The president's executive jet is not fully utilized You judge that its use by other officers would increase direct operating costs by only $30,000 a year and would save $100,000 a year in airline bilis On the other hand, you believe that with the increased use the company will need to replace the jet at the end of three years rather than four. A new jet costs $120 million and (at its current low rate of use) has a life of Seven years. Assume that the company does not pay taxes. All cash flows are forecasted in real terms. The real opportunity cost of capital is 8%. a. Calculate the equivalent annual cost of a new jet (Do not round intermediate calculotions. Enter your answer in dollars not in millions. Round your answer to 2 decimal places. Enter your answer as a positive value.) b. Calculate the present value of the additional cost of replacing the fet one year earlier than under its current usage. (Do not round intermediote calculations. Enter your onswer in dollors not in millions. Round your answer to 2 decimal ploces. Enter your onswer as a positive value.) c. Calculate the present value of the savings. (Do not round intermediate colculations. Enter your answer in dollars not in millions. Round your answer to 2 decimol places.) d. Should you try to persuade the president to allow other officers to use the plane