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Explain both below tables in detail: Year 2 Year 3 $48,000,000 $46,000,000 Table 8.6 Cash flows for three-year 737 lease Year 0 Year 1 Capital
Explain both below tables in detail:
Year 2 Year 3 $48,000,000 $46,000,000 Table 8.6 Cash flows for three-year 737 lease Year 0 Year 1 Capital spending ($10,000,000) Revenues $44,000,000 expenses Fuel ($15,000,000) Salaries ($15,000,000) Maintenance ($2,000,000) Leasing cost ($4,000,000) Total expenses ($36,000,000) Operating income $8,000,000 Taxes (30%) $2,400,000 Net cash flow ($10,000,000) $5,600,000 Discounted cash ($10,000,000) $5,137,615 flow $1,915,841 ($20,000,000) ($15,000,000) ($3,000,000) ($4,000,000) ($42,000,000) $6,000,000 $1,800,000 $4,200,000 $3,535,056 ($19,000,000) ($15,000,000) ($2,000,000) ($4,000,000) ($40,000,000) $6,000,000 $1,800,000 $4,200,000 $3,243,171 Table 8.9 Net present value of mutually exclusive maintenance project proposals Hangar expansion Process revision Cash flow Discounted cash Cash flow flow Year 0 ($15,000,000) ($15,000,000) ($7,000,000) Year 1 $2,000,000 $1,851,852 $4,000,000 Year 2 $5,000,000 $4,286,694 $4,000,000 Year 3 $10,000,000 $7,938,322 $4,000,000 Year 4 $25,000,000 $18,375,746 $4,000,000 NPV $17,452,615 Discounted cash flow ($7,000,000) $3,703,704 $3,429,355 $3,175,329 $2,940,119 S6,248,507Step by Step Solution
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