Darwin S.A.’s “rational choice” of investment in electric trucks

Authors

DOI:

https://doi.org/10.11606/issn.1982-6486.rco.2025.216034

Keywords:

Rational choice, Capital investment, Electric trucks

Abstract

This teaching case is inspired by the decision of the Brazilian company Ambev to purchase electric trucks. The case invites an examination of the problem of investing in electric trucks from the perspective of the fictional company Darwin S.A., analyzing ’the conflict based on the choice of a capital investment project among three available alternatives. The involvement of the class in conflict resolution allows discussions about human nature and increases understanding of the limits of rationality in investment decisions. This experience seeks to increase the accuracy of decision-making models in the business environment, providing grounds for behavioral analysis of the choices of capital investment projects within organizations. The class follows the character Fernando during his investment decision-making process. The students analyze the available projects, leading to an understanding of the impact of uncertainty in evaluating capital investment options. Contrary to the selection criterion established at Darwin S.A.’, Fernando chose the project presented by Píton, a manufacturer with whom he negotiated the purchase of a fleet of electric trucks. The ambiguity of the case makes it possible to observe Fernando’s decision-making process and the reasoning behind his choice.

Downloads

Download data is not yet available.

References

Ambev. (2019). Relatório de Sustentabilidade 2019. https://api.mziq.com/mzfilemanager/v2/d/c8182463-4b7e-408c-9d0f-42797662435e/42fbc4ec-f961-fb02-e75b-c9c5bb3212f6?origin=1

Ambev. (2020). Relato Anual e de ESG Ambev 2020. https://api.mziq.com/mzfilemanager/v2/d/c8182463-4b7e-408c-9d0f-42797662435e/4b04ac91-c1ea-e7ec-8b0d-7b212507651d?origin=1

Ambev. (2021). Relatório Anual e ESG 2021 da Ambev. https://api.mziq.com/mzfilemanager/v2/d/c8182463-4b7e-408c-9d0f-42797662435e/735be995-4658-0bbb-0c66-3be9f0987be0?origin=1

Ingersoll, J. E., & Ross, S. A. (1992). Waiting to invest: investment and uncertainty. The Journal of Business, 65(1), 1-29. http://www.jstor.org/stable/2353172

Modigliani, F., & Miller, M. H. (1958). The cost of capital, corporation finance and the theory of investment. The American Economic Review, 48(3), 261-297. http://www.jstor.org/stable/1809766

Organização das Nações Unidas. (2015). Agenda 2030 para o Desenvolvimento Sustentável. https://brasil.un.org/pt-br/91863-agenda-2030-para-o-desenvolvimento-sustentavel

Schwab, B., & Lusztig, P. (1969). A comparative analysis of the net present value and the benefit-cost ratio as measures of the economic desirability of investments. The Journal of Finance, 24(3), 507–516. https://doi.org/10.2307/2325349

Souza, K. (2021, julho 13). Além da Ambev e JBS, caminhão elétrico da Volkswagen tem 58 interessados. Revista Exame. https://exame.com/negocios/coca-cola-e-jbs-vao-usar-caminhao-100-eletrico-da-volkswagen/

Downloads

Published

2025-06-30

Issue

Section

Teaching Cases and Other Contributions

How to Cite

Neitzke, A. C. A., Longo, L., & Pacheco, V. (2025). Darwin S.A.’s “rational choice” of investment in electric trucks. Revista De Contabilidade E Organizações, 19, e216034. https://doi.org/10.11606/issn.1982-6486.rco.2025.216034