12 Comparison of Capital Budgeting Techniques The Dilemma at Day-Pro The Day-Pro Chemical Corporation‚ established in 1995‚ has managed to earn a consistently high rate of return on its investments. The secret of its success has been the strategic and timely development‚ manufacturing‚ and marketing of innovative products that have been used in various industries. Currently‚ the management of the company is considering the manufacture of a thermosetting resin as packaging material for electronic
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The Dilemma at Day Pro 1. The payback period can be defined as the length of time it takes before the cumulated stream of forecasted cash flows equal the initial investment (Arnold 2007). By looking at Appendicle A1.0 and A1.1 we can see that the "Epoxy Resin" project has a payback period of 1.5 years while Synthetic Resin has a longer payback period of 2.5 years. On the basis of this methodology we will choose to invest in Epoxy Resin. Though it is important to understand
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1. Calculate the Payback Period of each project. Explain what argument Tim should make to show that the Payback Period is not appropriate in this case. Answer : Year Synthetic Resin Epoxy Resin Cash Flows Cumulative Cash Flows Cash Flows Cumulative Cash Flows 0 -$1‚000‚000 -$1‚000‚000 -$800‚000 -$800‚000 1 $350‚000 -$650‚000 $600‚000 -$200‚000 2 $400‚000 -$250‚000 $400‚000 $200‚000 3 $500‚000 $250‚000 $300‚000 $500‚000 4 $650‚000 $900‚000 $200‚000 $700‚000 5 $700‚000 $1‚600‚000 $200‚000
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1. Payback Period of each project Tim can show that the payback period is not appropriate in the analysis of the projects for the following reasons. First‚ it does not properly account for the time value of money‚ risk financing and other important considerations such as opportunity cost and it does not consider the cost of capital. It does not specify any required comparison to other investments or even to not making an investment. The method is an indication of both the risk and the liquidity
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The Ritz-Carlton Hotel Company‚ L.L.C. What value does a focus on the Gold Standards have for The Ritz-Carlton Hotel Company? The Ritz-Carlton Hotel Company aims to succeed in one of the most logistically complex service businesses. Targeting primarily industry executives‚ meeting and corporate travel planners and affluent travelers‚ the Atlanta based company manages 25 luxury hotels that pursue the distinction of being the very best in each market. It does so base on the strength of a comprehensive
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The Ritz-Carlton Hotel Company has a long and intriguing history dating back to the late 1800’s. The hotel company has always been a company that focused on excellent personalized service that would satisfy even the most discerning guests. From 1983-1997 is when the hotel truly grew from one hotel to an international tycoon in the industry. Suffering from two world wars and a great depression they took one single hotel out of Boston and turned the organization into one of the most successful hotel
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Analysis of Seven Days in May Full of indirect references of the United States government during the time of the Cold War‚ the film‚ Seven Days in May‚ is an excellent example of the problems arising within the government and the people during the time of this war. The film displays the lack of confidence in the President‚ the agreements made by the United States to the Soviet Union‚ the lack of trust the Americans had in the Soviets‚ and the moves made by the United States to protect the country
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The book I read was Seven Days in May by Fletcher Knebel and Charles W. Bailey II. It is set in Cold War era America in the Pentagon. The tension between the public and the president are the main focus in this story. Most of the people this book talks about are in the military and work for the Joint Chiefs of Staff. The Chairman of the Joint Chiefs of staff is presented as the antagonist in the book‚ whereas the protagonist is one of the people who works for him and catches word of a plan to stage
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HTMi‚ Hotel and Tourism Management Institute‚ Switzerland How Kolb’s individual preferenceslearning styles influence the knowledge sharing in the case of The Ritz Carlton Hotel in Beijing Yang Liu (Vivian) 11th September 2012 Background Information Dixon stated in 1999‚ “We have entered the knowledge age‚ and the new currency is learning.”Intellectual capital and the management of knowledge are playing increasingly important roles in today’s organizational world (Chase‚ 1997 cited in Jarrar
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1999 Application Summary THE RITZ-CARLTON® HOTEL COMPANY‚ L.L.C. Copyright © 2000 by THE RITZ-CARLTON® HOTEL COMPANY‚ L.L.C. – All Rights Reserved THE RITZ-CARLTON® HOTEL COMPANY‚ L.L.C. at a Glance Products and Services: The Ritz-Carlton Hotel Company‚ L.L.C. develops and operates luxury hotels for others. The hotels are designed and identified to appeal to and suit the requirements of its principal customers who consist of: (1) Meeting Event Planners and (2) Independent Business
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