Companies must use the percentage-of-completion method when estimates of progress toward completion are reasonably dependable.

What is intellectual property? What are the various categories of intellectual property?

What will be an ideal response?

What is the payback period for the Boeing 787 Dreamliner project? The Boeing 787-8 can carry 230 passengers up to 8,200 nautical miles at a cruising speed of mach 0.85

The Dreamliner is more comfortable for passengers because of higher cabin humidity. Boeing completed construction of its final assembly plant in Everett Washington in December 2007 at a total cost of $7B. Boeing has secured sales of 865 aircraft over the period 2008-2012 for total proceeds of $138.4B ($160M per aircraft). The cost of building each plane is $140M. Assume that sales (and costs) occur in December of each year. Assume that sales are spread evenly across the five years from 2008-2012. The project cash flows are shown in the table, below. What is the payback period for the project? Ignore taxes. Year Capital Investment Annual Sales Annual Revenues Annual Costs Cash Flows 2007 -$7,000M -$7,000 2008 173 $27,680 $24,220 $3,460 2009 173 $27,680 $24,220 $3,460 2010 173 $27,680 $24,220 $3,460 2011 173 $27,680 $24,220 $3,460 2012 173 $27,680 $24,220 $3,460 A) 2 months B) 2.02 years C) 3.4 years D) 7 years E) 24 years