Question

Bangladesh Airlines is considering the purchase of an aircraft for $60 million that would last for

10 years and generate incremental revenues of $15 million per year and incremental expenses,

including depreciation, of $5 million per year. What is the simple rate of return on the aircraft?​

Answer 1

Answer:

Bangladesh Airlines is considering the purchase of an aircraft for $60 million that would last for

10 years and generate incremental revenues of $15 million per year and incremental expenses,

including depreciation, of $5 million per year. What is the simple rate of return on the aircraft?