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Washington Air Company is considering the purchase of a helicopter for connecting services between the company's base airport and the new interoounty airport being built

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Washington Air Company is considering the purchase of a helicopter for connecting services between the company's base airport and the new interoounty airport being built about 30 miles away. It is believed that the chopper will be needed only for six vears until the Rapid Transit Connection is phased in. The estimates on two types of helicopters under consideration, the Whirl 2B and the ROT 8, are given in the table below. Assumina that the Whirl 2B will be available in the future with identical costs, what is the annual cost advantage of selecting the ROT 87 (Use an interest rate of 8%,) Click the icon to view the estimates on two types of helicopters under consideration. Click the icon to view the interest factors for discrete compounding when i 8% per year The annual cost advantage of selecting the ROT 8 is $ (Round to the nearest dollar.) More Info - X 1 The Whirl 2B The ROT 8 First cost Annual maintenance Salvage value Useful life in $92,000 $104,000 S6,000 $7,500 $16,000 $29,000 3 6 years Print Done

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