|Quoting Irishpower (Reply 27):|
Realistically speaking though discounted cash flows at 10% for a project as large as the A380 is probably a little low
It's the standard "cost-of-capital" model used by both Boeing and Airbus (+ or - a 1/4%) in order to determine DCF
or NPV values
|Quoting Leelaw (Reply 26):|
IIRC, Mr. Champion of Airbus, in his recent "Hard Talk" interview with Sarah Montague on the BBC, either said directly or confirmed Ms. Montague's figure of 250-300 units for A380 breakeven.
I could probably live with a figure of 300 to make the "raw numbers" equalise (250 + 20%), but Airbus themselves have admitted that their break-even numbers make no allowance for NPV or DCF
calculations. I guess it depends on one's definition
|Quoting YULWinterSkies (Reply 28):|
Then with 350 orders, they are still quite far from breakeven, so this is nothing else that propaganda from Boeing
I was only quoting from memory what I recall being said YULWinterSkies. There's always the question of whether that number is on a Discounted cash-flow (DCF
) basis or just "raw numbers).
To be honest, if I'd got 350 orders and 50 or so commitments 2 years before EIS and my break-even was 500, I'd say I was "pretty near" too.
If its propaganda, I'd say they've earned it
(and don't forget I'm an Airbus fan at heart