In a effort to capture the large jet market, Airbus invested $13 billion developing its A380, which is capable of carrying 800 passengers. The plane has a list price of $280 million. In discussing this plane, Airbus stated that the company would break-even when 249 A380s were sold.a) Assuming the break-even sales figure given is the cash flow break-even, what is the cash flow per plane?b) Airbus promised its shareholders a 20% rate of return on the investment. If sales of the plane continue in perpetuity, how many planes must the company sell per year to deliver on this promise?c) Suppose instead that the sales of the A380 last for only 10 years. How many planes must Airbus sell per year to deliver the same rate of return?
Rate of return
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