Research Paper on:
Case Study: Fly by Night Airlines

Unformatted Sample Text from the Research Paper:
for the company. Questions concerning this case study are considered concerning net present value, net cash flow and total operating values, to name a few topics. To begin evaluating  the competitive implications of a firms resources and capabilities, managers must first answer the question of value: Do a firms resources and capabilities add value by enabling it to exploit  opportunities and/or neutralize threats? Fly by Night Airlines should be very successful in recent strategies in acquiring new and diverse means of income. By expanding their fleet and/or updating  it, Fly by Night is giving itself many different ways to create income effectively. In order to calculate the weighted average cost of capital, (WACC), for the business unit, the  inputs are determined to be the cost of each capital component, Debt, Preferred Stock & Equity, and the capital weights specific to the unit. To calculate the total  operating costs of Fly By Night Airlines it is necessary to determine the purchase price of the equipment and then adjust that amount for any additional costs (an example would  be sales tax, shipping, or installation type costs). All tax credits should then be deducted, adding in the additional investment needed in the net working capital. In determining the  net cash flow for each year for each option, it should be understood that depreciation increases a companys operating cash flow because it serves to reduce the amount of taxes  that a company pays. The operating cash flow is the change in a companys cash or checking accounts during a period of time as a result of its operations.  Another important consideration is that depreciation expense is a tax shelter because it is a non-cash and tax-deductible expense. The cash impact is the amount of taxes