Boeing Case

Project in terms of a long-term investment plan. Also Boeing shareholders should approve the project because if not the already market leading company Airbus may develop a similar aircraft and capture even more of the market share.

While the project should be voted to proceed, there are some inherent risks investors and shareholders should be aware of. The epidemic of SACARSnd the tragic event of 9/11 are still on people’s minds and could affect the airline market. Also the 7EEWEs the first of its kind and could potentially encounter problems. Another measure in which we can use to determine whether the project has value is the NPNAPr net present value of the project. The NPNAPs the difference between the present value of cash inflows and the present value of cash outflows. It is used to determine the profitability of the investment in a project.

For the years 2004 to 2037 we calculated a NPNAPf $2,637. 5 which indicates that the project will create value for shareholders. Anytime NPNAPs positive for a project, a positive return can be expected. An example of why this should be looked at as a long-term investment strategy is if we calculate the NPNAPor years 2004 to 201 6 only we get a -$ 1,752. 83, thus proving it will only benefit the shareholder in the long-run. The NPNAPs the difference between the present value of cash inflows and the present value of cash outflows. It is used to determine the profitability of the investment in a project.