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please help! will give thumbs up. if you could include Excel inputs it would help too. Insent Design Layout References Mailings Review AT es New

please help! will give thumbs up. if you could include Excel inputs it would help too.

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Insent Design Layout References Mailings Review AT es New Ro - 12 - A A A AaRbCcDc AaBbCcI AaBbcc AaBbCcDd Emphasis T Heading 1 T Heading 3 T Normal 1. abc x, X A- WA- Font Paragraph Styles (20 points) 2. Sun Airlines is considering two alternative planes. Airplane A has an expected life of 5 years, will cost $200 million, and will produce net cash inflows of $60 million per year. Airplane B has a life of 10 years, will cost $264 million and will produce net cash inflows of $50 million per year. Sun plans to serve the route for 10 years. Inflation in operating costs, airplane costs and fares is expected to be zero, and the company's cost of capital is 12%. By how much would the value of Sun's stock increase (NPV of adopted Project) if it accepts the better project? Hint Use Replacement Chains for Project A 6 7 8 9 10 0 -200 1 60 2 60 3 60 4 60 "A" CFs 5 60 -200 60 60 60 60 60 "B" CFS -264 50 50 50 50 50 SO 50 50 50 50 1-(1+.12) NPVA= -200 + 60 .12 = 16.287 1-(1+.12)-10 NPVB=-264 + 50 .12 = 18.511 Replacement Chains Project A NPVA= Alternatively, use Annual Equivalent NPV: AENPVA AENPVB- 1295 words W

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