British Airways PLC plan to set aside investment funds now for replacing 34 of the airline’s aging long-haul fleet of Boeing 747’s and 767’s which will be delivered 5 years from now. How much will the company need to have in its investment fund now if the cost of the fleet is $1302,116,317 millions and the company earns a rate of return of 3% per year? Draw the cash flow diagram.

Answer rating: 100% (QA)

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