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International Paper: Alternatives to the...

Eades, Kenneth M.,...

Case

International Paper: Alternatives to the Longwood Woodyard Plant

Eades, Kenneth M.; Kannry, Brian

F-1253 | Published March 7, 2000 | 5 pages Case

Collection: Darden School of Business

Product Details

This case is a sequel to "International Paper: Longwood Woodyard Plant" (UVA-F-1252).The cases are designed to be taught in sequence. This case presents three alternative proposals to the base-case proposal presented in UVA-F-1252. Students are provided with cash flow data, but must complete the estimation of cash flows in order to make a meaningful comparison across the projects. The importance of using net present value (NPV) as the basis for the decision, rather than internal rate of return (IRR) or some other, accounting-based metric is stressed. Because of the basic issues covered, the cases work well with undergraduate, MBA and executive audiences.

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