OvalTrackTrans_Case assignment_11Spring

OvalTrackTrans_Case assignment_11Spring - F301 Financial...

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F301 Financial Management Case Assignment – Spring 2011 O VAL T RACK T RANSMISSIONS Background When the Harris brothers began building and racing stock cars, they took a careful and painstaking approach to their main objective: speed. Dozens of small details, often ignored by other racers, consumed their attention. A fraction more acceleration, and a couple of more miles per hour in straightaway speed, soon distinguished their cars from others in their northern Midwest region. It wasn’t long before some of their racing friends began asking for Harris-modified components. The precision machining they were doing, especially on transmission bearings and internal shifting mechanisms, generated growing demand. After two years of working long hours in their own garage, the Harrises formed a company and named it Oval Track Transmissions, Inc. They leased a machine shop, hired some new personnel, and began using the profits from the business to upgrade their machine tools. That was in 2008. Now, three years later, their reputation for precision machining continues to spread. Oval Track’s transmissions are known for quick, precise shifting and good durability. The company is profitable, and they even hired a chief financial officer: you. The Proposal A major decision facing you and the Harris brothers concerns the machine they use for a certain very sensitive machining operation in the transmission housing. A new, computer- controlled machining system promises to produce closer tolerances at lower cost. It also can
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OvalTrackTrans_Case assignment_11Spring - F301 Financial...

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