Case ID: 9A97G010
Solution ID: 20820

Crystal Corporation of the Philippines

Case Solution

Mr. Jose de Valencia must decide whether to recommend to his family and outside investors to invest a total of $4.5 million in a manufacturing facility to produce hand-blown, hand-cut leaded crystal housewares in the Philippines. This venture will be quite risky, since six Irish technicians will have to be employed for a period of two years to train the workers, and it is not known if export markets will accept high-quality crystal produced in the Philippines. If the venture is not successful, the resale value of the plant and equipment, to say nothing of the training costs, will be zero.


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