After many years working as a successful businessperson, Alex becomes president of Barcelona FC in 2050, for
Question:
After many years working as a successful businessperson, Alex becomes president of Barcelona FC in 2050, for four years. As one of his projects he buys a sprinkler system to be used in the La Masia facilities for ₺10Million. He has also made arrangements to sell this sprinkler system to Athletic FC after four years for the price of ₺5Million, as a gesture of friendship between the two football clubs. One day, as he is happily sitting on his President Box in the stadium watching the new signings of Barcelona FC, a fan approaches him and asks him if he has depreciated the sprinkler system. Alex replies "No, I have already forgotten all my Engineering Economy lectures. Can we really depreciate it?" "Yes" replies the fan, "sprinklers are depreciated based on MACRS as 10-year property class". Alex immediately gives an order to his accounting team to depreciate the sprinklers and decides to give a gift to the young fan. If Barcelona FC's MARR is 15%, corporate tax rate is 22% and one Golden Box Champions League ticket at Camp Nou costs ₺10,000, how many such tickets (at maximum) can Alex award the young fan and her friends for next week's Champions League game without incurring a loss?
Thermodynamics for Engineers
ISBN: ?978-1133112860
1st edition
Authors: Kenneth A. Kroos, Merle C. Potter