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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Question

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 expected to
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 pays
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 $
The investment
be made.
thousand (Round to the nearest whole number.)

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