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Product cover image for S.I.T. Car Rental: An Upgrade Opportunity in Trinidad and Tobago

S.I.T. Car Rental: An Upgrade Opportunity in Trinidad and Tobago

Ian Dunn, Stefanie Tom

Product #:W26407
Supplier:Ivey
Discipline:General Management, Strategy
Setting:Latin America and Caribbean, 2021
Details:Case (PDF) • 4 pages • 2021-12-17

Subjects:

Cash flowReturn on investmentCorporate financeInvestment managementStrategyManagement

Industries:

Food and beverage sector

Geography:

Central America and Caribbean
Your Price:$10.54

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On June 9, 2021, the owner and director of S.I.T. Car Rental, which was located in Trinidad and Tobago, was considering whether he should upgrade his fleet of cars. The COVID-19 pandemic had negatively affected his sales in 2020 and 2021, although the owner was hopeful that he could increase demand by the end of 2021, once the need for pandemic-related lockdowns had ended. He had recently retired one of his older cars and so needed to decide whether he should purchase a new car to replace it or downsize his fleet. If he decided to purchase another car, he had to choose between a used economical vehicle and a new luxury vehicle.

Learning Objectives

This case is designed for use in an introductory course on managerial accounting or finance at the undergraduate level. Students should have previous knowledge and understanding of the differential cash flow model as well as basic business decision-making experience. After working through the case and assignment questions, students will be able to
  • analyze a company’s internal capabilities, compare it to its competitors, and evaluate its main customer groups;
  • determine the relevant cash flows for a differential analysis;
  • complete a differential analysis and calculate the return on investment and payback for two alternatives; and
  • justify a comprehensive and well-informed decision regarding an upgrade opportunity.
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Case Study: S.I.T. Car Rental: An Upgrade Opportunity in Trinidad and Tobago (English version) | Ivey Publishing