Question
You want to purchase a corporate plane that will eliminate $220,000 in annual expenses for the next 10 years. The purchase price is $6 million
You want to purchase a corporate plane that will eliminate $220,000 in annual expenses for the next 10 years.
The purchase price is $6 million dollar plus annual operating costs of $100,000.
Plane can be depreciated on straight line basis over 10 years.
Thr companys weighted average cost of capital is 8% and its corporate tax rate is 40%.
Does this result in a positive or negative NPV?
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Health Care Finance Economics And Policy For Nurses
Authors: Betty Rambur
2nd Edition
0826152538, 978-0826152534
