Practice Case Examination
The background information relating to the Case Examination (Backgrounder) is provided to
candidates in advance of the examination date. The Backgrounder contains information
about both the company and the industry involved in the case. Candidates are expected to
familiarize themselves with this information in preparation for the analysis that will be required
during the Case Examination.
Candidates should note that they will not be allowed to bring any written material,
including the advance copy of this Backgrounder, into the examination centre. A new
copy of this Backgrounder, together with additional information about the company
and a supplement of formulae and tables, will be provided at the writing centre for the
Case Examination. Only the following models of calculators are authorized for use
during the Case Examination:
1. Texas Instruments
2. Hewlett Packard
TI BA II Plus (including the professional model)
HP 10bII+ (or HP 10bll)
EL-738C (or EL-738)
Candidates are reminded that no outside research on the industry related to this case is
required. Examination responses will be evaluated on the basis of the industry information
provided in the Backgrounder and the question paper (Additional Information).
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Practice Case Examination – M3A1
Aqua Fish Canada Inc. (AFC)
May 2002 to April 2011
Aqua Fish Canada Inc. (AFC) is a privately owned, Canadian company involved in
aquaculture in the Maritimes. Aquaculture is the cultivation and harvesting of fish in a natural
or manufactured environment. Federally incorporated on May 1, 2002, AFC has established a
reputation for delivering a quality product – Atlantic salmon – on a timely basis from its
profitable fish farms and is a growing, commercial operation. AFC builds and maintains fish
farm facilities; hatches, feeds, grows, and harvests Atlantic salmon; and distributes the
unprocessed fresh fish mainly to customers in Canada and the northeastern U.S.
In early 2002, three Maritimers with backgrounds in the fishing industry (Joel Palango, Wendy
Starky, and Jeanne Poirier) decided to search for potential investment opportunities that
would help the local Maritime economy. They observed that, with access to plentiful water
and site resources, a large workforce with a background in fishing, and governments eager to
create employment, the aquaculture industry was growing along the eastern coast of
Canada. Although they knew that there would be no revenue until the first fish grew large
enough to sell, they were prepared to wait several years to realize a return and they decided
to invest in an aquaculture business. Aqua Fish Canada Inc. was incorporated and the first
decision made by the three shareholders was to establish an Atlantic salmon aquaculture
Guy Mills, an experienced aquaculture executive, was hired to build the business from the
ground up. The first farm site was established within six months and operations began in
November 2002 with the first spawning of fish. By October 2004, a sufficient number of
farmed fish had reached a marketable weight and AFC harvested its first batch of salmon.
Over the next five years, the company established three more salmon farm sites in three
provinces as shown in Table 1 below.
AFC Aquaculture Sites
Date of First Spawning
Date of First Fish Harvest