Solution-Compute the present worth

Compute the present worth

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Question - A small business purchases a used helicopter for $2,100,000; this is considered MACRS 5-year property. The business plans to keep the helicopter for the next 7 years. The business estimates that the equipment would generate annual time and travel savings of $525,000 per year. At the end of 7 years, the helicopter would have a salvage value of $150,000. The tax rate is 23%, the aircraft is eligible for a Section 179 deduction, and that the small business uses an after-tax MARR of 11%. Compute the Present worth and determine whether the business should invest in the helicopter?

Reference no: EM133064898

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Compute the present worth : A small business purchases a used helicopter for $2,100,000; this is considered MACRS 5-year property. Compute the Present worth

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Compute the present worth

Reference no: EM133064898

Reference no: EM133064898

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