LMC is considering purchase of a new company which may have the need to purchase an executive aircraft used by the executives and certain service personnel. The aircraft costs $1,475,000. LMC tax accountants estimate that the value of the aircraft will be $775,035 with useful life of 6 years. The aircraft will have airfield rental fees of $1500 per month and maintenance costs of $1200 per month. The fixed operating costs have been estimated at $310.00/hours of flight time for the first year, with variable costs of 300/hour for the first year. Operating costs are estimated to increase at 5% per year. The present strategic plan shows the aircraft will be used for 320 hours per year. LMC executives established a MARR of 12%. To date, the 3 executives and 7 service staff will fly approximately 12 times per year, with the flights averaging 600 miles per trip. On average, each flight will have 4 people on board. All LMC staff must fly coach, and the average cost per seat on commercial airlines has been $375/seat for destinations between 300 and 900 miles. Should LMC purchase the airplane? Why or why not? Use AEW calculations to justify your decision