Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Finesse An Accounting Guide For Entrepreneurs

Authors: TaShara Ramese

1st Edition

1732510903, 978-1732510906

More Books

Students also viewed these Accounting questions

Question

Determine the CFP Board definition of a fiduciary.

Answered: 1 week ago