Ivey Publishing
IVTL: Assessing Project Economic Viability
Product Number:
9B19N004
Publication Date:
02/11/2019
Revised Date:
02/11/2019
Length:
8 pages (5 pages of text)
Product Type:
Case (Field)
Source:
Ivey
Indus Valley Telecom Ltd. (IVTL) wanted to set up an optical fibre cable plant at its subsidiary, Cosmic Equipment Company Ltd. The general manager of IVTL had hired an outside consulting agency that determined that the project was technically viable. Next, in January 2016, the general manager needed to conduct a comprehensive economic viability study of the project before presenting the proposal to IVTL management for approval. The decision of whether to proceed now depended on the outcome of the economic assessment.
Learning Objective:
This case can be taught as part of a project finance or strategic corporate finance curriculum. It is intended for second-year finance graduate students who have basic knowledge of financial accounting and corporate finance. Working through the case will give students the opportunity to undertake the following:
  • Prepare forecasted financial statements for the project from the basic data to assess its economic viability.
  • Evaluate the project based on a comprehensive financial analysis.
  • Carry out sensitivity analysis of the project based on key underlying input variables.
  • Assess whether the company will be able to raise long-term debt for the project.
  • Decide whether the project is economically viable.
Issues:
Disciplines:
Finance,  International
Industries:
Information, Media & Telecommunications
Setting:
India, Medium, 2016
Intended Audience:
MBA/Postgraduate
Price:
$4.25 CAD / $4.25 USD Printed Copy
$3.75 CAD / $3.75 USD Permissions
$3.75 CAD / $3.75 USD Digital Download
Associated Materials
Supplements: 7B19N004 (94 KB)
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