Solution-Determine the number of planes

Determine the number of planes

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Question: Given the following forecasted data, determine the number of planes that the company must produce in order to break even, on both accounting basis and NPV basis: the project initial investment is $900 million, each plane sold for $15.5 million, the variable cost is $8 million each plane, the fixed cost is $150 million, the depreciation uses straight-line method, tax rate is 40% and the company's cost of capital is 10%.

Reference no: EM131975335

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Determine the number of planes

Reference no: EM131975335

Reference no: EM131975335

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