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Product cover image for Anwal Gas Traders: Capital Budgeting for Expansion Project

Anwal Gas Traders: Capital Budgeting for Expansion Project

Imran Yousaf, Frank Li, Aaqib Nawaz

Product #:W25080
Supplier:Ivey
Discipline:Accounting, Finance
Setting:India; Pakistan, 2021
Details:Case (PDF) • 6 pages • 2021-08-19

Subjects:

Capital budgetingBudgets and budgetingFinance and investingAccounting

Industries:

Utilities sector

Geography:

AsiaIndiaPakistan
Your Price:$9.71

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In February 2021, the owner of Anwal Gas Traders, a liquefied petroleum gas distribution company based in Sakesar, Khushab District, in the province of Punjab, Pakistan, was considering whether to invest in expansion. It would be the first significant expansion for the company since its founding in 1998. Based on data provided by a consultancy firm performing capital budgeting techniques, the company would integrate backward to take advantage of perceived market potential. The owner needed to determine whether this investment was worth making and how various scenarios would affect his decision.

Learning Objectives

This case can be used in undergraduate- and graduate-level courses in financial management, financial modelling, financial accounting, and corporate finance, and as an introduction to business finance. After working through the case and assignment questions, students will be able to do the following:
  • Understand the basic concepts of capital budgeting and decision-making.
  • Measure and apply capital budgeting techniques such as net present value, internal rate of return, and profitability index.
  • Perform a sensitivity analysis based on different scenarios.
  • Determine how changing internal and external factors affect capital budgeting and decision-making.
  • Build a capital budgeting model in Microsoft Excel and develop an integrated report.
  • Prepare forecasted profit and loss statements, forecasted balance sheets, and forecasted cash flow statements.
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Case Study: Anwal Gas Traders: Capital Budgeting for Expansion Project (English version) | Ivey Publishing