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Paul V. Dietrich Farms Ltd.: Expansion Plans

Mary Gillett, Jessica Kelly

商品編號:W27011
出版日期:2022/04/19
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商品來源:
商品主題:Accounting; Finance
商品類型:Case (Field)
涵蓋議題:capital budgeting;cash flow analysis
難易度:4 - Undergraduate/MBA
內容長度:12 頁
地域:Canada
產業:Agriculture; Forestry; Fishing and Hunting
事件年度:2020

In November 2020, Paul Dietrich was wrapping up his busy harvest season for the 1,100 acres of farmland he currently operated. Although the fall harvest season demanded much of Dietrich’s time and attention, he simply could not ignore an investment opportunity that had been presented to him. A local farmland owner was selling a 150-acre parcel of farmland that adjoined some land parcels already owned by Dietrich. Dietrich estimated that a competitive bid would need to be at least CA$20,000 per acre and the bid would need to be made immediately. He sat down to consider both short-term and long-term impacts on his cash flows.

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