Beta (from pdf) 0.

78 Debt (Damodaran, 2005 Data) 26311

Rm (from pdf) 8.90% kd 6.12%
Tax rate 17.50% Equity (Damodaran, 2005 Data) 31052
Interest rate 7.42% total 57363
WACC 6.95%
Risk Premieum (Damodaran) 5.70%
Rf 3.20%
Ke 7.65%
 Price in 2006 8.15 Monthly Lease Rental 0.067156
Annual Escalation 3%
Residual Value 2.75
Final Price 8.3945
Tax Rate 17.5%
WACC 6.95%
Purchase Program
Year CapEx Maintenance Depriciation Tax Savings
2006 1.259175
2007 7.135325
2008 0.335780 0.0587615
2009 0.671560 0.117523
2010 0.671560 0.117523
2011 0.671560 0.117523
2012 1.9 0.671560 0.450023
2013 0.671560 0.117523
2014 0.671560 0.117523
2015 0.671560 0.117523
2016 0.671560 0.117523
2017 0.671560 0.117523

Buy: Discounted Cash Lease: Discounted Cash

Escalation value -6.942616 -6.117392
1%
2%
3%
4%
5%
 Sales and Lease Ba
Capital Gain Net Outflow Discounted Cash Flow CapEX Sales Deposit Lease Rental
-1.259175 -6.942616 1.259175
-7.135325 7.135325 8.3945 0.19470516 0.38164057
0.058762 0.000000 0.7763502018
0.117523 0.000000 0.7763502018
0.117523 0.000000 0.7763502018
0.117523 0.000000 0.7763502018
-1.449977 0.000000 0.7763502018
0.117523 0.000000 0.7763502018
0.117523 0.000000 0.7763502018
0.117523 0.000000 0.7763502018
0.117523 0.000000 0.7763502018
2.75 2.867523 0.000000 -0.201468
 Sales and Lease Back Program
Hour Reserve Cycle Reserve Tax Savings Net Cash Flow Disounted Cash Flow
-1.259175 -6.117392
0.682829
0.185848 0.08103 0.11721745 -0.926011
0.371696 0.16206 0.2344349 -1.075671
0.371696 0.16206 0.2344349 -1.075671
0.371696 0.16206 0.2344349 -1.075671
0.371696 0.16206 0.2344349 -1.075671
0 0 0.1410276 -0.635323
0 0 0.1410276 -0.635323
0 0 0.1410276 -0.635323
0.278772 0.121545 0.211083075 -0.965584
0.092924 0.040515 0.164379425 0.232408
RESERVES REQUIRED (IN CASE OF A LEASE ARRANGEMENT) FOR THE
SPARE
ENGINE
Year Flight Hours Total Flight Flight Cycles Total Flight
Hour Reserves Cycle Reserves
2007 1429.6 185848 730 81030
2008 2859.2 371696 1460 162060
2009 2859.2 371696 1460 162060
2010 2859.2 371696 1460 162060
2011 2859.2 371696 1460 162060
2012 -
2013 -
2014 -
2015 2144.4 278772 1095 121545
2016 714.8 92924 365 40515
2017 -