Dhahran Roads A Harvard Case Solution & Analysis

Cummins, Epley, and Mayo, a U.S. construction firm, has been selected as the general contractor for the reconstruction of the road project in Saudi Arabia. On the basis of the valuation of the company, the project includes 15% profit on costs, well below the required 18%. Because of the substantial discounts and specific payment terms, IRR of the project is 40%. This case can be used as an introduction or enhancement of discounted cash flow techniques. This provides a sharp image of the value of money over time, the ability to analyze the sensitivity and the ability to use decision diagrams to structure realistic contingencies. "Hide

dhahran roads case solution

dhahran roads case solution

by Sherwood C. Frey Jr., Michael Schlosser Source: Darden School of Business 2 pages. Publication Date: 05 April 1991. Prod. #: UV6118-PDF-ENG

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