Product details

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Authors: Craig Dunbar
Published by: Ivey Publishing
Originally published in: 2001
Version: 2004-10-07
Length: 7 pages
Data source: Published sources

Abstract

Fast Learning Inc was a private firm that developed software and learning materials largely for preschool-aged children. It is considering moving into two new ventures: opening an early childhood education center and purchasing an existing day-care center. Fast Learning has approached a strategy consulting firm for advice on these ventures. One of the team members evaluating the proposals must determine the appropriate costs of capital (or hurdle rates). He considers whether to base the calculations on the cost of new sources of financing or an average of the costs of existing sources, and whether required returns should reflect actual past costs or current market costs.
Location:
Size:
Medium
Other setting(s):
2001

About

Abstract

Fast Learning Inc was a private firm that developed software and learning materials largely for preschool-aged children. It is considering moving into two new ventures: opening an early childhood education center and purchasing an existing day-care center. Fast Learning has approached a strategy consulting firm for advice on these ventures. One of the team members evaluating the proposals must determine the appropriate costs of capital (or hurdle rates). He considers whether to base the calculations on the cost of new sources of financing or an average of the costs of existing sources, and whether required returns should reflect actual past costs or current market costs.

Settings

Location:
Size:
Medium
Other setting(s):
2001

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