Question: We fly workers from Calgary to the Diamonds Are For Eva diamond mine near Yellowknife, and we have a choice between buying a plane for

We fly workers from Calgary to the Diamonds Are For Eva diamond mine near Yellowknife, and we have a choice between buying a plane for $120 million, or leasing a plane for $15 million/year. The PV.CCATS is $20 million. If we buy the plane, we pay $5 million in annual maintenance costs for 30 years. If we lease the plane, all maintenance is included. Assume no taxes, and no net impact on revenues or working capital.
Using a 7% discount rate, what is the present value of each option
We fly workers from Calgary to the Diamonds Are For Eva

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