Given the forecasted data, determine the number of planes that the company must produce in order...

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 uses straight-line method, tax rate is 40% and the company’s cost of capital is 12%. please show work in Excel. Can you also put the Formulas used.

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jeff jeffy answered 1 year ago

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