An increasing folding carton company is contemplating the replacement of an old machine with a new one. Establish the proper discount rate for the machine replacement and the case challenge will be to develop a cash flow forecast. Along with reduced waste and increased capacity, the new machine offers tactical advantages to the business in its chosen market niche.
Dilemmas related to businesses are essential to appreciating the value and implications of this captial investment: Operating excellence is a key competitive advantage for this firm. A teaching note and student and teacher Excel spreadsheets are available to accompany the case.
PUBLICATION DATE: November 05, 2009 PRODUCT #: UV5144-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING