Scenario:

An airline was looking to add two additional aircraft to its fleet of over $200$ airplanes. The purchase price for each new airplane would be $$125$ million.

Leasing could be an option, however. In this case, a $15-$year lease would be quarterly payments of $$4$ million for each airplane. This payment would be in arrears $($like your home mortgage payment$).$ Leasing may be good solution for this airline because of a net operating loss it has experienced.

They had $$2\mathrm{.}5$ billion of net operating loss to carry forward. These losses during this time were only allowed to be carried forward for a maximum of $20$ years.

During the period, the airline's capitalization was $($in millions$)$:

$\backslash$table$[[$Long Term Bonds,$$1,352$