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    520 Greenlawn Commercial Questions f12 PDF

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    Ashish Kothari
    This document discusses a case study on whether a commercial landscaping company called Greenlawn should adopt a new project called New Era. It provides 7 questions for analysis: 1. The appropriate decision horizon for analysis is either the upcoming year 2002 or the projected life of the new program, with advantages and disadvantages to each. 2. The appropriate unit of analysis is an average region, as using a single truck or application would be too narrow. 3. Greenlawn's past development costs are relevant to the decision as the new program would impact existing systems and procedures.

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    Download as PDF, TXT or read online from Scribd

    520 Greenlawn Commercial Questions f12 PDF

    Uploaded by

    Ashish Kothari
    656 views1 page
    This document discusses a case study on whether a commercial landscaping company called Greenlawn should adopt a new project called New Era. It provides 7 questions for analysis: 1. The appropriate decision horizon for analysis is either the upcoming year 2002 or the projected life of the new program, with advantages and disadvantages to each. 2. The appropriate unit of analysis is an average region, as using a single truck or application would be too narrow. 3. Greenlawn's past development costs are relevant to the decision as the new program would impact existing systems and procedures.

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    This document discusses a case study on whether a commercial landscaping company called Greenlawn should adopt a new project called New Era. It provides 7 questions for analysis: 1. The appropriate decision horizon for analysis is either the upcoming year 2002 or the projected life of the new program, with advantages and disadvantages to each. 2. The appropriate unit of analysis is an average region, as using a single truck or application would be too narrow. 3. Greenlawn's past development costs are relevant to the decision as the new program would impact existing systems and procedures.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    656 views1 page

    520 Greenlawn Commercial Questions f12 PDF

    Uploaded by

    Ashish Kothari
    This document discusses a case study on whether a commercial landscaping company called Greenlawn should adopt a new project called New Era. It provides 7 questions for analysis: 1. The appropriate decision horizon for analysis is either the upcoming year 2002 or the projected life of the new program, with advantages and disadvantages to each. 2. The appropriate unit of analysis is an average region, as using a single truck or application would be too narrow. 3. Greenlawn's past development costs are relevant to the decision as the new program would impact existing systems and procedures.

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    Download as PDF, TXT or read online from Scribd
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    of 1

    Greenlawn Commercial Package Businessa

    (Allen et al. 2005, pp. 44-46)

    Case Questions 1.* In conducting the analysis of whether or not the company should adopt the New Era project, one must select an appropriate decision horizon (or time frame) for the analysis. Two viable alternatives are (a) the upcoming year 2002, and (b) the projected life of the new program. Discuss the relative advantages and disadvantages of these two alternatives. In conducting the analysis of whether or not the company should adopt the New Era program, what should the unit of analysis be: a region, a truck, or a single application? Provide adequate support for your answer. Greenlawn has likely incurred substantial costs in developing its existing delivery systems and procedures for treating lawns (e.g., proprietary computer-controlled trucks, contained-spray applicators, dual-spray line guns). Discuss whether or not these development costs are relevant to the decision of whether or not to adopt the New Era project. Using an average region as the unit of analysis and the upcoming year 2002 as the decision time horizon, prepare a quantitative analysis of relevant costs and benefits as a basis for recommending whether or not the company should adopt the New Era project. Assume the average price for one application will be $400. Also assume the following regarding the percentage cost changes presented on p. 46: the 56 percent reduction in fertilizer and pesticide costs is on a per application basis; the 22 percent reduction in service technician costs is on a per truck basis; and, the 32 percent increase and fuel and other direct operating costs is on a per truck basis. Suppose that the decision horizon used in your analysis in item 4 above was the upcoming 10 years rather than just the upcoming year 2002. Also, suppose that the New Era project is expected to generate $6,000,000 of revenue for each of those 10 years. Discuss whether or not your analysis should treat $6,000,000 of revenue in 2011 as equivalent to $6,000,000 of revenue in 2002. Discuss qualitative factors that might have an impact on whether or not the company should adopt the New Era project. Discuss limitations of the analysis performed in #5 above.

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    Written responses to these questions are due at the beginning of class on Thursday, October 11.

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