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The table given below shows how, on average, the market value of a Boeing 737 has varied with its age and the cash flow needed
The table given below shows how, on average, the market value of a Boeing 737 has varied with its age and the cash flow needed in each year to provide a 10% return. (For example, if you bought a 737 for $20.03 million at the start of year 1 and sold it a year later, your total profit would be 18.16+3.8720.03=$2.00 million, 10% of the purchase cost.) Assume airlines write off their aircraft straight-line over 15 years to a salvage value equal to 20% of the original cost. a. Calculate economic depreciation, book depreciation, economic return, and book return for each year of the plane's life. (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Enter your answers in millions except for percentage values. Round your percentage answers to 1 decimal place and other answers to 2 decimal places.) The table given below shows how, on average, the market value of a Boeing 737 has varied with its age and the cash flow needed in each year to provide a 10% return. (For example, if you bought a 737 for $20.03 million at the start of year 1 and sold it a year later, your total profit would be 18.16+3.8720.03=$2.00 million, 10% of the purchase cost.) Assume airlines write off their aircraft straight-line over 15 years to a salvage value equal to 20% of the original cost. a. Calculate economic depreciation, book depreciation, economic return, and book return for each year of the plane's life. (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Enter your answers in millions except for percentage values. Round your percentage answers to 1 decimal place and other answers to 2 decimal places.)
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