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Shao Arilines is considering the purchase of two alternative planes. Plane A has an expected life of 5 years, will cost $100 million, and will

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Shao Arilines is considering the purchase of two alternative planes. Plane A has an expected life of 5 years, will cost $100 million, and will produce net cash flows of $30 million per year. Ptane 8 has a life of 10 years, will cost $132 miltion and will produce net cash flows of $25 million per year. 5 hao plans to serve the route for only 10 year Inflabon in operating costs, auplane costs, and fares are expected to be zero, and the company's cost of captal is 12%. a. By how much would the value of the company increase if it accepted the better project ( lane)? Enter your answer in milions for example, an answer of $123 milfon should be entered as 1.23, not 1,230,000. Do not roubd intermediate calculations. Pound your answer to two decamal places. 3 milien b. What is the equivalent ennual annuly for each plane? tnter vour answers in milions. For example, an answer of $1.23 million should be entered as 1.23 , not 1,230,000 Do net round intermediate calculatons. Round your answers to two decimal places. Mlane A:s million plane B:s malien

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