Case Name :      Adamac Inc.

Authors :           Elizabeth M.A. Grasby, Emily Saunders

Source :             Ivey Publishing

Case ID :            909B06

Discipline :        Accounting

Case Length :    09 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

A shareholder and employee of a small laser and water jet cutting corporation in Toronto, Canada must make decisions regarding expansion, purchase of new equipment, hiring of more personnel and a move to a larger location. Students are expected to 1) complete an industry analysis of the manufacturing industry, including the current economic outlook; 2) perform a thorough company size-up; 3) identify the qualitative pros and cons of each decision; 4) perform two differential analyses, one with sensitivity and one without, after identifying items relevant to the expansion decision and categorizing them as either recurring or one-time flows; 5) assess the financing, timing and any other relevant factors to each option; and 6) use their analysis to make their decisions.