This case is designed to introduce students to the challenges of formulating a discounted-cash-flow (DCF) analysis for strategically important capital and investment solutions. Analytically, the problem is representative of the majority of corporate investment decisions, but it is particularly interesting because of the massive size of the U.S. Project centrifuge and the potential of the project to significantly affect the stock price. Students should determine the appropriate cash flows, paying particular attention to the treatment of production costs, selling prices, terms of investment costs, depreciation and inflation.
An important contribution is the appropriate cost of uranium, which some students claim to be included in the carrying amount, while others argue that the market value should be used. Despite the fact, the primal an objective out of case is, order to focus on Assessment Panel on the of cash flows, to students under the condition, with a straightforward set of input data,, to have analyzed various data at weighted average cost USEC of the author from capital. The case is designed for students who are learning, or need a refresher on, analysis of DCF. Because out of Essentiale of matters covered by, the case of, well works with undergraduate Topic, MBA, and the executive-erudition audiences. Case is also gives opportunity to study the whole series of questions related to capital-of investment analysis, including relevant expenses and additional of analysis, cost of capital, as well as analysis of sensitivity. The thing is, a fine example addition, the cost of the firm as value of assets on a place, plus the net present value of future growth opportunities. "Hide
by Kenneth Eades, Lucas Doe, Ben Mackovjak Source: Darden School of Business 11 pages. Publication Date: November 5, 2008. Prod. #: UV1051-PDF-ENG