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I need this finance Question done for me. Only expert. I will tip 20$ Please develop a 20 year cash flow and a NPV model
I need this finance Question done for me. Only expert. I will tip 20$
Please develop a 20 year cash flow and a NPV model using Excel Please note the numbers in the case study are for demonstration purpose only. Two options exist to acquire two spare engines to support the fleet. 1. Purchase two used B8F engines at $10M. a. This purchase will result in an excess of two existing engines at a total value of $2M, which can be sold within one year. b. This purchase will avoid one engine shop visit per year at $2.5M (2016$) per shop visit. c. Annual escalation is 5% d. Annual discount rate is 15% e. Each purchased used engine has 3 year life remaining. Afterwards, they need shop visit every 5 years at $2.5M (2016$). 2. Upgrade two Delta owned B6F engines to B8F engines. a. It costs $4M (2016$) per engine to upgrade B6F to B8F. b. The upgrade will avoid one engine shop visit per year at $2.5M (2016$) per shop visit. c. Annual escalation is 5% d. Annual discount rate is 15% e. Each upgraded engine has 5 year life remaining. Afterwards, they need shop visit every 5 years at $2.5M (2016$)Step by Step Solution
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