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The Boeing Corp. is considering building a new aircraft, the 7 8 7 which is larger than the 7 4 7 and aimed to compete
The Boeing Corp. is considering building a new aircraft, the which is larger than the and aimed to compete with the Airbus A The company's Renton WA Facility would have to be expanded. Expansion costs are forecast to be $ billion, incurred at t Also at time t before production begins, inventory will be increased by $ billion to handle the new line. This increase in inventory is liquidated at the end of the project at t for $ billion. The depreciation rate is and as usual the half year rule is applied. The project is expected to last years with estimated Operating Cash Flows OCF of $ billion each year. There is no salvage value at the end of years. The company's tax rate is and its weighted average cost of capital is What is Net Present Value NPV of the project? Round to the nearest million and express the result in millions. For example, if your answer is $ dollars, enter without the dollar sign.
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