Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 2nd 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]
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started