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What would be the average book value

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Question - Air Emirates Ltd is considering to buy a second hand Airbus A380-800 from Thailand Airways. The cost of the aircraft is $120 million which would be depreciated straight-line to zero over its 6-year life. Projected net incomes from year 1 to 6 are $27m, $16m, $22m, $32m, $41m and $23m respectively. What would be the Average Book Value of the second hand Airbus A380-800?

Reference no: EM133017676

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