The purpose of this report is to help a financial special assistant, Linda, to analyze the financial position of Atlas Metals Company and deciding its capital budgeting and capital structure. Firstly, I explain why firm should use Net Present Value (NPV) methods for capital budgeting rather than Return on Investment (ROI) method and Payback Period method. Secondly, I calculate the Weighted Average Cost of Capital (WACC) which will be used as discount rate while calculating NPV. Then, I decide which rapid prototyping system company should invest as well as I compare the each expansion projects’ IRR with WACC to decide which projects should be invested and which should not. After deciding projects which should be accepted, I draw Investment Opportunity Schedule (IOS) and Marginal Cost of Capital (MCC) graphs to decide where the company should finance accepted projects.…
The final responsibility for the integrity of an SEC registrant’s internal controls lies on the management team. U.S. companies need to refer to a comprehensive framework of internal control when assessing the quality of financial reporting to determine that financial statements are being presented under General Accepted Accounting Principles, GAAP. The widely used framework is referred as COSO, Committee of Sponsoring Organizations of the Treadway Commission, sponsored by the following organizations American Accounting Association, the American Institute of CPA’s, Financial Executives International, the Institute of Internal Auditors, and the Institute of Management Accountants. COSO’s defines internal control as:…
1) These “templates” are basic writing moves that are to be used to structure your writing. The authors of They Say; I Say show us how these templates can significantly improve our academic writing by formatting what we want to say in a way that will be more convincing and produce stronger arguments. The book was written as a tool to help students become stronger writers, and these “templates”, these basic moves that are so crucial in this type of writing, help us enter the world of academic writing.…
This report provides an examinaion of the current structure, performance, stragergy and management of Delta Airlines, along with an industry analysis of the airline industry. The report uses current and past financial and statistical data for the company along with other up to date material to determine Delta's current market position and future potential.…
The objective of a process control system is to provide a statistical signal when assignable causes of variation are present “ if you can’t describe and measure it the you can’t control or improve it.” SPC a process used to monitor standards by taking measurements and corrective action as a product or service is being produced. Control chart a graphical presentation of process data over time. A process is said to be orperating in SC when only source of variation is common(natural) causes. The process must first be brought in statistical control by dectecting and elimination special(assignable) causes of variation. The objective of Process Control Sysytem is to provide a statistical signal when assignable causes of variation are present. Natural variation variability that affects every production process to some degree and is to be expected also known as common cause. Control charts for the mean x or x-bar and the range R are used to monitor processes that have variables (continuous dimensions). X-chart tells us whether changes have occurred in the central tendency(the mean) of a process. The R-chart values indicate that a gain or loss in dispersion has occurred. The theoretical foundation for x-charts is the central limit theorem which states that regardless of the distribution of the population of all parts or services, the distribution of x’s tends to follow a normal curve as the number of samples increases. 95.45 % +/- 2 std dev. 99.73% +/- 3 std dev. Attributes are typically classified as defective or nondefective. 2 attribute charts p-chart measure the percent defective in a sample and c-chart count the number of defects in a sample. Acceptance sampling method of measuring random samples of lots or batches of products against predetermined standards.…
Destin Brass president Roland Guidry is concerned with the competitive trends of the company products. He and his staff are worried that company profits are falling in regards to these competitive problems.…
A control chart is a statistical tool used to distinguish between variation in a process resulting from common causes and variation resulting from special causes. It presents a graphic display of process stability or instability over time (Viewgraph 1). Every process has variation. Some variation may be the result of causes which are not normally present in the process. This could be special cause variation. Some variation is simply the result of numerous, ever-present differences in the process. This is common cause variation. Control Charts differentiate between these two types of variation. One goal of using a Control Chart is to achieve and maintain process stability. Process stability is defined as a state in which a process has displayed a certain degree of consistency in the past and is expected to continue to do so in the future. This consistency is characterized by a stream of data falling within control limits based on plus or minus 3 standard deviations (3 sigma) of the centerline [Ref. 6, p. 82]. We will discuss methods for calculating 3 sigma limits later in this module. NOTE: Control limits represent the limits of variation that should be expected from a process in a state of statistical control. When a process is in statistical control, any variation is the result of common causes that effect the entire production in a similar way. Control limits should not be confused with specification limits, which represent the desired process performance.…
We are going to show a three years forecast for The Body Shop International; it consists of three main objectives:…
In order to produce a quality product it requires a quality process. This involves maintaining the process operating at a level that complies with required quality criteria. When the quality of a process varies it will have a direct impact on product characteristics and hence product quality. For example, a metal producing plant has processes such as cutting, machining, bending and coating. The smoothness, hardness and thickness etc of the metal are directly impacted by the quality of the processes. Once the metal is manufactured, the customer will judge it against the product…
It lets you talk to me during class lectures or during help sessions as if you were in the room with me.…
“If you build it, they will come” not only worked in the movie Field of Dreams but also applies—big time—to Mall of America®. Located in a suburb of Minneapolis, Mall of America (www.mallofamerica .com) is the largest completely enclosed retail and family-entertainment complex in the United States. “We’re more than a mall, we’re a destination,” explains Maureen Cahill, executive vice president at Mall of America. More than 100,000 people each day—40 million visitors each year—visit the one-stop complex offering retail shopping, guest services, convenience, a huge variety of entertainment, and fun for all. “Guest services” include everything from high school classrooms to a wedding chapel.…
The stakeholders in this case are Bill, George Mackee, his wife Mary and their two children, Ardnak Plastic Inc. and its several hundred workers, the environment, the people of Hondo, the EPA and the Mexican government. The stakeholders in this case have their each and very own interest dealing with the company.…
DA is one of the oldest airlines in the United States, however, there are still threats from new entrants in the market because low-cost carriers (LCC) definitely going to affect the pricing strategy of DA. In contrast, DA has brand loyalty due to its long history of operation. Moreover, the entry barriers are still high due to the operating cost such as aircraft, airport cost, maintenance, route licenses, and taxations.…
Interpretation— The narrator knows Lenore has passed, but the ominous bird makes him yearn to know where she is. If the bird says she is gone for good, he is hell sent; but, if the bird says she is still here, he is heaven sent.…
The objective of this case is to explore the ranking differences that may result from using the PI, NPV, and IRR evaluation techniques. It illustrates the time disparity, size disparity, and life disparity problems and the appropriate approaches to the resolution of these problems. This case works well either as a homework problem coinciding with the introduction of project ranking and capital-rationing material or as an in-class problem lecture.…