Ford Motor Company and the Bayco Oven Decision

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Case

Reference no. 9A98B034

Subject category: Finance, Accounting and Control

Authors: S Mavrinac (Massachusetts Institute of Technology); Colin Cruji (Ivey Business School, Western University)

Published by: Ivey Publishing

Originally published in: 1998

Version: 1999-07-29

Length: 9 pages

Data source: Field research

Topics: Capital budgeting; Automotive; Environment; Manufacturing

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Abstract

The plant manager at Ford Motor Company''s St Thomas Assembly Plant must decide whether to recommend replacement of the plant''s aging Bayco Oven cleaning system. The case presents a simple capital budgeting exercise.

Location:

Canada

Industry:

Transportation equipment

Size:

Large