The plant manager at Ford Motor Company's St. Thomas Assembly Plant must decide whether to recommend replacement of the plant's aging Bayco Oven cleaning system. The case presents a simple capital budgeting exercise.

The chief financial officer of Ault Food Limited was compiling the data he would need to run a divisional Economic Value Added (EVA) analysis. He had been asked by the CEO of Ault Foods to present the analysis at the next meeting of the board of directors. The CEO must persuade the board that divesting at least one of the company's divisions will be in the best interest of Ault's shareholders. The case is intended to provide an introduction .....more