The president of a small-scale water filtration company is contemplating expanding his operations to include membrane biological reactors (MBRs). This issue of future-oriented decision making using the differential cash flow is introduced.
Pupils are requested to (1) qualitatively assess the filtration sector and decide whether this is the right time for the firm to enlarge to MBRs; (2) perform a business size-up of the company and its adversaries and determine whether the firm is well positioned to expand at this time; (3) analyze the growth opportunity qualitatively; (4) record all cash flows associated with the expansion and classify them as applicable (future, cash and diverse), and either frequent or one-time expenditure; (5) perform a differential examination, with susceptibility where required and (6) determine the return on investment and the payback period.
PUBLICATION DATE: October 05, 2010 PRODUCT #: 910B08-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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