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1. Shao Airlines is considering two altenative planes. Plane A has an expected life of 5 years, will cost $100 million and will produce net

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1. Shao Airlines is considering two altenative planes. Plane A has an expected life of 5 years, will cost $100 million and will produce net cash flows of $30 million per year Plane B has a life of 10 years, will cost $132 million, and will produce net cash flows f $25 million per year. Shao plans to serve the route for 10 years. Inflation in operating costs, airplane costs, and fares is expected to be zero, and the company's cost of capital is What us the equivalent annual annuity for each plane? Which plane should be accepted

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