RD-6 satellite
Cost of Satellite	$350 Million
Launching cost	$100 Million
Annual revenue	$105 million
Annual operating cost	$25 million
Satellite Life	15 years
Corporate Tax rate Required rate of return	30% 9.8%

satellite is depreciated straight line down to a book value of zero over their entire useful life

a) Calculate the net present value Tax is paid on profits at the end of the year in which it is earned

NPV = 500.09 450

= 50.09

b) Re-calculate the NPV for RD-6 satellite tax is paid on profits one year after it is earned