In early 1990Boeing Co. decided to gamble $4 billion to build a new long distance 350-seat wide body airplane called the Boeing 777.The price tag for the
777 scheduled for delivery beginning in 1995is about $120 million apiece .Assume that Boeings $4billion investment is made at the rate of 800million a year
for the years 1990 through 1994 and that the present value of the tax write-off associated with these costs is 750 million. On the basis of estimated annual
fixed costs of $100 million variable production costs of $90 million apiece a marginal corporate tax rate of 34% and the discount rate of %14 what is the
break even quantity of annual unit sales over the Boeing 777 projected 15 year life? Assume that all cash inflows and outflows occur at the end of the year
PLEASE SHOW ALL CALCULATIONS SO I CAN UNDERSTAND. (Also when posting make sure there are no wierd symbols attached which make it hard to follow .Somehow this
happens quite often even when a question is posted)