Question
Management of Wildhorse, Inc., an aviation firm, is considering purchasing three aircraft for a total cost of $166,410,814. The company would lease the aircraft to
Management of Wildhorse, Inc., an aviation firm, is considering purchasing three aircraft for a total cost of $166,410,814. The company would lease the aircraft to an airline. Cash flows from the proposed leases are shown in the following table.
| Years | Cash Flow | |
|---|---|---|
| 14 | $26,485,000 | |
| 57 | 77,450,000 | |
| 810 | 61,380,000 |
What is the IRR of this project? (Round answer to 2 decimal places, e.g. 15.25%.)
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The Economics Of Money Banking And Financial Markets
Authors: Frederic S. Mishkin
12th Global Edition
1292268859, 978-1292268859
