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The Super Project

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MBA − Cases in Corporate Finance The Super Project (HBS) Instructor: Pål E. Korsvold BI Norwegian School of Management

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McGraw−Hill Primis ISBN: 0−390−68861−4 Text: Harvard Business School Negotiation Cases

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ISBN: 0−390−68861−4

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Contents
Harvard Business School Negotiation Cases
Super Project
1 1

Case

iii

Harvard Business School Negotiation Cases

The Super Project

Case

© The McGraw−Hill Companies, 2005

1

9-112-034
REV: MAY 27, 2004

The Super Project
In March 1967, Crosby Sanberg, manager-financial analysis at General Foods Corporation, told a casewriter, “What I learned about incremental analysis at the Business School doesn’t always work.” He was convinced that under some circumstances sunk costs were relevant to capital project evaluations. He was also concerned that financial and accounting systems did not provide an accurate estimate of incremental costs and revenues, and that this was one of the most difficult problems in measuring the value of capital investment proposals. Sanberg used the Super project1 as an example. Super was a new instant dessert, based on a flavored, water-soluble, agglomerated2...

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