She believes that if she updates to a Pilatus PC-12 turboprop that she can make her trips faster, carry more cargo and/or passengers and thus make more money. She has already prepared herself professionally and spent $25,000 to get training and certification on the Pilatus model last year. The downside is that the Pliatus sells for $3,000,000 and would only be economical to operate for 5 years, at which time it would have an estimated salvage value of $1,000,000. This plane would be depreciated straight-line over 5 years. Given the new plane's speed and efficiency, she believes that her revenue would increase by $400,000 per year and at the same time her expenses would go down by $100,000 per year. Her marginal tax rate is 30% and her required rate of return is 9%. Should she make the change? Show all work and report all relevant numbers.

She believes that if she updates to a Pilatus PC-12 turboprop that she can make her trips faster, carry more cargo and/or passengers and thus make more money. She has already prepared herself professionally and spent $25,000 to get training and certification on the Pilatus model last year. The downside is that the Pliatus sells for $3,000,000 and would only be economical to operate for 5 years, at which time it would have an estimated salvage value of $1,000,000. This plane would be depreciated straight-line over 5 years. Given the new plane's speed and efficiency, she believes that her revenue would increase by $400,000 per year and at the same time her expenses would go down by $100,000 per year. Her marginal tax rate is 30% and her required rate of return is 9%. Should she make the change? Show all work and report all relevant numbers