Case ID: UV0725
Solution ID: 822
Words: 1358
Price $ 75

CyberLab A New Business Opportunity for PRICO A Case Solution

Case Solution

The leader of a big and established manufacturer of laboratory equipment needs to decide whether or not to invest $a million for 30% equity inside a start-up company within the area of lab robotics. The agreement would also allow his company the authority to market the merchandise. He already includes a spreadsheet that projects the very best guess for the future scenario and computes several measures of performance (ROS, ROE, Return on investment, NPV, and IRR). He or she must choose which from the criteria are most helpful. Another-cost problem that's introduced should be resolved, since it constitutes a large improvement in the NPV. Within the supplement, some background materials are deliver to a predicting/judgmental assessment exercise according to this decision. The supplement could, presuming students happen to be brought to this subject, make up the grounds for a brief workshop (an hour or so or less) on judgmental probability, or it may be combined with an email on cumulative probability distributions to have an opening class around the subject. (The B case number is UVA-QA-0383, along with a supplement towards the A case is UVA-QA-0384.)

Excel Calculations

·         PRICO'S PRO FORMA INCOME STATEMENT: MARKETING ONLY

·         CYBERLAB'S PRO FORMA INCOME STATEMENT: MANUFACTURING ONLY

·         ASSUMPTIONS

Questions Covered

1.       Introduction

2.       CyberLab Stake

3.       Marketing Rights

4.       The Patent

5.       Conclusion