Question: problem 11 Problem 11 Intro Heli Cap Inc. is considering replacing the engines on its helicopters. Replacing each engine would cost $110,000, but save the

problem 11

Problem 11 Intro Heli Cap Inc. is considering replacing the engines on its helicopters. Replacing each engine would cost $110,000, but save the company $20,000 (after taxes) in fuel expenses forever. Since the engine will run more quietly the company also expects more demand and therefore additional profits of $6,100 per helicopter. The company has a cost of capital of 8% and the tax rate is zero. Part 1 What is the NPV of replacing each engine? 0+ decimals Submit Attempt 1/10 for 10 pts

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