task. Further more Fonderia di Torino is running at 90% capacity the addition of an extra 30% capacity would currently go unused. 2) Worker’s Union: The current collective bargaining agreement between the worker’s union and management is prohibitive. Cost cutting in the form of human capital is not done easily and will pose a challenge‚ especially considering the Vulcan Mold-Maker only requires 2 employees instead of the current 24. 3) Economic Slowdown expected: The Fonderia is not running at
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also be considered before the project is accepted or rejected. Question 1: What is the basic nature of the problem in this case? Answer: The basic nature of the problem in this case is all about capital budgeting issue that was being faced by Fonderia di Torino S.p.A. in decided to have some resources investments in order to manage their production throughputs. Managing director of this specialty foundry must decide whether to approve a major investment to automate part of her plant ’s production
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Fonderia di Torino‚ S.p.A Midterm Individual Case Fonderia di Torino‚ S.p.A is a manufacturing company who produces metal castings using six semi-automated molding machines. However‚ they are currently considering purchasing a Vulcan Mold-Maker machine to replace the six machines currently in place. The firm needs to consider all costs in deciding whether to keep the current machines or purchase the Vulcan Mold-Maker. Buying the Vulcan machine will result in year 0 outflows of 1.01 million
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Finance Case Study: Fonderia di Torino S.p.A. Case Overview: Company considering purchase of Vulcan Mold-Maker automated molding machine. Machine prepares sand molds into molten iron using iron castings‚ automates manual intensive process. Questions: 1. Assess the economic benefits of acquiring the Vulcan Mold-Maker machine. What is the initial outlay? What are the benefits over time? What is an appropriate discount rate? Does the net present value (NPV) warrant the investment in the
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MM 5007 FINANCIAL MANAGEMENT FONDERIA DI TORINO YP 52 A – Syndicate 2 Lupita Thanaya Putri – 29114322 Andika Fadhli – 29114358 Grace Alonia Sitepu – 29114403 Wildan Rachman – 29114416 Gwendy Dale Henry – 29114954 MASTER OF BUSINESS ADMINISTRATION SCHOOL OF BUSINESS AND MANAGEMENT INSTITUT TEKNOLOGI BANDUNG 2015 FONDERIA DI TORINO Case Background Fonderia di Torino specialized in tlie production of precision metal castings for use in automotive. aerospace. and constluction equipment. In
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Fonderia di Torino‚ S.p.A Midterm Individual Case 1. What are the economic benefits of acquiring the Vulcan Mold-Maker machine? In other words‚ what is the project’s NPV? This includes calculating initial outflows‚ cash flows during the lifetime of the project and salvage value. In other words‚ if you buy the mold maker‚ you will sell the old machines – what do you net from this sale‚ and when will you net it? The benefits of acquiring the Vulcan Mold Maker are that it requires less labor
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Fonderia di Torino S.p.A. 1. Please assess the economic benefits of acquiring the Vulcan Mold-Maker machine. What is the initial outlay? What are the benefits over time? What is an appropriate discount rate? Does the net present value(NPV) warrant the investment in the machine? Initial Case Outlay Price of new machine (1‚010‚000) Current after-tax market value of old machine [130‚000+{(415‚807-130‚682) -130‚000}*0.43]= 196‚704 Net outlay for new machine -1‚010‚000+196‚704 = -813‚296 Appropriate
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Andy Stefanik Ben Olson Nicole Sporrer Hongyang Shao Fonderia di Torino S.p.A. Fonderia di Torino was founded in the 1920’s and focuses on making precision metal castings for OEM parts for many of the major car manufacturers. They are known for their excellent quality parts. They are especially known for making safety parts (parts that if it fails the operator loses control). Fonderia di Torino has just recently considered purchasing the Vulcan Mold Maker. This mold maker would replace
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Fonderia di Torino‚ S. p. A In late 2000‚ Francesca Cerini‚ managing director of Fonderia di Torino‚ is contemplating purchasing a new automated molding machine. Fonderia di Torino is a company that specialized in the production of precision metal castings for use in products like automotive‚ aerospace‚ and construction equipment. The company‚ located in Italy‚ is known for the quality and craftsmanship of its work. Through this reputation‚ Fonderia di Torino has been able to secure deals with
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Fonderia Di Torino 1. Please assess the economic benefits of acquiring the Vulcan Mold-Maker machine. 1.What is the initial outlay? -The initial outlay is the Net Investment of $813‚296. 2. What are the benefits over time? - The benefits over time include higher quality products‚ lower scrap rates‚ which will save raw material costs. The company will employ twenty-five less workers which equates to lower costs in terms of managing‚ training‚ and insuring those employees. Lastly the foundry
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