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You are the CFO of an airline and are deciding whether you should lease some new airplanes. Assume you may buy them at $ 1

You are the CFO of an airline and are deciding whether you should lease some new airplanes. Assume you may buy them at $100MM or to lease over 10 years at 12.5MM aftertax (payments in appears). You believe the residual value will be $10MM after 10 years and have an after-tax interest rate of 5%. What is your Net Advantage of Leasing (NAL)

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