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The Penguins, a professional hockey team located in Pittsburgh, have purchased a new jet for the team to use to travel to and from games.

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The Penguins, a professional hockey team located in Pittsburgh, have purchased a new jet for the team to use to travel to and from games. The capital cost of the jet is $ 1.2 million dollars. The depreciation of the jet is calculated using straight-line depreciation over a 10-year period with a salvage value of %500,000. The jet brings in advertising revenue of $120,000 annually from advertisements on the plane's fuselage. Determine the net present worth of this purchase after 5 years, assuming the team uses a MARR of 10% and that the incremental tax rate is 30%

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