4 Since future economic conditions in Thailand are uncertain, Ben Holt would like to know how critical the salvage value is in the alternative you think is most feasible.

Since Ben Holt, Blades’ financial director, believes the growth potential for the roller blade market in Thailand is very high, he, together with Blades’ board of directors, has decided to invest in Thailand. The investment would involve establishing a subsidiary in Bangkok consisting of a manufacturing plant to produce ‘Speedos’, Blades’ high-quality roller blades. Holt believes that economic conditions in Thailand will be relatively strong in ten years, when he expects to sell the subsidiary.