Case Detail

Case Summary

Green Fields Investments: Evaluating Biofuels Investment Options

Case Number: 5-208-260, Year Published: 2008

HBS Number: KEL410

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Authors: Lynne Kiesling; Jeremy Hunnewell

Key Concepts

Cost/Benefit Analysis, Environmental Issues, Indirect Costs, Estimating Indirect Costs

Abstract

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.

Learning Objectives

Students will conduct an NPV analysis of an investment decision, taking into account a number of direct and indirect costs, especially those that pertain to environmental sustainability.

Number of Pages: 14

Extended Case Information

Teaching Areas: Economics

Geographic: Global

Industry: Socially Responsible Investing

Organization Name: Green Fields Investments

Year of Case: 2008