The Airbus A220 has the following R&D costs (all negative cash flows): 600M (year 1) 500M (year 2) Each plane will be sold for 50M – 25% down and the rest due on delivery one year later. The cost to produce each plane is 44M – these costs are recognized on delivery. Sales says that you will sell 30

Sep 8, 2023

 

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The Airbus A220 has the following R&D costs (all negative cash flows): 600M (year 1) 500M (year 2) Each plane will be sold for 50M – 25% down and the rest due on delivery one year later. The cost to produce each plane is 44M – these costs are recognized on delivery. Sales says that you will sell 30
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