A capital budgeting problem is considered in the context of a sales representative trying to make a sale of energy-saving investments in heavy industry. Tax law changes promise to have a significant impact on the customer’s decision process have. Teaching Purpose: To surround the capital budgeting decision with the complexity often found in the actual decision making process. These include taxes, inflation and uncertainty about cost savings can be realized.

A capital budgeting problem is considered in the context of a sales representative trying to make a sale of energy-saving investments in heavy industry. Tax law changes promise to have a significant impact on the customer’s decision process have. Teaching Purpose: To surround the capital budgeting decision with the complexity often found in the actual decision making process. These include taxes, inflation and uncertainty about cost savings can be realized.
«Hide

from
William E. Fruhan
Source: Harvard Business School
5 pages.
Release date: 07 November, 1991. Prod #: 292085-PDF-ENG
Pressco, Inc. – 1985 HBR case solution

[related_post themes="flat"]