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

Author Question: The Boeing Corp. is considering building a new aircraft, the 787-larger than the 747 and larger than ... (Read 41 times)

Redwolflake15

  • Hero Member
  • *****
  • Posts: 569
The Boeing Corp. is considering building a new aircraft, the 787-larger than the 747 and larger than the Airbus A380. The company's Renton WA Facility, where 747s are currently manufactured, would have to be expanded. Expansion costs are forecast to be $2.5B, incurred at t = 0. Also at time t = 0, before production begins, inventory will be increased by $1.855B. Assume that this inventory is sold at the end of the project at t = 2. The first sales from operation of the new plant will occur at the end of year 1 (t = 1). Boeing forecasts sales of 220 planes in each of the two years. The plane will be sold for $130M each. The cost of manufacturing a plane is $115M. Annual overhead expenses are $775M. The construction facilities are classified as 15 year property. When the plant is closed it will be sold for $1B. The company is in the 34% marginal tax bracket. Boeing's cost of capital is 12%. What are the terminal year cash flows? 

MACRS Depreciation Rates
Year10-Year15-Year
110.00%5.00%
218.00%9.50%
314.40%8.55%

◦ $1,747M
◦ $3,134M
◦ $3,242M
◦ $4,989M
◦ $5,089M


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Redwolflake15 on Apr 25, 2021

gstein359

  • Sr. Member
  • ****
  • Posts: 293
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 29% of students answer this correctly




Redwolflake15

  • Member
  • Posts: 569
Reply 2 on: Apr 25, 2021
YES! Correct, THANKS for helping me on my review


ryhom

  • Member
  • Posts: 366
Reply 3 on: Yesterday
Excellent

 

Did you know?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

Did you know?

Methicillin-resistant Staphylococcus aureus or MRSA was discovered in 1961 in the United Kingdom. It if often referred to as a superbug. MRSA infections cause more deaths in the United States every year than AIDS.

Methicilli ...
Did you know?

To combat osteoporosis, changes in lifestyle and diet are recommended. At-risk patients should include 1,200 to 1,500 mg of calcium daily either via dietary means or with supplements.

Did you know?

Approximately 500,000 babies are born each year in the United States to teenage mothers.

Did you know?

Long-term mental and physical effects from substance abuse include: paranoia, psychosis, immune deficiencies, and organ damage.

For a complete list of videos, visit our video library