Green Fields Investments: Evaluating Biofuels Investment Options

Green Fields Investments is a socially responsible investment firm. The student is faced with the management decision of whether or not to invest in a new ethanol plant being built. The pros and cons of ethanol as a fuel source and the production process are presented, and alternatives are considered. The student is expected to perform a cost/benefit analysis to inform their decision, but due to the intangible and indirect costs, much of the learning should come from simply quantifying the elements that go into the decision, rather than the go/no go decision that is the outcome of the analysis.