We're focusing on understanding the power New Present Value methodology in evaluating various alternatives and in deciding on the best alternative. There's a mini case for discussion.

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 Techs reputation and client base were not asking or demanding organic lawn care. However, Sams 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 Techs future success would come from finding a balance between chemical and 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, in competition with Lawn Tech
• Continue on the current course.

How would a banker or financial consultant advice Sam to decide on selecting among the alternatives?

What data would Sam need to make a rational decision?

What kind of spreadsheet should Sam create to compare the choices (provide details)