FIN 486 Week 5 Team Assignment Case Study Casa de
Diseno
c) In general, how does this problem demonstrate the importance of considering real options when making capital budgeting decisions? ========================================
FIN 486 Week 5 Team Assignment Case Study Casa de
Diseno
For more course tutorials visit www. uophelp. com
Chapter 16 Case Study: Casa de Diseno
In January 2012, Teresa Leal was named treasurer of Casa de Diseno. She decided that she could best orient herself by systematically examining each area of the company’ s financial operations. She began by studying the firm’ s short-term financial activities.
Casa de Diseno is located in Southern California and specializes in a furniture line called ― Ligne Moderna.‖ Of high quality and contemporary design, the furniture appeals to the customer who wants something unique for his or her home or apartment. Most Ligne Miderna furniture is built by special order because a wide variety of upholstery, accent trimming, and colors is available. The product line is distributed through exclusive dealership arrangements with wellestablished retail stores. Casa de Diseno’ s manufacturing process virtually eliminates the use of wood. Plastic and metal provide the basic framework, and wood is used only for decorative purposes. Casa de Diseno entered the plastic-furniture market in late 2004. The company markets its plastic-furniture products as indoor-outdoor items under the brand name ― Futuro.‖ Futuro plastic furniture emphasizes comfort, durability, and practicality and is distributed