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Whirlpool Europe: An ERP Investment Decision
Whirlpool Europe: An ERP Investment Decision
1. Is it an inevitable investment?
2. What are the obvious benefits? What
are the obvious costs for the project?
3. Are there any benefits? Or costs not
mentioned in the case for the project?
4. Discount cash flows evaluation
5. What are the evaluation criteria
appropriate for the investment decision?
Is it an inevitable investment?
Is there any concern that the firm would
not go ahead with the plan?
Would it be possible that the firm give up
the project because of negative NPV?
What factors in addition to benefit/cost
would affect decision?
On going operational
On going operational
License maintenance
On going operational
On going operational
License maintenance
How to formulate
uncertainty?
Sensitivity analysis. Ask what-if questions.
What if some of the benefits or costs do
not incur?
Formulate different scenarios, and redo
the valuation.