This case involves an analysis of the decision regarding a new product introduction. The main issues for discussion are: sunk costs, incremental costs, cannibalization, shared facilities, and the treatment of inflation.
Date Published:01/01/2003
Discipline:Finance
Key Concepts:Capital Budgeting, Investment Evaluation, DCF Analysis, New Product Introduction
Citations:Raviv, Artur, Jan Henrich, Gero Steinroeder. Energy Gel: A New Product Introduction (A). 5-403-756(A) (KEL083).