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WestJet Airlines Is Considering Purchasing 20 New Planes That Will

Question 97

Multiple Choice

WestJet Airlines is considering purchasing 20 new planes that will save the company $25 million per year in fuel and maintenance costs for the next 10 years.If the cost of the new planes is $200 million dollars and WestJet's WACC is 8.5%,what is the NPV of the project?


A) -$200,000
B) $50 million
C) $30.4 million
D) $0
E) $4.4 million

Correct Answer:

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