Leggo Skydiving Co is owned by Nick and Amber. Business has been booming, as baby boomers want to prove their moxie, and the younger generation want to post crazy pictures on social media. So Nick and Amber are planning to purchase a second plane. Here are the specs:

Purchase price: 200,000

New cash operating cost per year: 6,000

Additional gross margin in year 1: 15,000

The owners would use this plane for 10 years at which point they would sell it and try to replace it with a newer model. They estimate the salvage value to be $70,000 at that time. Company's tax rate is 20%.

(a) Determine the ARR for Leggo Skydiving co for the first year with this new plane in service.