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Southwest Airlines (SWA) signed a contract that allowed it to buy jet fuel at a fixed...

Southwest Airlines (SWA) signed a contract that allowed it to buy jet fuel at a fixed price for 5 years. If the contract price was $0.50 per gallon cheaper than the market price in Year 1 and the market price increased by $0.10 per gallon per year after that, what was the present worth of SWA's savings per gallon over the 5-year length of the contract? Use i = 10% per year.

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