Professional Essays Writer Globalizing the Cost of Capital and Capital Budgeting at AES

Mihir A. Desai, Doug Schillinger

Finance & Accounting

With electricity generating businesses around the world, AES Corp. is seeking a methodology for calculating the cost of capital for its various businesses and potential projects. In the past, AES used the same cost of capital for all of its capital budgeting, but the company’s international expansion has raised questions about this approach and whether a single cost of capital adequately accounts for the different risks AES faces in its diverse businesses and diverse environments. The company recently suffered heavy losses from currency devaluations in South America and regulatory changes in other countries. The director of the corporate planning group is developing a methodology for taking account of different country and project risks, and the case allows students to use this methodology to calculate the cost of capital for 15 different projects around the world. Students must consider how a global firm can account for differing risks in evaluating its international operations and in investing abroad. To obtain executable spreadsheets (courseware), please contact our customer service department at custserv@hbsp.harvard.edu.

Costs, Emerging markets, Financial analysis, Globalization, Operations management, Risk management

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Professional Essays Writer Dogfight over Europe: Ryanair (A)

Jan W. Rivkin

Strategy & Execution

In April 1986, the Ryan brothers announce that their fledging Irish airline Ryanair will soon commence service between Dublin and London. For the first time, Ryanair will face formidable competitors such as Aer Lingus and British Airways on a major route. Students are asked to assess Ryanair’s entry and anticipate the response of incumbent carriers.

Costs, Marketing

Professional Essays Writer Zipcar: Refining the Business Model

Myra M. Hart, Michael J. Roberts, Julia D. Stevens

Innovation & Entrepreneurship

This case is accompanied by a Video Short that can be shown in class or included in a digital coursepack. Instructors should consider the timing of making the video available to students, as it may reveal key case details.Zipcar is a start-up organized around the idea of “sharing” car usage via a membership organization. This case describes several iterations of the Zipcar business model and financial plan. These iterations include a very early version and a version developed just prior to the launch of the business, as well as data from the first few months of operations. Students are called on to analyze the underlying economics and business model for the venture and to discover how these assumptions are holding up as the business is actually rolled out.

Business models, Costs, Entrepreneurship, Gender, Growth strategy, Strategic planning, Technology