Buying an airplane and then lease it to delta air lines

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Reference no: EM132039796

You work as a financial analyst for RBC. Your company is considering buying an airplane and then lease it to Delta Air Lines. Your task is to determine the before tax leasing payment.

You may choose an airplane of your choice (747, 767, 777, 787) Assume 20 year depreciation period in your lease analysis. Make your assumptions about tax rate, required rate of return,plane cost, salvage value, etc.

Try to show your work and formulas used.

Reference no: EM132039796

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