What is the Profitability Index 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 its assembly plant in Everett Washington in December 2007 at a total cost of $7B. Boeing has secured sales of 865 aircraft over the period 2008-2012 for total proceeds of $138.4B ($160M per aircraft). The cost of building each plane is $140M. Assume that sales (and costs) occur in December of each year. Assume that sales are spread evenly across the five years from 2008-2012. The project cash flows are shown in the table, below. What is the Profitability Index of the project if Boeing's cost of capital is 10%? Calculate the index as of December 1, 2007. Ignore taxes.
| Year | Capital Investment | Annual Sales | Annual Revenues | Annual Costs | Cash Flows |
| 2007 | -$7,000M | | | | -$7,000 |
| 2008 | | 173 | $27,680 | $24,220 | $3,460 |
| 2009 | | 173 | $27,680 | $24,220 | $3,460 |
| 2010 | | 173 | $27,680 | $24,220 | $3,460 |
| 2011 | | 173 | $27,680 | $24,220 | $3,460 |
| 2012 | | 173 | $27,680 | $24,220 | $3,460 |
◦ -1.52
◦ -0.44
◦ 1.06
◦ 1.87
◦ 2.43
NCC MERP Index for Categorizing Medication Errors
Index of seed size and hardiness prior to, during, and after drought.
Olafur Eliasson, The Weather Project.
Example of Index entry with Main Term and indented subterms.
Calculation of body mass index. To determine your BMI, find the value for your height on the left ...
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