Quickly Learning Inc. was a private firm that developed applications and learning materials largely for preschool-aged kids. The organization is pondering over establishing two different projects, which are starting an early childhood education centre and buying a prominent day-care center. Quickly Learning Inc. has acquired the services of a company that provides guidance on these enterprises.
Among the team members assessing the suggestions must establish the proper costs of capital (or hurdle rates). He considers whether necessary returns should represent current market prices or genuine previous prices, and whether to base the calculations on an average of the costs of existing sources or the cost of new sources of financing.
Publication Date: 08/28/2002
This is just an excerpt. This case is about Finance