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How would this information be used in a capital budgeting analysis. In order for the immediate operation of the Skyliner planes, Kangaroo Airlines must increase
How would this information be used in a capital budgeting analysis.
In order for the immediate operation of the Skyliner planes, Kangaroo Airlines must increase its operating inventory by $2 million per plane, and its total spare parts inventory across the three Skyliner planes by $6million. The cost of replenishing all inventory is included in the annual maintenance, safety checks, and cabin cleaning cost figure.
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