After you have completed the readings for chapter 10, you should be ready to complete this assignment. Return to the case study on p.341-342 of the text and reread it carefully. As you are thinking about your response, please remember that one thing about cases – usually the quick answer is not the correct one. You need to be able to decide what the issues at hand are and what information is really critical to giving the correct advice.
Use the questions at the end of the case for guidance, but remember you may add to your explanations. One thing that student’s tend to do with a case is bring in more information than what is needed – stick to the facts as presented in the case and the chapter readings.
Please prepare and submit a 1-3 page response including synthesis of chapter readings and applications to corporate organizational structure.
Upon Completion of this mini-case, you will demonstrate your ability to:
Apply the calculations for payback analysis of a capital project.
Apply the calculations for profitability analysis of a capital project.
Apply the calculations for a NPV analysis of a capital project.
Apply the calculations for a IRR analysis of a capital project.
Make an appropriate recommendation based on the facts presented.