This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What is the NPV of the Boeing 787 Dreamliner project? The Boeing 787-8 can carry 230 passengers up ... (Read 138 times)

stevenposner

  • Hero Member
  • *****
  • Posts: 608
on: Apr 25, 2021
What is the NPV of the Boeing 787 Dreamliner project? The Boeing 787-8 can carry 230 passengers up to 8,200 nautical miles at a cruising speed of mach 0.85. The Dreamliner is more comfortable for passengers because of higher cabin humidity. Boeing completed construction on its final assembly plant at time t = 0 for a total cost of $7B. Boeing has secured orders for 865 aircraft over the next five years (t = 1 to t = 5) for total proceeds of $138.4B ($160M per aircraft). The cost of building each plane is $140M. Assume that cash flows (sales and costs) occur at the end of each year starting one year after the assembly plant was completed. The project cash flows are shown in the table, below. What is the NPV of the project if Boeing's cost of capital is 10%? Calculate the NPV as of time t=0. (Round answer to the nearest million).

YearCapital InvestmentAnnual SalesAnnual RevenuesAnnual CostsCash Flows
t = 0$7,000M​​​-7,000
t = 1​17327,68024,2203,460
t = 2​17327,68024,2203,460
t = 3​17327,68024,2203,460
t = 4​17327,68024,2203,460
t = 5​17327,68024,2203,460

◦ $6,116M
◦ $8,069M
◦ $8,780M
◦ $8,967M
◦ $13,116M
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

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

jessicaduplan

  • Sr. Member
  • ****
  • Posts: 337
Reply #1 on: Apr 25, 2021
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


stevenposner

  • Member
  • Posts: 608
Reply 2 on: Apr 25, 2021
:D TYSM

strudel15

  • Member
  • Posts: 324
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Recent studies have shown that the number of medication errors increases in relation to the number of orders that are verified per pharmacist, per work shift.

Did you know?

Egg cells are about the size of a grain of sand. They are formed inside of a female's ovaries before she is even born.

Did you know?

The U.S. Preventive Services Task Force recommends that all women age 65 years of age or older should be screened with bone densitometry.

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

Transfer RNAs (tRNA) carry amino acids to the ribosome to be synthesized into proteins. Transfer RNAs (tRNA) carry amino acids to the ribosome to be synthesized into proteins.
Olafur Eliasson, The Weather Project. Olafur Eliasson, The Weather Project.
Project Management: Achieving Competitive Advantage, 5th Edition Project Management: Achieving Competitive Advantage, 5th Edition
Project Project
Pineapples carry harmful insect shell insects, safe to eat? Pineapples carry harmful insect shell insects, safe to eat?
Video: Sigmoidoscopy

For a complete list of videos, visit our video library