Fleet Replacement Analysis
This assignment has three objectives:
Become familiar with the type and magnitude of mainline aircraft operating costs;
Understand the operating economics of new versus older aircraft; and,
Learn how net present value analysis is used in capital acquisition decision-making.
InselAir has engaged the aviation consulting firm IFC International to evaluate whether it should continue its fleet expansion with new aircraft instead of the aging
McDonnell Douglas MD-80 aircraft that are the backbone of its small fleet. You are the senior financial analyst with IFC assigned to this project and will prepare a
memorandum with your conclusions to InselAir’s Chief Executive Officer Albert Kluyver.
Necessary assignment details and instructions are provided in the document below. Completion of this assignment requires the use of the Excel template also provided
below. To download the files, right-click on the hyperlinked file name and select Save Target As… (or comparable option), then save to your computer.
Written Assignment 2 – Fleet Replacement Analysis (PDF)Preview the documentView in a new window
Written Assignment 2 – Excel Template (Microsoft Excel)Preview the documentView in a new window
Observe the written assignment standards linked below. Note: APA formatting is not required for this assignment.
Written Assignment StandardsPreview the documentView in a new window (PDF)
Save your document with the filename “mbaa523_wa2_yourlastname.doc” (or .docx or .rtf).
This graded activity is scored at a maximum 100 points. See the course syllabus for weighting. Review the rubric for grading guidelines.
Note: Your paper will automatically be evaluated through TurnitinLinks to an external site., a service that checks your work for improper citation or potential
plagiarism by comparing it against a database of web pages, student papers, and articles from academic books and publications. Ensure that your work is entirely your
own and that you have not plagiarized any material!