Case 4.4: MACD Development Corporation
Questions
1.
What are the risks involved in the Phoenix Project
(i.e., what are the potential obstacles to success)?
2.
How well/how poorly did McCaffrey manage risk for the
3.
What is the most important thing that McCaffrey did to
manage the risks?
4.
Why did McCaffrey approach the 5 primary risk factors
in the order that he did?
5.
Do the returns on the Phoenix Project justify the
risks?
6.
Which option should McCaffrey choose to obtain the
$500,000 line of credit?
7.
Should McCaffrey accept a signed purchase and sale
agreement from his previous customer?