In 2008 San Francisco International Airport (known by its three-letter airport code, SFO) had introduced a $383 million intend to renovate and reopen Terminal 2. Assistant deputy director of aviation security Kim Dickie and her team had selected Quantum Secure's SAFE software suite because the new Terminal 2 credentialing system, but she required to create a business case rapidly that will convince senior management to own Eco-friendly light to finance the acquisition. The case describes a predicament that happens frequently within the real life, where a decision offers some real but qualitative value with techniques which are difficult or impossible to evaluate. The discussion and analysis gives students the chance to think about the standards which will drive the interior rate of return (IRR), internet present value (NPV), and reduced payback period information without creating comprehensive spreadsheet models. Examining the case indicates the boundaries of these approaches in instances where perceived value is tough to evaluate. The case prepares students to judge and justify buying demands when getting together with financial gatekeepers for example CFOs and CEOs by presenting a framework to evaluate the quantifiable advantages of a capital expenditure while bearing in mind important intangible benefits.
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