• Dec 5, 2025 valuing capital investment projects case solutions 2: Selecting Discount Rate Based on WACC and risk considerations, the company sets a discount rate of 8%. Step 3: Calculating NPV NPV = Σ from t=1 to 5 of [$1.2 million / (1 + 0.08)^t] - $5 million Year 1: $1.2 million / 1.08 ≈ $1.11 million Year 2: $1.2 million / 1.08^2 ≈ $1.03 million Year 3: By Dr. Carl Kertzmann Jr.
• Mar 2, 2026 valuing capital investment projects case solutions hbs te projection of cash flow timing is essential for precise valuation. What are common pitfalls in valuing capital projects highlighted by HBS case studies? Common pitfalls include underestimating risks, ignoring inflation, using inappropriate discount rates, and failing to account for changing By Eugene Stroman
