Table of contents.
Managerial Report
1.Introduction
BestBikes Ltd. designs, produces and markets a wide variety of bicycles. Currently it is evaluating two new product proposals that have reached the final planning stage, namely a road- and mountain bike. BestBikes Ltd. can only produce one of the two proposed bikes. BestBikes wants to select the bike with the highest return on investment (ROI) and wants to limit the amount of risk.
The calculation of the ROI ratio by BestBikes Ltd. for both proposals gives virtually identical results and therefore more in depth analysis is required. …
