Open AccessSugar Cane Refining And Processing Company: A Comprehensive Case In Capital Budgeting
Author(s) -
Denis O. Boudreaux,
S. P. Uma Rao
Publication year - 2010
Publication title -
journal of business case studies
Language(s) - English
Resource type - Journals
eISSN - 2157-8826
pISSN - 1555-3353
DOI - 10.19030/jbcs.v6i6.265
Subject(s) - capital budgeting , business , investment (military) , agency (philosophy) , cash flow , capital (architecture) , finance , refining (metallurgy) , capital investment , financial management , accounting , economics , philosophy , chemistry , archaeology , epistemology , project appraisal , politics , political science , law , history
The Sugar Cane Refining and Processing Company is a comprehensive case covering a firm’s investment decision in fixed assets or capital budgeting. Most senior level undergraduate and graduate corporate financial management courses cover advanced topics in capital budgeting, including measuring complex cash flows, biasness in the capital budgeting process, agency issues, managerial options and risk adjusting techniques. To cover these relevant topics in a single case, the invented or “armchair” approach is used. This case is completely contrived but is very educationally effective.