The world airline system is composed of the routes X and Y, each of which requires 12 aircraft. These routes can be serviced by three types of aircraft-A, B, and C. There are 6 type A aircraft available, 12 type B, and 12 type C. These aircraft are identical except for their operating costs, which are as follows: Aircraft Type A B C Annual Operating Cost Route X 1.62 2.62 4.62 ($ millions) Route Y 1.62 2.12 3.62 The aircraft have a useful life of five years and a salvage value of $1.0 million. The aircraft owners do not operate the aircraft themselves but rent them to the operators. Owners act competitively to maximize their rental income, and operators attempt to minimize their operating costs. Airfares are also competitively determined. Assume the cost of capital is 12%. a-1. Which aircraft would be used on which route? a-2. How much would each aircraft be worth? b-1. Assume the number of type A aircraft increased to 12. Which aircraft would be used on which route? b-2. How much would each aircraft be worth? c-1. Assume the number of type A aircraft increased to 18. Which aircraft would be used on which route? c-2. How much would each aircraft be worth? d-1. Assume the number of type A aircraft increased to 24. Which aircraft would be used on which route? d-2. How much would each aircraft be worth?

The world airline system is composed of the routes X and Y, each of which requires 12 aircraft. These routes can be serviced by three types of aircraft-A, B, and C. There are 6 type A aircraft avallable, 12 type B, and 12 type C. These aircraft are identical except for their operating costs, which are as follows: The aircraft have a useful life of five years and a salvage value of $1.0 million. The aircraft owners do not operate the aircraft themselves but rent them to the operators. Owners act competitively to maximize their rental income, and operators attempt to minimize their operating costs. Alrfares are also competitively determined. Assume the cost of capital is 12%. a-1. Which aircraft would be used on which route? a-2. How much would each aircraft be worth? b-1. Assume the number of type A aircraft increased to 12 . Which aircraft would be used on which route? b-2. How much would each aircraft be worth? c-1. Assume the number of type A aircraft increased to 18 . Which aircraft would be used on which route? c-2. How much would each aircraft be worth? d-1. Assume the number of type A aircraft increased to 24. Which aircraft would be used on which route? d-2. How much would each aircraft be worth