cases to consider the investment decisions of managers of large chemical companies are made in January 2001. The A ‘case‚ a go / no-go project evaluation regarding improvements to a polypropylene production plant. The B ‘case‚ checked the same project‚ but from a higher level‚ where the executive is an either / or investment decision between two mutually exclusive projects. The goal of the two cases is to expose students to a broad range of capital budgeting … Read more » These two cases to consider
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CHEMICALS PLC THE MERSEYSIDE AND ROTTERDAM PPROJECTS I would choose Merseyside project rather than Rotterdam’s not only for its superior prospect based on the quantitative criteria‚ but also for a more rational strategy consideration. For the four investment criteria‚ here’s the elaboration. NPV. Since the two plants are of identical scale‚ age‚ design and similar project size‚ it makes sense to use NPV to compare the two projects. Not taken into account the erosion at Merseyside‚ the projected
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Diamond Chemicals PLC (A): The Merseyside Project The objective of this report is to demonstrate to the senior management of Diamond Chemicals PLC that sufficient capital should be allocated for the proposed £9 million expenditure to renovate and rationalize the polypropylene production line at the Merseyside Plant. The Merseyside Plant is aging and therefore it is losing its competitiveness relative to some of its industry peers. Because the industry is in a downturn and “an oversupply is in
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from medical products to packaging film‚ carpet fibers and automotive components) and is known for its strength and elasticity. Diamond Chemicals is producing polypropylene at Merseyside (England) and in Rotterdam (Netherlands). Both factories are identical in size‚ age and plant-design. They were both built in 1967. Merseyside production process is the production process that are old‚ the best semi-continuous and therefore has a total workforce of more than the plant competitors. Since its establishment
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automobile parts to the customers in Europe and the Middle East. Apart from numerous small producers‚ the company also receives the threats from the other seven major competitors. The company owns two plants in Europe‚ one being Merseyside Works‚ England and Rotterdam Facility‚ Holland. Both plants were built in 1967 and are identical in scale and design. James Fawn‚ the Vice President and Manager of Intermediate Chemicals Group‚ is in charge of both plants. Problems In the year 2007‚ there
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Finance Case Report Diamond Chemicals plc. : The Merseyside Project Introduction The goal of this report is to analyze and evaluate the capital budgeting decision of Ms. Morris and suggestion to the senior management of Diamond Chemicals PLC if sufficient capital should be allocated for the proposed £12 million expenditure to modernize and rationalize the polypropylene production line at the Merseyside Plant. The project has been proposed to improve the product
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flows; in particular‚ the treatment of: a. sunk costs b. cash flows obtained by cannibalizing another activity within the firm c. exploitation of excess transportation capacity d. corporate overhead allocations e. cash flows of unrelated projects f. inflation. 2. The critical assessment of a capital-investment evaluation system. 3. The treatment of conflicts of interest and other ethical dilemmas that may arise in investment decisions. Suggested Questions 1. What changes‚ if any
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Strategic and Operational Decisions making in Transportations and Logistics Case I Port of Rotterdam Authority Students: Jimenez Argüelles P. Ganuchaud J. 0783164 0787066 Group number: 21 Course Name: 1CM55 – Strategic and Operational Decisions making in Transportations and Logistics 1CM55 – Port of Rotterdam Authority Contents 1. 2. 3. Introduction ........................................................................................................................ 3 SWOT Analysis
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Introduction Port of Rotterdam is located in the city of Rotterdam in the Netherlands. The high importance of this port is indisputable. It is the largest port in Europe and one of the busiest ports in the world. It used to be the busiest port in the world since 1962 until 2004 but now this title was overtaken first by Shanghai and then by Singapore. Rotterdam until 2009 also appeared on the list of ten world-largest container ports in terms of TEU (twenty-foot equivalent units) handled. The size
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United Nations Convention on Contracts for the International Carriage of Goods Wholly or Partly by Sea UNITED NATIONS UNITED NATIONS COMMISSION ON INTERNATIONAL TRADE LAW United Nations Convention on Contracts for the International Carriage of Goods Wholly or Partly by Sea UNITED NATIONS Vienna‚ 2009 UNITED NATIONS PUBLICATION Sales No. E.09.V.9 ISBN 978-92-1-133672-6 Contents Resolution adopted by the General Assembly . . . . . . . . . . . . . . . . . .
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