Subject category:
Finance, Accounting and Control
Published by:
Ivey Publishing
Version: 2008-06-04
Length: 9 pages
Data source: Field research
Abstract
The proprietor of a day spa must decide whether to purchase a microdermabrasion machine. This differential analysis case will test students'' abilities to identify those costs that are recurring cash flows and those costs that are investments; give practice calculating working capital investments; differentiate between relevant and non-relevant costs for a differential analysis and test students on their ability to conduct a sensitivity analysis.
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Abstract
The proprietor of a day spa must decide whether to purchase a microdermabrasion machine. This differential analysis case will test students'' abilities to identify those costs that are recurring cash flows and those costs that are investments; give practice calculating working capital investments; differentiate between relevant and non-relevant costs for a differential analysis and test students on their ability to conduct a sensitivity analysis.