Maurice Tutor

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Teaching Since: May 2017
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 05 Feb 2018 My Price 5.00

Efficient light jets

Efficient light jets (ELJs) are smaller aircraft that may revolutionize the way people travel by plane. They cost between $1.5 and $3 million, seat 5 to 7 people, and can fly up to 1100 miles at cruising speeds approaching 425 mph. Eclipse Aerospace was founded in 2009, and its sole business is making ELJs. The company invested $500 million (time 0) and began taking orders 2 years later. If the company accepted orders for 2500 planes and

received 10% down (in year 2) on planes having an average cost of $1.8 million, what rate of return will the company make over a 10-year planning period? Assume 500 of the planes are delivered each year in years 6 through 10 and that the company’s M&O costs average $10 million per year in years 1 through 10. (If requested by your instructor, show both hand and spreadsheet solutions.)

Answers

(5)
Status NEW Posted 05 Feb 2018 10:02 PM My Price 5.00

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