You purchased an airplane for $700,000 and will depreciate it using a 7 year MACRS. Salvage value in year 4 is expected to be $350,000. The airplane is expected to increase revenues by $150,000 per year, however, O&M costs are expected to be $18,000 per year. Your company is in a 40% tax bracket and your MARR is 15%. Show the end of year cash flows for this project for years 0 through 4. What is the Net Present Worth of this investment?

Year 0?

Year 1?

Year 2?

Year 3?

Year 4?

Please show work, thanks.