Co-founder of Compass Records, a small independent music recording company, must decide whether to "produce and own" the next album is up-and-coming folk musician or just "license" it is finished recording. This case is of sufficient information to create a cash-flow forecasts, or for alternative investments. Discounted cash flow (DCF) analysis shows that licensing will be a more attractive alternative, if the student evaluates the value of the options for subsequent albums included in the "manufacturing and own" contract. "Hide
by Robert F. Bruner, Kenneth Eades, Sean Carr Source: Darden School of Business 12 pages. Publication Date: December 9, 2005. Prod. #: UV1381-PDF-ENG
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