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Author Question: What is the IRR of the F-22 Raptor project? The Lockheed Martin/Boeing F-22 Raptor is a stealth ... (Read 32 times)

MirandaLo

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on: Apr 25, 2021
What is the IRR 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. Thus annual revenues are $24.5B and annual costs are $21B. Assume that revenues and costs occur at year-end with the first year of operating cash flows occurring on Dec 31, 2003. Lockheed-Martin's cost of capital is 10% and the NPV of the project is $3.268B. What is the IRR of the project?(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

◦ 7.24%
◦ 8.50%
◦ 9.76%
◦ 10.50%
◦ 22.11%
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Marked as best answer by MirandaLo on Apr 25, 2021

stanleka1

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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.
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MirandaLo

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Reply 2 on: Apr 25, 2021
Excellent

tandmlomax84

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Reply 3 on: Yesterday
Gracias!

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