Question
Please help with the below questions, plug the information into an excel doc and show the formulas used for each block. please help dont know
Please help with the below questions, plug the information into an excel doc and show the formulas used for each block. please help dont know what formulas to use. Below is the excel screenshot
The Airbus A220 has the following investments in R&D (in millions, all negative cash flows):
Year 1: $400M
Year 2: $350M
Each plane will be sold for $18.5M - 25% down and 75% due on delivery one year later.
The cost to produce each plane is $14M - these costs are recognized on delivery.
The Sales and Marketing Department says that you will sell 22 planes (year 3), 32 planes (year 4), 52 planes/year (years 5-9), and 77 planes (year 10).
What are the NPV (as of the beginning of year 1) AND the IRR of the A220 using an 11% discount rate?
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