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Author Question: What is the NPV of the F-22 Raptor project? The Lockheed Martin/Boeing F-22 Raptor is a stealth ... (Read 46 times)

rayancarla1

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What is the NPV of the F-22 Raptor project? The Lockheed Martin/Boeing F-22 Raptor is a stealth fighter aircraft. It was designed primarily as an air superiority fighter, but it is also capable of ground attack and other roles. Lockheed Martin Aeronautics is the prime contractor and is responsible for the majority of the airframe, weapon systems and final assembly. Lockheed Martin invested over $10B on design and manufacturing for the aircraft. Assume that those investments were paid for on Jan 1, 2003. Each aircraft will be sold for $350M and the variable cost of building each airplane is $300M. Assume that 70 aircraft will be sold each year for 5 years. Assume that revenues and costs occur at year-end. (So 2003 revenues and costs are incurred on Dec 31, 2003. See the table of cash flows, below.) What is the NPV of the project if Lockheed-Martin's cost of capital is 10%? (Assume that there are no taxes.)

DateInvestmentsRevenuesCosts
Jan. 1, 2003$10B
Dec. 31, 2003$24.5B$21B
Dec. 31, 2004$24.5B$21B
Dec. 31, 2005$24.5B$21B
Dec. 31, 2006$24.5B$21B
Dec. 31, 2007$24.5B$21B

◦ $3,500,000
◦ $3,267,754
◦ $5,243,412
◦ $13,267,75
◦ $82,874,276


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Marked as best answer by rayancarla1 on Apr 25, 2021

HandsomeMarc

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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.
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rayancarla1

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Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it


lindahyatt42

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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