Question 1. Utilizing the information in the readings throughout the course, why would you NOT support Bob McCarthy’s recommendation to build a cartridge manufacturing plant within Bergerac’s existing plant? Explain your rationale! Again you MUST NOT support Bob Murphy. No other approach is allowed!
Question 2. Please list what you think is the one most problematic item in his analysis. Explain in detail why that item is the most important and use a brief mathematical underpinning (if possible) to show how it might change McCarthy’s financial results from Exhibit 4 of the case. For example, might it have an impact on Working Capital, some other inventory item, etc.? Again, this is just an example; you can utilize any item you wish.
Question 3. Based upon the frameworks given in your readings in Module 6, pick one and explain how the idea of risk might impact the decision to build the plant in house. In your actual answer refer to the article you are utilizing…please do not just say “see the citation page” or it is shown there. Make that reference part of your answer.
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