Analyse the business case for Option 1 (ASRS warehouse expansion). How would you compare Option 1 to Option 2 (building additional conventional warehouses)?

End-of-Case Questions
Question 1

Analyse the business case for Option 1 (ASRS warehouse expansion). How would you compare Option 1 to Option 2 (building additional conventional warehouses)?

Use the projections provided in the case to compute incremental cash flows for the Synnex (Thailand) project, as well as its NPV. Does Option 1, building an ASRS, create more value for Synnex (Thailand)?

Based on your analysis, did Synnex (Thailand) make the right decision funding the ASRS project? Why, or why not?