Your Role: D. Lavelli —Buyer…..
You own a car repair garage and a large field abutting a regional landing strip for single engine planes, are a very good mechanic and as a former Navy pilot you continued your flying as a civilian. You recently purchased your first plane, a 20 year old Wright Wingaway, for only $8500. This is a classic model and highly regarded. The engine, unfortunately, was in disrepair but the body was basically sound although scratched; you could fix it yourself. You are thinking very seriously about starting a new chartering business as a side business to your garage.
While working on the plane, you concluded the engine was far worse than expected; many engine parts needed replacing or reconditioning. Factory parts are no longer available although recondition parts are available although expensive. Second hand parts can often be obtained although considerable time is often needed to find the right part. You estimate you could obtain all the parts for $12,000. This doesn’t count your time which is limited. This figure could be reduced by $3000 to $5000 if you can find second hand parts. You would prefer not to take the time and would prefer not to use second hand parts. However, getting the money will be very hard.
Last week, you were at the Bedford Airport and noticed a sign indicating that a M. Graham was offering a damaged 10 year old Wright Flyabout for sale on a best offer basis. The Flyabout replaced the Wingaway fifteen years ago; the planes are very similar, with several major design improvements in the Flyabout. Virtually all of the engine parts are interchangeable between the two models. The engines are interchangeable.
You examined Graham's Flyabout last weekend. The plane had been vandalized recently. While the wing and body damage was severe, you were pleased to see the engine had been very well maintained and in excellent (mechanic certified) condition. You are certain the parts from...
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