In: Finance
Given the following 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 6-year project initial investment is $900 million, each plane sold for $15.5 million, the variable cost is $8 million each plane, the fixed cost is $150 million, the depreciation uses straight-line method, tax rate is 30% and the company’s cost of capital is 10%. Please show all work in excel. Thank you!