Question
John has an extra bedroom in his house that he occasionally rents out using the service Airbnb. John charges $106 per night, and his room
John has an extra bedroom in his house that he occasionally rents out using the service Airbnb. John charges $106 per night, and his room is occupied by a renter approximately 100 nights per year. He thinks that if he repaints the room the photos he posts on Airbnb to draw customers will be more attractive, allowing him to charge $125 dollars per night and to rent the room for 120 nights per year. John's tax rate is 28%. What is the annual, after-tax, incremental cash flow that John expects from his painting project? (Please round to the nearest dollar and don't include the dollar sign)
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