Capital Budgeting Case - Barrister Industries
You are the division finance manager for Barrister Industries, a publicly traded manufacturing company. The division head comes to you very excited, because he just met with a new customer that wants Barrister to be the sole source manufacturer of a key component for one of its current, well selling products. The division head asks you to prepare a financial analysis of whether Barrister should pursue this opportunity.
You discuss the situation with the sales manager and learn that the customer intends to purchase the part from Barrister for the next five years, and will agree to a firm contract for the first three years.
