don’t want to lock in long-term charter rates at high prices. Decreasing daily spot hire rates imply that future cash flows will also decrease because a decrease in hire rates implies decreases in net income and net present value. The cost of a new vessel in present value terms is $33‚738‚397: PV(C) = ΣCn/(1+r)n PV($39M today) = $39M + ($39M/1.09) + ($31.2M/1.19) = $33‚738‚397 The book value of the ship is the purchase price‚ which is $39 million. Option 1: Sell Carrier for
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Case 3 Genuine Motor Products Genuine Motor Products‚ located in Northern Ohio‚ manufactures precision measuring devices to monitor exhaust emission systems for new and used automobiles. Its products are sold worldwide. The firm hired Mike Anton in January of 1999 as vice president in charge of manufacturing operations. Mike had a bachelor’s degree in industrial engineering from Case Western Reserve University and an MBA from Ohio State University. He had spent the last 15 years working for
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guide examines case studies‚ a form of qualitative descriptive research that is used to look at individuals‚ a small group of participants‚ or a group as a whole. Researchers collect data about participants using participant and direct observations‚ interviews‚ protocols‚ tests‚ examinations of records‚ and collections of writing samples. Starting with a definition of the case study‚ the guide moves to a brief history of this research method. Using several well documented case studies‚ the guide then
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1. Why was Dakota’s existing pricing system inadequate for its current operating environment? Profits only when clients placed large orders for cartons Real drop of profits if many clients place small orders Wrong cost determination for individual customers Wrong cost determination for new services provided by DOP (to small charges for the desktop delivery‚ then the actual cost of it) 2. Develop an activity-bases cost system for Dakota Office Products (DOP) based on Year 2000 data. Calculate
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1/Link the Coors vision statement to Coors key business strategies or “six planks”. Are there any gaps? Post1:According to Coors Vision Statement‚ the vison can be come up with four fundamentals: (1)improving quality‚ (2)improving service‚ (3)boosting profitability‚ and (4)developing employee skills. And then to link with “six planks”so that to drive these fundamentals in the future. 1/baseline growth: we will profitably grow key brands and key markets - (3)boosting profitability 2/incremental
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Case study I.1 Zara: the Spanish retailer goes to the top of world fashion Zara (www.inditex.com) is a fashion retail chain of Inditex Group owned by the Spanish businessman‚ Amancio Ortega‚ who also owns brands such as Massimo Dutti‚ Pull & Bear‚ Oysho‚ Uterqüe‚ Stradivarius and Bershka. The Inditex group (of which Zara is a part) is headquartered in La Coruña‚ northwest Spain‚ where the first Zara store opened in 1975. It is claimed that Zara needs just two weeks to develop a new product
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would benefit both businesses and consumers. Consequently‚ the national government began to lift controls on who was allowed to produce energy and how it was marketed and sold. However‚ as competition in the energy market increased‚ gas and energy prices began to fluctuate greatly. Over time‚ Enron incurred massive debts and no longer had exclusive rights to its pipelines. It needed some new and innovative business strategies. Kenneth Lay‚ chairman and CEO‚ hired the consulting firm McKinsey &
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Name #1 Name #2 Date Case #82 Prairie Winds Pasta – Capital Budgeting Methods & Cash Flow Estimation Summary of Case Prairie Winds Pasta is experiencing a high demand for pasta from its customers. The customers demand delivery with in one week with a maximum allowance of 10 days. The facility is running at full capacity - 24 hours a day. Question 1 Define the term “incremental cash flow.” Since the project will be financed in part by debt‚ should the cash flow statement
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Case study: supply and demand The aim of this case study is to examine how the ideas and techniques for self-management you read about can be used and adapted to fit personal circumstances. In this case – the story of Asma‚ a mother of two young children returning to paid employment – you will be asked to think how the ideas might be useful to her in managing her return. You may be asking why a decision to go back to paid work is being discussed in the context of a course about management. You may
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Module 7 Case Study 2: Transforming customer service for BRANZ Ltd. Abstract Porter’s value chain describes a comprehensive format of creating value within any business venture. It explains how to alter business inputs into outputs that are of greater value than the initial cost of creating the same outputs. According to Michael Porter‚ analysing the chain of activities in any organization will be of more value to the output and services compared to the summation of the cost of these activities
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