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Baker Packaging, Inc.

Conroy, Robert M.,...

Case

Baker Packaging, Inc.

Conroy, Robert M.; Harris, Robert S.; Ranjan, Rahul

F-1624 | Published July 15, 2010 | 12 pages Case

Collection: Darden School of Business

Product Details

Students consider which capital budgeting approach to take when evaluating a packaging manufacturer's joint venture proposal. Suitable for MBA and undergraduate students, the case presents a scenario in which a lack of short-term profits and the resulting lack of tax payments could make adjusted present value a better choice than weighted average cost of capital. Students also consider how to value the industrial bond financing that would fund construction of a new plant. A supplemental student spreadsheet is available (UVA-F-1624X).

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