Question
You purchased an airplane for $473,000 and will depreciate it using a 7-year MACRS with a 4-year life. Salvage value in year 4 is expected
You purchased an airplane for $473,000 and will depreciate it using a 7-year MACRS with a 4-year life. Salvage value in year 4 is expected to be $175,000. The airplane is expected to increase revenues by $237,000 per year. However, O&M costs are expected to be $23,000 per year. Your company is in the 21% tax bracket and your MARR is 15%. What is the Net Present Worth of this investment?
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Technical Analysis Of Stock Trends
Authors: Robert D. Edwards, John Magee, W.H.C. Bassetti
8th Edition
0814406807, 978-0814406809
