The investment detective case. case Write Up The Investment Detective Case Study Solution and Analysis of Harvard Case Studies 2022-11-09

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The Investment Detective case is a classic example of the importance of thorough financial analysis in the investment decision-making process. The case, which was first introduced in the Harvard Business Review in 1976, presents a situation in which an investment analyst must evaluate a potential investment opportunity and make a recommendation to his superiors.

At the heart of the Investment Detective case is the concept of net present value (NPV), which is a measure of the profitability of an investment. NPV takes into account the time value of money, meaning that it considers the fact that a dollar received in the future is worth less than a dollar received today. To calculate NPV, an analyst must determine the expected cash flows from an investment, discount those cash flows to their present value using a required rate of return, and then subtract the initial investment from the sum of the discounted cash flows. If the NPV is positive, the investment is expected to generate a return that is higher than the required rate of return, and therefore it should be undertaken. If the NPV is negative, the investment is expected to generate a return that is lower than the required rate of return, and therefore it should be rejected.

In the Investment Detective case, the investment analyst is presented with a potential investment opportunity in a company called All-State Manufacturing. The company has developed a new product that it believes will be very successful, and it is seeking an investment of $100,000 to fund the production and marketing of the product. The company has provided the analyst with a detailed forecast of the expected cash flows from the investment, which includes estimates of the sales, costs, and expenses associated with the new product.

After carefully reviewing the financial projections, the investment analyst must decide whether to recommend the investment to his superiors. To do so, he must first determine the required rate of return for the investment. This is the rate of return that the investment must generate in order to be considered attractive to the company. The required rate of return will depend on a number of factors, including the company's risk profile, the level of competition in the market, and the economic climate.

Once the required rate of return has been determined, the investment analyst can use it to calculate the NPV of the investment. If the NPV is positive, the investment is expected to generate a return that is higher than the required rate of return, and therefore it should be recommended. If the NPV is negative, the investment is expected to generate a return that is lower than the required rate of return, and therefore it should be rejected.

In the Investment Detective case, the investment analyst ultimately decides to recommend the investment to his superiors. He concludes that the expected cash flows from the investment are strong enough to justify the required rate of return, and that the new product has the potential to be a major success. By thoroughly analyzing the financial projections and carefully considering the risks and rewards of the investment, the analyst is able to make a sound recommendation that is based on solid financial analysis.

In conclusion, the Investment Detective case highlights the importance of thorough financial analysis in the investment decision-making process. By using tools such as net present value, investment analysts can carefully evaluate the potential profitability of an investment and make informed recommendations to their superiors.

The investment webapi.bu.edu

the investment detective case

Initially, fast reading without taking notes and underlines should be done. These solutions will also be the The Investment Detective case answers. There are a number of benefits if you keep a wide range of financial analysis tools at your fingertips. Once the alternatives have been generated, student should evaluate the options and select the appropriate and viable solution for the company. Therefore, it is necessary to block the new entrants in the industry. However, introduction should not be longer than 6-7 lines in a paragraph. Any firm who has valuable and rare resources, and these resources are costly to imitate, have achieved their competitive advantage.

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THe investment Detective

the investment detective case

Therefore there must be some resources and capabilities in an organization that can facilitate the competitive advantage to company. This is doing the The Investment Detective Case Solution. However, if it isn't mentioned, you can calculate it through market weighted average debt. Because most of the cash flows are estimated in most of the projects, quality of estimation is another factor to be considered besides numerical capital budgeting tool results. Moreover, it also helps to the extent to which change is useful for the company and also guide the direction for the change. These figures are used to determine the net worth of the business.

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The Investment Detective

the investment detective case

It is recommended to read guidelines before and after reading the case to understand what is asked and how the questions are to be answered. If a resource is high on Value, Rareness, and Imitability, then it brings an unused competitive advantage. However, resources should also be perfectly non sustainable. It is better to start the introduction from any historical or social context. Therefore, the strategic objectives of this business unit Marketing will be laid down in the solutions and recommendations will be made as to how to achieve these objectives.

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The Investment Detective Case Analysis and Case Solution

the investment detective case

A detailed implementation framework helps in distinguishing between an average and an above average case study answer. Cash flows can be uniform or multiple. Moreover, it is also called Internal-External Analysis. Then, a very careful reading should be done at second time reading of the case. Alternative Solutions After doing your case study analysis, you move to the next step, which is identifying alternative solutions. Changes in these situation and its effects. However, imitation is done in two ways.

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(DOC) The Investment Detective case 17 (2)

the investment detective case

Moreover, company 1 H has an 11. As the most important objective is to convey the most important message for to the reader. However, the problem should be concisely define in no more than a paragraph. This is because companies within an industry face many of the same economic forces. Whereas, the opportunities and threats are generally related from external environment of organization. It mainly consists the importance of a customer and the level of cost if a customer will switch from one product to another.

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The Investment Detective

the investment detective case

Once you have listed or mapped alternatives, be open to their possibilities. This is the second step which will include evaluation and analysis of the given company. After reading the case and guidelines thoroughly, reader should go forward and start the analyses of the case. Only analyzing cash flows allow us to ascertain the time after which will recoup our initial investment. Also a company would prefer to have small experiments to identify possible profitable businesses before making a heavy investment to enter the market.

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The Investment Detective Case Study Solution and Case Analysis

the investment detective case

This will be helpful in understanding if the proposed case study solution will be accepted by the workforce and whether it will consist of the prevailing culture in the company. Case Analysis Actually, we can rank the projects by simply inspecting the cash flows. Best alternative should be selected must be the best when evaluating it on the decision criteria. The capital-budgeting analyst, therefore, is necessarily a detective who must winnow bad evidence from good. The Investment Detective Valuation The Investment Detective Valuation is a very fundamental requirement if you want to work out your Harvard Business Case Solution. Initially, fast reading without taking notes and underlines should be done.

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Case_18_The_Investment_Detective

the investment detective case

In addition, it also identifies the weaknesses of the organization that will help to be eliminated and manage the threats that would catch the attention of the management. After introduction, problem statement is defined. Finally, the case is a vehicle for introducing the problem created by attempting to rank projects of unequal life and the solution to that difficulty criterion. An ambiguous problem will result in vague solutions being discovered. The The Investment Detective case consisted of a central issue to the organization, which had to be identified, analysed and creative solutions had to be drawn to tackle the issue.

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The Investment Detective Case Study Solution and Analysis of Harvard Case Studies

the investment detective case

. It also lays down the changes needed to be made as well as the assumptions in the process. This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. You can go about it in a similar way as is done for a finance and accounting case study. These forces are used to measure competition intensity and profitability of an industry and market. After introduction, problem statement is defined.

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