Beijing Huazhang Graphics and Information Co‪.‬

Huazhang is a joint venture between China Machine Press and Multi-Lingua Publishing International, Inc. of the United States. Since its establishment, Huazhang had developed from a company with three employees to more than 100 employees. The shareholders are interested in determining how well the company has been managed and the board decides the best way to do this would be to value the company. The board also wants to measure the general managers' future performance based on the increased value of the company. The issue for the newly-appointed general manager is to determine which of the many possible methods should be used to value the company, including the discounted cash flow model, and to perform sensitivity tests.