INVESTING WITH TALENT

IE code:
DF2-123-I
Language:   English
also available in Spanish
Format:  
PDF
also available in Multimedia
Nr. Of Pages:
18
Academic Area:
Type of publication:
Technical Note

Description

This material, which is introduced with a biblical parable comparing today’s shareholders and managers to the protagonists of the parable, explores different alternatives to invest investors’ wealth. It explains the theoretical underpinnings of investing with talent and emphasizes that the manager must make investments that increase the investors’ wealth more than they could do on their own. Using the example of the Gemini project, the case walks students through the methods frequently used by finance directors to figure out if the Gemini project or an alternative would be the most profitable. To do so, it covers forecasts, free cash flow on operations, future value, NPV, IRR and ARR and then wraps up by analyzing the Gemini Project by applying the various methods.