Problem
West north Airlines may purchase a New York to London route from Divided Airlines for $1.5M. The new route should generate income of $1.2M, with associated costs of $850K each year for the next 8 years. (Government regulations require all international routes to be rebid in 8 years.) If West north requires a 14% return on all investments, should the route be purchased? Analyze using appropriate IRRs.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.