Question: please answer question 3 could you help with the first few years so i can see how to do the rest. thank you Normal No

please answer question 3
please answer question 3 could you help with the first few years
so i can see how to do the rest. thank you Normal
could you help with the first few years so i can see how to do the rest. thank you
No Spacing Heading 1 Heading 2 31 A New Aircraft Project at
Boeing, Inc. Boeing announced the production of a new passenger aircraft in

Normal No Spacing Heading 1 Heading 2 31 A New Aircraft Project at Boeing, Inc. Boeing announced the production of a new passenger aircraft in the wake of the Boeing 737 MAX debacle. The new plane project was an enormous undertaking, and much of the preliminary work has already been done. Research and development began two and a half years carlier and cost about $5 billion. Production facilities and personnel training would require an additional $2 billion, and an additional S1.7 billion in working capital would begin in six years. The Exhibit I provides profit, depreciation, and capital expenditure projections for the project. Also, the financial analysis team has the following data for Boeing: Boeing's beta 1.56 Boeing's market value debt ratio 0.09 Boeing's new issue rate for long-term debt 4.75% Riskless retur 3.75% Market risk premium 5.00% Boeing's marginal income tax rate 21% Please answer the following questions: 1. What are the after-tax cash flows for the project? 2. What are the cost of equity capital and the weighted average cost of capital (WACC) for Boeing? 3. What are the NPV, IRR, MIRR, payback period, and discounted payback period for Boeing's new plane? 4. Construct an NPV profile like Figure 9-3 in the textbook, including titles for the axes and the graph's name 5. Based on your analysis in #2 and #3, would you undertake the plane project? Why? Complete the Excel worksheet template Con Canvas) to answer questions #1 - 4. Show all calculations in Excel using the built-in arithmetic and financial function formulas. No credit will be given for mathematical calculations not done in the Excel worksheet. Save your file in .xlsx format with the file name: last name, first name initial, and the assignment (Boeing). (. Winkler D Boeing Please answer questions - Sina Microsoft Word document when you have completed your Excel worksheet. The length should not exceed THREE pages. Please do not include a cover page. Place your name, course and section number, and date at the top of the page. Be sure to show your cash flow and calculations in this document (the Excel formula function will work) You may cut-and-gaste from your Excel worksheet but be sure to show your calculations. Please show your numbers instead of cell references in your Word file Save your file in docx format with the file name: last name, first name initial, and the assignment (Boeing). (es. Winkler D Boring When you have completed the assignment, save your Word file in docx format and your Excel filo in xlx format. Upload both to the Boeing Case assignment. Grading is based on content FOCL MacBook Air Review View Mailings Tell me EE24 AaBbcende No Spacing AaBbCcDc AaBbCcDe Heading 1 Heading Normal Exhibit 1. Cash Flow Projections for Boeing's New Plane (Dollars in millions) After-Tax Capital Year Prene Depreciation Expenditures 1 -597.30 40.00 400,00 2 -947.76 96.00 600.00 3 -895.22 116.40 300.00 4 -636.74 124.76 200.00 S -159.34 112.28 182.91 6 958,62 101.06 1,741.42 7 1,718.14 90.95 2.12 8 1,503.46 82.72 -327.88 9 1.665.46 77.75 67.16 10 1,670.49 75.63 -75.21 TI 1,553.76 75.00 -88.04 12 1.698.99 75.00 56.73 13 1,981.75 99.46 491.21 14 1,709.71 121.48 32.22 15 950.83 116.83 450.88 16 1.771.61 112.65 399.53 17 1,958.48 100.20 - 114.91 18 1,691.19 129.20 178.41 19 1,208.64 96.99 627.70 20 1,954.39 76.84 144.27 21 2,366.03 65.81 100.51 22 2,051.46 61.68 463.32 23 1,920.65 57.96 -234.57 24 2,244.05 54,61 193.92 25 2,313.63 52.83 80.68 26 2,384.08 52.83 83.10 27 2.456,65 52.83 85.59 28 2,531.39 52.83 88.16 29 2,611.89 47.52 90.80 30 2,699.26 35.28 93.53 31 2,785.50 28.36 9633 32 2,869.63 28.36 33 99.22 2.956,28 28.36 102 20 34 3,053.65 16.05 105.26 Includes expenditures for research and development, and personnel training b. Includes changes in working capital. Nogative values are caused by a reduction in working capital I' Home SU Layout ies Tell me Calibri (Body) V 11 ' General |||||| Hlll Paste BIU a Av $ % 9 N49 A C D E G H Cumulative CFAT Discounted Cumulative Disc. CFAT CFAT CFAT ANEW AIRCRAFT INVESTMENT AT BOEING, INC. 3 3 After Tax Capital 4 Year Prot Depreciation Expenditures 5 6 1 7 2 8 3 9 4 10 S 11 6 12 7 13 8 14 9 15 10 16 11 17 12 18 13 19 14 20 15 21 16 22 17 23 18 24 19 25 20 26 21 27 22 28 23 29 24 30 25 31 26 32 27 33 28 34 29 35 30 36 37 32 38 33 Sheet1 18 dtv MacBo A NOWA Home Insert Draw Page Layout Formulas Data Review View OT Calibri (Body) V 11 General Paste BIU a Av $ N49 fx D E F H 34 39 40 41 re WACC NPV 42 NPV IRR MIRR Payback Discounted PB 44 45 46 47 48 49 50 51 S2 53 54 55 56 57 58 59 NPY Discount Rate ON SX 10% 15% 20% 25% Net Present Value Profile 5130 51100 61 62 63 64 65 66 67 68 69 70 71 72 7 74 75 76 PV SOLO SAD 5020 son 11 30 D Sheet1 18 sty Mac Normal No Spacing Heading 1 Heading 2 31 A New Aircraft Project at Boeing, Inc. Boeing announced the production of a new passenger aircraft in the wake of the Boeing 737 MAX debacle. The new plane project was an enormous undertaking, and much of the preliminary work has already been done. Research and development began two and a half years carlier and cost about $5 billion. Production facilities and personnel training would require an additional $2 billion, and an additional S1.7 billion in working capital would begin in six years. The Exhibit I provides profit, depreciation, and capital expenditure projections for the project. Also, the financial analysis team has the following data for Boeing: Boeing's beta 1.56 Boeing's market value debt ratio 0.09 Boeing's new issue rate for long-term debt 4.75% Riskless retur 3.75% Market risk premium 5.00% Boeing's marginal income tax rate 21% Please answer the following questions: 1. What are the after-tax cash flows for the project? 2. What are the cost of equity capital and the weighted average cost of capital (WACC) for Boeing? 3. What are the NPV, IRR, MIRR, payback period, and discounted payback period for Boeing's new plane? 4. Construct an NPV profile like Figure 9-3 in the textbook, including titles for the axes and the graph's name 5. Based on your analysis in #2 and #3, would you undertake the plane project? Why? Complete the Excel worksheet template Con Canvas) to answer questions #1 - 4. Show all calculations in Excel using the built-in arithmetic and financial function formulas. No credit will be given for mathematical calculations not done in the Excel worksheet. Save your file in .xlsx format with the file name: last name, first name initial, and the assignment (Boeing). (. Winkler D Boeing Please answer questions - Sina Microsoft Word document when you have completed your Excel worksheet. The length should not exceed THREE pages. Please do not include a cover page. Place your name, course and section number, and date at the top of the page. Be sure to show your cash flow and calculations in this document (the Excel formula function will work) You may cut-and-gaste from your Excel worksheet but be sure to show your calculations. Please show your numbers instead of cell references in your Word file Save your file in docx format with the file name: last name, first name initial, and the assignment (Boeing). (es. Winkler D Boring When you have completed the assignment, save your Word file in docx format and your Excel filo in xlx format. Upload both to the Boeing Case assignment. Grading is based on content FOCL MacBook Air Review View Mailings Tell me EE24 AaBbcende No Spacing AaBbCcDc AaBbCcDe Heading 1 Heading Normal Exhibit 1. Cash Flow Projections for Boeing's New Plane (Dollars in millions) After-Tax Capital Year Prene Depreciation Expenditures 1 -597.30 40.00 400,00 2 -947.76 96.00 600.00 3 -895.22 116.40 300.00 4 -636.74 124.76 200.00 S -159.34 112.28 182.91 6 958,62 101.06 1,741.42 7 1,718.14 90.95 2.12 8 1,503.46 82.72 -327.88 9 1.665.46 77.75 67.16 10 1,670.49 75.63 -75.21 TI 1,553.76 75.00 -88.04 12 1.698.99 75.00 56.73 13 1,981.75 99.46 491.21 14 1,709.71 121.48 32.22 15 950.83 116.83 450.88 16 1.771.61 112.65 399.53 17 1,958.48 100.20 - 114.91 18 1,691.19 129.20 178.41 19 1,208.64 96.99 627.70 20 1,954.39 76.84 144.27 21 2,366.03 65.81 100.51 22 2,051.46 61.68 463.32 23 1,920.65 57.96 -234.57 24 2,244.05 54,61 193.92 25 2,313.63 52.83 80.68 26 2,384.08 52.83 83.10 27 2.456,65 52.83 85.59 28 2,531.39 52.83 88.16 29 2,611.89 47.52 90.80 30 2,699.26 35.28 93.53 31 2,785.50 28.36 9633 32 2,869.63 28.36 33 99.22 2.956,28 28.36 102 20 34 3,053.65 16.05 105.26 Includes expenditures for research and development, and personnel training b. Includes changes in working capital. Nogative values are caused by a reduction in working capital I' Home SU Layout ies Tell me Calibri (Body) V 11 ' General |||||| Hlll Paste BIU a Av $ % 9 N49 A C D E G H Cumulative CFAT Discounted Cumulative Disc. CFAT CFAT CFAT ANEW AIRCRAFT INVESTMENT AT BOEING, INC. 3 3 After Tax Capital 4 Year Prot Depreciation Expenditures 5 6 1 7 2 8 3 9 4 10 S 11 6 12 7 13 8 14 9 15 10 16 11 17 12 18 13 19 14 20 15 21 16 22 17 23 18 24 19 25 20 26 21 27 22 28 23 29 24 30 25 31 26 32 27 33 28 34 29 35 30 36 37 32 38 33 Sheet1 18 dtv MacBo A NOWA Home Insert Draw Page Layout Formulas Data Review View OT Calibri (Body) V 11 General Paste BIU a Av $ N49 fx D E F H 34 39 40 41 re WACC NPV 42 NPV IRR MIRR Payback Discounted PB 44 45 46 47 48 49 50 51 S2 53 54 55 56 57 58 59 NPY Discount Rate ON SX 10% 15% 20% 25% Net Present Value Profile 5130 51100 61 62 63 64 65 66 67 68 69 70 71 72 7 74 75 76 PV SOLO SAD 5020 son 11 30 D Sheet1 18 sty Mac

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!