CORPORATE FINANCE

Corporate Finance Assignment

Case Study: Disney Corporation

Recommendation on the Project

The decision to purchase of Lucasfilm Ltd is not beneficial for Disney Corporation. The reason for this is the result of NPV. The NPV of the project is Negative that is ($341,568,413) which state that this investment will not add value to the Disney Corporation due to high payment of acquisitions. Disney Corporation decided to purchase Lucasfilm Ltd with an acquisition price of $4,050,000,000 which also includes the Star Wars franchise and the Indiana Jones franchise and the production businesses (including Industrial Light and Magic), before acquiring the project ...