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Liberty Airways is considering an investment of $860,000 in scket purchasing kiosks at selected airports. The kiosks (hardware and software) have an expected life of

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Liberty Airways is considering an investment of $860,000 in scket purchasing kiosks at selected airports. The kiosks (hardware and software) have an expected life of four years. Extra ticket sales are expected to be 60.000 per year at a discount price of $40 per ticket. Fixed costs, excluding depreciation of the equipment, are $410,000 per year, and variable costs are $25 per ticket. The kiosks will be depreciated over four years, using the SL method with a zero salvage value. The onetime commitment of working capital is expected to be 1/10 of annual sales dolars. The after-tax MARR is 20% per year, and the company pays income tax at the rate of 24%. Whars the ather-tax PW of this proposed investment? should the investment be made? Cick the icon to view the interest and annuity toble for discrote compounding when the MARR is 20% per year. The after-tax PrW of this proposed investrent is $ thousand. (Round to the nearest whole number.) More Info

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