Question
For the Capital Budgeting assignment, we need to put the answer under either cash flows at start year 0, cash flows during life year 1-9,
For the Capital Budgeting assignment, we need to put the answer under either cash flows at start year 0, cash flows during life year 1-9, and cash flows at the end of the life year 10.
This is the scenario for one section: Due to their shape and size, the new Skyliner planes will not be able to land and park in traditional airport gates. As a result, the Skyliner planes will park at unique gates at both Sydney and John F. Kennedy airports, and each Skyliner plane will require eight airplane stair cases so that passengers can enter and exit the plane. Kangaroo Airlines have eight idle airplane stair cases which have been written off for tax purposes in both their Sydney and New York warehouses located close to the airports.The sixteen airplane staircases were purchased in the past for $250,000 each, and can be sold today for $50,000 each. It is forecasted that the sixteen staircases will be worthless at the end of the Skyliner capital budgeting project.Virgil suggests that the airplane staircase cash flows are irrelevant in the capital budgeting decision of the new Skyliner planes.
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