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Case Study I: Dinsmore Artists International

Case Study I: Dinsmore Artists International (25 points)
Dinsmore Artists International is in the business of managing singers and other artists in the entertainment industry. It is considering the purchase of an executive jet plane to transport its executives and the artists it represents to various meetings and performance sites. It expects that by owning its own executive jet, it can save $1,400,000 the first year of operation for expenses that it would otherwise incur for buying seats on commercial flights or for chartering flights. It expects that the year-to-year growth in the annual savings would be 10%.

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