The case is designed for a course relatively early in a decision analysis or a risk analysis class module. If pupils are knowledgeable about the concepts of NPV the case can be used as the initial case in the course. Instead, pupils could be given a brief technical note on calculating NPV for cash flows as pedagogy for the case.
The analysis necessitates use of NPV calculations to pick one of the given choices and to determine the results of different alternatives in the case. Utilizing the options that students make, the educator can lead a rich conversation on effects of risk-seeking and risk-averse behavior in situations that supervisors face in real life.
PUBLICATION DATE: July 27, 2012 PRODUCT #: UV6468-HCB-ENG
This is just an excerpt. This case is about INNOVATION & ENTREPRENEURSHIP