...Case 2: Harris Seafood Finance 380: Cases in Financial Decision Making Bojan Balaban, Tijo Jose, Nathan Liu NPV CALCULATIONS Charlie Harris is debating whether or not he should make an investment in the shrimp processing plant. We have concluded that he should make the investment in the processing plant if net present value (NPV) is positive. The NPV is calculated as: NPV= PV(benefits) – PV(cost) The goal here is to create value. Mr. Harris should only invest if the NPV is positive. To calculate the NPV of the processing plant, we are required to forecast a FCF and a discount rate. We have used the data from the Harris Seafood case to arrive at a FCF projection for both an inflation and a non-inflation scenario. The rest of the analysis will examine alternative NPV valuations and provide a recommendation to Mr. Harris as to whether or not Harris Seafood should make the investment in the shrimp processing plant. | FCR projection with 0% inflation | Free Cash Flow ($000) | 1980 | 1981 | 1982 | 1983 | 1984 | 1985 | 1986 | Revenues | $- | $26,125 | $57,119 | $67,759 | $68,875 | $70,063 | $71,250 | Cost Of Goods Sold | $- | $22,828 | $46,837 | $55,562 | $56,478 | $57,451 | $58,425 | Selling, General and Admin | $- | $2,874 | $6,283 | $6,437 | $6,543 | $6,656 | $6,769 | Depreciation | $- | $833 | $788 | $731 | $693 | $661 | $634 | Pre-Tax Op Profit | $- | $(410) | $3,211 | $5,029 | $5,161 | $5,295 | $5,422 | Taxes (48%) | $- | $- | $1,541 | $2,414 |...
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...Engineering Opportunities in Shale Gas Dave Mayewski - Market Development May 2012 Copyright 2011 Rockwell Automation, Inc. 2012 Rockwell Automation at a Glance Leading global provider of industrial automation control and information solutions • Annual Sales: $6 billion • World Headquarters: Milwaukee, WI USA • Trading Symbol: ROK • Employees: About 19,000 • Serving customers in 80+ countries Copyright 2012 Rockwell Automation, Inc. Conventional Gas Map Copyright 2012 Rockwell Automation, Inc. U.S. Map – Natural Gas Stations/Pipelines Copyright 2012 Rockwell Automation, Inc. Natural Gas – Shale Gas Plays Copyright 2012 Rockwell Automation, Inc. Penn State Economic Impact Study Copyright 2012 Rockwell Automation, Inc. Source: The Pennsylvania Marceulls Natural Gas Industry: State, Economic Impacts and Future Potential 2011 Map of Utica Shale Copyright 2012 Rockwell Automation, Inc. Source: Ohio Department of Natural Resources Map of Utica Shale • Oil • Liquids Copyright 2012 Rockwell Automation, Inc. Key Contact Points • • • • • • • • Exploration Contractors Well Sites Water Treatment EPC’s Transportation companies Processing System Integrators Copyright 2012 Rockwell Automation, Inc. Bridgestone Tech Center Copyright 2012 Rockwell Automation, Inc. Source: The Plain Dealer Utica Shale Map Copyright 2012 Rockwell Automation, Inc. Source: www.Fracktracker.com It’s only about gas right? ...
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...Subject: Date: Corporate valuation: Archer-Daniels-Midland Company ADM (Archer-Daniels-Midland) company is one of the world’s largest food processing firms operating over 270 plants worldwide and operating in over 75 countries. Headquartered in Decatur, Illinois, the company is listed on the New York stock exchange main board and is a part of the S&P 500 index. The company is one of the most admired in the US and internationally being named the world’s most admired food production company by the fortune magazine for three years in a row from 2009 to 2011. ADM has a staff of about 30,000 people in its workforce to help it run its operations and hundreds of thousands more who depend on it indirectly as suppliers and business partners. ADM seeks to partner with farmers by creating thousands of products and markets for their crops. ADM was founded in 1902 when George Archer and John Daniels set up a factory to crush linseed. The company changed its name to its current Archer-Daniels-Midland company when in 1923 it acquired the Midland Linseed Products Company to further grow its linseed business. Since then, ADM has expanded both in geographical size and business segments as it entered more business lines such as milling, food processing, manufacture of specialty foods ingredients for industrial use and nutritional products to the processing of cocoa. The company also has significant interests in renewable energy. ADM is also involved in the storage and transportation of agricultural...
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...Riordan Current Business Practices Audit MGT/360 University of Phoenix Riordan Current Business Practices Audit Riordan Manufacturing is a global plastics manufacturer with locations in California, Georgia, Michigan, and China. The vice president of operations decided to develop a sustainability plan. Team A has been assigned the task to conduct a business audit to evaluate the Riordan’s current business practices at each location. The audit provides valuable information to identify the nonsustainable business practices and how each effects the environment. The subject in this paper is how Riordan Manufacturing will identify their nonsustainable practices, federal regulations, mandatory, and voluntary actions necessary to implement a successful sustainability plan. Nonsustainable Business Practices The business practice audits brought to light three nonsustainable practices. The three practices highlighted by the audit include wasted energy from the plants, the use of toxic cleaning solvents, and spilled ink. These three business practices can be very harmful to the environment. Burning fossil fuels for energy creates gases such as sulfur dioxide, nitrogen oxide, and volatile organic compounds. These gases cause air pollution. They can cause several kinds of air pollution, particular matter, smog, and ozone (New Energy Alternative, 2008). Air pollution can travel thousands of miles and can harm areas that burn fossil fuels sparingly. The next nonsustainable...
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...businesses outside the framework of a single company. With the spread of the Internet, web-based EDI (electronic data interchange) systems have been increasingly used as a means to exchange information between individual companies. In the automotive parts industry in among SMEs, where no industry-standard EDI system has been established, many different terminals and screens must be used, due to the lack of system integration between companies. In addition, not many small and medium-sized businesses have introduced computer systems, due to the significant costs involved. They mainly use paper documents, e-mail and fax and do not have EDI systems. Taking these facts into consideration, we have constructed a Green-EDI system (“SaaS-based Cross-industrial Standard EDI”) tailored for the automotive parts industry and small and medium-sized businesses. 1 Realization of green cloud computing Construction of a...
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...1. Describe three ways in which information systems are transforming business. Transformation of Industrial Economies While leading companies achieve competitive advantage through investments in IT, some are indeed negatively affected by this trend in technology. Today, customers have other preferences hence, old landline communications companies have lessen its customers; travel agencies have reduced over-the-counter sales; and entertainment industries, particularly music and film have lower revenues these past few years as compared with that in the past. But despite of these, technology convergence arises in many ways. IT has broken down boundaries and business relationships while new products and services are introduced. For example, telecommunications network are offering its subscribers with landline telephones merged with Internet services; handheld mobile telephones are becoming Internet access devices and also cellular networks provide financial services to its customers. The bottom-line of it all is that endless possibilities are in the doors of business firms, provided that they are being open to IT-enabled tools and solutions. Negatively affected industries can create new products and services, find another platform to deliver existing products and services, or take partnership from another firm. Transformation of the Business Enterprise One foremost impact of technology is the reduced employees in every organization. While traditional businesses tend to hire...
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...Chapter 14 Review The environmental effects of gold mining can harm the environment in many negative ways. Gold miners removed enough rock to equal the weight of 50 automobiles to extract a little amount of gold. The leftover waste is piled near the mine sites and can pollute the air and nearby surface water. Mining companies also created a new mining technology called cyanide heap leaching to level entire mountains of rock. In order for them to extract the gold, they spray a solution of highly toxic cyanide salts. This cyanide is extremely toxic to birds and mammals drawn to these ponds in search of water and they can leak into the rivers posing as a threat to fish and other life forms. Geology is the science devoted to the study of dynamic processes occurring on the earth’s surface and in its interior. The core is the earth’s innermost zone. The mantle is a thick zone surrounding the core. The crust is the outermost and thinnest zone of the earth. The tectonic plates are various sized areas of the earth’s lithosphere that move slowly around with the mantle’s flowing asthenosphere. The lithosphere is the outer shell of the earth, composed of the crust and the rigid, outermost part of the mantle outside the asthenosphere. A transform vault is an area where the earth’s lithospheric plates move in opposite but parallel directions along a fracture in the lithosphere. Weathering is the physical and chemical processes in which solid rock exposed at earth’s surface is changed to separate...
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...different types of solid wastes 3. recognize different sources of solid wastes 4. understand and state the three physical, chemical and biological properties of solid waste 2 Introduction Solid wastes are the wastes arising from human activities and are normally solid as opposed to liquid or gaseous and are discarded as useless or unwanted. Focused on urban waste (MSW) as opposed to agricultural, mining and industrial wastes. Integrated Solid Waste Management (ISWM) is the term applied to all the activities associated with the management of society's wastes. In medieval times, wastes discarded in the streets led to the breeding of rats and the associated fleas which carried the bubonic plague. The lack of management of solid wastes thus led to the Black Plague which killed half of 14th century Europe. 22 human diseases are associated to improper solid waste management. Solid wastes also have a great potential to pollute the air and water. Mining tailings from gold and silver mines will probably being spilling arsenic into the water supply forever. Materials Flow - The best way to reduce solid wastes is not to create them in the first place. Others methods include: decrease consumption of raw material and increase the rate of recovery of waste materials. Technological advances - Increased use of plastics and fast, pre3 prepared foods. Solid Waste Management Solid waste management is the control of : all the wastes arising from human and animal activities that are normally...
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...low cost labors , unskilled labors…, make use of probation to consistently change labors without training or equipping them with experience, skill and qualification Because FDI enterprises in Vietnam are mainly conducted labor-intensive processes such as machining and assembly. Even the leading technology companies such as Intel Inside Sam Sung that have production facilities in Vietnam mainly produced components, as inputs to the process of creating a product in another country. Besides, a number of investment projects of China, one of the major partners of Vietnam, often use Chinese labor instead of hiring workers from VN 2. There is little technology transfer and management skill transfer into Viet Nam. Even Viet Nam becomes an industrial garbage after adopting out of date technologies. Investors tend to keep their “know- how” in secret. Channel 1: At a conference to summarize 25 years of new FDI was organized, Deputy Minister of Planning and Investment said Dao Quang Thu, 80% FDI technology used currently in Viet Nam is average, 5 6 % used is high-tech, 14% low and backward, there are individual cases using outdated technology. Technology transfer is mainly done horizontally - between business enterprises, with little change in the level and technological capacity. Despite the fact that there would be no corporations, they now carry the No. 1 technology, latest technology investment to other countries, however, the majority of FDI projects in Vietnam only average tech...
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...control, programmable logic control, and other industrial control systems), in concern with other applications of information technology (such as computer-aided technologies [CAD, CAM], to control industrial machinery and processes, reducing the need for human intervention. In the scope of industrialization, automation is a step beyond mechanization. Whereas mechanization provided human operators with machinery to assist them with the muscular requirements of work, automation greatly reduces the need for human sensory and mental requirements as well. Processes and systems can also be automated. Automation plays an increasingly important role in the global economy and in daily experience. Engineers strive to combine automated devices with mathematical and organizational tools to create complex systems for a rapidly expanding range of applications and human activities. Many roles for humans in industrial processes presently lie beyond the scope of automation. Human-level pattern recognition, language recognition, and language production ability are well beyond the capabilities of modern mechanical and computer systems. Tasks requiring subjective assessment or synthesis of complex sensory data, such as scents and sounds, as well as high-level tasks such as strategic planning, currently require human expertise. In many cases, the use of humans is more cost-effective than mechanical approaches even where automation of industrial tasks is possible.Specialized hardened computers...
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...information. For this specific purpose I collected data and information from various sources like published materials such as the Bangladesh Economic Review, Different articles of Board of Investment (BOI) and Bangladesh Export Processing Zone (BEPZA), Daily Statement of Affairs of different Internet based publication and other books on Foreign Direct Investment in Bangladesh and articles related to Foreign Direct Investment in Bangladesh. I furnished the full contents of the report in eight chapters. I concentrated on arranging and putting the data in such a way that the report progressively anchors to a desired destination of understanding. Introduction Part-1 Investment has acquired considerable emotive force in any country. It is viewed as beneficial on employment creator-as it brings about economic development. It can termed capital flowing from a firm or individual within the country or in one country to a business or businesses in another country involving a share of at least 10%. So the significance of investment in a country is: 1. It increases the economic growth by sustain increase in real, per capita, national product. This brings -National income effect, Balance of payment effect & Public revenue effect. 2. Accelerate the industrial innovation this develops in integrations take a variety form which is not necessarily mutually...
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...information. For this specific purpose I collected data and information from various sources like published materials such as the Bangladesh Economic Review, Different articles of Board of Investment (BOI) and Bangladesh Export Processing Zone (BEPZA), Daily Statement of Affairs of different Internet based publication and other books on Foreign Direct Investment in Bangladesh and articles related to Foreign Direct Investment in Bangladesh. I furnished the full contents of the report in eight chapters. I concentrated on arranging and putting the data in such a way that the report progressively anchors to a desired destination of understanding. Introduction Part-1 Investment has acquired considerable emotive force in any country. It is viewed as beneficial on employment creator-as it brings about economic development. It can termed capital flowing from a firm or individual within the country or in one country to a business or businesses in another country involving a share of at least 10%. So the significance of investment in a country is: 1. It increases the economic growth by sustain increase in real, per capita, national product. This brings -National income effect, Balance of payment effect & Public revenue effect. 2. Accelerate the industrial innovation this develops in integrations...
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...Technology Innovation, vol. 3, no. 3, 2013, pp. 134-143 A Case Study Improvement of a Testing Process by Combining Lean Management, Industrial Engineering and Automation Methods Simon Withers1, Jose Arturo Garza-Reyes2,*, Vikas Kumar3, Luis Rocha-Lona4 1 2 3 4 Turbo Power Services, Bardon, UK. Centre for Supply Chain Improvement, The University of Derby, Derby, UK. Dublin City University Business School, Dublin City University, Dublin, ROI. Business School, National Polytechnic Institute of Mexico, Mexico City, Mexico. Received 04 April 2013; received in revised form 25 April 2013; accepted 26 May 2013 Abstract Increasingly competitive market environments have forced not only large manufacturing, but also smalland-medium size enterprises (SME) to look for means to improve their operations in order to increase competitive strength. This paper presents an adaptation and adoption by a UK SME engineering service organisation, of lean management, industrial engineering, and automation metods developed within larger organisations. This SME sought to improve the overall performance of one of its core testing processes. An exploratory analysis, based on the lean management concept of “value added” and work measurement technique “time study”, was developed and carried out in order to understand the current performance of a testing process for gas turbine fuel flow dividers. A design for the automation of some operations of the testing process was followed as an approach to reduce non-value...
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...Beer is the fifth most consumed beverage in the world after tea, carbonates, milk and coffee and it continues to be a popular drink. One of the important reasons is that beer is a drink with a pleasant flavor, an attractive color and clarity. To attain these characteristics, Membrane separation technology has become widely used in the food processing industry. The final filtration stage sets for a balance between allowing the passage of dissolved macromolecules that give the beer its flavor and functional properties while removing yeast cells and turbidity colloids and reducing the components that cause turbidity of the bottled beer. Moreover the potential of cross-flow microfiltration as a separation method for brewing is a subject of intensive...
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...Current Business Practices Audit Kimberly Johnson, Richard Siemienczuk, Karen Graham, and Chad Smestad MGT/360 December 3, 2012 Vicki Bauer Current Business Practices Audit The learning team conducted an audit of Riordan Manufacturing’s current business practices at its processing plants located in California, Georgia, Michigan, and China. The business sustainability worksheets used to complete the evaluation aided the team in locating common areas of non-sustainable practices relating to land, water, and air pollution. The three non-sustainable practices evaluated further are solid waste, and hazardous waste causing land pollution, hazardous waste causing water pollution, and gaseous waste causing air pollution. These areas are the most harmful to the immediate population, which includes the plant workers and the communities. Solid Waste and Hazardous Waste Causing Land Pollution One of the non-sustainable practices is adding to land pollution. Currently, off-spec materials are sent to the landfill (Apollo, 2012). In addition to this, scrap plastic managed as waste goes to the landfill (Apollo). The biggest problem is that plastic is not biodegradable. When plastic and off-spec products are sent to the landfill, breakdown occurs but at minimal rates and these take longer to biodegrade over time. To remain compliant with government regulations, Riordan Manufacturing is required to identify hazardous waste generated each month if it exceeds 2,200 pounds (Apollo...
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