Ryanair, one of the largest European airlines in terms of passenger numbers, has enjoyed rapid growth since its establishment in 1985. It has 199 Boeing B-377, with 113 back orders. Assume that a new B-737 NG costs $60 million and generates after-tax cash inflows of $8 million for each of the next ten years.

a.Find the NPV if the airline uses a 10 percent opportunity cost of capital.