Question
- British Airways Plc plans to set aside investment funds now for replacing 34 of the airline's aging long-haul fleet of Boeing 747s and 767s, 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 will be $100 million and the company earns a rate of return of 4.5% per year? (express your answer to the neares cent)
British Airways Plc plans to set aside investment funds now for replacing 34 of the airline's aging long-haul fleet of Boeing 747s and 767s, 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 will be $100 million and the company earns a rate of return of 4.5% per year? (express your answer to the neares cent) British Airways Plc plans to set aside investment funds now for replacing 34 of the airline's aging long-haul fleet of Boeing 747s and 767s, 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 will be $100 million and the company earns a rate of return of 4.5% per year? (express your answer to the neares cent)
Explanation / Answer
$PV = 100/1.045^5 = $ 80.245 million = $ 80,245,104.65