The Cement Factory Case

Votorantim Cimentos North America, Inc., is a subsidiary of a Brazil-based

company that recently announced plans to develop a new cement factory in
Houston County in the state of Georgia. The plant will be called Houston
American Cement, or HAC. The location is ideal for cement making because
of the large deposit of limestone in the area.

The plant investment, expected to amount to $200 million, has been planned
for 2012; however, it is currently delayed due to the economic downturn in
construction. When the plant is completed and operating at full capacity,
based upon the projected needs and cost per metric ton, it is possible that
the plant could generate as much as $50,000,000 annually in revenue. All
analysis will use a planning horizon of 5 years commencing when the plant
begins operation.

This case is used in the following topics (and sections) of this chapter:
Single-amount factors
Uniform series factors
Arithmetic gradient factors
Geometric gradient factors
Determining unknown n values