Britannia Chemicals was under pressure from investors to improve its financial performance because of the accumulation of the firm’s common shares by a well-known corporate raider. Earnings had fallen to 180 pence per share at the end of 2017 from around 250 pence per share at the end of 2016.

This B case reviews the same project as the A case (F-1906) but from one level higher: the executive vice president faces an either/or investment decision between two mutually exclusive projects. The case explores aspects related to identifying incremental cash flow implications of investment decisions and evaluating related financial criteria, including impact on earnings per share, payback, and net present value, and internal rate of return.