Impaired balance of $ 350 million TiO2 market caused Du Pont in Pigments Department to develop two strategies for competing in this market in the future. Growth strategy has a lower internal rate of return than alternative strategies because of the large capital expenditures in the year and positive cash flows, which occur only in the later years. However, it is more valuable project net present value for all discount rates less than 21%. Students are faced with the task of converting strategic plans and goals in free cash flow projections and determine the break-even discount rate between these mutually exclusive projects. The decision as to which strategy to follow, must be made. Rewritten version of the previous case by the same author. "Hide
on W. Carl Kester, Robert R. Glauber, David W. Mullins Jr., Stacy S. Dick Source: Harvard Business School 7 pages. Publication Date: February 24, 1984. Prod. #: 284066-PDF-ENG
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