A set of five exercises in the capital budget. Student evaluates and compares the various decision criteria (including IRR and NPV) for investment projects. This is an introductory if the corresponding cash flows provided and the emphasis is on the mechanics of discounting and investment decisions. In addition, one exercise directly probe the relationship between positive NPV project and add value for shareholders. The final "exercise" consists of three mini-page analysis of the case, making investing in Lockheed TriStar L-1011 Project Airbus. This drives home the importance of discounting and NPV, and shows the negative impact of the negative NPV project on shareholder value. "Hide
by Michael E. Edleson Source: HBS Premier Case Collection 6 pages. Publication Date: February 27, 1991. Prod. #: +291031- PDF-ENG
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