Module 11 Excel Activity
First, download the excel template and open it, view the excel video and complete the activity.
	Be sure to re-evaluate the decision as to the purchase of the plane if the facts change!
	Then, save the file on your desktop, with the name "Completed Excel Activity."
	Make sure the file you upload has a ".xlsx" extension on the file name.
	If you upload some other kind of file, you will not get credit for completing the activity.
Second, go to Canvas and click on the excel activity link in the module.
	You will see a link there for the Excel Activity, if you are submitting the file prior to the deadline.
Third, click on the link and upload your file to Canvas. Click submit and I will grade your spreadsheet
	within 48 hours. If your spreadsheet is correct, you will receive 5 points. Otherwise, no points.
Ondi Airlines is interested in acquiring a new plane to service a new route, from Tulsa to Denver.
	The plane will complete one round-trip set of flights each day, except for FAA required maintenance days.
	The FAA requires 15 maintenance days in 2019.				15
	The seating capacity of the plane is 150 passengers.				150
	The flights are expected to be sold out every day (occupancy rate).				100%
	The average revenue from a ticket the one-way flight will be set in advance.				$235.00
	Annual operating costs of the plane:
		Fuel			$1,750,000
		Flight personnel			$750,000
		Food and beverages			$100,000
		Maintenance			$550,000
		Other			$100,000
		Total			$3,250,000
	The cost of the plane				$120,000,000
	The expected service life of the plane in years				20
	The required rate of return on the investment				12%
	Net present value factor, based on life and rate above				7.4694436
Calculate the NPV of the plane
		No of days in a year	Maintenance days	Operation days each year
Days of operation
each year
		One-way Revenue	Rounds	Seating Capacity	Revenue Per day
Revenue per day
			Revenue Per day	No of days except maintenance	Annual Revenue
Annual revenue
			Revenue	Operating costs	Annual Cash flow
Annual cash flow
			Present value	Initial outlay	NPV
NPV
Should the Aircraft be purchased?
Change the occupancy rate to 80%
		Seating Capacity	Revenue	Operating costs	Revised Cash flow
Revised cash flow
			Present value	Initial outlay	NPV
NPV
Should the Aircraft be purchased?
Calculate the occupancy rate that will make the NPV zero
			Initial Outlay	Present value	Cash flow
Cash flow
			Cash flow	Operating costs	Annual Revenue
Annual Revenue
			Annual revenue	No of days in a year except maintenance	Daily Revenue
Daily Revenue
			Daily Revenue	Two-way Revenue	Seats to be sold
Seats to be sold
			No of seats sold	Seating capacity	Seating rate needed
Seating rate needed
How would the occupancy percentage change, if you increase the seat price by 10%			Two-way Revenue	Total percentage increased in price	Round-Trip average price
Round-Trip average price
			Daily Revenue	Round-Trip average price	Seats to be sold
Seats to be sold
				Seating capacity
			Seats to be sold		Seating rate
Seating rate