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I have no idea how to start this. Any suggestion or advise would be needed. Looking for tutor that I can ask question one on
I have no idea how to start this. Any suggestion or advise would be needed.
Looking for tutor that I can ask question one on one.
Blended Profile Applied, per Aircraft B737-700 Given Purchase Cost (pre-installed) $000 Installation $000 Downtime Days (installation) Downtime Cost/Day $000 Salvage % Inflation Engineering Study Marginal Tax Rate Discount Rate $ (700,000) $ (56,000) 1 $ (5,000) 15.00% 3.00% $ 90,000 39.00% 9.28% 0 Airframe Maintenance $ (2,100) per year Useful Life (yrs) Aver 20 Runway Savings $ 500 per year Facility cost $ 1,200 per aricraft Depreciation MACRS (see below) Overhead Alloication 8% each year of project costs Fuel Price (all-in) $ 0.80 includes delivery, taxes and into Fuel (gallons saved) 178,500 1 2 3 4 Winglet Purchase Winglet Installation Install. Downtime costs Airport Reconfiguration Engineering Study Fuel Savings Airframe Maint. Costs Reduced restrictions (inflated 3%/yr) Overhead allocation expense Less: depreciation EBIT Less: Income Tax Net Income Plus: Depreciation Operating Cash Flow Salvage Value Tax on Salvage Value Total Project Cash Flow NPV IRR DEPRECIATION DETAILS Normal Table MACRS Table 1 Normal Year 1(a) Table x Additional valid til 9/11/04 50.00% 50.00% Total (modified table) 14.29% 7.15% 50.00% 57.15% 5 2 24.49% 12.25% 3 17.49% 8.75% 4 12.49% 6.25% 5 8.93% 4.47% 6 8.92% 4.46% 7 8.93% 4.47% 8 4.46% 2.23% (a) Job Creation and Worker Assistance Act of 2002 Breakeven fuel cost Breakeven fuel savings 12.25% 8.75% 6.25% 4.47% 4.46% 4.47% 2.23% per gallon gallons Current Values Best Case Worst Case Changing Cells Fuel Price $ 0.80 $ 1.10 $ 0.50 Gallons Saved 178,500 214,000 142,000 Result Cells NPV IRR Notes: Current Values column represents values of changing cells at time Scenario Summary Report was created. 37-700 per aricraft each year of project costs includes delivery, taxes and into plane charges Solution 6 Tax Depr 7 8 9 Year 10 11 12 13 14 15 16 17 18 19 20Step by Step Solution
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