"You purchased an airplane for $494,000 and will depreciate it using a 7-year MACRS with a...

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Finance

"You purchased an airplane for $494,000 and will depreciate itusing a 7-year MACRS with a 5-year life. Salvage value in year 5 isexpected to be $188,000. The airplane is expected to increaserevenues by $193,000 per year. However, O&M costs are expectedto be $29,000 per year. Your company is in the 21% tax bracket andyour MARR is 20%. What is the Net Present Worth of thisinvestment?"

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"You purchased an airplane for $494,000 and will depreciate itusing a 7-year MACRS with a 5-year life. Salvage value in year 5 isexpected to be $188,000. The airplane is expected to increaserevenues by $193,000 per year. However, O&M costs are expectedto be $29,000 per year. Your company is in the 21% tax bracket andyour MARR is 20%. What is the Net Present Worth of thisinvestment?"

"You purchased an airplane for $494,000 and will depreciate it using a 7-year MACRS with a...

50.1K

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Finance

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