1. Ondi Airlines is interested in acquiring a new aircraft to service a new route. The route will be from Tulsa to Denver. The aircraft will fly one round-trip daily except for scheduled maintenance days. There are 15 maintenance days scheduled each year. The seating capacity of the aircraft is 150. Flights are expected to be fully booked. The average revenue per passenger per flight (one-way) is $315. Annual operating costs are given in the Ondi worksheet. The aircraft will cost $120,000,000 and has an expected life of 20 years. The company can borrow the money at 4.5%. The company requires a hurdle rate of 12% return.

• Make the cash flow statements for the projected 20 years
• Calculate NPV given the company's hurdle rate. Should the aircraft be purchased?
• Calculate NPV given returns of 8% to 20%. At what rate of return is the purchase not viabl
• make a scatter chart of NPV values.
• Calculate IRR
• In what year does cumulative cash flow go from negative to positive (use formulas)

AutoSave OFF AAND. Final W2023 Home Insert Draw Page Layout Formulas Data Review View Automate Developer ? Tell me Comments Share Calibri (Body) 11 ~ A" A" ap Wrap Text v Custom Insert v ZX AY - O. D x Delete Paste B E Merge & Center v $ ~ % " Conditional Format Cell Sort & Find & Analyze Formatting as Table Styles Format Sensitivity Filter Select Data B45 X V fx | 100000 A B C D E F G H I J K L M N 0 R S T U W 2 3 5 6 8 9 10 11 12 13 14 15 16 17 18 19 20 Total 7 Reveunes 8 Operating Expenses: Fuel 10 Fight Personnel 11 Food & beverages 12 Maintance 13 Othe 14 Total operating expenses 15 Operating Income 16 Less 17 Depreciaton 18 Interest Expense 19 Income Before Taxes 20 Income Tax Expense 21 Income After Tax 22 Add back: Depreciation 23 Deduct: Principle Payments 24 Cash Flow 25 26 Cumulative Cash Flow 27 28 29 30 Fill Color 31 32 Assumptions: 33 Flight Revenue 1-Way $ 315 34 Seating Capacity 150 35 Maintenance Days/Yea 15 36 Aircraft Cost $ 120,000,000 37 Life of aircraft 20 38 $1,200,000 39 Interest rate 4.50% 40 Payments per Year 41 Tax Rate 35% 42 Expenses: 43 Fuel ,750,000 44 Fight Personnel 750,000 45 Food & beverage 100,000 46 Maintance 50,000 47 Other 100,000 48 Hurdle Rate 12% Valentines Solver Answer Report 1 Limits Report 1 Sensitivity Report 1 Ondi Whatever Estimate Form Models Mileage States Insurance Gas Prices + Ready iT Ex Accessibility: Investigate + 100%