Kühle Engler Kraftwagen AG, Part 2: Evaluating investments for the 2025 Energy Efficiency Challenge

Authors
Publication date 12-2016
Journal IMA Educational Case Journal
Article number 2
Volume | Issue number 9 | 4
Number of pages 7
Organisations
  • Faculty of Economics and Business (FEB) - Amsterdam Business School Research Institute (ABS-RI)
  • Faculty of Economics and Business (FEB)
Abstract THIS CASE COVERS NET PRESENT VALUE (NPV) MODELING OF a capital equipment investment decision. Students consider dilemmas and tensions between energy efficiency and financial objectives and address organizational issues (such as preselection of investment alternatives) and strategic investment bundles. That means that the impact of energy-related investments might be different in the context of related and mutually reinforcing investments. Finally, this teaching case explains to students how uncertainty in investment decisions can be modeled with Monte Carlo simulation.
Document type Article
Language English
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