This Case is about BUDGETING
PUBLICATION DATE: November 05, 2009 PRODUCT #: UV5144-HCB-ENG
A folding carton business that is growing is considering the replacement of an old machine with a fresh one. Establish the appropriate discount rate for the machine replacement and the case challenge will be to develop a cash flow forecast. Along with decreased waste and increased capacity, the new machine offers tactical advantages to the company in its market niche that is chosen. Problems associated with businesses are essential to understanding the significance and consequences of this captial investment: Operating excellence is a crucial competitive advantage for this company. A teaching note and teacher and pupil Excel spreadsheets are available to accompany the case.