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Business, 23.04.2020 17:48 pennygillbert

Cameron Precision Steel of Houston Texas owns a GulfStream ExecuJET. The plane is used only by the CEO and the CFO. If the Jet were used by all the execs (vp and above) it is estimated that this would save Cameron 356,000 per year (in commercial airfares). However, if the plane were used by all the execs, it would have to be replaced at end of year 6 rather than at the end of year 8 and if the plane continued to be used by all execs it would have to be replaced every 8 years rather than every 10 years as is the case now. The price of the plane is 1.8 million dollars. If the appropriate discount rate is 12%, is it worth it to allow all the Cameron execs to use the plane

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Cameron Precision Steel of Houston Texas owns a GulfStream ExecuJET. The plane is used only by the C...

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