PQL Airlines's baggage check will cost $2,000,000 and will be functionalfor 5 years.This system will be classified
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PQL Airlines's baggage check will cost $2,000,000 and will be functionalfor 5 years.This system will be classified as a 3 year asset for MACRS and they will sell the physical part of the system after that point for $50,000.They expect to generate licensing revenues of $800,000 a year. There is also an expected reduction in labor cost of $35,000 annually.The 3 year MACRS table is:Year 1 - 33%; Year 2 - 45%; Year 3 - 15%; and year 4 - 7%.
Calculate the Cash Flow from Assets for this project.
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