Express Airlines Is Considering the Purchase of an Aircraft to Supplement

question 116

Multiple Choice

Express Airlines is considering the purchase of an aircraft to supplement its current fleet.In estimating the impact of adding this aircraft to the fleet, management has developed the following expected cash flows: If the discount rate is 10 percent, what is the present value of these estimated flows?

• A) $379,080
• B) $224,211
• C) $189,760
• D) $154,869
• E) $199,000

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