Whispering 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 $$71,000$ at that time. The company's tax rate is $20\%.$

$($a$)$

Your answer is partially correct.

Determine the ARR for Whispering Skydiving Co$.$ for the first year with this new plane in service. $($Round answer to $2$ decimal places,

e$.$g$.15\mathrm{.}25\%.$ Enter negative answers using either a negative sign preceding the number, e$.$g$.-15\mathrm{.}25\%$ or parentheses, e$.$g$.(15\mathrm{.}25)\%.)$

ARR

If just one year of income is considered for this purchase, will Nick and Amber move forward with the purchase?

eTextbook and Media