(5 pages of text)
A manufacturer is considering mechanizing a highly labour-intensive system. He has received proposals with the related cost savings from two different manufacturers for different parts of the process. The president must analyze the information and determine whether the various proposals are financially feasible.
The case involves capital budgeting procedures and decisions. The analysis is relatively straightforward and the case can be used early in the capital budgeting segment of the course. The company's required rate of return is given.
Canada, Large, 1985
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