Liberty Airways is considering an investment of $1.0 million in ticket purchasing kiosks at selected airports. The kiosks (hardware and software) have an expected life of four years. Extra ticket sales are expected to be 60,000 per year at a discount price of $40 per ticket. Fixed costs, excluding depreciation of the equipment, are $400,000 per year, and variable costs are $24 per ticket. The kiosks will be depreciated over four years using the SL method with a zero salvage value. The after-tax MARR is 15% per year, and the company pays income tax at the rate of 34%. Should the investment be made? Please solve using excel
Liberty Airways is considering an investment of $1.0 million in ticket purchasing kiosks at selected airports. The kiosks (hardware and software) have an expected life of four years. Extra ticket sales are expected to be 60,000 per year at a discount price of $40 per ticket. Fixed costs, excluding depreciation of the equipment, are $400,000 per year, and variable costs are $24 per ticket. The kiosks will be depreciated over four years using the SL method with a zero salvage value. The after-tax MARR is 15% per year, and the company pays income tax at the rate of 34%. Should the investment be made? Please solve using excel
Introduction to Chemical Engineering Thermodynamics
8th Edition
ISBN:9781259696527
Author:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Publisher:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Chapter1: Introduction
Section: Chapter Questions
Problem 1.1P
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Liberty Airways is considering an investment of $1.0 million in ticket purchasing kiosks at selected
airports. The kiosks (hardware and software) have an expected life of four years. Extra ticket
sales are expected to be 60,000 per year at a discount price of $40 per ticket. Fixed costs,
excluding depreciation of the equipment, are $400,000 per year, and variable costs are $24 per
ticket. The kiosks will be depreciated over four years using the SL method with a zero salvage
value. The after-tax MARR is 15% per year, and the company pays income tax at the rate of 34%.
Should the investment be made?
Please solve using excel
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