- General Defences to Criminal Liability Assignment UK
- The Principles of Business and Resource Management for Leaders of Adult Social assignment NVQ Level 5 Assignment UK
- Printed Circuit Board (PCB) Inspection Jig BTEC (RQF) Level 4 Assignment, PC, UK
- Property Law: Research, Case Analysis, and Legal Advice Assignment UK
- SCEE08002 Structural Mechanics 2 Laboratories Assignment UK
- Working in Partnership in Health and Social Care Assignment UK
- Aircraft Structural Mechanics 3 Design & Optimisation Project UK
- Responsibilities of a Health and Social Care Worker NVQ Level 3 Assignment, LCPA UK
- TC50324E: Measurement and Documentation Assignment 1, UOWL, UK
- Business Ethics and Responsible Management Semester 1 Assignment, URBS, UK
- Working in Partnership in Health and Social Care Management Assignment UK
- HH5561 Health Economics and Decision Modelling Assignment, UOG, UK
- Civil CEP: Numerical Analysis Assignment 1, UOB, UK
- CIPD Level 3 Foundation Unit 1 Assignment, OU, UK
- HSC301 State the Roles and Responsibilities Assignment, ILC, UK
- ProQual Level 6 NVQ Diploma in Occupational Health and Safety Practice Assignment UK
- Corporate Finance and Business Valuation Assignment
- HNC-D 10 Financial Accounting Assignment
- MN5612 Digital Marketing Strategy Assignment
- Social Roles In The Caring Professions Assignment Brief
CA6060 An airline wants to buy an aircraft and has narrowed down investment options to two alternative aircraft types: aviation Assignment, LMU, UK
| University | London Metropolitan University (LMU) |
| Subject | CA6060 FINANCIAL DECISION MAKING(In context for Aviation |
Overview and Task
CA6060 ASSIGNMENT 2
Q1. An airline wants to buy an aircraft and has narrowed down investment options to two alternative aircraft types: the acquisition of a new A330-300 for £75.67m versus a new Boeing 777-200 for £91m. The aircraft have got similar passenger capacity and each will perform the required services between specified or likely future city pairs. Where there is a difference in payload or cargo capacity, this will be reflected in the revenue forecasts.
Are You Looking for Answer of This Assignment or Essay
TASK:
- Complete the investment appraisal cash flow above (NPV, IRR e.t.c)
- b) Calculate the payback period for each aircraft (4 marks)
- c) Calculate the profitability index (please include formula and working). What are the advantages and disadvantages oF using this measure as an appraisal tool?
- d) Draw a graph of NPV against discount rate for rates between 0 to 16% (in steps of 2 i.e. 0,2,4 etc.)
- Using the above information and any other characteristics of these aircraft, which aircraft would you advise the airline to buy and why if the cost of capital is not expected to go over 10%? You should explain with the help of a sensitivity analysis.
- An airport is considering investing in a machine, which, will cost £9000 and will generate positive cash flows over the next four years as follows:
| Year | T1 | T2 | T3 | T4 |
| Cash flow(£) | 1200 | 2300 | 3400 | 4600 |
You can depreciate the asset using a straight-line method.
- Work out the annual accounting profits and then the average ROCE (Return on capital employed) to 1d.p.
- What are the advantages and disadvantages of using ROCE as an appraisal method?
- No matter which method of appraisal is applied, the users must be aware of its strengths as well as its shortcomings.
- Discuss this statement using IRR and payback period as examples.
Do You Need Assignment of This Question
In search of online assignment help UK or the finest Finance Assignment Help UK? Our service is finely tuned to aid students at London Metropolitan University (LMU), specifically focusing on subjects like CA6060 FINANCIAL DECISION MAKING (In context for Aviation).
Students can conveniently pay our experts for valuable guidance in their coursework. Whether it’s the evaluation of investment options for an airline’s aircraft purchase or delving into the intricacies of the aviation assignment, our support ensures that LMU students thrive in their Aviation Assignments.
Answer
