Subject category:
Finance, Accounting and Control
Published by:
Ivey Publishing
Version: 2000-10-04
Length: 7 pages
Data source: Field research
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Abstract
A packaging engineer is considering upgrading a manual stretch-wrap machine, or replacing it with a semi-automatic or automatic system. A recommendation is needed, and must be based on a detailed analysis of the capital outlays and annual savings for each alternative. Qualitative issues must also be addressed. The case presents an opportunity to both conduct differential analysis and to demonstrate the limitations of differential analysis. The instructor may choose to include a discussion of net present value, as well as the difference between allocation methods and rates.
Subject category:
Finance, Accounting and Control
Published by:
Ivey Publishing
Version: 2002-01-24
Length: 17 pages
Data source: Field research
About
Abstract
A packaging engineer is considering upgrading a manual stretch-wrap machine, or replacing it with a semi-automatic or automatic system. A recommendation is needed, and must be based on a detailed analysis of the capital outlays and annual savings for each alternative. Qualitative issues must also be addressed. The case presents an opportunity to both conduct differential analysis and to demonstrate the limitations of differential analysis. The instructor may choose to include a discussion of net present value, as well as the difference between allocation methods and rates.
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Subject category:
Finance, Accounting and Control
Published by:
Ivey Publishing
Version: 2002-01-24
Length: 17 pages
Data source: Field research