Boeing Airbus case study doc

Boeing Airbus case study doc - Jennifer DePuy Chris Knight...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Jennifer DePuy 402469832 Chris Knight 203592705 Stella Lee 403657324 Boeing and Airbus Case Study 1. Analyses a. NPV analysis i. $198 million/plane and expected sales found in IRR section ii. Financing cost for loans value needed iii. Cost of R&D (direct cost) 1. 6-10% of annual sales 2. Need gross sales number for Airbus iv. Operating cost incurred by this particular project (includes labor) value needed v. Cost of materials value needed vi. Previous investment of $500 million excluded in IRR analysis because it is a sunk cost vii. Capital expenditures for new manufacturing equipment values needed b. Sensitivity Analysis i. Sensitivity analysis represents the impact that the variation of each margin has in determining which alternative is selected. ii. All metrics previously used in NPV analysis also used for sensitivity analysis. c. IRR i. Using results from NPV for previously mentioned metrics ii. Duration of development: 6 years (1999-2005) iii. Duration of manufacturing 1.
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern