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Q-3. A corporate jet costs 1,350,000$ and will incur 200,000$ per year in fixed cost (maintenance,...) and 277$ per hour variable cost (fuel,...). The jet will be operated 1200 hours per year for five years and then sold for 650,000$. The jet revenues 1000$ per hour. The MARR is 15% per year (15 marks) Solution: 1. Revenue, 2. Expense, 3. Capital Recovery, 4. Annual Worth, 5. Equivalent Uniform Annual Cost, 3