The manufacturer of commercial jets has a cost index equal to 94.9 per aircraft in 2013. The anticipated cost index for the airplane in 2018 is 106.8. The average compound rate of growth should hold steady for the next 15 years. If an aircraft costs $10.2 million to build in 2014, what is its expected cost in 2016? State your assumptions.

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Q: $2,000, $1,5

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

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A: Profitability Index is also known as PI. It is a capital budgeting technique which helps in decision…

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A: In this we have to calculate the present value of all cash flow.

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Q: The James Company is considering an investment with a cost today of $1,500,000 and which will…

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Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.