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Southwest Airlines (SWA) is planning to expand itsfleet of

Engineering Economic Analysis | 12th Edition | ISBN: 9780199339273 | Authors: Donald G. Newnan; Jerome P. Lavelle; Ted G. Eschenbach ISBN: 9780199339273 93

Solution for problem 9-61 Chapter 9

Engineering Economic Analysis | 12th Edition

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Engineering Economic Analysis | 12th Edition | ISBN: 9780199339273 | Authors: Donald G. Newnan; Jerome P. Lavelle; Ted G. Eschenbach

Engineering Economic Analysis | 12th Edition

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Problem 9-61

Southwest Airlines (SWA) is planning to expand itsfleet of jets to replace some old planes and to expandits routes. It has received a proposal from Boeing to purchase 112 737s over the next 4 years. Whatannual net revenue must each jet produce to breakeven on its operating cost? The analysis should bedone by finding the EUAC for the 10-year plannedownership period. SWA has a MARR of 12%, pur-chases the jet for $22 million, has operating andmaintenance costs of $3.2 million the first year,increasing 8% per year, and performs a major main-tenance upgrade costing $4.5M at end of Year 5.Assume the plane has a salvage value at end of Year10 of $13 million.Contributed by Paul R. McCright, University ofSouth Florida

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Chapter 9, Problem 9-61 is Solved
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Textbook: Engineering Economic Analysis
Edition: 12
Author: Donald G. Newnan; Jerome P. Lavelle; Ted G. Eschenbach
ISBN: 9780199339273

The answer to “Southwest Airlines (SWA) is planning to expand itsfleet of jets to replace some old planes and to expandits routes. It has received a proposal from Boeing to purchase 112 737s over the next 4 years. Whatannual net revenue must each jet produce to breakeven on its operating cost? The analysis should bedone by finding the EUAC for the 10-year plannedownership period. SWA has a MARR of 12%, pur-chases the jet for $22 million, has operating andmaintenance costs of $3.2 million the first year,increasing 8% per year, and performs a major main-tenance upgrade costing $4.5M at end of Year 5.Assume the plane has a salvage value at end of Year10 of $13 million.Contributed by Paul R. McCright, University ofSouth Florida” is broken down into a number of easy to follow steps, and 119 words. Since the solution to 9-61 from 9 chapter was answered, more than 236 students have viewed the full step-by-step answer. The full step-by-step solution to problem: 9-61 from chapter: 9 was answered by , our top Engineering and Tech solution expert on 09/09/17, 04:21AM. Engineering Economic Analysis was written by and is associated to the ISBN: 9780199339273. This full solution covers the following key subjects: million, Operating, plannedownership, swa, end. This expansive textbook survival guide covers 18 chapters, and 1242 solutions. This textbook survival guide was created for the textbook: Engineering Economic Analysis, edition: 12.

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