Arundel Case

Arundel Partners: The Sequel Project Case study Outline decision maker director compend 2 Summary of Facts3 report of Problem3 investing analysis4 Valuation orders: Discounted hard currency accrue (supported by bunt 1)5 Decision Tree (supported by Annex 2)6 Real options (supported by Annex 3)7 Contract nourishment7 Recommendations8 Executive summary The main problems arising in Arundel Partners investment decision in a portfolio of posteriority rights is how to survey these rights in order to watch whether such investment makes sense, how often they should pay for these rights and the contractual alimentation that should be agreed upon with the studio apartments in order to align the incentives of both(prenominal) parties. By analyzing all the learning available, we basin argue that thither is big(p) potential for value multiplication for Arundel, as the studios are willing to accept low prices for the lengthiness rights, due to the fact that, in general, these rights were not sold in that period and they were not no authorizeheless taken into assureation when the first icon was produced. From Arundels perspective, the sequel rights can be considered, on average, undervalued securities.

When apply the Discounted Cash play get along and the decision tree method, we gift discovered that ii of the vi studios considered for collaboration namely, MCA Universal and The Walt Disney community have sequel rights that fork up a positive net present value. Since we consider that the veritable options approach best mimics the populace of this case, we besides enlist this method on a studio portfolio basis, and discover that to a shifting the two studios mentioned above, Warner Brothers sequel rights also seem to be underpriced. In this setting, we recommend that Arundel Partners pay a maximum of US$5.55 one thousand thousand for MCA Universal, US$7.96 million for Warner Brothers and US$9.75 million for the Walt Disney Company sequel...If you compulsion to get a to the full essay, order it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper