Unequal Lives

Shao Airlines is considering the purchase of two alternative planes. Plane A has an expected life of $5$ years, will cost $$100$ million, and will produce net cash flows of $$28$ million per year. Plane B has a life of $10$ years, will cost $$132$ million, and will produce net cash flows of $$27$ million per year. Shao plans to serve the route for only $10$ years. Inflation in operating costs, airplane costs, and fares are expected to be zero, and the company's cost of capital is $9\%.$ By how much would the value of the company increase if it accepted the better project $($plane$)?$ Do not round intermediate calculations. Enter your answer in millions. For example, an answer of $$1\mathrm{.}234$ million should be entered as $1\mathrm{.}234,$ not $1,234,000.$ Round your answer to three decimal places.

$ million

What is the equivalent annual annuity for each plane? Do not round intermediate calculations. Enter your answers in millions. For example, an answer of $$1\mathrm{.}234$ million should be entered as $1\mathrm{.}234,$ not $1,234,000.$ Round your answers to three decimal places.

Plane A: $ million

Plane B: $ million