question archive The manager of an oil company is considering the purchase of a new jet so that it can fly in workers to a remote site They can buy a new jet for $2,000,000 and will incur $200,000 in fixed costs (insurance, maintenance) and $287 per hour in variable costs (fuel, pilot) The jet will operate 1200 hours per year for 5 years and then be sold for $550,000 The salvage value will be a benefit in the year its sold The company uses a discount rate of 6% a) calculate thr annual equivalent cost of the jet B) what is the cost per hour?
The manager of an oil company is considering the purchase of a new jet so that it can fly in workers to a remote site They can buy a new jet for $2,000,000 and will incur $200,000 in fixed costs (insurance, maintenance) and $287 per hour in variable costs (fuel, pilot) The jet will operate 1200 hours per year for 5 years and then be sold for $550,000 The salvage value will be a benefit in the year its sold The company uses a discount rate of 6% a) calculate thr annual equivalent cost of the jet B) what is the cost per hour?
Subject:EconomicsPrice: Bought3
The manager of an oil company is considering the purchase of a new jet so that it can fly in workers to a remote site They can buy a new jet for $2,000,000 and will incur $200,000 in fixed costs (insurance, maintenance) and $287 per hour in variable costs (fuel, pilot) The jet will operate 1200 hours per year for 5 years and then be sold for $550,000 The salvage value will be a benefit in the year its sold The company uses a discount rate of 6%
a) calculate thr annual equivalent cost of the jet
B) what is the cost per hour?
