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1 FIN605: Financial Management Case Instruction and Hints –Sneaker 2013 Dr. Dong Chen Instruction On a relative note, this case analysis and report are more like a “large” homework exercise than a “typical” case project with more complicated structure and a range of choice of parameters. In this case, you will use the capital budgeting techniques we learned in the course (especially Session 4) to calculate the annual net cash flows for the Sneaker 2013 project that New Balance is considering to invest in (You can ignore the analysis of the Persistence project which is also included in the case material). You will then calculate the net present value (NPV) of the project and make recommendations based on that. Your report should clearly demonstrate the estimated annual cash flows and briefly explain how you arrive at those numbers. Your write-up should contain a brief discussion about the role of cash flows in capital budgeting and why NPV should be the appropriate decision making rule for this project.