The Winter Wonderland Airlines is thinking of paying $385,000 to acquire new luggage scanning and weighing...

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The Winter Wonderland Airlines is thinking of paying $385,000 to acquire new luggage scanning and weighing equipment that would make its airport services faster and more cost-efficient. Using this new equipment would save the company $145,000 every year, pre-taxes. This luggage scanning and weighing equipment will follow MACRS five-year property class depreciation schedule. The Winter Wonderland Airlines expects to be able to find a buyer who would pay $45,000 when this equipment gets sold at the end of the project. This would be a four-year investment project. $20,000 would be an immediate investment in cash reserve, and the Winter Wonderland Airlines foresees the need to increase this cash reserve by $3,100 each year. The Winter Wonderland Airlines pays 22 percent tax rate on its annual taxable income each year. 9 percent is an appropriate discount rate for all future cash flows of this four-year project. Calculate the Net Present Value of this four-year project. The Winter Wonderland Airlines is thinking of paying $385,000 to acquire new luggage scanning and weighing equipment that would make its airport services faster and more cost-efficient. Using this new equipment would save the company $145,000 every year, pre-taxes. This luggage scanning and weighing equipment will follow MACRS five-year property class depreciation schedule. The Winter Wonderland Airlines expects to be able to find a buyer who would pay $45,000 when this equipment gets sold at the end of the project. This would be a four-year investment project. $20,000 would be an immediate investment in cash reserve, and the Winter Wonderland Airlines foresees the need to increase this cash reserve by $3,100 each year. The Winter Wonderland Airlines pays 22 percent tax rate on its annual taxable income each year. 9 percent is an appropriate discount rate for all future cash flows of this four-year project. Calculate the Net Present Value of this four-year project.