Just looking for a guide on how on how to calculate the compensation owed in this lease agreement, not for the whole thing to be completed.

Please do not flag for honor code as I am not asking for it to be done for me, just a rough guide to help.

Thanks

Title: Engine Maintenance Claim An aircraft in your portfolio has not shown signs of increased engine deterioration; however, the operator has removed the engine for accomplishment of a performance restoration and LLP replacement of the Low Pressure Turbine (LPT) module in accordance with manufacturer's guidelines. As required by the lease, the operator has notified you that they intend to send the engine to a shop and that the workscope being undertaken will entitle them to claim from the maintenance reserve fund. On behalf of the lessor, you advise the operator that this may not qualify for reimbursement as per the lease agreement and request to keep you notified on the progress of the shop visit. Despite timely emails to the operator requesting an update, you do not hear any news for 6 months. Following 6 months, the operator submits an invoice for maintenance contribution to the value of $1,600,620 including VAT and handing costs. The operator also provides verification that this is the actual cost of the shop visit as billed by the engine shop. i) Based upon the "Given Information" and "Lease Extracts", carry out an initial assessment of the actual amounts owed by the Lessor, if any, and provide your supporting calculations in excel format. Note that you may not have all the required information to make a final determination. Following this, summarise your findings to the lessee in response to their claim outlining the actual amount you determine to be owed by the lessor, any concerns and questions you may have in order to finalise the assessment. (60\% - Max of 500 words) ii) Following a review of the lease redelivery conditions, you discover a requirement for the operator to perform an Engine Performance Restoration event on the core modules immediately prior to the lease expiry date. You review the current utilisation and forecast that the engine will operate a total of 27,000 flight hours during the entire lease term. Based on these findings, compose a short report summarising the reasons why the workscope performed was (or was not) the most cost efficient. If the minimum contractual Engine Performance Restoration release life had increased from 5,000 Flight Cycles to 6,000 Flight Cycles, would it have had an impact on the workscope performed? (40\% - Max of 400 words) Given Information: 1. Assumptions i) Airworthiness Directives cost sharing is not applicable. ii) The engine removal is not a result of maintenance mishandling or foreign object damage and is not covered by the operator's insurance. iii) Handling fees and VAT is included in the total cost and amounts to 3% of the total ESV cost. iv) The LPT life limited parts have been replaced with new. The remaining life limited parts have not been replaced. v) All engine modules have been overhauled. vi) Module split applies to the total ESV cost. vii) Annual escalation of the MRA rates is not applicable. viii) The total cost of a new disk of LLPs at the time of the event was $3.3mm. 2. Engine Condition at Delivery 3. Engine Condition at Release to Service 4. Engine Module / Cost Split Lease Extracts: Clause 1 - Maintenance Rent 1.1. Lessee shall pay to Lessor Maintenance Rent with respect to each calendar month (including without limitation the last calendar month, or part thereof, of the Lease Term) on the fifteenth (15th) day following such calendar month. Maintenance Rent shall be payable with respect to each of the following maintenance activities, each a "Maintenance Rent Activity" or "MRA": i) each Engine with respect to accomplishment of an Engine Performance Restoration. 1.2. Provided no Default or Event of Default has occurred and is continuing, Lessor shall pay to Lessee, by way of contribution to the direct cost of any Maintenance Rent Activity, the amounts set forth in this section 1.2. Payment of such amounts shall be made out of the applicable MRA Maintenance Rent Balance only after the work has been completed and supporting documentation has been provided by a Maintenance Performer and Lessee. Payment of such amounts shall further be conditioned upon submission by Lessee to Lessor, within six (6) months from the induction date and no later than six (6) months from the Expiry Date, of (i) an invoice with proper supporting documentation (e.g., full shop visit report, EASA Form-1, FAA-8130-3 or similar documentation evidencing serviceability, as described below) satisfactorily evidencing to Lessor (acting reasonably) the completion of such MRA; (ii) sufficient detail relating to warranty claims pending with or paid by the Manufacturer or Maintenance Performer, if any, with respect to such MRA; (iii) a signed statement from the Maintenance Performer confirming that the Engine was repaired in accordance with the operator Workscope and that the Engine has been released from the Repair Facility with no liens (iv) the related invoice from the Maintenance Performer. For the Engine, proper supporting documentation includes a description of the reason for removal, a shop teardown report, a full shop visit report, a full description of the workscope and complete disk records for the Engine both prior to and after the shop. Both the invoice supplied by the Engine repair facility and that submitted by the Lessee to Lessor with respect to an Engine will state whether or not credits were provided due to life remaining on any removed Engine Parts and the amount of any such credits will be itemized. Lessor agrees that any MRA Maintenance Rent reimbursement claim submitted by Lessee during the Lease Term will be processed and paid (to the extent reimbursable hereunder) within thirty (30) days of Lessor's receipt of the relevant invoice and all proper supporting documentation. 1.3. If at the first MRA after Delivery, the Maintenance Rent paid by the Lessee under this Agreement for a particular MRA is insufficient to cover the actual cost of such MRA, Lessor shall contribute the lesser of (x) the shortfall and (y) an amount equal to the number of Flight Hours, Cycles or calendar months, as applicable, operated until Delivery since the relevant MRA last occurred or since new, as applicable, multiplied by the Maintenance Rent for that particular item. 1.4. Exclusions of Maintenance Contribution: VAT and handling fees. Definitions "Engine Performance Restoration" or "EPR" means an engine shop visit which shall include a performance restoration of the major modules (at a minimum HPC and/or HPT modules) in accordance with the then current Workscope Planning Guide, with a scheduled Life Limited Part and Airworthiness Directive release of not less than 5,000 Cycles and on-condition release of not less than 5,000 Cycles and equivalent Flight Hours. The workscope must be agreed between Lessor and Lessee pre-Engine induction and an estimated price will be provided to Lessor. "Maintenance Performer" with respect to Engine means a FAA Part 145, or EASA Part 145 approved maintenance, overhaul, repair and modification facility approved for the type of maintenance required on engines of the same type as the Engine or such other person approved in advance in writing by Lessor. "Expiry Date" means, unless as specified in section 4.2, the day following 96 (nighty six) months after Delivery. Engine Parts: "Delivery" means the day on which the Aircraft is delivered by the Lessor to the Lessee as documented within the Delivery Acceptance Certificate. "Lease Term" means the period between and including Delivery and the Expiry Date