Guillermo Furniture Store Analysis Olakunle Corporate Finance/FIN 571 August 15, 2011 Introduction The Guillermo Furniture Store is the largest manufacturer of furniture in Mexico, and it has made furniture of different types for several years. Until the late 1990s, when Guillermo’s competitor started carting away some of its businesses thereby affecting its revenue, the business had thrived very well in the sales of furniture. The new competition has latest state-of-the art manufacturing
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Guillermo Furniture Store Recommendation Paper University of Phoenix Corporate Finance FIN/571 August 17, 2012 Guillermo Furniture Store Recommendation Paper Guillermo Navallez lives in Sonoara, Mexico, which is a good location for his furniture making business because of the area’s good supply of timber and inexpensive labor. Guillermo’s handcrafted products are priced at a slight premium for the quality that the products represent. During the 1990s, two different events caused a large
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FIN/571 July 23 Guillermo Furniture Store Analysis , 2012 Guillermo Furniture Store Analysis Guillermo Navallez has done quite well for himself as owner manager of Guillermo Furniture store. Guillermo has been manufacturing quality furniture in Sonora, Mexico, making high-end and mid-end grade furniture. Several factors including a competitor who utilizes a high tech process and and a increase in businesses and people made the price of doing business more expensive for Mr. Navallez. He
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Guillermo Furniture Store Recommendation Team A FIN/571 James Carlin February 21, 2011 Abstract Guillermo founded Guillermo’s furniture company; in Sonora, Mexico, which is gorgeous retreat location. Guillermo has been the leading furniture manufacturing company in the vicinity for numerous years. Before the later part of the 1990’s Guillermo was holding their own, until new competition arrived in the area that also made furniture. The competitors came with the latest new-fangled technology
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Guillermo’s Furniture Store Scenario University of Phoenix Team C FIN/571 July 25, 2012 Dr. Guillermo’s Furniture Store Introduction Sonora Mexico is known to many people as a beautiful vacationing area in the heart of Mexico. Home to the largest furniture manufacturing companies, Sonora is also home to Guillermo Navallez, and has been for many years. Guillermo Navallez and his furniture company, produces a variety of tables and chairs,
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Guillermo Furniture Store and Pro Forma Analysis Guillermo Navellez, once the owner of the largest flourishing furniture store in Sonora, Mexico faces globalization and the emergence of foreign competition. Inexpensive labor and the abundance of timber in Sonora are major factors, which contributed to the manufacturing of the store’s furniture. Guillermo faces new competition that possesses advanced technology with the ability to manufacture faster and at lower costs. With the emergence of this
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This paper will look at the different alternatives that are available to the management of Guillermo's Furniture Store. The paper will include three different alternatives that Guillermo's could use, and what the optimal Weighted Average Cost of Capital (WACC) of each option will be presented along with techniques for reducing risks. There are many forms of capital budgeting models that can be used. Payback made simple, NPV, IRR, and Payback discounted. The payback period: The simple payback
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