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The Airbus A380 is the largest civilian aircraft ever built. It can carry 555 passengers on two decks and each deck has two aisles. Project

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The Airbus A380 is the largest civilian aircraft ever built. It can carry 555 passengers on two decks and each deck has two aisles. Project investments totaled over $13B spread out between 2000 and 2008. Assume that the investments are paid for on Jan 1, 2008. Each aircraft will be sold for $230M and the cost of building each airplane is $172.50M. Assume that 50 aircraft will be sold each year for 5 years. Assume that revenues and costs occur at year-end with the first revenues (and costs) occurring one year after the investment (thus the 2008 revenues and costs are incurred on Jan 1, 2009.) What is the payback period of the Airbus A380 project? 1.12 years 3.4 years 4.52 years 5 years

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