...Harvard Business School 9-292-040 September 13, 1991 The All American Pipeline In late 1984, The Goodyear Tire and Rubber Company faced the likely prospect that within several months it would receive some of the crucial permits it needed to begin construction on the All American Pipeline, which was projected to be the longest crude oil pipeline in the United States. Goodyear needed to place orders with pipe manufacturers immediately so it could begin construction as soon as the permits were granted, and meet the company's goal of starting operations in the first quarter of 1987. These orders would represent the first significant sum of money committed to the project, which was larger than any other in Goodyear's 86-year history. The pipeline was projected to cost as much as $2 billion, with pipe representing the project's single largest component. The Goodyear Tire and Rubber Company Goodyear was the largest tire producer in the world. In 1983 the company had revenues of $9.7 billion and net income of $305 million. See Exhibits 1 and 2 for Goodyear's income statements and balance sheets. Tires and related transportation products accounted for 75% of both revenue and assets and approximately 70% of operating income. Goodyear held 22% of the worldwide market in tires, followed by Michelin with 18%, and Firestone with 10%. However, Goodyear's market position varied widely geographically. In North America the company held the lead with a 29% share, followed...
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...ALL-AMERICAN PIPELINE CASE WRITE-UP EXECUTIVE SUMMARY The business nature of the project—pipelines—affected many of our assumptions and approaches to our calculations for our ultimate decision. The case provided two sets of cost estimates from an outside consultant and from Goodyear after hiring a general contractor. We utilized both sets of costs that directed us to the same decision that Goodyear should not go ahead with the Pipeline Project. Once we obtained the UFCF, the terminal value was calculated in three different ways, treating the pipeline as an asset on our books, finding the value of project if cash flows are received for perpetuity an finding the annuity value of cash flows for 30 years by assuming that after 1992 cash flows go on for 30 years. We did this to show a sensitivity analysis, but from our results we observed that values calculated from all the three methods were almost the same. We calculated the WACC using the return on assets derived by unlevering the equity beta of Celeron, which was comparable to the project at hand since Celeron was in the business of operating natural gas pipelines and processing facilities. To ensure a thorough discussion, we did a sensitivity analysis by calculating the WACC using a range of different capital structures namely Goodyear’s and Celeron’s current debt to market value of equity, debt to book value of equity, and 100% equity structure. However, our analysis showed that the capital structure did not have a significant...
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...Harvard Business School 9-292-040 September 13, 1991 The All American Pipeline In late 1984, The Goodyear Tire and Rubber Company faced the likely prospect that within several months it would receive some of the crucial permits it needed to begin construction on the All American Pipeline, which was projected to be the longest crude oil pipeline in the United States. Goodyear needed to place orders with pipe manufacturers immediately so it could begin construction as soon as the permits were granted, and meet the company's goal of starting operations in the first quarter of 1987. These orders would represent the first significant sum of money committed to the project, which was larger than any other in Goodyear's 86-year history. The pipeline was projected to cost as much as $2 billion, with pipe representing the project's single largest component. The Goodyear Tire and Rubber Company Goodyear was the largest tire producer in the world. In 1983 the company had revenues of $9.7 billion and net income of $305 million. See Exhibits 1 and 2 for Goodyear's income statements and balance sheets. Tires and related transportation products accounted for 75% of both revenue and assets and approximately 70% of operating income. Goodyear held 22% of the worldwide market in tires, followed by Michelin with 18%, and Firestone with 10%. However, Goodyear's market position varied widely geographically. In North America the company held the lead with a 29% share, followed by Firestone...
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...5/18/13 Microsoft Word - Lecture 11-The All American Pipeline Case.doc C MM 31L c r 1 O 7, et e 1 u Lecture 11: The All American Pipeline Case (use APV valuation) T osusht wl o d cs ifr edtl w i e taI in t i usn ut r e i s l s h a: 1. The economic rationale for building a pipeline: is the AAP a good idea? T e p otn y o xlt po c d up s frd OLn afriP D h o p r i t ep i rj t srl o c e I iC l n A D5 ut o a ee u u i a o Eh i so shtx t g en g aai cn o poes l rd iP D xit h w taeii r in cpcy an t rcs a c en A D b4 sn f i t lu 5T u, e A wlr soth c d t teenrsn ea (A D3 . h st A P it np rte r eo h r i i iT xsP D - . h la u f ee ) T e up s an t e xot wto tp rvlf o ges h srl cn o b ep r d i u apo ao C n r u e h s Rss i k Po c d up sn A D5 icm f m rj t srl iP D -wl o er : ee u l o Aak l a s C l riO t C ni naS e (C )acu tfr o srl ) af n ue o t et hl O S ( o nso ½ fup s i a o r n l f c u Po ut n xet t i r s s n i nl rd co epc d on e e i i at i e ca g f c y B t o e m n apo asl ed g u g vr etp rvlt pn i n i l n O S is ev ad iyn tu e f mC l rir i rsn t C o ihay n d t,o sid r af n en i ,o l r t o i a f ee o cm ln wt C ev o m nar u t n o pat i A n i n et e li i h r l g ao S c o r u e hafrr sot i ,n te A wl o h uh ie is eto t np r t nad h A P id ti lq r a ao l s a e pial a t np rn O S rd o id r r m m i y tr sot g C c e i a i u l Ohr afriof oe n o soe rd c g r s teC l n f h rad nh rpo ui a a i a s o n e T e cn mc o r in iT xsa eta C l ri h eo o i fen gn ea r hrhn af n s fi t i a o...
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...American Canal The All-American Canal and Its Effects on Illegal Immigration Abstract This paper explores three public articles and one segment of 60 minutes that explore the effects of the All-American Canal and the ongoing battle against illegal immigration. The canal is owned by the federal government and operated by the Imperial Irrigation District (IID). This paper will examines both sides of the moral obligation and responsibility of the government and the immigrants that attempt to cross the canal. Keywords: Imperial Irrigation District, responsibility Claim: “It is permissible for the federal government to allow the drowning deaths of illegal immigrants at the All-American Canal to continue because they aren’t required to provide life saving equipment. Explanation of the claim: The All-American Canal is an aqueduct that conveys the last drops of Colorado River water into the Imperial Valley in California. The canal provides drinking water for 9 cities and irrigates over 500,000 acres. It was built in the 1930’s by the United States Bureau of Reclamation and completed in 1942. It’s owned by the federal government and operated by the Imperial Irrigation District (IID). Two thirds of our winter fruits and vegetables are grown using this water. The canal creates jobs in the farming industry and half of the people who pick the crops are illegal aliens who cross the canal from Mexico. The problem...
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...fashion model. She was not as successful as Batman, and Superman. Wonder Woman was a strong female hero. “ Wonder Woman the original comic books, the other hand was successful when it was first appeared in the 1940s, it wasn’t well know today Berlatsky, Noah. “Wonder Woman”). The social issue that wonder Woman represent”s is the feminist and Women's rights. Wonder Woman was the missing links in the chain of events that had begin the woman suffrage campaigns. Wonder Woman was a origin story from straight out of a feminist utopian fiction. Before 1910, feminist was hardly used in the united states. In 1941 Wonder Woman was in the All-star comics ( “Wonder Woman Secret past- The new yorker”). Wonder Woman was never better in the golden age. She had started in an animated feature film. The first appearance was Wonder Woman. She leadia new cast of four female characters. Wonder Woman was the most powerful superhero and an warrior princess (“1940s.” Gale student resources in context...
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...Wonder Woman was more than a lasso slinging, bullet dodging super hero; she is an American feminist’s icon. Wonder Woman was introduced to Americans during World War II, by William Moulton Marston, a Harvard trained psychologist and lawyer. She represented nationhood at a time when our nation was at war. She was the daughter of Queen Hippolyte ruler of an all-woman race of Amazons living on Paradise Island, somewhere located in the Bermuda Triangle. She was named Princess Diana, after the Romanized version of the Greek Goddess Artemis (Emad, 2006). Since the inception of Wonder Woman, her origin has changed twice. Originally she earned her power and title she embodied for decades when she won a power competition amongst the other Amazonian women. In the second version of her origin she did not win her powers but instead was given them to her by the Gods themselves. Wonder Woman was much more than a comic book super hero. According to historian Lori Landay, “Wonder Woman operated in wartime popular culture as a metaphor for the movement in femininity out of the garden and into the war” (p. 11). She contained her super human powers from the public and lived a dual life, nurse and super hero. This reinforced the perception that women need to hide the power and strength allowing men to remain the dominate species. By the late 1990’s, Wonder Woman’s image changed and began to align with the times. She bared a more determined look, her body was toned and she donned a more “ready...
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...All American girls baseball League The United States entered World War 2 in 1941 it ended in 1945, because of this men were drafted into the military and forced to participate in the war. This took a high population of the men away from professional baseball. Major league baseball, being a part of America’s past time, was struggling with the decline of men in the league. In 1942 minor league teams were being disbanded due to the war and men 18 years and older were being drafted into the military services. Philip K. Wrigley, famous for Wrigley chewing gum and inheriting the Chicago Cubs major league baseball team from his father, didn’t want baseball to come to a collapse and sought after solutions to this dilemma (Lesko, 2013). Wrigley asked his committee to help come up with ideas. The committee recommended a girls softball league that would be established in the major league parks to help the decline in attendance due to losing quality players to attract crowds. Mr. Wrigley and the All American softball league emerged in the spring of 1943. The league was a non-profit organization and a board was formed which included Philip Wrigley, Branch Rickey, Brooklyn Dodgers President and General Manager; Paul Harper, Chicago attorney and trustee for the University of Chicago and Cubs attorney; and Ken Sells, who was named President of the League. This allowed a base structure for the league (Lesko, 2013). Jim Hamilton was a player, manager, owner and Chicago Cubs Scout was...
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...Prompt: Many Native Americans and North American Civilians are standing up to stop the Dakota Pipeline Project. Bankers and Businessmen/women are fighting to keep it going. Argue whether or not the United States Government should allow the Dakota Pipeline Project to continue. Your explanation must be based on ideas, concepts and information that can be determined through analysis of the “North Dakota Pipeline and The Native American Plight” passage set. Write your essay below Intro: Is the Dakota Pipeline a good idea? Imagine this, you are a farmer and you live in the midwest, and there is a new oil surge in North Dakota. Good for you right? No in fact quite the contrary, because all the oil pumped from the well is shipped on trains leaving...
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...The government has taken away from many Native Americans. Furthermore, many likely perceive what the government has seized as both materialistic and non-materialistic. Today, just like many times before, the government has decided to make a choice with narrow benefits overlooking Native Americans. Although the development of the Dakota Access pipeline will likely create many jobs and and other economic efficiencies, it is ultimately destructive to the surrounding land and citizens, specially the Native Americans. Some people believe the production of the Dakota pipeline will bring immense benefits, trumping other possible harsh outcomes. For example, supporters believe it will decrease the nation's dependence on foreign oil, reduce the risk of accidents attributed to transporting oil via rail or truck, as well as creating many jobs and tax revenue for the states it passes through...
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...of humanity. A broken pipeline spews waste from inside its rotten core. Animals no longer live here, people have fled from this land. The once spoils of harvest do not grow, instead the ground seeps tar. This is a tangible and real event that happens when pipelines break in communities and in environments. United States Government officials should ban laying pipelines on Native American reservations. The word sovereign means to “possess supreme or ultimate power” (dictonary.com). According to this definition, tribes located on reservations should be able to decide what they want. However, this is far from the case. The US Government wants to lay pipelines...
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...heating oil, and plastics, to name just a few. Americans use so much oil that it was estimated in 2015 by the U.S. Energy Information Administration, that the United states consumed a gross total of 7.08 billion barrels of petroleum, which is equivalent to 19.4 million barrels a day. This statistic isn’t very surprising if one lives in the United States, everyone depends on oil in their everyday lives. To help combat this need for oil, the Dakota Access Pipeline was announced on June 25 2014 to be...
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...One thing that continued throughout history from the Trail of Tears was the attempt at land possession. The Native Americans were very worried that the United States would infringe upon their agreements and takeover their promised lands. According to Perdue and Green, various reasons accounted for Indian complaints, including the states that pushed for the intrusion of Indian lands and the defense against Indian retaliation to protect their homes. Georgia encourages their citizens to invade and inhabit the Native lands. This caused much controversy. These encouragements directly contravened the treaties that promised the rights to the land to the Natives (Perdue 24). One example of Indian-American conflict in Georgia was the infringement...
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...Keystone XL Pipeline Project It is said that Canadian and American people cannot agree on the same thing, but the Keystone XL Pipeline Project has made that argument incorrect. As of today Americans and Canadians have fully committed to the construction of the Pipeline from Hardisty, Alberta to Steele City, Nebraska. Although both sides of the boarder agree to the fullest on the pipeline. The president of the United States of America does not agree. TransCanada who is the lead producer of the pipeline has applied for a Presidential Permit (which is required as the pipeline will cross the Canada/U.S. border) in the past which in 2010 was passed as the same in 2011, but now in 2012 it has been declined. TransCanada has re-applied on May 4th 2012 and is anticipating approval within the first quarter of 2013. There are two current pipelines coming from Alberta, Canada to the United States. Keystone phase 1 was built in 2010 and put in a 1900 mile pipeline from Hardisity Alberta to America’s Midwest. Connecting about 35 hundred barrels of oil per day in Patoka and Woodland in Illinois. Keystone phase 2 was built in 2011 added 300 miles to Oklahoma increasing to 590,000 barrels of oil per day. TransCanada is already looking into the future with Keystone phase 3 hoping to be built off the Gulf Coast Increasing to 1.1 million barrels of oil per day. The reason for the Pipelines is to meet the needs of the American consumers. As the rate of the American population increases, the rate...
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...The Keystone XL Pipeline: It’s a Good Thing By: Samantha Prewitt The Keystone XL Pipeline: It’s a Good Thing The Keystone XL Pipeline Project is a proposed crude oil pipeline that begins in Hardisty, Alberta, Canada, crosses through an international border and ends in Steele City, Nebraska. From here it connects with existing pipelines, which will allow American oil producers more access to the large refining areas located in the Midwest and along the US Gulf Coast. It has been six years since TransCanada has applied for approval for this project and the project itself has gone through three revisions, including two reroutes of the pipeline itself. This article will attempt to dissect the benefits of the Keystone XL project and what it could mean to the American people if construction is approved. The implementation and construction of any project having to do with dangerous chemicals and oil is a frightening thought for any environmentally concerned person. These feeling are usually amplified when the construction site includes the Gulf Coast, being that the last spill is still wrecking havoc on our environment. But these feeling can all be set aside because according to Russ Girling, the president and CEO of TransCanada, “The environmental analysis of Keystone XL once again supports the science that this pipeline would have minimal impact on the environment” (Triplett, 2014). If and when President Obama grants the approval for construction, TransCanada is already...
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