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Exercise 16-12A (Algo) Determining the payback period LO 16-4 Vernon Airline Company is considering expanding its territory the company has the opportunity to purchase one
Exercise 16-12A (Algo) Determining the payback period LO 16-4
Vernon Airline Company is considering expanding its territory the company has the opportunity to purchase one of two different airplanes .The first airplane is expected to cost $17.550.000 will enable the company to increase its annual cash intlow $6,500,000 per year. The plane is expected to have a useful of five years and no salvage value. The second plane costs $enable the company to increase annual $8.300.000 per yearThis plane has an eight year usele and a zero salvage value.
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