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1) 2) Lex Luther, the arch enemy of Superman, wants to place a large Kryptonite gun on the top of his secret lair. He believes
1)
Lex Luther, the arch enemy of Superman, wants to place a large Kryptonite gun on the top of his secret lair. He believes this will be the most effective method of defense against Superman. He must decide if he should construct his own Kryptonite gun or purchase one from his friend Sinesto. Let i = 9% per year. Cash Flows First Costs, $ Annual operating cost, $/year Salvage, $ Life, years Build Purchase - 120,000 -80,000 -9,000 -20,000 95,000 5,000 0010 One of the largest expenses for the greatest NFL team of our generation is travel. With preseason, regular season, and post-season games, the team travels to away games 12 times each season. A typical wide body charter plane costs about $400,000 per game. The cost of purchasing a wide-body aircraft would cost the team $5,500,000, plus an additional $1,000,000 for refurbishing. Annual maintenance costs would be $300,000. Average fuel cost per game is about $230,000. Assume the plane can be used for 15 seasons, after which the salvage value will be $500,000 The interest rate is 5% per year. Should the team charter planes or purchase their ownair Kraft 2)
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