Corporate Finance Case Discussion : ‘Diamond Chemicals Plc (A)’ 1. Purpose: This case presents the capital investment decision under consideration by executives of a large chemicals firm in January 2001. This involves a go/no-go project evaluation regarding improvements to a polypropylene production plant. A critical assessment of a capital investment evaluation system is the focus of this case. The case also enables discussion on conflicts of interest and other ethical dilemmas that may arise
Premium Finance Corporate finance Discounted cash flow
Allocation and Apportionment of Overheads / Job and Batch costing solution Question 1 (a) Overhead Analysis Sheet Overheads Basis of apportionment Total Machining Assembly Stores Canteen Indirect Wages Number of indirect employees 232000 ( X 232000) ( X 232000) ( X 232000) ( X 232000) 61867 123733 30933 15467 Machinery Maintenance Budgeted machine hours ( X 94000) ( X 94000) 94000 87935 6065 Machinery Insurance Value of machinery ( X 9050) ( X 9050) 9020 6380 2640 Rent
Premium Costs Machine Variable cost
Both not for profit and for profit companies have many similarity and differences. A lot of companies start with the intent of making a profit. These companies also pay taxes and are called profit or for profit companies (Rodwell‚ & Teo‚ 2013). Other companies‚ while they can make a profit begin with the intent of helping others. These companies are not for profit or non-profit organizations. Nonprofit organizations are not allowed to make a profit‚ and do not pay taxes‚ but they might generate
Premium Disability Ethical egoism Morality
For Profit Vs. Not For Profit organizations: I would like to start with the more interesting type of organizations to discuss and that is not for profit organization (NPO). The first advantage to NPO is simply tax exemption (IRS‚ 2012)‚ once an organization meets certain criteria and is approved as a NPO‚ it doesn’t pay tax on its income. It is very important to understand here that the money saved from not paying tax is reinvested in such organization to either continue providing the type of services
Premium Non-profit organization Business Management
Is Profit Maximisation always the major objective of a firm? The production of goods and services in our economy today takes place within organisations‚ whether in the centrally planned economy or free market economy. Any firm within these societies all have the same tendencies to acquire a successful business. Attaining this succession through mission statements‚ goals and objectives is simultaneous through all businesses. Changes in these objectives can have forcible effects on the decisions
Premium Profit maximization Economics
the stock’s price movement or the overall state of the market. Profit Margin Anal ysis A company’s stock price‚ in large part‚ is driven by the company’s ability to generate earnings. Therefore‚ it is useful for investors to analyze the profitability of a company before investing in it. One way to do this is by calculating and tracking various profit margins‚ which reflect how efficiently a company uses its resources. Profit margins are expressed as a ratio‚ specifically “earnings” as a percentage
Premium Management Strategic management Marketing
Victoria Chemicals: The Merseyside Project Executive Summary Victoria Chemicals is facing pressures from investors to improve its financial performances. The plant manager is currently considering whether to accept a GBP 12million initial outlay project to renovate its polypropylene production line at Merseyside plant. The benefit of the plant is the lower energy requirement of production and a greater manufacturing capacity. This report consist a recommendation for the plant manager which consists
Premium Net present value Discounted cash flow Cash flow
Chemical Eric: Dealing with the Disintegration of Central Control Part 1: 1. What hormonal problem could be causing these symptoms? Eric’s symptoms include: large hands and feet‚ low thyroid activity‚ low cortisone levels‚ low testosterone levels‚ high growth hormone levels‚ and swelling in his right knee. Since most of Eric’s symptoms are hormonal‚ he is clearly having an endocrine gland problem. Cortisone‚ testosterone‚ and growth hormone levels are being affected‚ it is likely that he his having
Premium Growth hormone Testosterone Hypothalamus
the first line of contact; but‚ that is not always the case. Spouses or close friends frequently donate organs to ailing loved ones. If a person does not have an available living donor or is ineligible for a living donation because of their predicted outcome‚ they are placed into a waiting pool for an organ from a cadaver by their transplant center. “The Untied Network for Organ Sharing‚ which is always called UNOS‚ is a private‚ non-profit institute that oversees the country’s organ transplant
Premium Organ transplant Organ donation
Introduction The purpose of this paper is to answer a few important questions: Why do companies allocate costs? How do companies allocate costs? And how this cost allocation can affect the decision making of the company. It is important for the companies to find the proper method to allocate the costs. Cost allocation is an important issue in many companies because many of the costs associated with designing‚ producing and distributing products and services are not easily identified with the
Premium Costs Cost Decision making