Read the case “Whirlpool Europe” and the “Clarifications and Hints” section below and then try to answer the second question:
1. What are the after-tax cash flows for the proposed ERP investment from 1999 through 2007? What is the present value of those cash flows (that is, what is the NPV of the investment)?
2. Besides the three expected benefits from the project, are there other factors that are crucial for the project’s value? That is, identify three other factors that you think are value drivers and perform a sensitivity analysis regarding these factors.