Question

In: Accounting

In the use of unmanned aerial vehicles (UAVs) that will shape the future of UAV applications,...

In the use of unmanned aerial vehicles (UAVs) that will shape the future of UAV applications,

an online shopping company has purchased a group of UAVs for $79000. The market value

is expected to decrease by $9000 per year. Also, the UAVs will be depreciated within a 5

years. As cargo drones are a proven technology for the logistics industry, it is expected that the

purchase of the group of UAVs will increase the company’s revenue by $10000 annually.

Although, there is an expectation about the related operating expenses to be $39500

annually

to operate fee-charging UAV services at certain times, the online shopping company’s effective

income tax rate of is 40%, and its after-tax MARR is 15% per year. The company decides to

use the cargo drones for 5 years to simplify the transportation of goods while offering faster,

more environmentally friendly service than the alternative.

a) (20 points) What would be the equivalent after-tax annual worth of this investment?

b) (20 points) Is this investment profitable? Write your comments about your results.

Solutions

Expert Solution


Related Solutions

In the use of unmanned aerial vehicles (UAVs) that will shape the future of UAV applications,...
In the use of unmanned aerial vehicles (UAVs) that will shape the future of UAV applications, an online shopping company has purchased a group of UAVs for $84000. The market value is expected to decrease by $4000 per year. Also, the UAVs will be depreciated within 6 years. As cargo drones are a proven technology for the logistics industry, it is expected that the purchase of the group of UAVs will increase the company’s revenue by $16000 annually. Although, there...
Search the Internet for pertinent information that supports the integration of unmanned aerial systems into the...
Search the Internet for pertinent information that supports the integration of unmanned aerial systems into the National Airspace Plan and the Air Traffic Control system. Summarize, describing how ATC Interoperability can be smoothly integrated and also discuss problems associated with this integration. Some subjects to consider are human factors, low altitude operations safety, noise reduction, UAS traffic management, and UAS wake separation standards for UAS integration into the NAS.
Discuss the application of Unmanned Aerial Systems (UAS) in various industries and the benefits of using...
Discuss the application of Unmanned Aerial Systems (UAS) in various industries and the benefits of using UAS in those industries.
Discuss the application of Unmanned Aerial Systems (UAS) in various industries and the benefits of using...
Discuss the application of Unmanned Aerial Systems (UAS) in various industries and the benefits of using UAS in those industries.
Discuss the application of Unmanned Aerial Systems (UAS) in various industries and the benefits of using...
Discuss the application of Unmanned Aerial Systems (UAS) in various industries and the benefits of using UAS in those industries.
Suppose that the U.S. military deploys the X-47B, an unmanned aerial drone capable of sensing, tracking,...
Suppose that the U.S. military deploys the X-47B, an unmanned aerial drone capable of sensing, tracking, identifying, targeting, and destroying an enemy target with very limited human oversight—assume it is a human-on­-the-loop weapon. As a weapon in the ongoing conflict with the Islamic State (ISIS) terrorist organization, X-47B is tasked with missions to target and kill senior ISIS operatives. Now imagine a particular mission, in which an X-47B is given a programmed mission to carry out a targeted strike on...
In your opinion, how will the "car of the future" shape the automobile industry? As a...
In your opinion, how will the "car of the future" shape the automobile industry? As a strategist, what would you recommend to industry's leaders in order to sustain in an impending changing environment? http://fod.infobase.com.db16.linccweb.org/p_ViewVideo.aspx?xtid=40925
In this discussion, examine the trends that are likely to shape the future of healthcare. 150...
In this discussion, examine the trends that are likely to shape the future of healthcare. 150 word
Do you favor or oppose the use of unmanned drones by police agencies in the United States?
Age 18-39 40-64 65+ Do you favor or oppose the use of unmanned drones by police agencies in the United States? Favor 39% 31% 37% Oppose 37% 44% 32% Not sure 24% 24% 30% Find Chi-Square value of Age out of 1,000 Americans
What are some of the important factors or current trends that could shape the future of...
What are some of the important factors or current trends that could shape the future of currencies?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT