Answer the following Question by reading the given case.
CASE: Queensland Food Corp
Questions
1. Quantitative Assessment:
a. Using NPV, conduct a straight financial analysis of the investment alternatives and rank the projects.
b. Which NPV of the three shown in Exhibit 3 should be used? Why?
c. Since the wastewater treatment project is a cost of doing business, it does not have a NPV. Suggest a way to evaluate the effluent project.
2. Based on the paper by Wheelwright and Clark (1992) and the case information,
a. Prepare an illustration showing where each project fits in a Derivative, Platform, Breakthrough, and R&D classification system.
b. Comment on the mix of projects. Is the total mix of all projects appropriate for Queensland Food Corp?
3. Based on the paper by Englund and Graham (1999), Chapter 2 (Kloppenborg) and the case information,
a. What strategy should Queensland Food Corporation pursue to avoid becoming a target for a hostile takeover?
b. Use a Scoring Model to Select Projects (pp. 38-39, Kloppenborg):
i. Identify Potential Criteria
ii. Determine Mandatory Criteria
iii. Weight the Criteria
iv. Evaluate Projects Based on Criteria
v. Conduct Sensitivity Analysis
c. Rank the projects based on this analysis
4. Using a table, compare the results from Question 1 with the rank ordering developed using a screening and weighted criteria approach from Question 3.
5. Management has determined that a 10% of the $8 million projects budget should be held in reserve. Based on all the above, which projects should the management committee recommend to the Board of Directors?
Attachment:- Project-Selection-Case-Study-CASE Queensland Food Corp.rar