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 10-year project initial investment is 1,000 million, each plane sold for 15 million, the variable cost is 7 million each plane, the fixed cost is 150 million, the depreciation is the straight-line method, tax rate is 40% and the company's cost of capital is 12%. please show all work.
Get Answers For Free
Most questions answered within 1 hours.