{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-22T10:08:44-04:00", "answer_date": "2024-05-22 10:08:44", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1507184", "url": "\/study-help\/questions\/unequal-lives-shao-airlines-is-considering-the-purchase-of-two-1507184", "question_creation_date_js": "2024-05-22T10:08:44-04:00", "question_creation_date": "May 22, 2024 10:08 AM", "meta_title": "[Solved] Unequal Lives Shao Airlines is considerin | SolutionInn", "meta_description": "Answer of - Unequal Lives Shao Airlines is considering the purchase of two alternative planes. Plane A has an expected life of 5 y | SolutionInn", "meta_keywords": "unequal,lives,shao,airlines,purchase,two,alternative,planes,plane,expected,life,5", "question_title_h1": " Unequal Lives Shao Airlines is considering the purchase of two alternative planes. Plane A has an expected life of 5 years, will cost $100", "question_title": " Unequal Lives Shao Airlines is considering the purchase of two alternative", "question_title_for_js_snippet": "Unequal Lives Shao Airlines is considering the purchase of two alternative planes Plane A has an expected life of 5 years, will cost $100 million, and will produce net cash flows of $32 million per year Plane B has a life of 10 years, will cost $132 million, and will produce net cash flows of $26 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 calculations Enter your answer in millions For example, an answer of $1 234 million should be entered as 1 234, not 1,234,000 Round your answer to three decimal places $ million What is the equivalent annual annuity for each plane Do not round intermediate calculations Enter your answers in millions For example, an answer of $1 234 million should be entered as 1 234, not 1,234,000 Round your answers to three decimal places Plane A $ million Plane B $ million", "question_description": "\"image", "transcribed_text": "Unequal Lives Shao Airlines is considering the purchase of two alternative planes. Plane A has an expected life of 5 years, will cost $100 million, and will produce net cash flows of $32 million per year. Plane B has a life of 10 years, will cost $132 million, and will produce net cash flows of $26 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 calculations. Enter your answer in millions. For example, an answer of $1.234 million should be entered as 1.234, not 1,234,000. Round your answer to three decimal places. $ million What is the equivalent annual annuity for each plane? Do not round intermediate calculations. Enter your answers in millions. For example, an answer of $1.234 million should be entered as 1.234, not 1,234,000. Round your answers to three decimal places. Plane A: $ million Plane B: $ million", "related_book": { "title": "Financial management theory and practice", "isbn": "978-0030243998, 30243998, 324422695, 978-0324422696", "edition": "12th Edition", "authors": "Eugene F. Brigham and Michael C. Ehrhardt", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/9.jpg", "uri": "\/textbooks\/financial-management-theory-and-practice-12th-edition-9", "see_more_uri": "\/textbooks\/business-general-management-innovation-management-3453" }, "free_related_book": { "isbn": "B0CX949VH7", "uri": "\/textbooks\/business-idea-planner-seek-select-evaluate-from-dreams-to-actions-in-30-days-1st-edition-b0cx949vh7-270857", "name": "Business Idea Planner Seek Select Evaluate From Dreams To Actions In 30 Days", "edition": "1st Edition" }, "question_posted": "2024-05-22 10:08:44", "see_more_questions_link": "\/study-help\/questions\/business-general-management-2023-February-20", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/statistics-for-business-and-economics\/the-monthly-earnings-of-financial-analysts-are-normally-distributed-with-1278143", "description": "The monthly earnings of financial analysts are normally distributed with a mean of $5,700. 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