Aviatronics is a private airline that rents aircra s and helicopters to
corporations in India. It has estimated its demand for aviation fuel
as shown in Table 1.
e price of aviation fuel has been highly volatile, with a price
range of USD 64 to USD 96 per barrel, during the past year. Cur-
rently, aviation fuel is selling at USD 68 per barrel.
Table 1Demand for Aviation Fuel (in barrels)
YearDemand for Fuel
1300,000
2370,000
3400,000
CASESTUDY
PROBLEMS
1. Company A wants to borrow at a xed rate while Company B
wants to borrow at a oating rate. Company A can borrow at ...
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