The Island Development Corporation: Capital Budgeting Project
商品編號：W38382
出版日期：2024/10/24
再版日期：
商品來源：
商品主題：Finance
商品類型：Case (Field)
涵蓋議題：capital budgeting;NPV;IRR;weighted average cost of capital;free cash flows
難易度：5 - MBA/Postgraduate
內容長度：12 頁
地域：Philippines
產業：Mining; Quarrying; and Oil and Gas Extraction
事件年度：2022
In September 2022, the chief executive officer (CEO) and founder of Maximum Quality Equipment (Maximum), was trying to decide whether to invest in a joint venture company to operate a quarry that would extract and sell rock armour. The joint venture company, Island Development Corporation (IDC), had secured a 25-year mineral production sharing agreement with the Philippine government. IDC would purchase equipment and extract rock armour in Chiquita Island and then sell the rock armour to San Miguel Corporation (SMC), a major Philippine corporation. The contract was currently under negotiation, with SMC offering a two-year contract and IDC asking for a five-year contract. The CEO asked his chief financial officer to run a discounted cash flow, estimate the cost of capital for the project, and determine the net present value (NPV), internal rate of return (IRR), and project payback. He needed to decide whether he would invest in the project.
教學手冊：The Island Development Corporation: Capital Budgeting Project - Teaching Note
補充材料：