Case | HBS Case Collection | January 1989 (Revised September 1995)

MSDI-Alcala de Henares, Spain

by Timothy A. Luehrman


Merck & Co., Inc. is evaluating a proposed cost-saving investment by its Spanish subsidiary. The case introduces techniques of discounted cash flow valuation analysis in a multicurrency setting. Can be used to teach basic international parity conditions as they relate to the value of operating cash flows.

Keywords: Business Subsidiaries; Cash Flow; Cost Management; Currency; Investment; Management Analysis, Tools, and Techniques; Valuation; Spain;


Luehrman, Timothy A. "MSDI-Alcala de Henares, Spain." Harvard Business School Case 289-029, January 1989. (Revised September 1995.)