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What does sensitivity analysis reveal about the nature of Boeing's gample on the 7E7??? explain the answer please EXHIBIT 9 l Sensitivity Analysis of Project
What does sensitivity analysis reveal about the nature of Boeing's gample on the 7E7???
explain the answer please
EXHIBIT 9 l Sensitivity Analysis of Project IRRs by Price, Volume, Development, and Production Costs Price Premium Above Expected Minimum Price Unit Volume (First 20 Years) 5% 10% 11.3% 1,500 10.5% 10.9% 1,750 11.9% 12.3% 12.7% 2,000 13.0% 13.5% 13.9% 15.1% 2,250 14.1% 14.6% 15.2% 2,500 15.7% 16.1% 16.6% 16.1% 2,750 18.1% 3,000 17.6% Cost of Goods Sold as a Percentage of Sales Development Costs 78% 80% 82% $6,000,000,000 15.9% 21.3% 18.7% $7,000,000,000 17.0% 14.4% 19.4% $8,000,000,000 17.9% 15.7% 13.2% $9,000,000,000 12.1% 14.5% 16.6% $10,000,000,000 15.5% 13.5% 11.2% Note: The IRR consistent with "base case assumptions is 15.7% and is indicated in italics in the table. Source: Case writer's analysis. 15% 13.1% 14.4% 15.5% 16.6% 17.6% 18.6% 84% 12.6% 11.3% 10.3% 9.4% 8.6% EXHIBIT 9 l Sensitivity Analysis of Project IRRs by Price, Volume, Development, and Production Costs Price Premium Above Expected Minimum Price Unit Volume (First 20 Years) 5% 10% 11.3% 1,500 10.5% 10.9% 1,750 11.9% 12.3% 12.7% 2,000 13.0% 13.5% 13.9% 15.1% 2,250 14.1% 14.6% 15.2% 2,500 15.7% 16.1% 16.6% 16.1% 2,750 18.1% 3,000 17.6% Cost of Goods Sold as a Percentage of Sales Development Costs 78% 80% 82% $6,000,000,000 15.9% 21.3% 18.7% $7,000,000,000 17.0% 14.4% 19.4% $8,000,000,000 17.9% 15.7% 13.2% $9,000,000,000 12.1% 14.5% 16.6% $10,000,000,000 15.5% 13.5% 11.2% Note: The IRR consistent with "base case assumptions is 15.7% and is indicated in italics in the table. Source: Case writer's analysis. 15% 13.1% 14.4% 15.5% 16.6% 17.6% 18.6% 84% 12.6% 11.3% 10.3% 9.4% 8.6%Step by Step Solution
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