I. Introduction Victoria Chemicals is one of the leading producers of Polypropelene‚ a polymer that is used in many products ranging from carpet fibers‚ automobile automobile components‚ packaging film and more. When Victoria Chemicals started up in 1967 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. Morris Greystock‚ the controller of the Merseyside plant had notice a decline in
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Executive Summary of Victoria Chemicals Problem Definition: The organization‚ Victoria Chemicals‚ must determine whether or not to improve engineering efficiency through facility improvements at its production plant Merseyside Works. Relevant Facts: The Merseyside Project was evaluated with respect to the following criteria: (1) Impact on earnings per share (2) Payback (3) Discounted cash flow (“DCF”) and (4) Internal Rate of Return (“IRR”). The initial assessment of this project was based on assumptions
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CASE STUDY VICTORIA CHEMICALS plc (A): The Merseyside Project Submitted to: Prof. Roy C. Ybanez MSFIN 222 Submitted by: BASCON‚ Roland Billy CAJEGAS‚ Lester ORTIZ‚ Karmi Ann SALVADORA‚ Jerick Cezar 14 October 2014 Problem Statement Victoria Chemicals (VC) experienced a significant downturn in its financial performance from 2006 to 2007. The company was under pressure to improve its financial performance as its earnings ad fallen 38% (from 250 pence to 180 pence per share). The
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Studies Report: Victoria Chemicals This report will be covering the several capitals investment aspects in which are associated with the case – Victoria Chemicals PLC (A): The Merseyside Project‚ written by Robert. F. Bruner. Introduction In the case‚ Victoria Chemicals‚ a fictional company‚ were under the pressure of its investors to improve its performance as the earnings per shares (EPS) has decreased from 250 pence in 2006 to 180 pence in 2007. Victoria Chemicals is a producer of polypropylene
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demand for the increase in supply and Rotterdam plants excess will be added to the Mersey side quantities the plant upgrade could ultimately result in a dropping of prices to shift supply. The transport division is also in dire need for the upgrade in order to facilitate the additional output form the plant and has suggested this to the plan t manager. The business shouldn’t be concerned about the cannibalization the resulting upgrade could have on the Rotterdam plant‚ as this is already a possibility
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* * Yogi’s Minimum * Case 08-4 * * Background * * A public utility company‚ Big Bear Power‚ has signed a 10-year non-cancelable lease from Goliath Company for a combustion turbine. The lease agreement is signed on December 15‚ 2004 and Big Bear has the right to use the turbine as of January 1‚ 2005. * Annual lease payments are $1 million per year‚ payable ratably over 12 months at the beginning of each month‚ according to the lease agreement. The minimum rent
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Manager of Diamond Chemicals Merseyside was discussing a capital project with her controller that Morris wanted to propose to senior management. The project consisted of a 9 million pounds expenditure to renovate and rationalize the polypropylene production line at the Merseyside plant in order to make up for the deferred maintenance and to exploit opportunities to achieve production efficiency. The proposed Capital Program Morris had assumed responsibility for the Merseyside works only 12 months
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1. Victoria Chemicals evaluate its capital-expenditure proposals in four ways. They are average annual addition to earnings per share‚ payback period‚ net present value‚ and internal rate of return. An earnings per share method is to indicate a company’s profitability. For Victoria Chemical‚ this was calculated with the average annual earnings per share contribution of the engineering-efficiency project over its entire economic life. However‚ for the basis of the calculation‚ the project’s initiator
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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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