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MATH $1225$ GROUP PROJECT INFORMATION

A pilot is looking to open a new flight training school with the following criteria:

$1.$ a private pilot$$s license $($PPL$)$;

$2.$ a commercial pilot$$s license $($CPL$)$;

$3.$ a minimum of two aircraft;

$4.$ own at least one aircraft;

$5.$ own at least one simulator; and

$6.$ provide other types of licenses as long as they are profitable.

She recently won a lottery and has $$200,000$ to put towards her new school.

She would like to see three options and each option should have:

$1.$ at a minimum three advantages and three disadvantages;

$2.$ number planes required;

$3.$ courses to be offered and courses offered; and

$4.$ potential location of flight school.

Of the three options, you will recommend one $(1)$ option to her, and this option should include

all the supporting financial data and other important information.

She is willing assume debt up to $$400,000$ to ensure her flight school can be setup for success in

the early years.

She would also like to have an Executive Summary $($re:Project Paper$)$ that is not longer than four

$(4)$ pages, which will exclude the title page, table of contents and any supporting documentation

such as$,$ annexes$/$appendices$.$

The annexes and$/$or appendices must display your detailed financial calculations that support

your recommendation such as$,$ a balance sheet, an income statement, CPI calculations, loan

amortization schedule$($s$),$ break$-$even analysis, number of students per course$/$license$,$

foreign currency calculations, references, etc.

Review the information below and be prepared to discuss your recommendations with her in a

face to face using a PowerPoint Presentations $($PPT$).$ The PPT should not include any data that

is not in the Executive Summary $($re:Project Paper$).$ Include at a minimum the following:

$1.$ type of license$($s$)$;

$2.$ number of planes;

$3.$ number of students per course$/$license;

$4.$ break$-$even point$($s$)$ per course$/$license;

$5.$ key financial data, such as Balance Sheet and Income Statement;

$6.$ financing options with the appropriate loan amortizations;

$7.$ CPI calculations;

$8.$ foreign currency calculation; and

$9.$ competitors.

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MATH $1225$ GROUP PROJECT INFORMATION

She would like to see the first year$$s financial data $($Balance Sheet and Income Statement$)$ and

also a quick overview of where you think the company in five years. Include any changes to the

current recommendation, for example, more planes, more licenses, more students, debt load, etc.

At a minimum, the Executive Summary $($re:Project Paper$)$ should address the following points:

$1.$ The course tuition per student for PPL and CPL$.$ You will have to identify how much

you believe she should be charging based on the company$$s expenses. Additionally,

you will need to ensure that the price she is charging is relative to the other prices

charged by the other flight schools in the surrounding area.

$2.$ Demonstrate, with use of a spreadsheet $($MS Excel or other spreadsheet program$),$ all

the potential expenses and revenues using the financial statements, such as$,$ a Balance

Sheet and an Income Statement. Enhance the data with use of a graph $($bar$,$ pie, etc$).$

$3.$ Breakdown, with use of a spreadsheet $($MS Excel or other spreadsheet program$)$ and

accompanying graph $($bar$,$ pie, etc$),$ how their start up funds will be used.

$4.$ If additional debt is required, complete loan amortization schedule$/$s as required and

identify payment and total amount of interest to be paid.

$5.$ Discuss, in detail, why you decided on the type and number of planes.

$6.$ Discuss what simulator$($s$)$ you chose and why.

$7.$ Discuss, in detail, your recommended option regarding the planes; purchase new, buy

used, or lease $($new or used$)$ and why this$/$these option$($s$)$ was$/$were selected?

$8.$ Identify how many ground school courses the company will run annually, and the

costs associated with running those courses.

$9.$ Break$-$even analysis, use the breakeven analysis as discussed in class to show when

the company will break$-$even. Demonstrate with graphs and data, such as$,$ the

number of students and years that will be required to break even.

$10.$ Create the financial statements $($balance sheet and income statement$)$ for the first year

of the business based on your projected number of students and other costs identified

below. Use $1$ January to $31$ December $2024$ as the date for the statement.

Assumptions$/$Other details.

Unless otherwise stated, the dollar amounts identified below are based on the year $2023.$

These costs will need to be updated to $2024$ amounts; use the CPI$$s $12-$month change from

December $2022$ to December $2023$ to update those figures. If there is no financial data or cost

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