Capital Budgeting Case Study Analysis

Capital Budgeting Case Study Analysis-30
The Weapons and Tactics Instructors Course (WTI) is an integral part of Marine aviation training.WTI provides pilots, weapon systems operations, and ground combat support service personnel an opportunity to hone their battlefield knowledge and expertise.These two courses produce more than 300 graduates annually.

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The transportation costs associated with the detachments’ equipment amount to several millions of dollars per year for the Marine Corps.

The Marine Corps Air Ground Combat Center in Twentynine Palms, CA, had a similar issue but found a different approach to conduct operations.

Since then, it has served as a training facility for Marine Corps aviation units.

Commissioned on June 1, 1978, by the Commandant of the Marine Corps, Marine Aviation Weapons and Tactics Instructor Squadron One (MAWTS-1) is “staffed by individuals of superior aeronautical and tactical expertise, instructional abilities, and professionalism” (MAWTS-1, 1995).

This case requires the use of capital budgeting techniques to compare two competing alternatives to carry out a particular required Marine Corps training exercise.

Training outcomes are assumed to be the same under each alternative with the focus on lowering costs as the primary objective.

Captain Mitch Bruce sits at his computer pondering how to respond to an upper level request to resolve some potentially contradictory objectives.

On the one hand, the Marine Corps needs to continue to maintain readiness via specified required training in order to meet current and possible unknown mission requirements.

These detachments provide MAWTS-1 with field units to use during the WTI course.

To adequately support the exercise, the detachments require large amounts of equipment (armored vehicles, artillery, trucks, etc.) from the home bases or stations.

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