popular award

The Boeing 777

Published 01 Jan 1994
Reference 4384
Region North America
popular
Prizes & Awards

2011 ecch Best Selling Case in Finance, Accounting and Control

2009 ecch Best Selling Case in Finance, Accounting and Control

Winner of the 2006 European Case Awards, Finance, Accounting and Control Category

2002 ecch Best-selling case in Finance, Accounting and Control

Summary

In October 1990, the Boeing Company announced that it was launching a new aircraft model, the 777. The task for students in this case is to evaluate the 777 against a financial standard. The students must estimate a weighted average cost of capital (WACC) with which to evaluate the project IRRs.

Teaching objectives

The general objective of this case is to exercise students' skills in estimating a weighted average cost of capital and equity. The need for students to estimate a segment WACC draws out students' abilities to critique different estimates of beta.

Keywords
  • AIRLINES
  • AVIATION