Hong Kong Dragon Airlines Limited B Lease vs Buy Decision

Hong Kong Dragon Airlines Limited B Lease Vs Buy Decision

Hong Kong Dragon Airlines Limited B Lease vs Buy Decision

Hong Kong Dragon Airlines Limited B Lease vs Buy Decision

Overview of Case Solution

 

Excel Calculations

 

 Return Conditions- Flight Hours, Flight Cycles, Life of the Engine, Remaining Life

Senstivity to WACC (Up)- Purchase, NPV, Sale and Lease Back, Cash Flows, PV

Senstivity to WACC (Down)- Purchase, NPV, Sale and Lease Back, Cash Flows, PV

Senstivity to Purchase Price (Up)- Purchase, NPV, Sale and Lease Back, Cash Flows, PV

Senstivity to Purchase Price (Down)- Purchase, NPV, Sale and Lease Back, Cash Flows, PV

 

Questions Covered

 

Executive Summary

What are the after-tax cash flows relevant to the purchase option and what discount rate should be used for those cash flows?

What are the after-tax cash flows relevant to the sale-and-leaseback option and what discount rate should be used for those cash flows?

What are the pros and cons of each option given in the case?

Perform sensitivity analysis to identify the key bets/assumptions in your decision.

Share:

Keywords: hong kong dragon airlines limited b lease vs buy d

Comments

Other related blogs

PDF to Flipbook - Create Interactive Flipbook

By : PR Marketing

Flipbooks are not widely used, nevertheless well built flipbooks made from quality products and hold..


Customizing WordPress website - Flipbook WordPress

By : PR Marketing

The WordPress dashboard is the very first monitor you see once you wood in to your WordPress site or..


Online Bitcoin Gambling - Enjoyment at Its Best

By : Aedonweb

The internet casinos companies are showing no signs of reducing down. It seems more and more people ..


Free Phone Chat Lines - Free Phone Adult Live Chat

By : PR Marketing

On the web speak might allude so that you can any distance understanding with the Globally internet ..