Question: please explain in excel each step 1. Given the forecasted data, determine the number of planes that the company must produce in order to break
1. Given the 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 15-year project initial investment is $1,200 million, each plane sold for $15 million, the variable cost is $8 million each plane, the fixed cost is $100 million, the depreciation uses straight-line method, tax rate is 35% and the company's cost of capital is 10%. Please calculate accounting break- I even and economic break-even for the project. 2. Calculate mean and standard deviation for the following asset. Economic State Return Probability Recession -25% 25% Normal 15% 45% Boom 3596 30%
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
