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.....