Air Alberta is considering replacing the firm$$s regional jets with a new model, which has a total purchase price of $$15$ million. The new jets will generate additional revenue of $$3\mathrm{.}5$ million per year for the $20$ years of the useful life of the jets. Expected added operational costs of the jets are $25\%$ of revenues. Air Alberta expects to use the new jets for $20$ years, at which time, they would be replaced. The company estimates that all the new planes could be sold for a total of $$4\mathrm{.}7$ million $($salvage value$).$ The new regional jets have a CCA rate of $25\%($d $=0\mathrm{.}25).$ Air Alberta has a corporate tax rate of $35\%.$ The purchase would require a $$2,000,000$ increase in net working capital, which would be returned to Air Alberta when it sells the jets after $20$ years. Required: Using a discount rate of $15\%,$ calculate the NPV of the new jet purchase. Prepare a short memo and discuss your recommendation on the purchase of the regional jets.