Compass Records
Case Study Solution
The solution for the Compass Records case study consists of 3 files; 2 word and 1 excel.  

The first word file is over 900 words.  This word file focuses on "how to solve" the Compass Records case study.  Below is the table
of contents for the paper:
Background Info
Music Industry Analysis
Industry Expenses
Sales by Channel
The Rosecommon Decision Analysis
Analysis of Financials

The second word file is over 2,100 words and is a 6 part analysis of the solution.  There is overlap between the first and second file,
as some of the sections are identical.  But the second file actually discusses the solution with the answers, while the first file just
goes over how the case study should be solved.  Below are the table of contents of the second paper:
Carefully estimate expected future cash flows (Quantative)
Select a discount rate consistent with those future cash flows (Quantative)
Compute a base case NPV (Quantative)
Identify the risk and uncertainties. Run a sensitivity analysis (Qualatative)
Identify qualitative issues (Qualatative)
Decide (Qualatative)
Background Info
Music Industry
Industry Expenses
Sales by Channel
The Roscommon Decision Analysis
Analysis of Financials

The third file is the financial analysis in an excel file.  The file contains all formulas so you can easily trace the work to fully understand
how the calculations were performed.  The tabs for the Compass Records case study solution are:
Cash Flows Analysis and Projection
Weighted Average Cost of Capital (WACC)
Capital Asset Pricing Model (CAPM)
Net Present Value (NPV)
The cost of this Compass Records case study solution is $34.95, and can be immediately downloaded after
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Abstract of the Compass Records case study:  The cofounder of
Compass Records, a small, independent music-recording
company, must decide whether to "produce and own" the next
album of an up-and-coming folk musician or simply "license" her
finished recording. This case presents information sufficient to
build cash-flow forecasts for either investment alternative.
Discounted-cash-flow (DCF) analysis reveals that licensing will be
the more attractive alternative unless the student assesses the
value of the options for follow-on albums included in the
"produce-and-own" contract.  (Financial Topics:  discounted cash
flow, capital investment, sensitivity analysis).