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Case Type Variations

Anonymous A asked on Aug 01, 2018

Hi,

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.

Thanks

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Vlad replied on Aug 01, 2018
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Hi,

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

Best!

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