Airbus invested 900 million at the beginning of 2012 to buy and install the equipment to...
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Airbus invested 900 million at the beginning of 2012 to buy and install the equipment to produce 35 airplanes every year from 2012 to 2017. The average cost of production for each aircraft was $14 million. Airbus sold each airplane for $16 million, therefore the cash flows are 70 million per year [(16M-14M)x35]. How many planes per year would Airbus have to sell to have a payback period of 6 years? 228666 45 55 65 D) 75 E) 85 A) B) Airbus invested 900 million at the beginning of 2012 to buy and install the equipment to produce 35 airplanes every year from 2012 to 2017. The average cost of production for each aircraft was $14 million. Airbus sold each airplane for $16 million, therefore the cash flows are 70 million per year [(16M-14M)x35]. How many planes per year would Airbus have to sell to have a payback period of 6 years? 228666 45 55 65 D) 75 E) 85 A) B)
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