The mkworld airline system is composed of the european and

Reference no: EM13396863

The MKWorld airline system is composed of the European and African routes, each of which requires 10 aircrafts. These routes can be serviced by three types of aircraft—A, B, and C. There are five Type A, ten Type B, and ten Type C aircrafts available. These aircraft are identical except for their operating costs, which are as follows:

Aircraft European Route African Route

A 1.5 1.5
B 2.5 2.0
C 4.5 3.5

The aircraft have a life span of five years and a salvage value of $1 million. The aircraft owners do not operate the aircraft themselves, but rent them to 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 10%:

-Which aircraft would be used on which route, and how much would each aircraft be worth?

-What would happen to usage and price of each aircraft if the number of Type A aircraft increased to 10?

Type A aircraft increased to 15?

Reference no: EM13396863

Questions Cloud

Payroll accounting suppose that the following tax rates as : payroll accounting. assume that the following tax rates and payroll information pertain to brookhaven publishingbull

If the average level of outstanding receivables is 700000 : assume that sunshine products inc has an agreement with shady finance company to factor its receivables. shady charges

On january 1 2014 harter company had accounts receivable : on january 1 2014 harter company had accounts receivable 127600 notes receivable 25200 and allowance for doubtful

In general terms compare and contrast how expenditures are : your city has decided to build a new library. the projected cost is 2 million. a bond issue for 1.2 million has been

The mkworld airline system is composed of the european and : the mkworld airline system is composed of the european and african routes each of which requires 10 aircrafts. these

Write a brief essay describing the benefits of maintenance : 1.write a brief essay describing the benefits of maintenance planning in detail.two pages minimum.of the six planning

Explain why are algae significant in nature how are algae : why are algae important in nature? how are algae fungi and lichens related and how is this relationship defined?

Assuming a constant rate for purchases production and : assuming a constant rate for purchases production and sales throughout the year what are casa de disentildeos existing

Certainly one of the hadest jobs in healthcare management : certainly one of the toughest jobs in healthcare management is conducting employee performance appraisals. it is

User Account

All Pages