FINANCE-FastPro Corp. is a moderately sized manufacturing firm with approx

Class #1 Assignments

Problem #1

FastPro Corp. is a moderately sized manufacturing firm with approx. $2 million in current
annual revenues. The firm has been growing at a 24% CAGR over the past 4 years, and is
expecting to continue that rate for the next 4 years. The firm’s Income Statement has been
solid and it is profitable.

Before investing in this firm, do you have any reservations about the firm and are there any
specific issues would you want to clarify?

Problem #2

The Federal Government is contemplating adding a surcharge to the federal fuel & gasoline
taxes. How would that change influence your outlook for the:

1. Trucking industry
2. Grocery stores
3. On-Line Education providers

Please be specific with your assessments and clarify the “why” of your conclusions.

Problem #3

What is the most important benefit of the E-I-F, Industry Life-Cycle, Customer Life-Cycle, and Porter 5-Factor Models?

Problem #4

Eastern Optical is new firm in the newly emerging tunable laser industry. Early response to the industry has been encouraging and many new firms are entering and introducing new “super high technology” innovations.

Before investing in Eastern Optical prepare an evaluation and assessment of the key issues you would want to understand.

Problem #5

Dave’s Healthy Restaurant has approached your firm for a $400,000 investment to fund the expansion of their very successful restaurant concept. The funds will be used to add two more restaurants. Dave’s has pioneered healthy foods dining in their area and is the only firm offering such fare. The restaurant area is suburban and somewhat isolated, with only 12 other restaurants in the general area.

Because of the nature of the area, there are very few foods suppliers available for servicing the restaurants. This is especially more critical for Dave’s, which relies on a narrower, healthy food product line. However, they have a distributor / supplier that is well known for their quality and reliability.

What issues are necessary to evaluate before making the investment; what is your assessment of the situation; and would you recommend the investment?