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Express Airlines is considering the purchase of an aircraft to supplement its current fleet. The required rate of return is 12 percent. In estimating the
Express Airlines is considering the purchase of an aircraft to supplement its current fleet. The required rate of return is 12 percent. In estimating the impact of adding this aircraft to the fleet, management has developed the following expected cash flows: End of Year: $100, 000 $150, 000 $200, 000 The aircraft costs $400,000. What recommendation would you make? Why?
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