Discuss the growing aircraft leasing industry in china

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Reference no: EM131838462

Article : HONG KONG DRAGON AIRLINES LIMITED (B): LEASE VS. BUY DECISION By SU HAN CHAN and KO WANG

Read the Case study. Answer the questions below. Please use the attached excel case template to solve. Send both back the answers written in APA format and the Excel file

Answer the questions in this format below:

1. Introduction

2. Financial Analysis

3. Sensitivity Scenario Analysis

4. Current updates on the case

5. Conclusion

6. References/Bibliography used in the report.

Hong Kong Dragon Air Questions

1. In your current updates (or in the introduction) discuss the growing aircraft leasing industry in China

2. Explain the difference between an outright purchase, lease and sale and leaseback transaction option that Hong Kong Air is weighing.

3. What are the after-tax cash flows relevant to the purchase option and what discount rate should be used for those cash flows?

4. What are the after-tax cash flows relevant to the Sale-and- Lease back option and what discount rate should be used for those cash flows?

5. What are the pros and cons of each option given in the case?

6. Which option did you chose? Why? Provide quantitative support

7. Perform sensitivity analysis to identify the key drivers in your case.

Reference no: EM131838462

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