This case is a complex discounted cash flow (DCF) problems associated with the assessment of the effects of changes in the earnout agreement. The task of the student is to analyze the DCF to compare the values of the original and amended earnout earnout. Case is designed to teach an introductory course in how to apply the principles of DCF, in particular, the choice of an appropriate discount rate in line with the risk.
This Darden study. "Hide
by Kenneth Eades Source: Darden School of Business 8 pages. Publication Date: June 29, 2004. Prod. #: UV0513-PDF-ENG
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