Scenario Summary

Current Values: best case normal worst

Changing Cells:
$B$6 178500.00 214000.00 178500.00 142000.00
$B$13 $ 0.80 $ 1.10 $ 0.80 $ 0.50
Result Cells:
$B$43 $ 423,313.49 $ 877,133.50 $ 423,313.49 $ 71,431.46
$B$44 20% 29% 20% 12%
Notes: Current Values column represents values of changing cells at
time Scenario Summary Report was created. Changing cells for each
scenario are highlighted in gray.
summary
cost of one pair of winglets $ 700,000.00
installation cost $ 56,000.00 per aircraft
extra cost one day $ 5,000.00
repair cost $ 2,100.00 per aircraft yearly
saved fuel 214000 per aircraft gallons
runaways estimated saving $ 500.00 per aircraft yearly
tax 39%
facility cost $ 1,200.00 per aircraft
years 20.00
rate escalating other items 3%
salvage value of winglets $ 105,000.00
jet fuel cost $ 1.10
cost of capital 9.28%

years
cost of one pair of winglets
installation cost
extra cost
onetime cost facility
0 1 2 3
$ (700,000.00)
$ (56,000.00)
$ (5,000.00)
$ (1,200.00)

fuel savings 235400.00 235400.00 235400.00

runaways saving 500.00 515 530.45
TOTAL SAVINGS 235900.00 235915.00 235930.45

repair cost -2100.00 -2163 -2227.89

TOTAL COST -2100.00 -2163.00 -2227.89

less depreciation -432016.20 -92572.20 -66112.20

EBIT -198216.20 141179.80 167590.36

TAX 0 -55060.122 -65360.2404

PROFIT AFTER TAX 0.00 86119.68 102230.12

plus depreciation 432016.20 92572.20 66112.20
432016.20 178691.88 168342.32
salvage value
tax of salvage value
salvage value after tax
NCF $ (762,200.00) 432016.20 178691.88 168342.32

NPV $ 877,133.50 > 0 accep the project

IRR 29%
C. Breakeven analysis
Orginal value Critical value Percentage error
Jet fuel costs $ 1.10 0.32 -71%
Fuel savings 214000 70530.9 -67.04%

D. Sensitivity analysis
jet fuel price fuel savings
Best case $ 1.10 $ 214,000.00
Normal $ 0.80 $ 178,500.00
Worst case $ 0.50 $ 142,000.00

Scenario Summary
Current Values: Best case Normal
Changing Cells:
fuel savings 178500 214000 178500
$B$13 0.8 1.1 0.8
Result Cells:
$B$44 423313.49 877133.50 423313.49
$B$45 20% 29% 20%
 depreciation table
years rate value
1 57.14500% $ 432,016.200
2 12.25% $ 92,572.20
3 8.75% $ 66,112.20
4 6.25% $ 47,212.20
5 4.47% $ 33,755.40
6 4.46% $ 33,717.60
7 4.47% $ 33,755.40
8 2.23% $ 16,858.80
100.00% $ 756,000.000

4 5 6 7 8 9

235400.00 235400.00 235400.00 235400.00 235400.00 235400.00

546.3635 562.754405 579.63703715 597.0261482645 614.93693271 633.38504069
235946.36 235962.75 235979.64 235997.03 236014.94 236033.39

-2294.7267 -2363.568501 -2434.47555603 -2507.509822711 -2582.735117 -2660.217171

-2294.73 -2363.57 -2434.48 -2507.51 -2582.74 -2660.22

-47212.20 -33755.40 -33717.60 -33755.40 -16858.80

186439.44 199843.79 199827.56 199734.12 216573.40 233373.17

-72711.38035 -77939.07650256 -77932.7489776368 -77896.30536697 -84463.62671 -91015.53547

113728.06 121904.71 121894.81 121837.81 132109.78 142357.63

47212.20 33755.40 33717.60 33755.40 16858.80
160940.26 155660.11 155612.41 155593.21 148968.58 142357.63

160940.26 155660.11 155612.41 155593.21 148968.58 142357.63

Worst case

142000
0.5

71431.46
12%
10 11 12 13 14 15 16

235400.00 235400.00 235400.00 235400.00 235400.00 235400.00 235400.00

652.3865919 671.9581897 692.1169354 712.8804434 734.2668567258 756.2948624 778.9837083
236052.39 236071.96 236092.12 236112.88 236134.27 236156.29 236178.98

-2740.023686 -2822.224397 -2906.891129 -2994.09786 -3083.92079825 -3176.438422 -3271.73157

-2740.02 -2822.22 -2906.89 -2994.10 -3083.92 -3176.44 -3271.73

233312.36 233249.73 233185.23 233118.78 233050.35 232979.86 232907.25

-90991.82153 -90967.39618 -90942.23806 -90916.3252 -90889.6349628 -90862.14401 -90833.8283

142320.54 142282.34 142242.99 142202.46 142160.71 142117.71 142073.42

142320.54 142282.34 142242.99 142202.46 142160.71 142117.71 142073.42

142320.54 142282.34 142242.99 142202.46 142160.71 142117.71 142073.42

17 18 19 20

235400.00 235400.00 235400.00 235400.00

802.35322 826.42381614 851.2165306 876.75302654
236202.35 236226.42 236251.22 236276.75

-3369.88352 -3470.980028 -3575.10943 -3682.362711

-3369.88 -3470.98 -3575.11 -3682.36

232832.47 232755.44 232676.11 232594.39

-90804.6632 -90774.62308 -90743.6818 -90711.81222

142027.81 141980.82 141932.43 141882.58

142027.81 141980.82 141932.43 141882.58

105000.00
-40950.00
64050.00
142027.81 141980.82 141932.43 205932.58
 jet fuel price fuel savings
Best case $ 0.50 $71,000.00
Normal $ 1.10 $ 235,400.00
Worst case $ 1.10 $ 235,400.00
1.1