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| Teaching Since: | Apr 2017 |
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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
Shao Airlines is considering two alternative planes. Plane A has an expected life of 5
years, will cost $100 million, and will produce net cash flows of $30 million per year.
Plane B has a life of 10 years, will cost $132 million, and will produce net cash flows of
$25 million per year. Shao plans to serve the route for only 10 years. Inflation in operating
costs, airplane costs, and fares is expected to be zero, and the companyAc€?cs cost of capital is
12%. By how much would the value of the company increase if it accepted the better
Â
project (plane)?
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