How is it possible for airlines flying older models

Assignment Help Finance Basics
Reference no: EM131936673

Assignment

New-model commercial airplanes are much more fuel-efficient than older models. How is it possible for airlines flying older models to make money when their competitors are flying newer planes? When answering this question, consider capital budgeting. If the old planes still make money, does it make sense to buy new planes, given how long it would take to make the money back from the purchase of new planes? Explain thoroughly.

Be sure to support your statements with logic and argument, citing any sources referenced. Post your initial response early, and check back often to continue the discussion. Be sure to respond to your peers and instructor's posts, as well.

Note: This discussion is not about airline usage or efficiency. It is about the different capital budgeting techniques that we learned about in week two and the airline is simply the context of the analysis. You can talk about cash flow, estimates of cash flow, certainty / risk of cash flow under different sates of nature and the way it used in Capital budgeting techniques.

Verified Expert

This assignment is focused on the capital budgeting techniques in order to determine whether the older models can provide more revenue in comparison of new model and should the organization need to purchase new models.

Reference no: EM131936673

Questions Cloud

Discuss the current market prices : Assume the current market prices for UUU, WWW, XXX, YYY, and ZZZ are $27.15, $3.82, $34.32, $29.00, and $80.08 respectively.
Book value of the asset : XYZ bought a press 4 years ago for $116,750 which is being depreciated straight-line to a salvage value of $4,250 over 6 years.
Determine the total cost of production for each options : Suppose that the firm needs to choose between producing the entire output at home or producing half the output at home and half abroad. Determine the total cost
Explain the e-cube routing mechanism built into the mdp : Explain the E-cube routing mechanism built into the MDP. Explain concept of using a combining tree for synchronization of events on various nodes in J-Machine.
How is it possible for airlines flying older models : New-model commercial airplanes are much more fuel-efficient than older models. How is it possible for airlines flying older models to make money
By how much did the company retained earnings increase : Polycom Systems earned $553 million last year and paid out 25 percent of earnings in dividends.
Compare the implementation requirements in consistency model : Compare the implementation requirements in the three consistency models. Comment on the advantages and shortcomings of each consistency model.
Why has shared virtual memory become a necessity : Why has shared virtual memory become a necessity in building a scalable system with memories physically distributed over a large number of processing nodes?
Unbiased expectations theory : Suppose that the current one-year rate (one-year spot rate) and expected one-year T-bill rates over the following three years (i.e., years 2, 3, and 4

Reviews

len1936673

4/10/2018 6:17:55 AM

Please help with this assignment and note the professor's note highlighted in yellow to use as a guideline in the discussion as this is not about airplanes. Note from the Professor Folks: Let me clarify this discussion a bit. This discussion is not about airline usage or efficiency. It is about the different capital budgeting techniques that we learned about in week two and the airline is simply the context of the analysis. You can talk about cash flow, estimates of cash flow, certainty / risk of cash flow under different sates of nature and the way it used in Capital budgeting techniques . I hope that helps

Write a Review

Finance Basics Questions & Answers

  Determine using the internal rates of return criterion

Determine using the internal rates of return criterion with an incremental analysis which will offer the largest monetary benefit to AWS if their MARR is 12%.

  Discuss the trade discount terms

Feast'N'Run provides a contract catering service to several university and college campuses. One of its main suppliers has offered trade discount terms.

  What is current stock price according to the dividend model

he Black Forest Cake Company just paid an annual dividend of $5.32. If you expect a constant growth rate of 4.63 percent, and have a required rate of return of 14.65 percent, what is the current stock price according to the constant growth dividen..

  U.s. and japanese government bond rates

Compare one year U.S. and Japanese government bond rates. What do these imply about the likely direction of change in the yen to dollar exchange rate?

  What is the internal rate of return on the project

Under which method(s) above should the company accept the project (applying the acceptance rules)? Explain.

  Describe the budget of the agency

Include a cover page containing the title of the assignment, the student's name, the professor's name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

  An investor relations or company information

Research a publicly held company of your choice, and access the company's Web page on the Internet to read its most recent annual report. The annual report is typically found in an "Investor Relations" or "Company Information" section within th..

  What is the firm value of operations in millions

Mooradian Corporation's free cash flow during the just ended year (t=0) was $100 million, and the FCF is expected to grow at a constant rate of 5.0% in the future. If the weighted average cost of capital is 12.5%, what is the firm's value of opera..

  List the variables that represent the schedules

Suppose that management of Valley Cinemas would like to investigate the potential of using a scheduling system for their chain of multiple-screen theaters.

  Did the authors use the correct statistical test in other

in an essay of 250-500 words use the scenario presented in part 1a above to answer the following questionswhat

  One year ago you bought a bond for 10000 you received

one year ago you bought a bond for 10000. you received interest of 400 at the end of the year as well as your 10000

  The fixed asset will have a market value of 310000 at the

keiper inc. is considering a new three-year expansion project that requires an initial fixed asset investment of 2.40

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd