In October 1990, the Boeing Company announced that a new aircraft model, the 777 The Fanfare praised the technological superiority of the product and the fact that it filled a gap in Boeing’s product line. The task for students is to evaluate the required returns 777 against a financial standard of investors. Is internal rate of return (IRR) for the project under 777 base-case and alternative forecasts. The students have to estimate a weighted average cost of capital (WACC. .. Read More »

In October 1990, the Boeing Company announced that a new aircraft model, the 777 The Fanfare praised the technological superiority of the product and the fact that it filled a gap in Boeing’s product line. The task for students is to evaluate the required returns 777 against a financial standard of investors. Is internal rate of return (IRR) for the project under 777 base-case and alternative forecasts. The students have to estimate a weighted average cost of capital (WACC) for commercial aircraft from Boeing Field to evaluate business these IRRs. As a result of this analysis, students identify the “value drivers” and to distinguish, on a qualitative basis, the main playful Boeing makes.
This is a Darden case study.
«Hide

from
Robert F. Bruner,
Dena Gollish,
Henrik Clausen,
Niels Koggersbol,
Peter Christey
Source: Darden School of Business
26 pages.
Publication Date: Feb 18, 1993. Prod #: UV0003-PDF-ENG
777 HBR case solution