Case study chapter 8: Analyzing managerial decisions
I think my colleagues are giving me good advice, first of all I have been thinking about moving to the country side since I want a change after living in the busy city for so long. Unless I have saved up some major money, where I wouldn’t have to work anymore, I would have to look for a new job closer to my new home or accept the fact that I will have to commute back to the city. Being able to work in the country side would solve that problem of course. The fact that land is cheap right now would seem like a good investment, even if it takes some years before the value goes up, or ethanol factories start buying up land, it is something you will have. If the facts are correct and ethanol business is growing and looking to expand in the country side this would be a great investment for you. It would allow you to live in the country while having a great business. As mentioned by your colleagues, if you would like not to get involved in this business, you could just sell the land once prices rise.
Before investing in this business you would have to do some research, first of all you would have to see if the ethanol business is really going to become as successful as they say, is the government really giving funding and help for these businesses. If this is not the case, you might just want to stay away from this business at all and invest in a summer house or something on the country. You would also have to look into the business itself if you chose to explore the ethanol business. Before entering in any kind of business you would need to do some research and find out what would be needed, what to invest in and more. This business might give you great profits but it will have to be run correct and you would have to know what you are doing.
Me personally I would take the opportunity and buy the land, if the prices