The purpose of this case for the students to construct and evaluate the cash flow analysis of investment proposals in the IT project. The central question is to determine the costs of analysis. The case also allows you to estimate the cost of capital for the company, which is clearly less than the minimum acceptable rate of interest is dictated by the project. The case provides information on the approval of the capital budget process within the firm, and how incentives can not be reconciled with the shareholders for certain decisions.
This Darden study. "Hide
by Kenneth Eades, Sam Weaver Source: Darden School of Business 14 pages. Publication Date: February 13, 2002. Prod. #: UV0510-PDF-ENG
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