21.41 ** Ecological footprint, life-cycle analysis (LCA) Objectives 1,5, 6, 7, 8 Outback Air Ltd provides an air-freight service to remote areas of Western Australia. Outback Air's operations manager is performing a life-cycle analysis to determine the best approach to replacing the company's ageing fleet of aircraft. The following alternatives have been identified: A. Purchase two new aircraft, each with a capacity of 1.5 tonnes. The aircraft would cost $300000 each and would consume around 33 litres of fuel per hour. The planes would be flown for around 3000 hours per year. Annual maintenance and registration would be around $15000 per year. The aircraft would have an effective life of 30000 hours with zero residual value. B. Purchase five new aircraft, each with a capacity of 0.5 tonnes. The aircraft would cost $200000 each and would consume around 25 litres of fuel per hour. The planes would be flown for around 1500 hours per year. Annual maintenance and registration would be around $12000 per year. The aircraft would have an effective life of 30000 hours with zero residual value. Required 1. What option would you prefer on financial grounds if the price of aircraft fuel is $1.50 per litre? 2. What impact would the expectation of significantly decreased fuel prices in the coming year have on your decision? 3. What other factors would you consider