Originally Published InLovata, L. M., & Murray, S. M. (2014). KPG Grocers: Capital budgeting information elicitation case. IMA Educational Case Journal, 7(1), Article 1.

The KPG Grocers case study requires students to analyze a complex capital budgeting problem. The case describes a grocery store investigating if they should open a new distribution center close to their Midwestern stores. The impetus for the move is to improve the company's sustainability efforts, but freshness and service are also improved. Students are required to use capital budgeting to analyze the four alternatives. It's appropriate for cost or managerial accounting classes at the undergraduate or graduate level. The case is enriched through the information elicitation process. The information elicitation methodology requires students to interview the vice president of distribution for the company to obtain the relevant facts then correspond via e-mail to gather additional information as required. The final deliverable is a presentation of the analysis and a recommendation to the vice president. This process requires students to develop core competencies often used in the workplace but seldom addressed in the classroom.

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