and investing in 3 more systems at a cost of \($250,000.\) Given this new \critical mass," Jason believes revenues will \skyrocket" and reach \($90,000\) in the following year, and increase by \($7,500\) each year after that. Does this expansion make nancial sense?
His competitive edge will last 8 years at most, and it is estimated taxes will drop slightly from 40%.