British Airways Plc plans to set aside investment funds now for replacing 34 of

Question

1. 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

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