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Sam really liked working for his dad,Richard. Richard owned a lawn and garden service business, lawn tech. The business has a good reputation and demand
Sam really liked working for his dad,Richard. Richard owned a lawn and garden service business, lawn tech. The business has a good reputation and demand for the company services has risen steadily over the last decade. Sam wanted to expand his business beyond chemical and synthetic lawn into organic and green products and services. Sam knew that his Dad would not be encouraging of this change because Lawn Tech's reputation and clients base were not asking or demanding organic lawn care. However, Sam,sis vision for lawn tech differed from his dad The more he studied about organic lawn service and garden products the more convinced he was that lawn Tech's future success would come from finf8a balance between chemicaland organic approaches. expanding the business would require three new employees for marketing and sales new training regimens new manuals and new marketing. At heart Sam wanted to run his own business. His dad promised him ownership in lawn tech but that discussion did not go any further Sam considered a few choices: leave lawn tech and work for another lawn service business. Leave lawn tech and start a new business on competition with lawn tech. 3. continue on the current course. 1. How would a financial consultant advise dam decide on selecting among the alternatives? 2. what date would Sam need to make a rational decision? 3. share with us a a spreadsheet should Sam create to compare the choi6(provide detail). 4.share with your understanding on the use of NPV. and its shortcomings. 5. How careful should the decision maker being interpreting the result s of the NPV analysis
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