Question 2. An airline company said it will replace 39 Fokker Jets and will evaluate two types of aircrafts. The two options will be designed differently but will have identical capacities and will do exactly the same job. The airline company have the following options: Aircraft A requires an investment of $32M and has a service life of 12 years. Operating and maintenance costs: $1.5M increasing by $100K each year. Salvage value: $1.5M at the end of its service life. - Aircraft B requires an investment of $35M and has a service life of 14 years. Operating and maintenance costs: $1.3M. Salvage value: $7M. The firm expects that they will be operational for the next 16 years. If they go with Aircraft A, they will spend $1.8M to overhaul the system and to extend its service life beyond 12 years. The expected salvage value at the end of the required service period ( 16 years) will be $1M. If they go with Aircraft B, the company will consider leasing a comparable aircraft that has an annual lease payment of $800K at the end of each period (with the same operations and maintenance costs as Aircraft B) for the remaining service period. (i) Suppose that the firm's MARR is 10%. Using PW analysis, which one of the options should the firm choose? (ii) Suppose that the firm's MARR is 30%. Using PW analysis, which one of the options should the firm choose? (iii) Do you find different answers in part (i) and part (ii)? If yes, in one or two sentences, explain why