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
Premium Net present value Cash flow Discounted cash flow
chemical industry and a leading producer of polypropylene. In 2001 the Corporation was facing losses in earnings and the slowdown of the global economy. The Earning per Share (EPS) had fallen by 50% from 1999 to 2000. The controller of the plant in Merseyside proposed a project of £9 million to renovate and rationalize the polypropylene production line at the plant to compensate for deferred maintenance and to exploit opportunities for greater efficiency in production. EXECUTIVE SUMMARY The analysis
Premium Net present value Internal rate of return
CASE QUESTIONS Cash Flows and Value. Cost of Capital Case 1: Hop-In Food Stores‚ Inc. 1. Determine the correct price for this particular IPO. Use several methods to do this and compare them. 2. What extra information would you try to acquire in a real life situation? Case 2: Chem-Cal Corporation 1. How do you calculate the WACC for this firm? 2. What is the cost of capital of the debt‚ preferred stock‚ and common stock (assume the equity beta is 1.22)? 3. Calculate the WACC. How can a WACC be used
Premium Weighted average cost of capital Corporate finance Finance
12. ‘‘Best Practices’’ in Estimating the Cost of Capital: Survey and Synthesis 15. Teletech Corporation‚ 1996 16 IV. Capital Budgeting and Resource Allocation 52 19. Diamond Chemicals PLC (A): The Merseyside Project 20. Diamond Chemicals PLC (B): Merseyside and Rotterdam Projects 52 60 39 VI. Management of the Corporate Capital Structure 66 29. Structuring Corporate Financial Policy 31. Polaroid Corporation‚ 1996 66 84 VIII. Valuing the Enterprise: Acquisitions
Premium Web hosting service Asset Finance
Introduction According PMI (2000) “a project is a temporary endeavour undertaken to create a unique product‚ service or result”. The temporary nature indicates a definite beginning and end of a project. It is also difficult to define a project because they vary according to size; it can be either be really small or large depending. Another definition of a project is a “temporary organization that is created for the purpose of delivering one or more business products according to an agreed Business
Premium Project management
The University of Lethbridge Calgary Campus Faculty of Management Management 4430Y Financial Management Spring 2011 A.P. Palasvirta Office: Markin 4132‚ Lethbridge Phone: (403) 332-4582 e-mail: oz.palasvirta@uleth.ca Goal of Course Management 4430 is the capstone course in finance and will incorporate concepts you have learned in through your study of corporate‚ investments‚ and international. We will utilize the case methodology to focus our analysis. Cases describe a context
Premium Investment Corporate finance Net present value
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
Premium Net present value Cash flow Rate of return
main form of property-led regeneration. UDC’s were set up in 1980 and were given planning powers over and above that of the local authority in an attempt to regenerate the area. The example of Merseyside UDC highlights the effectiveness of schemes such as this. In 1981‚ 2 UDC’s‚ London docklands and Merseyside were established. 11 other followed. In 1981 the corporation was set up to regenerate 865 acres if mostly derelict and disused docklands in Liverpool. It spent £186 million and refurbished
Premium
Liverpool /ˈlɪvərpuːl/ is a city and metropolitan borough of Merseyside‚ England‚ United Kingdom along the eastern side of the Mersey Estuary. It was founded as a borough in 1207 and was granted city status in 1880. It is the fourth most populous British city and is the largest in Northern England with a built-up area population of 552‚267.[4] In 2011 the population administered by Liverpool City Council was 466‚415[5] and is at the centre of a wider urban area‚ the Liverpool City Region.[6] Historically
Premium
for Zaragoza come out to be slightly higher than those of Rotterdam. The major difference is caused due to the transportation costs from port to PLAZA. For Rotterdam these costs are almost negligible‚ hence the huge difference. Also the cost of delivery from PLAZA to customers in central Europe comes out to be higher for Zaragoza. Reason being the fact that distance from Zaragoza to central Europe is almost double the distance from Rotterdam to central Europe. Yet‚ the overall cost difference of 664E
Premium Inventory Reorder point Costs