In 1970 United Airlines bought four new jumbos for $21.8 million each. These planes were written down

Question:

In 1970 United Airlines bought four new jumbos for $21.8 million each. These planes were written down straight-line over 16 years to a residual value of $0.2 million each. However, they could have been sold in 1986 for about $20 million each.22How would the company’s financial ratios have changed if it had used a depreciation schedule that more nearly reflected the actual decline in aircraft values?

Financial Ratios
The term is enough to curl one's hair, conjuring up those complex problems we encountered in high school math that left many of us babbling and frustrated. But when it comes to investing, that need not be the case. In fact, there are ratios that,...