Cost Reimbursement (break-even)13. It costs $3400 for a first-class roundtrip from Boston to London (6560 miles) and there are3 trips per week. Assuming an MARR of 15% and the following data, how manypassengers must fly per trip on average?ItemCost$12,000K15 years$2000K$225K$0.67Initial CostService LifeSalvage ValueAnnual Crew (labor)Fuel cost per mileCatering per personFee per landingMaintenance per yrInsurance per yr$75$250$237K$166K

Many types of costs are involved in operating we have to calculate all cost and than calculate…

Answered: sengers must fly per trip on average?…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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sengers must fly per trip on average? Item Cost $12,000K 15 years $2000K $225K $0.67 $75 $250 $237K $166K Initial Cost Service Life Salvage Value Annual Crew (labor) Fuel cost per mile |Catering per person Fee per landing Maintenance per yr Insurance per yr