1.What are the key success factors in the folding carton industry at the time of the case? How has Carded Graphics positioned itself to excel?

(15 marks)

2.Describe the value drivers of the sheeter replacement decision?

(10 marks)

3.Calculate an appropriate discount rate for evaluating the sheeter replacement decision.

(20 marks)

4.What are the cash flows associated with keeping the old equipment and with replacing the old equipment? What are the resulting net present values for both scenarios?

(50 marks)

5.Which sheeter replacement decision do you prefer? With replacement or without replacement? Why?