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In: Accounting

Your company is considering buying a 787 airplane and then lease it to Delta Air Lines....

Your company is considering buying a 787 airplane and then lease it to Delta Air Lines. Your task is to determine the before tax leasing payment

You may follow the Leasing example we discussed in the class.
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, insurance cost, maintenance and operating costs, and salvage value.

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