This case and the companion case, International Paper: Alternative plant Longwood Woodyard are intended to provide the student with the problem of the development of discounted cash flow analysis for decision making of investment capital. Students were asked to estimate the cost of capital and to the sensitivity of NPV evaluation in relation to inflation, annual savings, and the number of years during which the economy was obtained. Cases are designed for students who are studying or have the need to improve the analysis of DCF. Because the main issues covered, cases work well with students, MBA, and executive education audiences. Cases also provide an opportunity to explore a number of issues related to capital investments, including: the owner-manager agency problems, risk adjustment for the discount rate, the development of capital budgeting problems cyclical capital-intensive industry and manages its capital structure "Hide
by Kenneth Eades Brian Kannry Source: Darden School of Business 8 pages. Publication Date: Mar 07, 2000. Prod. #: UV2460-PDF-ENG
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