NYIT School of management Report CASE STUDY 22: VICTORIA CHEMICALS PLC(A) CAPITAL BUDGETING DECISIONS SUBMITTEDTO: DR.RAJA NAG PREPARED BY: SEVTAP BATIR HONEY MEHTA JUN HUANG NYIT School of management Report CASE 22 Victoria Chemical In 2007‚ Victoria Chemicals experienced a significant drop in its improve its performance as its earnings had fallen 38% from 250 pence per share to 180
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VICTORIA CHEMICALS PLC Ricky Tjayadi 01120120028 Young Jung Kim 01120120201 Irene 01120120214 VICTORIA CHEMICALS PLC The Background Victoria Chemicals‚ a major company in the chemical industry‚ was the number one producer of polypropylene‚ a polymer used in various everyday items. Victoria Chemicals at the end of 2007 was in a financial slump and was under pressure to improve their financial performance. Due to this financial slump‚ Lucy Morris‚ the Plant
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Victoria Chemicals PLC: The Merseyside Project Prepared by Gabriela Tiffany Executive Summary The purpose of this report is to provide an understanding and analysis regarding the project proposed. The report starts with a brief overview of the company and the project proposal. This report then continues with assessing the concerns of Transport Division‚ ICG Sales and Marketing Department‚ and Treasury Staff. Furthermore‚ this proposal will also evaluate the recommendation from the Assistant Plant
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Question 1 Issues Arising From Case The issues are the future viability of the plant for producing EPC and the long-term effects of not upgrading this production line. The additional upgrade will result in additional production‚ but as mentioned by the sales director if there is no 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
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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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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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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
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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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VICTORIA CHEMICALS plc (A) The Merseyside Project Presented by Group 2 : Aldy Rifianto‚ Dedy Mardianto Floriana Nataly‚ Hiralalitya Lextro Kristiano Concorda Natallia Winata‚ Wita Puspadilla Yosua Bangun THE MERSEYSIDE PROJECT SUMMARY PROBLEM IDENTIFICATION ALTERNATIVE SOLUTION RECOMENDATION SUMMARY • Victoria Chemicals‚ a major competitor in the Worldwide chemicals industry‚ was a leading producer of polypropylene‚ a polymer used in an extremely wide variety of products SUMMARY Victoria Chemicals
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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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