How many aircraft does Airbus need to sell in order to break even on the investment? Is this number greater or less than your estimate of total demand for very large aircraft (VLA) over the next 20 years? Note: Consider all capital providers as a single entity and calculate the break-even return to them collectively. To calculate the break-even use -present value of a growing perpetuity of cash flows from 2008. Assume an equity risk premium of 6%. with excel workings

\begin{tabular}{|l|r|r|r|r|r|r|r|r|r|} \hline \multicolumn{7}{|c|}{ Airbus Development Expenditure by Year (\$ Millions) } \\ \hline PARTICULARS & 2001 & 2002 & 2003 & 2004 & 2005 & 2006 & 2007 & 2008 & Total \\ \hline & & & & & & & & & \\ \hline R\&D & 1100 & 2200 & 2200 & 2200 & 1320 & 880 & 660 & 440 & 11000 \\ \hline CAPEX & 0 & 250 & 350 & 350 & 50 & 0 & 0 & 0 & 1000 \\ \hline WC & 0 & 150 & 300 & 300 & 200 & 50 & 0 & 0 & 1000 \\ \hline & 1100 & 2600 & 2850 & 2850 & 1570 & 930 & 660 & 440 & 13000 \\ \hline \end{tabular}