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An investment decision dilemma

Sulagna Mukherjee (Department of Economics, Finance and Accounting, T.A. Pai Management Institute Manipal, Manipal, India)
M. Durga Prasad (Department of Economics, Finance and Accounting, T.A. Pai Management Institute Manipal, Manipal, India)
Sudeep S. Kumar (Department of General Management, T.A. Pai Management Institute Manipal, Manipal, India)

Publication date: 2 May 2016

Abstract

Subject area

Financial Accounting and Corporate Finance.

Study level/applicability

Undergraduate, Post Graduate and Executive Education.

Case overview

T.A. Pai Management Institute (TAPMI), a leading B School in South India had established its new campus in Badagabettu village, about 5 km away from Manipal, Udupi District, Karnataka. Though the campus housed about a thousand inmates, comprising students, staff and faculty members, a proper public transport system did not develop commensurate with other facilities. The TAPMI administration was flooded with requests from various stakeholders to find a solution to this vexed problem. The Dean Administration had three options before him namely convincing the existing private bus operator to run a new bus en route TAPMI, TAPMI purchases the bus by either paying cash or availing loan from a bank or TAPMI can take a bus on lease. The predicament before Dean was to find out the most economically viable solution.

Expected learning outcomes

At the end of this case discussion, the participants will be able to: understand the application of breakeven analysis; prepare income statement, balance sheet, cash flow statement and forecast of cash flows; evaluate financing and investing decisions by using various techniques; discuss and debate the different alternatives available to the organization.

Supplementary materials

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

Subject code

CSS 1: Accounting and Finance.

Keywords

Acknowledgements

The authors acknowledge the Director, Faculty and Staff of TAPMI for their support and contribution.

Citation

Mukherjee, S., Durga Prasad, M. and Kumar, S.S. (2016), "An investment decision dilemma", , Vol. 6 No. 1. https://doi.org/10.1108/EEMCS-05-2014-0131

Publisher

:

Emerald Group Publishing Limited

Copyright © 2016, Emerald Group Publishing Limited

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