Question
An airline is evaluating the purchase of new aircraft costing $8,00,000. The aircraft will generate annual savings of $1,50,000 for 6 years, with a salvage
An airline is evaluating the purchase of new aircraft costing $8,00,000. The aircraft will generate annual savings of $1,50,000 for 6 years, with a salvage value of $1,00,000. The discount rate is 9%.
Requirements:
- Calculate the NPV of the investment.
- Determine the IRR.
- Compute the Discounted Payback Period.
- Assess the project’s risk if the annual savings drop to $1,30,000.
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Gapenski's Healthcare Finance An Introduction To Accounting And Financial Management
Authors: Kristin L. Reiter, Paula H. Song
7th Edition
1640551867, 9781640551862
