This case is based on the actual investment decisions made by major paper products company, and is primarily designed for simple exercise in the assessment of cash flow, cost of capital, the net present value of capital investment decision. The case works well for all the spectators, who are learning the basics of discounted cash flow and investment analysis, including an assessment of the related cash flows (such as cost savings and increased revenue), the impact of taxes on savings and income, changes in net working capital as cash flow, and average cost of capital as the discount rate for the average investment. "Hide
by Kenneth Eades Source: Darden School of Business 3 pages. Publication Date: January 31, 2002. Prod. #: UV2499-PDF-ENG
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