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Question: washington air company is considering the purchase of a helicopter...

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Washington Air Company is considering the purchase of a helicopter for connecting services between the companys base airport and the new intercounty airport being built about 30 miles away. It is believed that the chopper will be needed only for eight years until the Rapid Transit Connection is phased in. The estimates on two types of helicopters under consideration, the Whirl 2B and the ROT 8, are given in the table below.Assuming that the Whirl 2B will be available in the future with identical costs, what is the annual cost advantage of selecting the ROT 8? (Use an interest rate of 14%.) Click the icon to view the estimates on two types of helicopters under consideration. Click the icon to view the interest factors for discrete compounding when i= 14% per year. The annual cost advantage of selecting the ROT 8 is S□ (Round to the nearest dollar)First cost Annual maintenance Salvage value Useful life in years The Whirl 2B $98,000 $5,000 $18,000 4 The ROT 8 $120,000 $7,500 $16,000ingle Payment ual Pavment Series Capital Recovery Factor (AP, İN) 1.1400 0.6073 Compound Present Compound Sinking Amount Factor (FP, iN) 1.1400 1.2996 1.4815 1.6890 1.9254 Worth Factor (PF, i, N) 0.8772 0.7695 0.6750 0.5921 0.5194 Amount Factor (FIA, İ, N) 1.0000 2.1400 3.4396 4.9211 6.6101 Fund Factor (AF, İN) 1.0000 0.4673 0.2907 0.2032 0.1513 Present Worth Factor (P/A, İ, N) 0.8772 1.6467 2.3216 2.9137 3.4331 0.4307 0.3432 0.2913 2.1950 2.5023 2.8526 3.2519 3.7072 8.5355 10.7305 13.2328 16.0853 19.3373 0.1172 0.0932 0.0756 0.0622 0.0517 3.8887 4.2883 4.6389 4.9464 5.2161 0.2572 0.2332 0.4556 0.3996 0.3506 0.3075 0.2697 0.2156 0.2022 0.1917

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