spreadsheet

[Steve Gordon]

I overlooked the fact that you have two sections in the purchase worksheet -
one for purchasing outright, and one that assumes financing.  It's probably
still a good idea to incorporate "% Down Payment".  We'll likely have to
foot some kind of a down payment even if we finance.  Then we can tweak the
% down value and see the effect on monthly vs. one-time cost.

 

-Steve

 

From: Steve Gordon [mailto:steve at media-phile.com] 
Sent: Tuesday, April 07, 2009 10:33 AM
To: 'eefc-core at workingcode.com'
Subject: RE: spreadsheet

 

Thanks Mike for the great spreadsheet.  I have two minor comments:

 

1.       Tire replacement is directly related to number of landings, which
in turn is related (loosely) to number of hours flown.  We should probably
include that as an operating cost unless you think it's covered by
"Engine/Airframe Maintenance" cost.

2.       If we purchase a plane, there will almost definitely be a required
one-time cost.  The one-time cost can constitute either a minimum
down-payment, payment in full, or anything in between.  It looks like the
spreadsheet double-counts the cost of the airplane.  The price is listed
both as a one-time cost per member to buy the plane and also is included as
a regular annual cost of the note.  It would probably be a good idea to
separate those costs.  You could add a "% Down Payment" value which would
drive the one-time cost (perhaps defaulted to 20%), and then the remainder
of the purchase price would be amortized over the length of the loan and
would be reflected in the note cost.

 

Thanks,

 

-Steve

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