Alusaf Hillside Project Essay

2. Use the projections provided in the case to compute the incremental cash flows for the PCB project. Provide a reasonable estimate for cash flows after 2009 as well.

The Present Worth of this project with a 36,000 bbl/day facility is $404.5M and the total profit that Wildcat Oil is expected to make is $404.5M - $260.4M, which amounts to $144.1M.

Question Number One (1) Value the processing plant proposal. Ignore the Industrial Revenue Bond financing. Assume: Market Risk Premium 8.8%, Riskless Rate 11.41%, and Harris Long Term Debt Rate 13.5%.

pressure off of Triangle Hill, the attrition that was witnessed over Triangle Hill has also developed at Jackson Heights. The 15th Corps with 133 large-caliber guns, 22 rocket launchers and 30 120mm heavy mortars in the largest Chinese artillery operation of the Korean War bombarded the Koreans, which lasted until mid-night. After the bombardment 10 infantry companies from two Chinese divisions surrounded the ROK 31st Regiment positions pushing the South Koreans off of the summit. After the over whelming battle, only 175 South Koreans’ survived out of three defending companies. In response the US ordered the 9th ROK Infantry Division to take back Triangle Hill. After five long days of constant attacks from the South Koreans with no avail

8. Compared to a perfectly competitive industry with the same demand and cost curves, a monopoly’s price and output will be which of the following?

This is beyond the company cost limit set of $16 million capital and $2.6 million yearly payment for improvement. The company is committed to keep the plant but at the basis on the cost limit set.

The price of commodity is determined by means of competition between buyers and sellers, and relation between supply and demand-offer and desire. Whoever offers the greatest advantage to purchasers is certain to drive the other sellers off the field and secure for himself the greatest sale. (Marx, p.5)

Return on Investment (ROI): An examination of ROI financial analysis and its historical roots with the DuPont Company

The calculations made in the appendix show that the investment made in alloy will generate the positive net present value of USD 1188 and the IRR of the investment is 32.78%. On the basis of net present value it will be feasible to invest in alloy and as IRR of the project is greater than its cost of capital so on the basis of IRR project is also feasible.

• At the beginning of 1994, Alusaf was considering to build the world’s largest smelter (466,000 tpy) at Richard’s Bay in South Africa • A feasibility study was done two years before, but since then the Russian flood had occurred. • Capital cost was projected to be $1.6 billion • Aluminum prices at about $1,110 • Alusaf had long-term contracts that ensured perton alumina and power costs at 41% of aluminum price • Should Alusaf go ahead with the project?

EGCM Ltd is a company which manufactures metal and is considering making a $28000 investment in developing their production capability. Two proposals, namely Proposal A and Proposal B have been drafted in order to find out which proposal is better suited for EGCM to make its investment.

Non-price Competition – A change in price by one firm will bring reactions from other firms. To avoid price wars, a policy of price rigidity is followed. Firms rely on advertising, better

Whether the demand rises or falls, the international price remains unchanged. Yet, the price of domestic products in domestic supply schedule is directly related with the demand. It is a perfect competition which individual suppliers take the price in the market as given and react accordingly.

As part of the feasibility study it is hugely important to assess the projected return on investment. By carrying out some cost benefit analysis it will indicate whether the investment of resources in the development of the new system will be worthwhile.

c. the dominant firm establishes the price at the quantity where its MR = MC, and permits all other firms