Roadway Construction Company
Carraway, Robert L...
Roadway Construction Company
Carraway, Robert L.; Schwartz, Douglas L.
QA-0424 | Published September 3, 1991 | 3 pages Case
Collection: Darden School of Business
Product Details
A road construction company needs a new asphalt plant and must decide between two options: a drum plant with a 10-year life or a batch plant with a 5-year life. In addition, the company must decide which of two offers to accept from local dealerships for heavy equipment to support the new plant. The case provides comparison of net present value, internal rate of return, payback, and profitability index as criteria for making investment decisions.
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