Question
1) WestJet Airlines is considering purchasing 20 new planes that will save the company $25 million per year in fuel and maintenance costs for the
1) WestJet Airlines is considering purchasing 20 new planes that will save the company $25 million per year in fuel and maintenance costs for the next 10 years. If the cost of the new planes is $200 million dollars and WestJet's WACC is 8.5%, what is the NPV of the project?
A) -$200,000
B) $50 million
C) $30.4 million
D) $0
E) $4.4 million
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Financial Management Principles and Application
Authors: Arthur J. Keown, J. William Petty, David F. Scott, Jr.
10th edition
536514119, 536514110, 978-0536514110
