This instance exposes students to financial decision-making in the notions of economic and financial rates of return and also government enterprises. It's predicated on real electrification projects being undertaken by Indian Railways, one of the largest government organizations on earth. Electrification jobs require big capital outlays with significant financial and welfare consequences.
The case analysis entails (i) estimating incremental cash flows under alternate scenarios, (ii) calculating the fiscal rate of return, and (iii) conducting a sensitivity analysis to recognize the key value drivers. Additionally, it provides opportunities to discuss nominal vs. real cash flows, differences between internal rate of return and net present value, and the selection of different discount rates. The case is suitable for a course on Valuation and Corporate Finance.
The Naini-Itarsi Railway Electrification Project case study solution
PUBLICATION DATE: November 01, 2012 PRODUCT #: IMB395-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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