Students will get an understanding of how the uncertainty of the business environment changes decisions and leads to Capital Budgeting decisions. The Case tracks the story of Gulf Electric Inc., a mid-sized electrical manufacturing firm, producing parts for utility firms and electrical products for retailers. Hurricane Katrina caused a paradigm shift for individuals and businesses. Many Post-Katrina firms were devastated but some found a golden opportunity. The case deals with how Gulf Electric might handle the business environment they encountered after the storm. It deals with how Gulf Inc. dealt with a capital budgeting project to ramp up production of home generators, pumps and other equipment.
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