ivey school of business case study

Spruce Lawn Farms: The IP Bean Opportunity 1. Why is DeBoer considering an investment in the IP bean industry? 2. 3. What impact does the IP bean/drying operation have on the farm's monthly cash flow? (see Exhibit 1.) Exhibit 2. Indicates a significant change in the projected income statement in 2015 if the IP opportunity is pursued. Are these changes likely to materially affect the outcome of the financial analysis for the IP Bean opportunity? 4. Assuming that DeBoer anticipates a 10% return, does the required capital investment of $1.25 million allow for this to occur? 5. From the data provided in the case, prepare a net present value analysis of the incremental costs and benefits if the IP Bean opportunity is pursued. This should follow the method set out in Chapter 5- see Slide 9-11. Spruce Lawn Farms: The IP Bean Opportunity 1. Why is DeBoer considering an investment in the IP bean industry? 2. 3. What impact does the IP bean/drying operation have on the farm's monthly cash flow? (see Exhibit 1.) Exhibit 2. Indicates a significant change in the projected income statement in 2015 if the IP opportunity is pursued. Are these changes likely to materially affect the outcome of the financial analysis for the IP Bean opportunity? 4. Assuming that DeBoer anticipates a 10% return, does the required capital investment of $1.25 million allow for this to occur? 5. From the data provided in the case, prepare a net present value analysis of the incremental costs and benefits if the IP Bean opportunity is pursued. This should follow the method set out in Chapter 5- see Slide 9-11