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A corporate executive jet with a seating capacity of 20 has the following cost factors 15 years ITEM COST Initial cost $12,000,000 Service life Salvage

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A corporate executive jet with a seating capacity of 20 has the following cost factors 15 years ITEM COST Initial cost $12,000,000 Service life Salvage Value $2,000,000 Crew costs per year $225,000 Fuel cost per mile $1.10 Landing fee per landing $250 Maintenance costs per year $237.500 Insurance costs per year $166,000 Catering cost per passenger $75 round trip The company nies three found trios from Boston to London and back per week, distance of 3 280 miles one way. How many passengers must be carried on an average trip in order to justify the use of the jet if the alternative commercial airline first-class round-trip fare is $3.400 per passenger? The firm's MARR IS 15% Note that one years 52 weeks 1327 passenger round trips per year C962 passenger round trips per year 1 156 passenger round trips per your OC O 1 469 passenger round trips per year

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