The president of a large and established manufacturer of laboratory equipment has to decide whether to invest $ 1 million for 30% stake in a start-up company in the field of robotics laboratory. The agreement would also market the product his company the right. He already has a table that projects the best estimate of the future scenario and calculates various measures of performance (ROS, ROE, ROI, NPV and IRR). He must decide which of the criteria are very useful. A relevant question of cost-t … Read more »

The president of a large and established manufacturer of laboratory equipment has to decide whether to invest $ 1 million for 30% stake in a start-up company in the field of robotics laboratory. The agreement would also market the product his company the right. He already has a table that projects the best estimate of the future scenario and calculates various measures of performance (ROS, ROE, ROI, NPV and IRR). He must decide which of the criteria are very useful. An appropriate cost-problem that is introduced must be resolved because it makes a big difference in the NPV. In attachment some background information for a forecast / judgmental assessment exercise that choice-based assessment is provided. The contract, could, assuming students have already been introduced on this topic, form the basis for a short workshop (one hour or less) on judgmental probability, or it could be a reference to cumulative probability distributions used for an introductory course on . (The B case number is UVA-QA-0383, and an addition to the A case, UVA-QA-0384th)
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from
Samuel E physical,
Larry Weatherford
Source: Darden School of Business
9 sides.
Release Date: 08 April, 1991. Prod #: UV0725-PDF-ENG
CyberLab: A New Business Opportunity for Prico (A) HBR case solution

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