Case is designed for a class of relatively early stage of decision analysis and risk analysis of a class module. The case can be used as the very first case in the course, if the students are familiar with the concepts of NPV. In addition, students may be given a brief technical note on the calculation of NPV of cash flows, as pedagogy for business. The analysis requires the use of NPV calculations to determine the results of various options in the case, and choose one of the options. Using the choices that students make, the instructor can lead a rich discussion of the consequences of risk search and risk-averse behavior in situations that managers face in real life. "Hide
by Kenneth C. Lichtendahl, Rohit Gupta Source: Darden School of Business 6 pages. Publication Date: July 27, 2012. Prod. #: UV6468-PDF-ENG
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