Superior Grain Elevator, Inc.

The manager of port facilities for Superior Grain Elevator, Inc. in Thunder Bay, Ontario, must decide whether to construct a third wharf at a cost of $1.5 million. Superior Grain Elevator, Inc. has just negotiated a grain sale to Poland that will increase the number of shipments from the Thunder Bay facility. (A Microsoft Excel model is available for use with this case, product 7A98E040.)