Your company purchased an airplane for $464,000 and will depreciate it using a 7-year MACRS with a
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Your company purchased an airplane for $464,000 and will depreciate it using a 7-year MACRS with a 5-year life. Salvage value in year 5 is expected to be $162,000. The airplane is expected to increase company revenues by $176,000 per year. However, O&M costs are expected to be $35,000 per year. Your company is in the 21% tax bracket and the company's MARR is 15%. What is the Net Present Worth of this investment?
Related Book For
Modern Advanced Accounting in Canada
ISBN: 978-1259087554
7th edition
Authors: Hilton Murray, Herauf Darrell
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