Seagate Buyout Case Group 5 Heng Qiao Eduardo Pereira Wei Wang Yanan Pei Introduction of the companies Seagate Technology‚ Inc. is one of the world’s largest manufacturers of computer disk drives and related data storage devices with approximately $6.5 billion in annual revenues. In early November 1999‚ Luczo‚ president and CEO of Seagate considered a restructuring proposal with Silver Lake‚ a successful private equity firm that is specified in technology business investing
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Diamond Chemicals PLC Case 1 The Merseyside Project | Analyze the real world scenario to figure if Merseyside Project is a promising project | Date: 4th Sep‚ 2013 | Background & Problem Statement Diamond chemicals is a leading propylene producer and a major player in the chemicals industry worldwide. However the share of the company had fallen from £60 at the end of 1999 to £30 in 2000 on account of worldwide economic slowdown and poor financial performance. Given the prevalent
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whether or not there is a better use for the capital inside the company. With no knowledge of other opportunities‚ it is difficult to get a gauge where it should apply its excess capital. As our analysis shows‚ it would be difficult to exceed the NPV gain of $80M(+) in choosing the "growth" strategy over the "maintain"
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provide an NPV of around $17‚000. That NPV while positive is nowhere near what Tremont would like out of their investment. The base IRR for the build option is low because it generates most of its value in the later years of the project. This makes it more sensitive to changes in the discount rate. The WACC can go as low as 25% below the base value and as high as 75% above the base value. The higher the WACC the lower the NPV. The build option has a number of scenarios that put its NPV extremely
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scenarios‚ for example‚ a scenario summarizing the elimination of a staff position‚ and another scenario summarizing the elimination of a staff position and some increased site preparation costs. You will also find an analysis offering a convincing case‚ in the event that management can fund two projects‚ for the funding of custom order tracking system under multiple conditions. Project feasibility based on discount rates of 8‚ 10‚ 12‚ 14‚ and 16 percent: Breakeven chart comparing the net present
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Case Analysis Actually‚ we can rank the projects by simply inspecting the cash flows. However‚ it is not a good method to rank the projects. In order to ensure that the investment projects selected have the best chance of increasing the value of the firm‚ we need tools to evaluate the merits of individual projects and to rank competing investments. In this case‚ our group using some tools which are Payback Period‚ Net Present Value (NPV) ‚ Profitability Index (PI)‚ and Internal Rate of Return
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1.) Currently Teletech Corporation uses 9.30% as their hurdle rate and satisfied with the intellectual relevance of a hurdle rate as an expression of the opportunity cost of money by the managers. As a result the firm’s share prices are inactive. Their price-to-earnings ratio is also below investor’s expectation in comparison to the company’s risk. The relationship between risk and return is important to take into consideration. The constant hurdle rate results in a flat line and doesn’t correlate
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the projects NPV and IRR given the size of the investment‚ opportunity market/growth‚ and with the overall goal of adding 100 new stores a year while maintaining. The Barn was my first choice because it had the highest IRR and second highest NPV given a not so large investment. Whalen Court has the highest NPV and offers favorable market share opportunities and demographics. These first two are considered good options to continue Targets growth. Gopher Place has attractive IRR and NPV comparable to
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This case provides insight into how capital budgeting decisions are made and the factors that influence the decision making process of large corporations. Specifically‚ the case centers on the capital expenditure meeting for the Target Corporation‚ which is one of the top ten retailers in the United States. All corporations have some version of this meeting. The goal of the meeting is to determine what capital expenditure projects the company will undertake in the future to promote growth. Below
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Rate @ cost of capital | 12% | | | A: Objective: Compute payback‚ NPV and IRR to decide whether Rainbow Products should purchase the machine or not. i) Bay back: cost of machine/expected saving per year = 35000/5000 = 7 years . ii) NPV = Difference between the present value of cash inflows and the present value of cash outflows. Thus‚ NPV = -35000 + 5000* [1-(1/(1.12)^15]/.12 -35000 + 34053.31 NPV = -945.68 iii) IRR: It is that rate of interest that makes the sum
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