Business Case Studies & Business Publications

The Real Green IT Machine (B): Sensitivi...

Lynch, Luann J., A...

Case

The Real Green IT Machine (B): Sensitivity Analysis of a Proposed Capital Investment

Lynch, Luann J.; Allen, Brandt R.

C-2351 | Published August 5, 2014 | 4 pages Case

Collection: Darden School of Business

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This case is a follow-up to UVA-C-2295. The analysis of the proposed new data center suggested that the project’s net present value was negative—not by much, but by enough to be of concern. Scheduled to meet with her boss at 3:00 p.m. to review the results of her analysis, the senior project leader is contemplating what to do next. When she and her boss had discussed the economics of green practices in the context of the bank’s next data center, she had been sure she could justify the cost of the investment in green technologies; the cost of power and cooling infrastructure had become the primary cost drivers in a data center, and new technologies were promising substantial reductions in power and cooling costs.