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We fly workers from Calgary to the Diamonds Are For Eva diamond mine near Yellowknife, and we have a choice between buying a plane for
We fly workers from Calgary to the Diamonds Are For Eva diamond mine near Yellowknife, and we have a choice between buying a plane for $ million, or leasing a plane for $ millionyear The PVCCATS is $ million. If we buy the plane, we pay $ million in annual maintenance costs for years. If we lease the plane, all maintenance is included. Assume no taxes, and no net impact on revenues or working capital.
Using a discount rate, what is the present value of each option
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