ETHICS: You are a corporate R&D manager at Boeing and are thinking about transferring some R&D work to China‚ India‚ and Russia‚ where the work performed by a $70‚000 US engineer reportedly can be done by an engineer in one of these countries for less than $7‚000. However‚ US engineers at Boeing have staged protests against such moves. US politicians are similarly vocal concerning job losses and national security hazards. What are you going to do? As a Boeing manager I view the outsourcing of some
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Boeing 777 QUESTION 1: The WACC that Boeing should use to discount the cash flows for the Boeing 777 investment is the WACC of the Boeing’s commercial division. Step 1: We needed to calculate the Beta of the commercial division of Boeing. We know that Beta of Boeing Corp. is the weighted average of the defense division Beta and the commercial division Beta. We started by calculating the unlevered Beta of Boeing Corp. We did that by unlevering the long-term Boeing Betas i.e.‚ more
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Kristopher Kirkpatrick February 3rd‚ 2015 Finance Policy The Boeing 7E7 I. Statement Of The Problem Michael Bair‚ Boeing Senior Vice President announced a new “super-efficient” jet‚ the Boeing 7E7‚ also known as the “Dreamliner.” The only problem with this announcement was that it was announced in 2003‚ a time period where airline profits were the worse seen in a generation. In order for this plane to get the approval of the board‚ Bair would need to complete a valuation of the 7E7 project and
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strategy * By outsourcing‚ Boeing is able to reduce costs and generate sales. Outsourcing to countries such as India can give the company access to cost-effective services and get access to specialized skills and services. * Boeings’ strategy allowed entry into two of the largest and fastest growing airplane markets (china and India). * It gained the ability to distribute some of the risks associated with large investment required to build an airplane. * By outsourcing LCA manufacturers
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premium‚ the firm’s marginal tax rate‚ and its capital structure. Since Boeing has two business componentsdefense and commercialfirst begin by determining the unlevered beta for its commercial component. This is accomplished by comparing Lockheed and Northrop’s average unlevered beta which was .48 . The next step is to derive Boeing’s unlevered beta which was .47 . Fifty four percent of Boeing’s business is commercial; the appropriate beta for this segment was .46 . Then proceed to relever the
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Debra Whiting English 100 19October 2011 Compare and Contrast Essay Airplanes are one of the greatest inventions of transportation. It is great to get in one of those fascinating machines and get up in the air flying over the clouds like I’m superman. The invention of the car has made our lives today so much easier. It can be compared to the plane in many ways such as comfort‚ looks‚ and speed. Most important‚ the airplane feels real good because of the cushioned seats that it has on the plane
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The Boeing 747 is a widebody commercial airliner and cargo transport‚ often referred to by the nickname Jumbo Jet or ‘Queen of the Skies’. It is among the world’s most recognizable aircraft‚ and was the first widebody ever produced. Manufactured by Boeing’s Commercial Airplane unit in the United States‚ the original version of the 747 was two and a half times the size of the Boeing 707‚ one of the common large commercial aircraft of the 1960s. First flown commercially in 1970‚ the 747 held the passenger
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During the early stages of the First World War‚ technology was progressing and it particularly obvious in aircraft. New forms of aviation were introduced such as zeppelins and aeroplanes. As the war came to an end‚ airships were replaced with the extensive use of zeppelins. The use of aeroplanes and zeppelins was a potent part in the attack and defence of the British main lands. Source A was produced as a poster in 1915 which was one year into the First World War. As a result‚ the source does not
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The Boeing 7E7 Summary and Objectives (This case contains a spreadsheet) The objective of the case is to evaluate the development of 7E7‚ a new commercial aircraft. Boeing operates in two different business segments‚ a commercial-aircraft business segment and a defense system segment. Now the commercial-aircraft segment is facing stiff competition from Airbus and losing its advantage. Boeing executives wish to come up with a more flexible and fuel efficient jetliner to regain market share.
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9.11.01: The Skyscraper and the Airplane: questions 1 & 3 10/08/13 1. Goodhearts approach was to make an analogy of skyscrapers and airplanes. He gives you the background on both and how they started. He starts by giving you this terrible vision that reminds you of 9/11 and then talks about each item that was involved. I was slightly confused on his way of writing because I am still not sure of his point to this essay. 3. "To be modern‚ " he wrote"‚ "is to find ourselves in an environment
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