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Shao Airlines is considering the purchase of two alternative planes. Plane A has an expected life of 3 years, will cost 100 million, and will

Shao Airlines is considering the purchase of two alternative planes. Plane A has an expected life of 3 years, will cost 100 million, and will produce net cash flows of 91 million per year. Plane B has an expected life of 6 years, will cost 135 million, and will produce net cash flows of 77.35 million per year. Shao plans to serve the route for only 6 years. Inflation in operating costs, airplane costs, and fares is expected to be zero, and the company s cost of capital is 10%. What is the NPV of Plane A on equivalent-life (6 years) basis?

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