Question: Rini Airlines is considering two alternative planes. Plane A has an expected life of 5 years, has an after-tax cost of $90 million, and will

 Rini Airlines is considering two alternative planes. Plane A has an

Rini Airlines is considering two alternative planes. Plane A has an expected life of 5 years, has an after-tax cost of $90 million, and will produce after-tax cash flows of $30 million per year. Plane B has a life of 10 years, has an after-tax cost of $110 million, and will produce after-tax cash flows of $30 million per year. Rini plans to serve the route for 10 years. The company's WACC is 13%. If Rini needs to purchase a new Plane A, the after-tax cost will be $105 million, but cash inflows will remain the same. Should Rini acquire Plane A or Plane B? Explain your answer. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Do not round intermediate calculations. Round your answer to two decimal places. Plane is the better project and will increase the company's value by millions

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