Students consider which capital budgeting method to take when evaluating the joint venture proposition of a packaging manufacturer.
Suitable for MBA and undergraduate students, the case presents a scenario in which a deficiency of short-term profits and the consequent lack of tax payments could make present value that is adjusted to a better choice than weighted average cost of capital. Students also consider the way to value the industrial bond funding that would finance construction of a new plant.
Publication Date: 07/06/2010
This is just an excerpt. This case is about Finance
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