Exercise | October 1997 (Revised June 2000)

Capital Budgeting: Discounted Cash Flow Analysis

by Thomas R. Piper


This exercise comprises seven problems that collectively allow students to work through each type of cash flow that is encountered in capital budgeting. The instructor can also address such issues as product cannibalization and real options.

Keywords: Capital Budgeting; Cash Flow;


Piper, Thomas R. "Capital Budgeting: Discounted Cash Flow Analysis." Harvard Business School Exercise 298-068, October 1997. (Revised June 2000.)