mic) Liberty Airways is considering an investment of $830,000 in ticket purchasing kiosks at selected airports. The kiosks (hardware and software) have an expected life of four years. Extra ticket sales are expecte be 57,000 per year at a discount price of $35 per ticket Fixed costs, excluding depreciation of the equipment, are $440,000 per year, and variable costs are $26 per ticket. The kiosks will be depreciated over four years, using the SL method with a zero salvage value. The onetime commitment of working capital is expected to be 1/8 of annual sales dollars. The after-tax MARR is 12% per year, and the company pa income tax at the rate of 21%. What's the after-tax PW of this proposed investment? Should the investment be made? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% per year. The after-tax PW of this proposed investment is $ thousand (Round to the nearest whole number.) The investment be made. T

mic) Liberty Airways is considering an investment of $830,000 in ticket purchasing kiosks at selected airports. The kiosks (hardware and software) have an expected life of four years. Extra ticket sales are expecte be 57,000 per year at a discount price of $35 per ticket Fixed costs, excluding depreciation of the equipment, are $440,000 per year, and variable costs are $26 per ticket. The kiosks will be depreciated over four years, using the SL method with a zero salvage value. The onetime commitment of working capital is expected to be 1/8 of annual sales dollars. The after-tax MARR is 12% per year, and the company pa income tax at the rate of 21%. What's the after-tax PW of this proposed investment? Should the investment be made? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% per year. The after-tax PW of this proposed investment is $ thousand (Round to the nearest whole number.) The investment be made. T

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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