What is the payback period for the Airbus A380 project? The Airbus A380 is the largest civilian aircraft ever built. It can carry 555 passengers on two decks. Initial project investments were $13B
Assume that the initial investment was paid on Dec 31, 2008. Assume that Airbus will produce 60 aircraft per year for five years. Each aircraft will be sold for $230M and total operating costs are 75% of revenues. Assume that revenues and costs occur at year-end with the first revenues (and costs) occurring on Dec 31, 2009. Ignore taxes and assume that there are no terminal year cash flows. Select the earliest year such that the initial investments are completely paid off.
A) 3 years
B) 4 years
C) 5 years
D) The project is not paid off in this time frame.
E) Need the cost of capital to answer this question.
B
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Which social responsibility theory has been advocated by Nobel Prize winning economist Milton
Friedman? A) Corporate social audit B) Corporate citizenship C) Stakeholder interest D) Moral minimum E) Maximizing profits
Exhibit 12-2 illustrates the progressively more inclusive ways a person can identify himself or herself within an organizational structure
At a basic level, a person might see himself or herself as an individual, but at a wider view, a person might see himself or herself as a member of a unit or a larger organizational area. Group members identify and categorize themselves in this same fashion; categorizing themselves and others in terms of in-groups and out-groups. The more narrowly a group defines itself, the more the group's behavior becomes: a. cohesive and differentiated. b. inclusive and extraverted. c. competitive and self-serving. d. cooperative and self-sacrificing.