Introduction Aurora Textiles is a textile company that specializes in hosiery‚ knitted outerwear‚ woven‚ and industrial and specialty products. They develop finished fabric to meet specific needs as the leading yarn manufacturer established in the 1900s. However‚ both Aurora and the whole U.S. textile industry have been struggling financially due to globalization and other external factors. Aurora itself may not have responded quickly enough to the deteriorating business environment and has caused
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Introduction Aurora Textile Company having over 100 years history has been producing cotton and synthetic/cotton blend yarns to textile industry consisting of U.S. and the international market. The majority of the company’s revenue came from the domestic market and revenue sources for Aurora consist of the hosiery market accounting for 0.43‚ the knitted-outwear market accounting for 0.35‚ the wovens market accounting for 0.13‚ and industrial and specialty products accounting for remaining 0.09
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e DATE: 2/23/13 TO: Mr. Ansley Chua FROM: Austin Johnson‚ Enxing Liu‚ Tyson Hilyard‚ and Tanner Strathman SUBJ: Aurora Textile Company EXECUTIVE SUMMARY Aurora Textiles has historically been one of the premier textile companies in the United States and now has a decision to make. With the opportunity to invest in equipment that could help cure our slumping financials‚ we must carefully explore whether this investment is appropriate for a company with such an uncertain future. With that
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PART I Review & study of the past and present situations of the company Brief Historical Review 1901 John F. Queeny founds the original Monsanto. He used capital from a soft drink company to start Monsanto. 1920 Monsanto expanded into basic industrial chemicals like sulfuric acid. 1940 It became a leading manufacturer of plastics‚ including polystyrene‚ and synthetic fibers. 1970 Monsanto is the leading producer of Agent Orange for US Military operations in Vietnam. 1973 Monsanto began manufacturing
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Case 20: Aurora Textile Company GROUP QUESTIONS Learning Objectives: 1. The basics of incremental-cash-flow analysis: identifying the cash flows relevant to a capital-investment decision 2. The construction of a side-by-side discounted-cash-flow analysis for a replacement decision 3. How to adapt the NPV decision rule to a troubled industry 4. The recognition that a reduced investment horizon is a significant consequence of financial distress 5. The importance of sensitivity analysis
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Case 20: Aurora Textile Company Summary: In early 2003‚ Michael‚ CFO of Aurora Textile Company‚ is deciding whether or not to install a new machine called Zinser 351 in order to save the declined sales and increase its competitive force. In deciding whether or not to invest Zinser 351‚ it is important to get the NPV and the payback period. To get the NPV and the payback period‚ we firstly need to forecast the future cash flows that the new machine will generate. We found the ten-year NPV to be $3
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NPV is short for Net Present Value and it makes difference between the present value and cost of a project. In addition‚ NPV takes into account all cash flows through out the whole life of the projects‚ as well as the time value of money. And it compares like with like as all inflows and outflows are discounted to today¡¯s date. Also‚ the cost of capital is very unlikely to be changed over a period of time. To judge if the NPV is good‚ we should see the value of it‚ and the rule is the high the better
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Janice Miller American Intercontinental University Managerial Accounting 310 Instructor: Matt Keogh Introduction “Net Present Value (NPV) is the present value of the net cash inflows generated by a project including salvage value‚ if any‚ less the initial investment on the project‚” (Irfanullah‚ Jan.‚ 2013). It is preferred as one of the most reliable measures employed in capital budgeting since it accounts for the time value of money as it uses the discounted cash inflows. The net cash
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Aurora Textile Company Inc Case Study Finance 450 I. Recommendations Aurora Textile Company is currently not in very good financial situation. Based on calculations that I made for the capital budgeting‚ my recommendation is to buy the new Zinser machine. After computing the NPV for the project it came out to be $10‚160‚579 over the period of 10 years. According on the analysis of the CFO of the company‚ Zinser would produce a finer- quality yarn that would be used for higher quality and higher
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ror"Aurora" Summary The story‚ which relies heavily upon sexual references and drug use‚ opens with the first-person narrator and his friend‚ Cut‚ buying a stash of weed‚ some of which they use as they drive home to sort‚ weigh‚ and bag. Cut is eating cookies‚ but the narrator is waiting for his girlfriend. He notices that the places where she ’d scratched him are healing. When she arrives‚ he notes that she ’s skinny "like a twelve-year-old" and that she has the shakes‚ coming down off some drug
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