This topic contains a solution. Click here to go to the answer

Author Question: What is the NPV of the Airbus A380 project? The Airbus A380 is the largest civilian aircraft ever ... (Read 99 times)

jasdeep_brar

  • Hero Member
  • *****
  • Posts: 569
What is the NPV of the Airbus A380 project? The Airbus A380 is the largest civilian aircraft ever built. It can carry 555 passengers on two decks. Initial project investments were $13B. Assume that the initial investment was paid on Dec 31, 2008. Assume that Airbus will produce 60 aircraft per year for five years. Each aircraft will be sold for $230M and total operating costs are 75% of revenues. Assume that revenues and costs occur at year-end with the first revenues (and costs) occurring on Dec 31, 2009. What is the NPV of the project if Airbus' cost of capital is 11%? Calculate the NPV as of Dec 31, 2008. Ignore taxes and assume that there are no terminal year cash flows.
◦ -$2.799B
◦ -$0.249B
◦ $0.078B
◦ $2.751B
◦ $25.253B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by jasdeep_brar on Apr 25, 2021

joneynes

  • Sr. Member
  • ****
  • Posts: 376
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 39% of students answer this correctly




jasdeep_brar

  • Member
  • Posts: 569
Reply 2 on: Apr 25, 2021
:D TYSM


zacnyjessica

  • Member
  • Posts: 345
Reply 3 on: Yesterday
Gracias!

 

Did you know?

The cure for trichomoniasis is easy as long as the patient does not drink alcoholic beverages for 24 hours. Just a single dose of medication is needed to rid the body of the disease. However, without proper precautions, an individual may contract the disease repeatedly. In fact, most people develop trichomoniasis again within three months of their last treatment.

Did you know?

Signs of depression include feeling sad most of the time for 2 weeks or longer; loss of interest in things normally enjoyed; lack of energy; sleep and appetite disturbances; weight changes; feelings of hopelessness, helplessness, or worthlessness; an inability to make decisions; and thoughts of death and suicide.

Did you know?

The longest a person has survived after a heart transplant is 24 years.

Did you know?

Alzheimer's disease affects only about 10% of people older than 65 years of age. Most forms of decreased mental function and dementia are caused by disuse (letting the mind get lazy).

Did you know?

Drugs are in development that may cure asthma and hay fever once and for all. They target leukotrienes, which are known to cause tightening of the air passages in the lungs and increase mucus productions in nasal passages.

For a complete list of videos, visit our video library