@Ivey ' Publishing 93103013 COOL MOOSE CREAME RY Jim pm "mm Mm nub 1mm m twmmrm n} 5mm. m wfch m Wm.- wlrnm'fnr mm mumunm. in mm: dnJIMH'MMM...

1- Analyze the addition of soft-serve ice cream from a qualitative standpoint.

2- Which of the cash flows associated with the opportunity are relevant (future, cash and different)? Of these, which are recurring costs versus one-time costs?

3- Perform a differential analysis to determine the return on investment and payback period for the purchase of both the single-head and triple-head machines.

4- As Greig Perantinos, would you purchase a soft-serve ice cream machine? If so, which one? Support your

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@Ivey ' Publishing 93103013 COOL MOOSE CREAME RY Jim pm “mm Mm nub 1mm m twmmrm n} 5mm». MA. m" wfch m Wm.- wlrnm'fnr mm mumunm. inmm: dnJIMH'MﬂMM Frlrmrwc cubn'rﬂ'ﬂn‘cormgﬁn'nvr kmﬂulg qr. mama's: mam m Mllmu ma] m.- dlr‘gufnrdmm mm m a». Jdcmrflmgmﬁwwumm mama; Lunﬁdmllmfm rim furhlarwlm mm‘ "um m‘mw. plmmnqn'ﬂﬁ dv'glfrm’urﬁlhrnlbr rrprudmnn’a'w w, fmw r» h, om‘nlmnx "mm in:rid-"Harm or m- mnwighl mm chmdm'lr'uw a; mu "Interval h m :wverad Mm- nullity-Fromm er/wduru'un rrﬂlrrugawmum I» nru‘orrnwvcaar muuript‘mlrﬂmn M 71'me mlrnon‘ Lumbrflvn Mhmm m, mummmm mmwmmm momma” (Mm um um. 015mm mm. {firurutﬁﬂnn t... J ‘ mm 3 m ( up. right o mm Mam: Iver J1 mm u] JRWAELY Felmninlmn ymm 2an in IA In March ZDIO. Greig Petantinoe, owner of Cool Moose Dummy (Cool Moose], was considenngexpandmg his pmducl line by pmcllaeing a suit-sews ice cream machine for one of his stores. The buslnea in Alliston‘ Onlano, hadbeenm operation for a year and sold scooped ice cream, frozen yogurt,milkshakes and ﬂoale. Percnlmos believed the addition cfsoﬂ-serve ice cream would increase SBIBS and impmw the company's mallwl share In Allletun. Perantlnos wanted in Commue growing the business, andhe wondered whether this was lhe best way to do so ALLISTUN, ONTARIO Allieton was a small community ofappmximately 11M people,withm thetown ofNew Tecumseth,Dntario,}|ome no 28300 peoplE.| Aspart of gimme Coumy, Allistcn was approximately 60 kilometresnorth ofthe Grater Toronto Area See Exhibit I for a map ofCool Mouse locations Alliston was hometo the largest employer in Simme County, Honda ol'Canada,an automotive mannfsmiring upemlion thathad two planls located in the area. One Dflhe county's touristamamans was the South Simone Railway-'5 historic steam tram. The restoredmany roaches Born the 19201|u1ed people from across Canadato see Canada's oldeelopertating steamham, Allislon was also well known as the birthplace of Sir Fredrick Banting, Lhe co—dismverer ofinsulinThe community's Annual Potato Festival, begun in 1974 and held. in June each year‘ attracted lhousands ofpeople annually in the area Although a small csmnnmity, Allistnn had a vibrant downtown area and local madame and tourists regularly ﬁequented the restaurants and shops Vinona Street was the centre ohm: downtown district.and Cool Moore was located attire Victoria and Chutch Street intersection ’ nmnrrws Hamil (mm A Phuﬂk