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In an Effort to Capture the Large Jet Market,Hiro Airplanes

Question 105

Multiple Choice

In an effort to capture the large jet market,Hiro Airplanes invested $12.68 billion developing its B490,which is capable of carrying 800 passengers.The plane has a list price of $275 million.In discussing the plane,Hiro Airplanes stated that the company would break-even when 246 B490s were sold.Assume the break-even sales figure given is the cash flow break-even.Suppose the sales of the B490 last for only 9 years.How many airplanes must Hiro Airplanes sell per year to provide its shareholders a 19 percent rate of return on this investment?


A) 47.17
B) 52.48
C) 59.09
D) 63.10
E) 68.40

Correct Answer:

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