Diamond Chemicals PLC (B): Merseyside And Rotterdam Projects Case Solution

This case is about COSTS

PUBLICATION DATE: February 14, 2002 PRODUCT #: UV4007-PDF-ENG

Both of these cases consideredtheexecutives of this big compounds company in January 2001 to make the capital investment choices. The ‘A’ case presents a go/no-go job assessment involving progress to a polypropylene production plant. The ‘B’ case reviews the same job but from one degree higher, where the executive confronts either/or investment choice between two mutually exclusive endeavors. The aim of both cases would be to expose pupils to an extensive array of capital-budgeting problems which comprise, amongst others, the identification of related cash flows, the critical appraisal of a capital investment evaluation process, the classic “crossover” issue, in which job’s ranks differ on the idea of net present value (NPV) and internal rate of return (IRR).

Diamond Chemicals PLC (B): Merseyside And Rotterdam Projects Case Solution
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