Description of the Problem: The Boeing 7E7

Case 16: The Boeing 7E7
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Description of the Problem
The case focuses on whether Boeing should go on and develop the Boeing 7E7 aircrafts, taking into account the market reaction to the post 9/11 market. The company had stayed long since the 19990’ without developing a new range of airliners, but in deciding whether to continue with the project was the need to focus on viability and profitability. The manufacture of Airbus has eaten into Boeing’s market share in the commercial airline, and the project’s merit would be evaluated alone and focusing on the actions of Airbus. The cash flow analysis is potentially beneficial to assessing whether the company will commission and finish the 7E7 project, since there are concerns that it may be costly.
Analysis to be done
Cash flow analysis and profitability measures are important indicators on the viability of the project. Since profitability is a concern for the company followi...