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Unequal Lives Shao Airlines is considering the purchase of two alternative planes. Plane A has an expected life of 5 years, will cost $ 1
Unequal Lives
Shao Airlines is considering the purchase of two alternative planes. Plane A has an expected life of years, will cost $ million, and will produce net cash flows of $ million per year. Plane B has a life of years, will cost $ million, and will produce net cash flows of $ million per year. Shao plans to serve the route for only years. Inflation in operating costs, airplane costs, and fares are expected to be zero, and the company's cost of capital is By how much would the value of the company increase if it accepted the better project plane Do not round intermediate calculations. Enter your answer in millions. For example, an answer of $ million should be entered as not Round your answer to three decimal places.Round your answer to three decimal places.
$ million
three decimal places.
Plane A: $
million
Plane B: $
million
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