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Find the book return (%) for each period. (All of my other answers are correct) The table given below shows how, on average, the market
Find the book return (%) for each period.
(All of my other answers are correct)
The table given below shows how, on average, the market value of a Boeing 737 has varied with its age and the cash flow needed in each year to provide a 10% return. (For example, if you bought a 737 for $19.87 million at the start of year 1 and sold it a year later, your total profit would be 18.08 + 3.78-19.87 = $1.99 million, 10% of the purchase cost.) Assume airlines write off their aircraft straight-line over 15 years to a salvage value equal to 20% of the original cost Start of Year Market Value Cash Flow 19.87 18.08 16.97 15.87 15.07 14.18 13.54 12.77 12.23 11.55 11.09 10.48 10.09 9.53 9.19 8.68 3.78 2.92 2.80 2.39 2.40 2.06 2.12 1.82 1.90 1.62 1.72 1.44 1.57 1.29 1.43 13 15 16Step by Step Solution
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