n an effort to capture the large jet market, Wright Brothers Aviation invested $24 billion developing its 1903A, which is capable of carrying 800 passengers.The plane has a list price of $290 million. In discussing the plane, Wright Brothers Aviation stated that the company would break even when 290 1903As were sold.

a.	Assuming the break-even sales figure given is the cash flow break-even, what is the cash flow per plane? (Enter your answer in dollars, not millions of dollars, i.e. 1,234,567. Round your answer to the nearest whole dollar amount.)

Cash flow per plane

$

b.	Wright Brothers Aviation promised its shareholders a 20 percent rate of return on the investment. If sales of the plane continue in perpetuity, how many planes must the company sell per year to deliver on this promise? (Round your answer to 2 decimal places. (e.g., 32.16))

Number of planes to be sold

per year

c.	Suppose instead that the sales of the 1903A last for only 10 years. How many planes must Wright Brothers Aviation sell per year to deliver the same rate of return? (Round your answer to 2 decimal places. (e.g., 32.16))

Number of planes to be sold

per year