Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question
OMNIA Airlines is considering an important decision regarding their fleet. There current Bombardier Turboprops, which number 35 aircraft, have suffered tail damage due to an autopilot malfunction on landings. The planes are still flying safely but need expensive repairs on their tails and fuselage at a cost of $4.2m per plane. Repairs would be conducted on a rotating basis, so there will be no significant fleet reduction impairing ongoing operations. The repairs would allow these planes to serve for 10 more years. After 10 years their salvage value would be $2m per plane. Maintenance costs are $280,000 per plane each year. Each plane carries a passenger load of 45 passengers, with a 100% load factor, as well as 2,000 lbs. of freight at a fee of $2.45 per pound paid by the shippers. The average ticket price per flight is $67 and each plane flies 1250 missions per year. Each mission has a fuel burn of $4300. An alternative open to OMNIA Air is to sell the damaged Bombardiers for $3m per plane and purchase 35 Mitsubishi Fanjets at $18m per plane. The planes carry 5 additional passengers compared to the turboprops, burn 5% more fuel, but require 20% less in maintenance costs per year. Each pane flies 1450 missions per year. After 10 years they would be retired, and each plane would have a salvage value of $5m. The capital structure of OMNIA consists of $400m in stock with a required return of 14% and 1.2b in bonds with a current yield to maturity of 8.5%. Assume the corporate tax rate is 21%. Also assume that the firm will have to spend $800,000 on pilot/mechanic training when any new aircraft are introduced.
WHAT IS THE NPV ON BOTH OPTIONS. What is your recommendation to OMNIA, should they repair the Bombardiers or buy the new Mitsubishis. Show all your work and explain the rationale for your decision.
Your paper can focus on either a current coworker or a past coworker. The coworker should be a real person, as opposed to an amalgam of multiple individuals.
Mr. Gold believes in Argyris's theory of adult personality. He does not weigh down his subordinates, nor does he discriminates them by their age or intelligence
Explain where in the marketplace the new products are launching. Identify who benefits from this product in both the company and the community.
You have conducted an initial thematic analysis of a set of interviews you conducted with sales representatives for your company focused on their experiences wi
Describe the specific appraisal methodology and criteria that will be used to measure performance. Your description should include which types of performance.
Explain why is this issue a controversial one? Illustrate what is the monetary floor an employer/federal government contractor must meet to have executive Order 11246 imposed?
Do laws and regulations protect patients or do health professionals protect patients?
1. Discuss in a few sentences about the creation and implementation of the social credit score system in China
What is a pricing strategy and why is it important in revenue management?
Your team has been struggling with one member who does not respond to e-mails in a timely fashion.
Discuss the influence of globalization, social responsibility and environmental sustainability on strategic management of a corporation
FLM will experience higher degree of rivalry because the sum of the squared market shares of its incumbents, calculated from the information given
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd