As expected inflation falls for the coming year, we expected the price of gold to ________ due to a leftward shift the in ________ curve

Home rule powers allow municipalities to act on issues of local concern because they do not have to seek approval for their actions from the state legislature

Indicate whether the statement is true or false

What is the Profitability Index of 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 its 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 Profitability Index of the project if Boeing's cost of capital is 10%? Calculate the index as of December 1, 2007. 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) -1.52 B) -0.44 C) 1.06 D) 1.87 E) 2.43