1. What are the issues in this case? In what order should Andy Chin and Adeline Koh...
Question:
1. What are the issues in this case? In what order should Andy Chin and Adeline Koh address them?
2. Should Koh approve the packaging machine investment? How did you analyze this issue?
In July 2001, a new chief executive officer (CEO) joins this small manufacturer of CD-ROMs and DVDs to discover that the firm is in the midst of a financial crisis that was induced by rapid growth. The CEO asks an analyst for help with five tasks:
- Review the historical performance of the firm
- Forecast financing requirements for the next two years
- Exercise the forecasting model to identify key driver assumptions
- Estimate Star River’s weighted-average cost of capital
- Analyze a proposed investment in a packaging machine
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1 The two core issues are project analysis and financial forecasting The project should be a...View the full answer
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Related Book For 
Case Studies in Finance Managing for Corporate Value Creation
ISBN: 978-0077861711
7th edition
Authors: Robert F. Bruner, Kenneth Eades, Michael Schill
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