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The Boeing 777

By Robert Bruner
Published 01 Jan 1994
Reference 4384
Topic Economics & Finance
Industry Airlines/Aviation,  Logistics and Supply Chain
Region North America
Length 27 page(s)
Language English
Inspection copy
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Prizes & Awards

2011 The Case Centre Best-selling Case in the Category 'Finance, Accounting and Control'

2009 The Case Centre Best-selling Case in the Category 'Finance, Accounting and Control'

Winner of the Case Centre Awards and Competitions 2006 in the Category 'Finance, Accounting and Control'

2002 The Case Centre Best-selling Case in the Category '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
About the author

Robert Bruner


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