PACK SYSTEMS INC. $-$ CAPITAL PROJECT ANALYSIS

FIN $3504$ CASE ASSIGNMENT $-$ Spring $2024$

Company Background

Pack Systems Inc. $($the "Company"$)$ is a global packaging and material handling equipment company with manufacturing, sales and service facilities throughout North America, Europe, and Asia. It is developing a new packaging machine $("$PAK $1\mathrm{.}0")$ that will replace industry legacy packaging machinery and targets companies in the food and beverage sector. PAK $1\mathrm{.}0$ will streamline the packaging function of customer operations which will reduce costs and increase production efficiency. Company management has estimated that the overall market for PAK $1\mathrm{.}0$ could be about $10,000$ units. Management research indicates that competitors are also developing similar types of machines.

PAK ${1\mathrm{.}0}_{?}$