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The Boeing Company has an opportunity to supply a large airplane to British Airways, a foreign airline. British Airways (BA) will pay $19 million upfront

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The Boeing Company has an opportunity to supply a large airplane to British Airways, a foreign airline. British Airways (BA) will pay $19 million upfront when the contract is signed and $19.45 million one year later. Two years after .i.e. in the third year, British Airways deposited $9.7 million into Boeing business account. Boeing had obtained loan from Morgan Stanley (an investment bank) prior to the initial payment from BA and invest $16.5 million from it at the beginning of the project. Subsequently, Boeing spend $ 20 million, $ 9.5 million, $ 3.5 million, 26 million, and $ 14 million as running cost for the first, second, third, fourth and fifth year respectively. British Airways will take delivery of the airplane during Year 4, and agrees to pay $26.25 million at the end of that year and the $15.5 million balance at the end of year 5. The outcome of the rate of return on this investment as compare with the minimum attractive rate of return (MARR) will determine if Bocing will continue to sustain their current staff strength or they will cede to the option of downsizing after the completion of the 5 year deal. Boeing management request her project management team to conduct an economic analysis on the proposed venture (project) so that they can be better informed on policy formulation in readiness for any exigency that may result from the project. These exigencies include but not limited to staff downsizing, staff retainnlent, salary freezing, and salary cut or closing down some of their plants since they are multinational company. The project management team is planning to approach the task as follows: 1. Generate a table depicting the cash flow estimates for the Project 2. Draw the cash flow diagram for the cash flow estimates 3. Determine the number of rates of return values this project is likely to have

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