Nantucket Nectars Case Study Memo structure Essay - 1

Nantucket Nectars Case Study Memo structure - Essay Example The analysis will be carried out by the use of the net present value method. The reason as to why the method has been used is the fact that the method makes use of discounted cash flows and there is a clearly decision criteria that should be used in the making of a decision. The present value for the future projected incomes for the company is equivalent to $20,662.79. That will mean that the decision that will be made by Nantucket Nectar should bear into mind the net present value obtained. That means if the company decides to float shares, the income should be greater than $ 20662.79, if the managers decide to sell the company, the best price should be greater than $20662.79. Nantucket Nectar should consider the bids that are been offered and the company should also calculate the amount of money that will arise from the initial public offer. The value that should be considered should be greater than $ 20662.79 and that will form the basis for making the decision since the best offer should be taken by the company. If none of the offers turn out to be more profitable, then the company should be maintained at its current state (Gerald et al,