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

Boost your brand by fashion publicist|Edith Press

By : Edithp Press

Publicists are masters of communication. They not just help to create a picture for items and busine..


Labor Management Advisory - Human Resources Consulting

By : Aedonweb

  The Report of the LMS freely reported in regards to the Performance record of the employees...


Management and Workforce Consultants Strategize Plans for Company Growth

By : Aedonweb

A company requires certain strategies and planned operational directions to increase the overall pro..


The Best Water Filters to Buy Online

By : PR Marketing

Must be your pores and epidermis obtaining dryer by way of every single moving time? Is generally yo..