Question: The table given below shows how, on average, the market value of a Boeing 737 has varied with its age and the cash flow needed


The table given below shows how, on average, the market value of a Boeing 737 has varied with its age and the cash flow needed in each year to provide a 13% return. (For example, if you bought a 737 for $19.93 mi 19.93 -$2.59 million, 13% of the purchase cost.) on at the start of year 1 and sold it a year later, your total profit would be 18.11 4.41 Assume airlines write off their aircraft straight-line over 15 years to a salvage value equal to 10% of the original cost. Start of Year Market Value Cash Flow 19.93 4.41 18.11 17.03 3.43 15.90 3.34 15.13 2.84 14.21 2.89 13.60 2.46 2.57 12.80 12.29 2.17 10 11.58 2.31 1.94 11 11.15 10.51 2.09 12 10.15 13 1.73 9.56 1.91 14 1.55 9.25 8.71 1.74 16 The table given below shows how, on average, the market value of a Boeing 737 has varied with its age and the cash flow needed in each year to provide a 13% return. (For example, if you bought a 737 for $19.93 mi 19.93 -$2.59 million, 13% of the purchase cost.) on at the start of year 1 and sold it a year later, your total profit would be 18.11 4.41 Assume airlines write off their aircraft straight-line over 15 years to a salvage value equal to 10% of the original cost. Start of Year Market Value Cash Flow 19.93 4.41 18.11 17.03 3.43 15.90 3.34 15.13 2.84 14.21 2.89 13.60 2.46 2.57 12.80 12.29 2.17 10 11.58 2.31 1.94 11 11.15 10.51 2.09 12 10.15 13 1.73 9.56 1.91 14 1.55 9.25 8.71 1.74 16
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