Case | HBS Case Collection | November 1991 (Revised December 1996)

Pressco, Inc.--1985

by William E. Fruhan Jr.

Abstract

A capital budgeting problem is viewed from the context of a marketing representative attempting to make a sale of energy saving heavy industrial equipment. Tax law changes promise to have a significant impact on the customer's decision process. Teaching purpose: To surround the capital budgeting decision with the complexities often found in the actual decision making process. These include taxes, inflation rates, and uncertainty about cost savings to be realized.

Keywords: Capital Budgeting; Machinery and Machining; Valuation; Taxation; Customer Value and Value Chain; Cost vs Benefits; Inflation and Deflation; Cost Management; Product Marketing; North and Central America;

Citation:

Fruhan, William E., Jr. "Pressco, Inc.--1985." Harvard Business School Case 292-085, November 1991. (Revised December 1996.)