The owner/operator of an ice cream store has the opportunity to expand his product line to include soft-serve ice cream. He needs to assess benefits and the costs of buying either a new or used single-head or triple-head soft-serve ice cream machine. He also desires to continue growing the business and he wonders about the most effective means of going about it.
Students are requested to (1) perform a business size-up; (2) assess the improvement of soft-serve ice cream from a qualitative point of view; (3) ascertain which of the cash flows linked to the chance are applicable and which are recurring costs versus one time costs; (4) perform a differential evaluation to determine the ROI and payback period for the purchase of both new machines; (5) determine the ROI and payback period changes if a used machine is purchased; and (6) decide whether to purchase a soft-serve ice cream machine and, if so, which one.
PUBLICATION DATE: November 22, 2010 PRODUCT #: 910B13-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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