Business Case Studies & Business Publications

Sun River Electronics Ltd.

Schill, Michael J.

Case

Sun River Electronics Ltd.

Schill, Michael J.

F-2148 | Published March 16, 2026 | 9 Pages Case

Collection: Darden School of Business

Add To Cart Buy Now

Product Details

In July 2025, a new CEO joins Sun River Electronics Ltd., a small microphone manufacturer, to discover that the firm is in the midst of a financial crisis that was induced by rapid growth. The CEO asks an analyst for help with five tasks: (1) review the historical performance of the firm, (2) forecast financing requirements for the next two years, (3) exercise the forecasting model to identify key driver assumptions, (4) estimate Sun River’s weighted average cost of capital, and (5) analyze a proposed investment in a packaging machine. The analyst must offer insights and recommendations based on the work. This relatively short case poses several review-type problems for the students. At the University of Virginia Darden School of Business, it is designed to be taught over two consecutive class periods in the first-year MBA finance course. It has also been used as a midcourse five-hour exam in that course.

The aim of the case is to exercise the students’ abilities in financial forecasting and analysis, and in the analysis of capital projects. Generally, the case offers a good omnibus review of the foundational tools and concepts.