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Case Type Variations

Anonymous A asked on Aug 01, 2018 - 1 answer


Can some of the experts on here or more experienced folks kindly provide an overview of some of the variations valuation and capacity change cases usually appear as.


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replied on Aug 01, 2018
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In terms of valuation, it is similar to finance basics:

  • Valuation of the company (Purchasing decision, exit decision, etc)
  • Valuation of the project (Investment decision, comparing several growth options, etc)

For the valuation cases, you should know how to calculate valuation in perpetuity, terminal value, usage of 72 rule.

For the capacity change cases I've seen:

  • Cases with bottlenecks (E.g. Garbage processing facility is out of capacity and getting stuck. What should we do?)
  • Sales problems caused by the lack of capacity
  • Profitability, Cost cutting cases where increasing the capacity leads to the economies of scale


Related BootCamp article(s)

Cost-Benefit Analysis

Investments or single business cases need to be evaluated based on a certain set of criteria. Since financial performance is the key criterion in most cases you need to have an idea about future financial impacts. A key tool to asses this impact is the cost-benefit analysis which is used to determine the net effect of potential revenues and costs.

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Opportunity Costs

Opportunity costs are an economic concept to quantify benefits of (discarded) alternatives. They measure the lost benefits that occur if you choose the best alternative instead of the second best one.



Valuation case studies require you to estimate how much a firm, patent, or service is worth. For these cases, use the Discounted Cash Flow method or the Industry multiple method.

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