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Tamarisk Skydiving Co. is owned by Nick and Amber. Business has been booming, as baby boomers want to prove their moxie, and the younger generations
Tamarisk Skydiving Co. is owned by Nick and Amber. Business has been booming, as baby boomers want to prove their moxie, and the younger generations want to post crazy pictures on social media. So Nick and Amber are planning to purchase a second plane. Here are the specs: 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. The company's tax rate is 20%. Determine the ARR for Tamarisk Skydiving Co. for the first year with this new plane in service. (Round answer to 2 decimal places, e.g. 15.25\%. Enter negative answers using either a negative sign preceding the number, e.g. 15.25% or parentheses, e.g. (15.25)\%.) ARR % If just one year of income is considered for this purchase, will Nick and Amber move forward with the purchase? Nick and Amber move forward with the purchase
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