Victoria Chemicals: Case study Introduction Victoria Chemicals is a major competitor in the worldwide chemical industry. They are a leading producer of polypropylene‚ which is a polymer used in products such as medical products and automobile components. Victoria Chemicals started up in 1967 when they built two plants‚ one in Merseyside‚ England and one in Rotterdam‚ Holland. Both plants were identical to each other and produced an equal amount of goods. In 2008 these two plants have an old-fashioned
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After a careful and thorough analysis of this project‚ in spite of the fact that it has competitive brand recognition and a new distribution center‚ we reached the conclusion that this project is not as profitable as it sounds given the negative NPV. In the following paragraphs we describe the decisions made and the reasoning behind them. In regards to the first decision we made about the use of distribution facility‚ personnel‚ and other charges‚ we went with the head of the production team’s
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Legal Studies Assessment Case Study Identify the correct legal citation of the case Citation: R v CAMPBELL (2010) NSWSC 995 Judgement date: 3 September 2010 Parties: Regina‚ Desmond Campbell- offender Judgement of: J Latham Counsel: M Tedeschi QC/ S Herbert- (Regina)‚ S Hughes- (offender) Solicitors: S Kavanagh- Solicitor for public Prosecutions- (Regina)‚ M Bowe Solicitors (Offender) Legislation Cited: Crimes (Sentencing Procedure) Act 1999 Cases Cited: R v Coulter (2005) NSWSC
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definitely sell his interests. According to the case‚ Bernard’s value of original opportunity was $68.465K. Subtracted by the initial investment of $90K‚ the NPV was $21.535K. Thus‚ he planned to pass the opportunity. But his friends offered him alternatives which may generate positive outcomes to the project. With no options to either expand or buyout or both‚ if the viewer would be functional and website would be a winner‚ Bernard could make NPV= $366.44K by selling the business in six months.
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utility industry moves toward deregulation. In the past Western has relied on engineers to make key decisions in the area of capital budgeting selecting projects with the lowest present value of future costs. This is a continuation of the previous case in which the managers are now using the actual company projects to learn new methods of valuation. 1. Caselet 9 a. I do not agree with the decision made by the analyst regarding the natural gas project. Assuming the 4 percent inflation
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I. Executive Summary In May of 2000‚ Yeats Valves chairman and CEO‚ Bill Yeats‚ met with his consultant and fellow board member‚ Kate Porter‚ to discuss the final negotiations regarding the acquisition of Yeats Valves by TSE International Corporation. Although the social terms of the merger had been discussed‚ no specific details had been settled. Organized in 1980 for engineering and developmental work on specialty valves and heat exchangers‚ Yeats Valves and Controls Inc (YVC) had a reputation
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Capital Budgeting Mini Case There are many different methods business owners use to efficiently analyze business investment. One of these effective methods is the calculation of the net present value or NPV. The second most effective method would be the calculations of the internal rate of return or IRR. There are also other useful methods as well‚ for example‚ the payback rule and the profitability index. Many business owners use the above procedures to help them in their decision making of acquiring
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“Ocean Carriers” case Assume that Ocean Carriers uses a 9% discount rate. 1) Do you expect daily spot hire rates to increase or decrease next year? (5 points) 2) What factors drive daily hire rates? (5 points) 3) How would you characterize the long-term prospects of the capesize dry bulk industry? (10 points) 4) Should Ms Linn purchase the $39M capsize? Make 2 different assumptions. First‚ assume that Ocean Carriers is a US firm subject to 35% taxation. Second‚ assume that
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that we have been under. Our analysis shows that the Zinser 351 project will yield a Net Present Value of $6‚474‚082.14 million and a discounted payback period of 5.6 years. This project not only brings a big enough payoff as demonstrated by the NPV‚ but also fits our timeline. The discounted payback period indicates that our investment will be realized before our company is not able to recover from our current financial struggles. The Zinser 351 is a project that this company must undertake
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Arundel Partners: The Sequel Project The maximum per-film price for the sequel rights that Arundel Partners should pay is $5.12M. If Arundel Partners were to use the traditional DCF methods to find the value of the sequel rights‚ the NPV would be -$8.42M loss per-film (see Appendix 1). Calculation Details We assume that Arundel Partners will purchase a portfolio of films similar to one used in the analysis. The average hypothetical net inflow of the sequel ($21.57M) is used to figure out the value
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