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Rini Airlines is considering two alternative planes. Plane A has an expected life of 5 years, has an after - tax cost of $ 9
Rini Airlines is considering two alternative planes. Plane A has an expected life of years, has an aftertax cost of $ million, and will produce aftertax cash flows of $ million per year. Plane B has a life of years, has an aftertax cost of$ million, and will produce aftertax cash flows of $ million per year. Rini plans to serve the route for years. The companys WACC is If Rini needs to purchase a new Plane A the aftertax cost will be $ million, but cash inflows will remain the same. Should Rini acquire Plane A or Plane B Explain your answer. Enter your answers in millions. For example, an answer of $ should be entered as Do not round intermediate calculations. Round your answer to two decimal places.
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