Question: Airlines is considering two alternative planes. Plane A has an expected life of 5 yearshas an aftertax cost of $80 million, and will produce after-

Airlines is considering two alternative planes. Plane A has an expected life of 5 yearshas an aftertax cost of $80 million, and will produce after- tax cash flows of $30 million per year. Plane B has a life of 10 yearshas an after-tax cost of120 millionand produce aftertax cash flows of $25 million per yearRini plans to serve the route for 10 yearsThe company's WACC is 5%If Rini needs to purchase a new Plane Athe aftertax cost wi be $90 million, but cash inflows will remain the same. Should Rini acquire Plane A or Plane BExplain your answer. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55Do not round intermediate calculationsRound your answer to two decimal places Planeis the better project and will increase the company's value by millions

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