The first decision

The initial loan allocated by the instructor is 5 million € at an 8% loan rate.

During the testing phase, a maintenance team has been hired to make all the adjustments of the new tool used to assemble the motorcycles. The cost of this service is 220 000 €. Finally, the planned maintenance budget will not be more than 400 000 €.

A research and development service and a design office have been also created. The initial cost is 200 000 €. This service works closely with the maintenance team; its objective is to lower the motorcycle manufacturing cost by taking away useless accessories and improving technical performance at the same time.

The market exploration in the Rest of the World market will yield results only at the end of period 4. For the first decision, the service will cost between 400 000 and 500 000 €, depending on your financial means.

The sponsoring forecasted budget that has a long-term action must be between 200 000 and 400 000 €.

At the first decision time you are advised not to invest because the market is less than the production capacity during the first two periods. The investment implies a financing that the bank will accept only if you can prove you have good control of your cash and if you do not surpass the authorized limit.