General Motors Bailout Problem: A Teaching Case Using the Planners Lab™ Software
A case study analyzing the “bailout” loan agreement between the US government and General Motors is presented. The loan terms required that GM produce a restructuring plan that showed it could repay the loans and become financially viable by having a positive net present value given “reasonable” assumptions over an unspecified period of time. The case illustrates use of the Planners Lab software as a modeling tool for analyzing GM’s situation. The intention is to illustrate the functionality and effectiveness of the Planners Lab software with regard to modeling and analyzing financial problems. A student assignment using this model to study GM’s situation is provided. The software and documentation are available free to academics at http://www.plannerslab.com.