A final-year student at a business school estimated the net present value (NPV) of his proposed business plan — a tourism and transport company in India — using three different procedures and ran into different valuation results. He desired to know the reasons for the difference and approached the professor who had taught him valuation concepts in a finance class.
Learning Objective: This case was created for an MBA-level course in corporate finance. It truly is meant to provide students with a background to create the following statements and evaluation:
Approximation of cash flow using Capital Cash Flow, Free Cash Flow to Equity, and Free Cash Flow to Business.
Valuation of a project.
Mismatch of valuation estimates.
The case provides an opportunity to compare and review some of the cash flow valuation techniques that are popular.
Valuing Rajat Bhatia’s Business Plan Case Study Solution
Publication Date: 09/12/2011
This is just an excerpt. This case is about Finance
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