... be positioned in the first half of the course, after learning time value of money. This case study serves as an introduction to capital budgeting techniques, sensitivity analysis and scenario analysis to make investment decisions under risk and uncertainty. Supplementary material Teaching notes...

... plants. The situation can be modeled and solved as a linear program. Sensitivity analysis can be used to help formulate a strategy for negotiating with the vendors and to address other special issues. This case was prepared by Robert Carraway. It was written as a basis for class discussion rather...

... calculation The importance of sensitivity analysis to a capital-investment decision Based on “Aurora Spinning Mills,” an unpublished case by Robert Barnhardt (Dean Emeritus of the College of Textiles, North Carolina State University), this case was written by Lucas Doe (MBA/ME '04), under...

... be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the Darden School Foundation. discounted cash flow DCF capital investment sensitivity analysis real...

..., and sensitivity analysis shows this is a robust projection, suggesting it should be funded without question. However, the strategy of the firm is customer acquisition in an environment of high customer churn. As a result of these dynamics, the revenues and net income of the firm are actually decreasing...

...! Red; indicates results below the hurdle rate. Green; indicates results above the hurdle rate. Exhibit TN6: Sensitivity Analysis to Adjusted Penetration Exhibit TN7: Three-Year Internal Rate of Return Year 0 Year 1 Year 2 Year 3 Year 4...

... the opportunity to explore a variety of issues related to capital-investment analysis, including relevant costs, incremental analysis, cost of capital, and sensitivity analysis. The case is an excellent example of the value of a firm as the value of assets in place plus the net present value of future growth...

... with extended sensitivity analysis. Being a manager responsible for training the petrol station operators, Aiman would like to introduce the CVP concepts and spreadsheet model-building process to the petrol station operators, to aid them in planning and decision making. To construct the Excel spreadsheet model...