In the post war period BAE created in collaboration with others many other recognisable products such as the de Havilland Comet (the world’s first commercial airliner) and the Concorde (the first supersonic commercial airliner).
BAE systems are the third largest global defence company with sales exceeding ?15 Billion ($25 Billion), (BAE, 2006)... displayed 300 characters
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The company has an annual research and development budget exceeding ?1.3 Billion which leads to over 100 new inventions per year. BAE are the sixth largest supplier of military equipment to the United States armed forces. British Aerospace’s main rivals are Lockheed Martin and Boeing; both are large American companies which has led to both being the contractor of choice for the US government... displayed next 300 characters
To further this point a fact brought up by Joann was that diseases we have today would be and could have become epidemics, if it were not for technology being there in the field of medicine, medical advances would not have happened or would have come years later (Joann)...
The belief was that Supersonic aircraft would replace all other aircraft what would eventually become known as a supersonic transport (SST).
In aviation, high-speed and altitude where the most desired progress where faster and higher was better...
Also air force bombers and transports were able to reach and cruise at
supersonic speeds(Silverstein 56-70). In the late 1950's civil transcontinental
jet services started with the Comet 4 and the Boeing 707...
The basic intuition is to accept the project if the IRR is more than WACC or reject it if IRR is less than WACC. The defense division of Boeing was relatively more stable and was thriving during gulf war whereas commercial aircraft business became volatile...
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