Key Topics: Investment appraisal, risk analysis, and project evaluation.

Models Covered: Net Present Value (NPV), Black-Scholes Option Pricing (BSOP) model.

Description: The case explores whether Allegro Technologies should undertake a project for developing an innovative engine component. It involves evaluating the financial viability of the project using NPV analysis and considering strategic options like selling the project to another company (SIC). Risk factors and mitigation strategies, such as partnering with Largo Co, are also discussed.