Case Name :      Hansson Private Label, Inc.: Evaluating an Investment in Expansion

Authors :           Erik Stafford, Joel L. Heilprin, Jeffrey DeVolder

Source :             HBS Brief Cases

Case ID :            4021

Discipline :        Finance

Case Length :    11 pages

Solution sample availability : YES

Plagiarism : NO (100% Original work)

A manufacturer of private-label personal care products must decide whether to fund an unprecedented expansion of manufacturing capacity. The decision prompts fundamental financial analysis of the potential project, including development of cash flow projections and net present value calculations. Students will be required to compute net operating profit after tax, cash investment in working capital, and ongoing capital expenditures for a proposed investment, and to discount values to the present. The case also facilitates a systematic consideration of the company’s capital planning process.