AES Tiete: Expansion Plant in Brazil

Case Solution

Yiorgos Allayannis, Gerry Yemen, Roberson Oliveira
Darden School of Business ()

This case allows students to learn the principles of capital planning in a global context. It has an electricity company in Brazil that is a subsidiary of AES Corporation. A new company manager receives his first major project: the examination and defense of the investment in a 500 MW thermal power plant. He should submit his findings to the Global Valuation Review team, including a recommendation for the project and a bid price for the next state auction. The manager has to make three different assessments: a baseline scenario, an optimistic scenario, and a pessimistic scenario.

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