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a ) An airline currently tickets an average of 6 , 0 0 0 passengers daily. This task involves 5 0 employees at an average
a An airline currently tickets an average of passengers daily. This task involves employees at an average annual salary of $ each. A computer firm proposes a ticketing system which can do the job including system maintenance with only employees. The systems purchase can be financed by borrowing at percent per year. At what price does the system become attractive to the airline? b Now, suppose that it is expected that, due to technical developments, the price of the above system will decline at an annual rate of about for the foreseeable future. At what price does the system now become attractive?
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