所有征询企业面试也许用到的分析构造ZTAdvancedconcepts&frameworksMBAsandothercandidateswithbusinessbackgrounds,takenote-interviewerswillexpectyoutohaveamoredetailedtakeonyourcasethananundergraduatewouldhave.Herearesomecommonlyusedcaseconcepts.NetpresentvaluePerhapsthemostimportanttypeofdecisioncompanymanagersmustmakeonadailybasisiswhethertoundertakeaproposedinvestment.Forexample,shouldthecompanybuyacertainpieceofequipment?Buildaparticularfactory?Investinanewproject?Thesetypesofdecisionsarecalledcapitalbudgetingdecisions.Theconsultantmakessuchdecisionsbycalculatingthenetpresentvalueofeachproposedinvestmentandmakingonlythoseinvestmentsthathavepositivenetpresentvalues.Example:HernandezistheCFOofWesternManufacturingCorp.,anautomobilemanufacturer.ThecompanyisconsideringopeninganewfactoryinOhiothatwillrequireaninitialinvestmentof$1million.Thecompanyforecaststhatthefactorywillgenerateafter-taxcashflowsof$100,000inYear1,$200,000inYear2,$400,000inYear3,and$400,000inYear4.AttheendofYear4,thecompanywouldthensellthefactoryfor$200,000.Thecompanyusesadiscountrateof12percent.Hernandezmustdeterminewhetherthecompanyshouldgoaheadandbuildthefactory.Tomakethisdecision,Hernandezmustcalculatethenetpresentvalueoftheinvestment.Thecashflowsassociatedwiththefactoryareasfollows:HernandezthencalculatestheNPVofthefactoryasfollows:Sincethefactoryhasanegativenetpresentvalue,Hernandezcorrectlydecidesthatthefactoryshouldnotbebuilt.ThenetpresentvalueruleNotefromtheexampleabovethatoncetheconsultanthasfiguredouttheNPVofaproposedinvestment,shethendecideswhethertoundertaketheinvestmentbyapplyingthenetpresentvaluerule:Makeonlythoseinvestmentsthathaveapositivenetpresentvalue.Aslongastheconsultantfollowsthisrule,shecanbeconfidentthateachinvestmentismakingapositivenetcontributiontothecompany.TheCapitalAssetPricingModel(CAPM)Intheaboveexample,weassumedagivendiscountrate.However,partofaconsultant'sjobistodetermineanappropriatediscountrate(r)tousewhencalculatingnetpresentvalues.Thediscountratemayvarydependingontheinvestment.BetaThefirststepinarrivingatanappropriatediscountrateforagiveninvestmentisdeterminingtheinvestmentsriskiness.Themarketriskofaninvestmentismeasuredbyits"beta"(?),whichmeasuresriskinesswhencomparedtothemarketasawhole.Aninvestmentwithabetaof1hasthesameriskinessasthemarketasawhole(so,forexample,whenthemarketmovesdown10percent,thevalueoftheinvestmentwillonaveragefall10percentaswell).Aninvestmentwithbetaof2willbetwiceasriskyasthemarket(sowhenthemarketfalls10percent,thevalueoftheinvestmentwillonaveragefall20percent).CAPMOncetheconsultanthasdeterminedthebetaofaproposedinvestment,hecanusetheCapitalAssetPricingModel(CAPM)tocalculatetheappropriatediscountrate(r):Therisk-freerateofreturnisthereturnthecompanycouldreceivebymakingarisk-freeinvestment(forexample,byinvestinginU.S.Treasurybills).Themarketrateofreturnisthereturnthecompanycouldreceivebyinvestinginawell-diversifiedportfolioofstocks(forexample,S&P500).Example:Shen,Inc.,acoalproducer,isconsideringinvestinginanewventurethatwouldmanufactureandmarketcarbonfilters.Shen'schieffinancialofficer,Apelbaum,wantstocalculatetheNPVoftheproposedventureinordertodeterminewhetherthecompanyshouldmaketheinvestment.Afterstudyingtheriskinessoftheproposedventure,Apelbaumdeterminesthatthebetaoftheinvestmentis1.5.AU.S.Treasurynoteofcomparablematuritycurrentlyyields7percent,wh...
