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TTY can purchase the same aircraft using a bank loan. The terms of the loan are as follows: Loan to value: 80% Life of Loan:

TTY can purchase the same aircraft using a bank loan. The terms of the loan are as follows:

Loan to value: 80% Life of Loan: 20 Years Interest Rate: 6.5%

Depreciation: Straight Line Payment Frequency: Semi-Annual Salvage Value in Year 20: $200K

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Please evaluate this financing structure showing all the relevant cashflows - 30 pts Calculate the NPV of this structure - ? What should STL do?

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