Question: Buy Case STL can purchase the same aircraft using a bank loan. The terms of the loan are as follows: Loan to value: 80% Life

Buy Case STL can purchase the same aircraft using a bank loan. The terms of the loan are as follows: Loan to value: 80% Life of Loan: 20 Years Interest Rate: 6.5% Depreciation: Straight Line Payment Frequency: Semi-Annual Salvage Value in Year 20: $200K Questions Please evaluate this financing structure showing all the relevant cashflows - 30 pts Calculate the NPV of this structure - 10 pts What should STL do? - 10 pts

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