Case ID: 112034     Author: Robert Dolan    Subject: Marketing Price $ 75

The Super Project HBS Case Study Analysis

Solution ID: 24675     Words: 1370

Super Project HBS Case Study Summary

Outlines the right usage of gradual assessment for choices relating to capital financing and speculation uses. The Super Project case 

Illustrates the correct utilization of incremental evaluation for decisions pertaining to capital funding and investment expenditures. 

Super Project Case Excel Calculation

Funds Employed

Profit and Loss

Return on New Funds Employed - 10-Yr. Avg.

PayBack Years From Operational Date


Compound Annual Growth rate

Cash Flow for NPV

WACC  (Hurdle Rate )



Super Project HBS Case Study Questions

1. What are the relevant cash flows for General Foods to use in evaluating the Super project? In particular, how should management deal with issues such as (a) test-market expenses, (b) overhead expenses, © erosion of jell-O contribution margin, and (d) allocation of charges for the use of excess agglomerator capacity?

2. How attractive is the investment as measured by various capital budgeting techniques

(i.e., net present value, internal rate of return, payback method, accounting rate of return)? How useful is each of these techniques?

3. How attractive is the Super project in strategic and competitive terms? What potential risks and benefits does General Goods incur by either accepting or rejecting the project?

4. Should General Foods proceed with the Super project? Why?