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Assume break-even sales figure given is cash flow break-even

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Reference no: EM131131368

In an effort to capture the large jet market, Hiro Airplanes invested $14.264 billion developing its B490, which is capable of carrying 840 passengers. The plane has a list price of $276.5 million. In discussing the plane, Hiro Airplanes stated that the company would breakeven when 264 B490s were sold. Assume the break-even sales figure given is the cash flow break-even. Suppose the sales of the B490 last for only 14 years. How many airplanes must Hirosell per year to provide its shareholders a rate of return of 17 percent on this investment?

Reference no: EM131131368

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