This case is based on an actual investment decision by a large paper products company, and is primarily designed to be a simple exercise in the assessment of cash flows, cost of capital and the present value of its capital-intensive investment decision. The case is well suited for all audiences who are learning the basics of discounted cash flow and investment analysis, including the assessment of the relevant cash flows (both cost savings and increased revenues), the effect of taxes on savings and Reve … Read more »

This case is based on an actual investment decision by a large paper products company, and is primarily designed to be a simple exercise in the assessment of cash flows, cost of capital and the present value of its capital-intensive investment decision. The case works well for all target groups (both cost savings and increased revenues), the effect of taxes on savings and revenues, the change in learning the basics of discounted cash flow and investment analysis, including the assessment of the relevant cash flows be net working capital as cash flow and the weighted average cost of capital rate to the average investment.
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from
Kenneth Eades
Source: Darden School of Business
3 pages.
Release Date: 31, January 2002. Prod #: UV2499-PDF-ENG
Worldwide Paper Company HBR case solution