In January 2001, the Committee of Senior Officials of the company has to decide which major projects should be funded for the implementation of the company since 2001. The Board of Directors arbitrarily set a limit (in euros) EUR120 million will be allocated for capital projects in 2001. Various managers, however, have proposed projects totaling EUR316 million. The task for the student is the assessment completed a discounted cash flow (DCF) analyzes are presented along with qualitative factors (mainly strategic considerations and internal politics), and select the projects that will be approved. "Hide
by Robert F. Bruner, Casey Opitz C. Source: Darden School of Business 12 pages. Publication Date: November 27, 2001. Prod. #: UV2495-PDF-ENG