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show all work on excel including formulas please Unequal Lives Shao Airlines is considering the purchase of two alternative planes. Plane A has an expected
show all work on excel including formulas please
Unequal Lives Shao Airlines is considering the purchase of two alternative planes. Plane A has an expected lfe of 5 years, will cost 5 loo millen, and will produce net cash flows of 532 million per vear, Plane B has a life of 10 years, wal cost 5132 million, and will produce net cash flows of 526 million per year. Shao plans to serve the route for only 10 years. Inflation in operating costs, airplane costs, and fares are expected to be zero, and the company's cost of capital is 14%. By how much would the value of the company increase if it accepted the better project (plane)? Do not round intermediate calculationt. Enter your answer in millions, For example; an answer of s1.234 miltion should be entered as 1.234, not 1,234,000, Round your arnwer to three decimal places. 4 milisis What is the eguvalent annual annuity for each plane? Do not round intermediate calculations. Enter vour ankwer: in minfons. For example. an answer of $1.234 milion should be entered as 1,234 , not 1,234,000, Round your answers to three decimal phaces. Pane Al 3 inition Plane E: 5 milion Step by Step Solution
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