An airline is considering selling an old aircraft and replacing it with a new aircraft. The new aircraft costs $60 with a useful life of 20 years and will have no salvage value. The old aircraft has a remaining life of 20 years and final salvage value of $3. The Controller recommends purchasing the new aircraft because it will generate $30.34 in savings this year ( $2 operating saving +$0.34 reduced depreciation +$13 increase in cash +$5 increase in gain +$10 lower purchase price =$30.34) - the new aircraft will save $2 per year in operating costs compared to the old aircraft. - Both aircraft are depreciated using the decline-balance method, but the new aircraft will be have a much lower rate of 2% compared to 14% for the old aircraft, and will result in a reduction in deprecation costs this year of $0.34[(7059)14%602%]=0.34 - If the airline immediately sells the old aircraft, it will generate $16 in cash, which is $13 more than if they keep the old aircraft for the rest of its life. - If the airline immediately sells the old aircraft, it will generate a gain of $5. If they keep the old aircraft for the rest of its life, it will not generate any gain on disposal. - The new aircraft costs $10 less than the old aircraft. Total savings this year will be $30.34 ( $2 operating saving +$0.34 reduced depreciation +$13 increase in cash +$5 increase in gain +$10 lower purchase price =$30.34) Required: Should they acquire the new aircraft? Make a recommendation and base your response on both quantitative and qualitative factors. (Quantitative means recalculate everything based on relevant costs, and Qualitative means discuss other business/strategic issues that are important but can not be quantified)