What is the net present worth of this investment

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Reference no: EM131292915

You purchased an airplane for $600,000 and will depreciate it using a 7-year MACRS. Salvage value in year 4 is expected to be $280,000. The airplane is expected to increase revenues by $180,000 per year, however, O&M costs are expected to be $15,000 per year. Your company is in a 35% tax bracket and your MARR is 10%. Show the end of year cash flows for this project for years 0 through 4. What is the Net Present Worth of this investment?

Year 0....

year 1.....

year 2.....

year 3.....

year 4.......

NPW.....

Reference no: EM131292915

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