In October 1990, Boeing announced that it is launching a new model airplane, 777. Fanfare praised the technological superiority of the product and the fact that it fills a gap in the product line of the company Boeing. The challenge for students is to evaluate 777 against financial standards required returns of investors. Gives the internal rate of return (IRR) of the project under the 777 base case and alternative projections. Students must evaluate the weighted average cost of capital (WACC) for the commercial segment of the business aviation Boeing to evaluate these IRR. As a result of this analysis, students identify the "key value drivers" and distinguish, on a qualitative basis, the key gambling Boeing does.
This Darden study. "Hide
by Robert F. Bruner, Dena Gollish, Henrik Clausen Nils Koggersbol, Peter Christey Source: Darden School of Business 26 pages. Publication Date: February 18, 1993. Prod. #: UV0003-PDF-ENG
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