Objectives of Aircraft Project Financial Analysis

An aircraft project is considered financially successful if:

• It generates profits exceeding its costs

• It is completed ahead of schedule

• It uses the latest technology

• It receives government approval

Aircraft average cost varies with production run in which of the following ways?

• It decreases as production run increases

• It increases as production run increases

• It remains constant

• It fluctuates randomly

The typical purchase price cost breakdown for a civil transport includes:

• Airframe, engines, avionics, and interior

• Only airframe and engines

• Only avionics and interior

• Only maintenance costs

Which of the following best describes the difference between direct and indirect operating costs and the factors used to calculate direct costs?

• Direct costs are directly attributable to a specific project and are calculated using labor, materials, and equipment, while indirect costs are shared across multiple projects.

• Direct costs are shared across multiple projects, while indirect costs are specific to one project and calculated using overhead expenses.

• Direct costs include only overhead expenses, while indirect costs include labor and materials.

• Direct costs and indirect costs are both calculated using the same factors.

The typical DOC breakdown for a civil transport includes:

• Fuel, maintenance, crew, depreciation, insurance, and airport charges

• Only fuel and maintenance

• Only crew and insurance

• Only depreciation and airport charges

What is the main financial criterion on which aircraft designs should be judged?

• Return on investment (ROI) for the company

• Total number of aircraft produced

• Maximum speed of the aircraft

• Passenger comfort rating

For most new civil aircraft projects, how many years does it typically take from the start of the project to break even?

• 10 years

• 3 years

• 20 years

• 30 years

As of 2009, which aircraft had more units built?

• Boeing 737

• Airbus A320

According to the graph, which type of aircraft project reaches the break-even point faster?

• new design (civil)

• derivative type (civil)

Break even time is shorter for derivative types, but potential returns are reduced.

• True

• False