文档介绍：Case: The Earthilizer Proposal
CSM, Inc., is considering an investment in a project that requires an initial investment of $580,000 to produce and market a anic fertilizer made from dairy farm waste. The product, Earthilizer, has been developed by CSM's agricultural division over the past three years in response to two factors:
First, there is a growing demand anic farmers.
Second, dairy farmers face increasingly more restrictive environmental rules regarding the disposal of cattle manure. bination, CSM's management feels that these forces of change present a very promising investment opportunity.
CSM has tested the product extensively as a liquid fertilizer replacement for the more expensive and conventional chemical fertilizers that farmers and ranchers have used since the Second World War. The product will be marketed in a concentrated form, with one gallon of Earthilizer producing about 100 gallons of usable fertilizer.
Not only is the product anic, but it is also cheaper to use than chemical fertilizers. Traditional chemical fertilizers are made from petroleum and cost approximately $25 an acre for grass and hay production; Earthilizer utilizes dairy waste and cost less than $20 per application, with no more applications required over the growing season.
CSM's analysts estimate that an initial investment of $580,000 will put the Earthilizer project in place. This in