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# Rini Airlines i considering two alternative planes. Plane A has an expected life of 5 years, wil cos

Rini Airlines i considering two alternative planes. Plane A has an expected life of 5 years, wil cost \$100 million, and wll produc after-tax cash flws of \$30 million per year. Plane B has a life of 10 years, will cost \$123 million, and will produce after-tax cash flows f \$30 million per year. Rini plans to serve the route for 10 years. The company&#39;s WACC is 15%. If Rini needs purchase a new Plane A, the cost will be \$105 million, but cash inflows will remain the same. Should Rinie rPlane B7 Explain your answer. Enter your answers in millions. For example, an answer of \$10,550,000 should be entered as 10.55. Do not round intermediate calculations. Round your answer to two decimal places acquire Plane A Plane -Select millions is the better project and will increase the company&#39;s value by\$

Apr 10 2020 View more View Less