A Case Study on Pressco, Inc. (1985)

A Case Study

on

Pressco, Inc. (1985)

Submitted by:

Cherry Ann Abangtao
Maricor Quilnat
Hyacinth Mae Yarcia
Jan Joseph Tayzon

4BSA

Financial Management II
History

Jane Rogers, a marketing representative of Pressco Inc., was attempting to sell mechanical drying equipments to Paperco but was unsuccessful in her efforts. However, in November 1985 new tax legislation had been rumored that gained the interest of Paperco to buy new equipments. This gave Jane Rogers the opportunity to persuade again the company to purchase their product.

Point of View

Paperco – to avail all the possible tax benefits and cost savings in replacing the drying equipment of the company.

Time Context

| | |
|Year |Significant Events |
| | |
|1984 |First unsuccessful attempt of Jane Roger to sell mechanical drying equipments to Paperco. |
| | |
|November 1985 |New tax law was rumoured to be enacted that gained the interest of Paperco to pursue the contract with Pressco Inc. |

Statement of the Problem

When is the best situation to replace the old drying equipments of Paperco that will enable the company to avail greater tax benefits and cost savings?

Statement of Objectives

This case study aims to foster discussion and educate students about capital investment. Specifically:

1. To enhance students’ skills in