The payoff matrix supplied (see below) shows outcomes of various strategies that Airbus and Boeing might follow in response to action on the part of the other company. This payoff matrix describes actions in developing so-called super-jumbo jets that carry 600 or more passengers. The payoffs represent losses and gains when the U. S. and E. U. subsidize Boeing and Airbus, respectively. Boeing
Producers Produces Does not Produce
Does not Produce Airbus
$10M,$10M$ $0M,$200M
100M,$0M $0M,$0M
What is Boeing's strategy? What is Airbus' strategy?

Problem 9-5. net present value and taxes [lo 1, 2] penguin productions is evaluating a film project. the president of penguin estimates that the film will cost $20,000,000 to produce. in its first year, the film is expected to generate $16,500,000 in net revenue, after which the film will be released to video. video is expected to generate $10,000,000 in net revenue in its first year, $2,500,000 in its second year, and $1,000,000 in its third year. for tax purposes, amortization of the cost of the film will be $12,000,000 in year 1 and $8,000,000 in year 2. the company’s tax rate is 35 percent, and the company requires a 12 percent rate of return on its films. required what is the net present value of the film project? to simplify, assume that all outlays to produce the film occur at time 0. should the company produce the film?