7. Island Airways needs to replace a short haul commuter plane on one of its busy routes. There are two aircraft on the market that satisfy Island's requirements. One is more expensive but has better fuel efficiency and load-bearing characteristics that result in better cash flows over the useful life of the investment, which is assumed to be eight years in the case of both planes. The company has a cost of capital of 11%. Engineers have calculated these cash flows for the two aircraft: Initial Cost Low Cost =$775,000 High Cost =$950,000 Annual Cash Inflows Years 18$154,000 $176,275 Which investment is to be preferred? What method would you use to make this decision