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Case 39 Primus Automation Division 2002

In 2002, Tom Baumann, an analyst in the Marketing and Sales Group of the Factory Automation Division of Primus Corporation, had to recommend to the division sales management, Jim Feldman, the terms under which Primus would lease one of its advanced systems to Avantjet Corporation.

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Devin Fortranansi Firdaus
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827 views

Case 39 Primus Automation Division 2002

In 2002, Tom Baumann, an analyst in the Marketing and Sales Group of the Factory Automation Division of Primus Corporation, had to recommend to the division sales management, Jim Feldman, the terms under which Primus would lease one of its advanced systems to Avantjet Corporation.

Uploaded by

Devin Fortranansi Firdaus
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Case 39 Primus Automation

Division 2002
In 2002, Tom Baumann, an analyst in the
Marketing and Sales Group of the Factory
Automation Division of Primus Corporation, had
to recommend to the division sales management,
Jim Feldman, the terms under which Primus
would lease one of its advanced systems to
Avantjet Corporation.
Three months ago, Primus won an apparent
competition for Advantjets business. But due to
declining stock price and worsening balance
sheet under the economic recession, CEO had
just ordered a moratorium on any capital
expenditure.
Baumann needs to find the way to make the
sale constructing terms attractive to
Aventjet.
Q1: Discuss operating lease and capital lease
Q2: Out of 4 options, which one is best for the
Aventjet?
Q3: Do you believe there is still a way to make
the option attractive to Aventjet? If so, how ?
(payments, residual value, tax rate, discount
rate)

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