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

Author Question: What is the NPV of the Airbus A380 project? The Airbus A380 is the largest civilian aircraft ever ... (Read 48 times)

jasdeep_brar

  • Hero Member
  • *****
  • Posts: 569
on: Apr 25, 2021
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
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 jasdeep_brar on Apr 25, 2021

joneynes

  • Sr. Member
  • ****
  • Posts: 376
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


jasdeep_brar

  • Member
  • Posts: 569
Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)

xoxo123

  • Member
  • Posts: 335
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Asthma is the most common chronic childhood disease in the world. Most children who develop asthma have symptoms before they are 5 years old.

Did you know?

Stroke kills people from all ethnic backgrounds, but the people at highest risk for fatal strokes are: black men, black women, Asian men, white men, and white women.

Did you know?

Today, nearly 8 out of 10 pregnant women living with HIV (about 1.1 million), receive antiretrovirals.

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

Did you know?

Oxytocin is recommended only for pregnancies that have a medical reason for inducing labor (such as eclampsia) and is not recommended for elective procedures or for making the birthing process more convenient.

Goliath birdeater (Theraphosa blondi), the largest spider, next to a ruler. Goliath birdeater (Theraphosa blondi), the largest spider, next to a ruler.
Largest Moth Largest Moth
The Largest Refracting Telescope The Largest Refracting Telescope
Karen McCoy, Considering Mother's Mantle, project for Stone Quarry Hill Art Park, Cazenovia, ... Karen McCoy, Considering Mother's Mantle, project for Stone Quarry Hill Art Park, Cazenovia, ...
Group Project Meme Group Project Meme
Video: Interview with Person having Obsessive Compulsive Disorder

For a complete list of videos, visit our video library