Raffin is a privately held $1.5B revenue manufacturing firm specializing in providing conveyers and maintenance contracts for the mining industry. Over the last 10 years Raffin's success has been tied to the US mining industry, where it has seen as average growth of 3%. Over the 10 year period the industry has had two serious declines followed by several years of growth. Last year there was a 12% decline in sales and already this year Raffin is seeing a 12% growth in sales.

Raffin believes that the mining industry is about to experience several years of sustained growth. The firm wants to invest now to capitalize on the anticipated upswing. Return on Equity is most important to the ownership. Should they expand internally or purchase a competitor?