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1. Superior Air Flights is considering the purchase of a helicopter to connect service between its base airport and a new field being built about
1. Superior Air Flights is considering the purchase of a helicopter to connect service between its base airport and a new field being built about 30 miles away. The choppers are assumed to be needed for only 6 years until a rapid transit service is completed. Estimates of the two craft under consideration are as follows: First cost Annual maintenance Salvage value Life in years Birdic $95,000 $3,000 $12,000 3 Rooster $120,000 $9,000 $25,000 Which option is cheaper per year and by how much? Use an interest rate of 10%. Also, what is the cost per mile if the copper flies 150 times between its base airport and new field per year. 60 34500 yeacly
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