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Abstract

A contractor faces a decision whether to bid on becoming the private partner in a public–private partnership in the capital city of a southeastern province in Afghanistan. At stake is an investment in building an open-air slaughter facility and operating costs in return for 75% of generated revenues. The contractor works to develop a budget to estimate the economic viability of the operation. Factors encouraging risk analysis include estimates of daily animal slaughter numbers and the viability of and enforcement of a facility-use requirement to support use estimates. This teaching case is suitable for advanced undergraduate or graduate courses in business strategy examining the challenges faced by small-scale agribusinesses in an emerging economy. It is also appropriate for executive education considering foreign investment or management opportunities.

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