A division of a corporation considers investing in a new, technologically superior process. The case gives the usual data for historical analysis, financial-statement forecasting, and capital budgeting, plus a PIMS review. In addition, uncertainty in the forecasts can be used to introduce...

Based on interviews with major investment banks, we report how these leading practitioners apply discounted cash flow (DCF) techniques to value business enterprises. We find considerable alignment among the advisors and between practice and academic advice on major themes, including assessments...