President of large and established manufacturer of laboratory equipment has to decide whether to invest $ 1 million for a 30% stake in the start-up companies in the robotics lab. The agreement will also allow his company the right to sell the product. He already has a table that projects the best guess of the future scenarios and calculates several performance indicators (ROS, ROE, ROI, NPV, IRR, and). He must decide which criteria are most useful. The costs issue that must be addressed is introduced, because it makes a big difference in NPV. In addition, some background material is intended for forecasting / subjective assessment exercises based on this decision. The additive can, assuming that students have already been introduced to the subject and the basis for a short workshop (an hour or less) on subjective probabilities, or it can be used with a note on the cumulative probability distributions for an introduction to the topic. (B Number case UVA-QA-0383, and amendments to the case of UVA-QA-0384). "Hide
by Samuel E injuries, Larry Weatherford Source: Darden School of Business 9 pages. Publication date: April 08, 1991. Prod. #: UV0725-PDF-ENG
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