Evaluate the new aircraft project for airbus

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Evaluate the following new aircraft project for Airbus. Initial investments were $223 paid today. Assume that Airbus will produce 80 aircraft per year for five years. Each aircraft will be sold for $290M and total operating costs are 75% of revenues. Assume that revenues and costs occur at year-end with the first revenues (and costs) occurring one year from today. What is the NPV of the project if Airbus' cost of capital is 9%? Ignore taxes, savage values and depreciation.

Reference no: EM133068648

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