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4. A real estate photographer would like to invest in a drone camera so that she can take better aerial footage of properties. The drone
4. A real estate photographer would like to invest in a drone camera so that she can take better aerial footage of properties. The drone will cost $1,900 and be used for the next 2 years before she needs to upgrade to a more recent model. She estimates that the drone will generate additional photography revenue of $1,300 per year, and that her drone will have a salvage value of $450 at the end of the 2 nd year. Assuming a tax rate of 25%, a MACRS 5 -year property class, 100% bonus depreciation, and an after-tax MARR of 6%, compute the after-tax present worth of the drone and determine whether or not the photographer should invest in this drone. [20pts]
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