Executive Summary The general manager of WhiteWater Specialties Ltd., Peter Winford, has to decide whether to pursue a potentially large order of fiberglass fascia signs from Consolidated Industries, a major Canadian retailer. The order could potentially result in quintupled sales and would help the Winford reach the personal mandate to diversify the areas of production to counteract the niche seasonal market of the company's main business of manufacturing water slides. WhiteWater Specialties has
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Charles River Laboratories (CRL) CRL was once the global market leader in the commercial production and supply of laboratory animal models for use in discovery and research and the development and testing of new pharmaceuticals. The company’s strategic growth objective was to grow its existing business by between 12% and 15% annually and its entire business by 20%. This plan left a strategic growth gap of 5% to 8% each year, resulting in CRL’s pursuit of growth opportunities in the form of joint
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| Anti-Depression Repackaging Project | Investment | $2,000,000 | | $500,000 | Annual Savings | $50,000 | | $500,000 | | | | | Payback Period | 40 years | | 1 year | Looking at Financial models, in this case it is clear that repackaging the Anti-Depression drug is an easy money maker generating far higher Payback when referring to the payback method: | | | | | | | | | | | | | | | | | | | | However other factors need to be addressed and it is not as
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A decision to outsource the TIMS system would involve many considerations to be made first in order to better understand how this would impact the project. Outsourcing the TIMS project would allow for a lower cost, eliminating the need to provide the resources to complete the project. This also would free up management to better focus on core proficiencies instead of the system implementation. This would in turn help out the company by reducing the overall cost as well. However, there are also
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proposals are: Match My Doll Clothing Line Expansion and Design Your Own Doll. A systematic process will be used to determine which proposal to recommend. Criteria Include: 1. Comparison of the business cases 2. NPV analysis 3. IRR and payback period analysis 4. Analysis of additional information 5. Recommendation Comparison of the Business Cases Most Compelling Business Case Match My Doll Clothing Line Expansion Match My Doll Clothing Line Expansion is the the most
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78670 | 35027(1+0%) 3= 35027 | 35027(1+10%) 3= 46620.937 | 0.552 | 19335 | 98005 | 35027(1+0%) 4= 35027 | 35027(1+10%) 4= 51283.03 | | | | ∑=140108 | ∑=178816.337 | a) Payback period = 3 year b) Didcounted payback period at 10%=4 year c) Didcounted payback period at 16%=May be 5th year d) NPV at 10% = 111001-100,000= 11001 e) NPV at 16% =98005-100,000= -1995 loss f) Profitability
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received on a account Loan proceeds How does the payback method work? How does the net present valve method work? How would you explain each of these method to Regina? Payback method is the length of time required to payback the original investment is the determining criterion. The entrepreneur will select a maximum time frame for the payback period. Project that need longer period will be rejected and project that fall within the time frame will be accepted. Net preset value(NPV) is a technique
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next four years in comparison with 110% volume growth. As the market value is increasing at a faster rate than volume prices are likely to increase. Therefore if first cars plc. Manage to obtain an early entry to the market where loyalty of first time buyers is high, they would be able to build up their brand image and attract a loyal customer base. This would enable them to gain an advantage over their competitors with the bonus that they can charge higher prices, enabling them to increase their
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the cash flows? We cannot rank the projects by simply inspecting the cash flows. We must bring all cash flows at the same point in time (present) before comparing. This is because of time value of money. A dollar received now is more valuable than a dollar received sometime in the future. Thus, it is important that we bring all the cash flows to the present time before comparing. 2. What criteria might you use to rank the projects? Which quantitative ranking methods are better? Why? There
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was able to payback at 0.43% in 2011 the rate was 0.44% 2012 was the year in which 0.5% payables were managed by the company but in 2013 this rate went down again to 0.4%. The company seems to have a delay in meeting their payables as they are very far from the best payable % (i.e. 2-3%) EFFICIENCY In 2010 the company was utilizing its assets at 1.19 times we can see an increasing trend in this case where in 2011 the utilization goes up to 1.38 times in 2012 it goes up at 1.53 times and with a
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