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10. Shao Airlines is considering the purchase of two alternatives planes. Plane A has an expected life of 5 years, will cost $100, and will

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10. Shao Airlines is considering the purchase of two alternatives planes. Plane A has an expected life of 5 years, will cost $100, 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 of $25 million per year. Shao plans to serve the route for only 10 years. Inflation in operating costs airplane costs and fares are expected to be zero, and the company's cost of capital is 12%. (8 pts) What is the equivalent annual annuity for each plane? (2 pts) Which option is superior

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