$8\mathrm{.}1$ In$-$Class activity

Delta Airlines is evaluating the purchase of a new Boeing $767300$ER airplane. The plane will cost $$400$ million and will operate for $25$ years. Delta expects annual cash flows from operating the plane to be $$50$ million per year.

a$.$ Timeline of this investment opportunity

b$.$ Prepare an NPV profile of the purchase using these costs of capital $(r)$ : $r=2\%,r=10\%,r=15\%($here you are doing sensitivity analysis of NPV$,$ given different costs of capital$).$

c$.$ Identify the IRR on the graph.

d$.$ Should Delta Airlines proceed with the purchase, given $r=10\%($cost of capital of $10\%)?$