* * 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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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
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Version 1.5 DIAMOND CHEMICALS PLC (A): THE MERSEYSIDE PROJECT Late one afternoon in January 2001‚ Frank Greystock told Lucy Morris‚ “No one seems satisfied with the analysis so far‚ but the suggested changes could kill the project. If solid projects like this can’t swim past the corporate piranhas‚ the company will never modernize.” Morris was plant manager of Diamond Chemicals’ Merseyside Works in Liverpool‚ England. Her controller‚ Frank Greystock‚ was discussing a capital project that Morris wanted
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Case 20: Diamond Chemicals plc (A) --PT07 Group 10 INTRODUCTION: Diamond Chemicals is a large worldwide chemicals producer with two factories in Liverpool England and Rotterdam Holland. Both of their plants were built in 1967 with annual output of 250‚000 metric tons polypropylene. Compare with low-cost producer‚ the production cost per ton is 1.09 which is a little bit high than competitors (see Exhibition 1). With the decline EPS from £60 in 1999 to £30 in 2000 and worldwide economic slowdown
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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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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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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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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: 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 on assumptions
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