Higher latitude areas have energy deficit mainly because
Higher latitude areas have energy deficit mainly because
Higher latitude areas have energy deficit mainly because
Questions
Higher lаtitude аreаs have energy deficit mainly because
Rаmbо Rаnch Inc. prоvides flight entertаinment tо the Greater Edmonton Area. It is considering the purchase of a new helicopter for $325,000. The firm's old helicopter has a book value of $85,000, but can only be sold for $60,000. The new helicopter is estimated to attract additional customers and will generate annual revenue of $62,000 for the first 6 years and decreasing slightly to $58,000 per year for the next 4 years. Cash expenses will be 20% of the revenue per year. Working capital of $28,000 will have to be injected at the start of operations to support sales. At the end of 6 years, a capital upgrade will cost $15,000. At the end of year 10, the airplane can be savaged for $ 42,000. CCA rate for the airplane is 25%. Rambo Ranch is in the 40% tax bracket and has 12% cost of capital. Answer the followings questions with information above: *(please indicate positive and negative signs) Total Cash flows that occur in year 0 is__ . _______ The present value for Revenue from year 1 to year 6 is___. _______ The present value for expenses from year 1 to year 6 is___. _______ The present value for Revenue from year 7 to year 10 is___. _______ The present value for expenses from year 7 to year 10 is __. _______ The present value for capital upgrade is __. _______ The present value for working capital recovery is __. _______ The present value of salvage value is __. _______ The present value of capital cost allowance (PVCCA) is __. _______