Disney Land

Is Japanese corporate governance changing?

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How do Japanese cultural, historical and institutional variables make Japanese corporate
governance different from Anglo-American counterparts?

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Explore the differences in the Japanese and Western investment decision making process
and the conflicts which arise the~ce.
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The way agency theory is interpreted in Japan differs from they way it is applied to
Western companies why so?

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Calculate the new project valuation using the Japanese capital budgeting teclmique--the
average accounting return method

Calculate the terminal value for DisneySea Park to be used for the American methods.

Using the data from Exhibit 7, calculate NPV and IRR for the Tokyo DisneySea Park.

Calculate the capital budgeting based on the average cash flow return (ACFR) method.

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OL's senior executives decided to undertake this project in 1997. Why did OL make this
major investment despite the fact that the decision could not be supported by their own
capital budgeting (or average accounting return method)?

Prepare OL's pro forma future financial data for the new project for 1998-2004. The
company's past data is shown in Exhibit 2. Use the assumptions in Appendix 1 given in
the case.