Capital budgeting problem is considered from the context of dealer trying to make a sale of energy-efficient heavy industrial equipment. Changes in tax law promises a significant impact on the decision making process of the customer. Teaching aim: to surround solution of capital budgeting difficulties often encountered in the real decision-making. These include taxes, inflation rates, and uncertainty about the savings to be realized. "Hide
by William E. Fruhan Source: Harvard Business School 5 pages. Publication Date: November 7, 1991. Prod. #: 292085-PDF-ENG