Case 20: Aurora Textile Company Essay example

Case 20: Aurora Textile Company GROUP QUESTIONS Learning Objectives: 1. The basics of incremental-cash-flow analysis: identifying the cash flows relevant to a capital-investment decision 2. The construction of a side-by-side discounted-cash-flow analysis for a replacement decision 3. How to adapt the NPV decision rule to a troubled industry 4. The recognition that a reduced investment horizon is a significant consequence of financial distress 5. The importance of sensitivity analysis

AURORA TEXTILE COMPANY Teaching Note Michael Pogonowski, the chief financial officer of Aurora Textile Company, was questioning whether the company should replace the current spinning machine at the Hunter production facility with a new ring-spinning machine, the Zinser 351. Because of the poor health of both the textile industry and Aurora Textile, the management team had become engaged in a debate as to whether the company should return excess cash to shareholders or invest in the new machine

Laura Rapoch Case Study #3: Aurora Textile MBA7300-90 Dr. Marlena Akhbari October 29, 2014 EXECUTIVE SUMMARY The Aurora Textile Company has long been considered one of the leading textile companies in the United States. Of late, however, they have faced tumultuous financial times. In these trying times, they are now faced with a difficult decision on the future direction of the organization. An opportunity has presented itself to invest in new, state-of-the-art production equipment that could

Aurora Textile Company Case Abstract In January 2003, Michael Pogonowski, the chief financial officer of Aurora Textile Company, was questioning whether the company should install a new ring-spinning machine, the Zinser 351, in the Hunter production facility. This new machine has ability to produce a finer-quality yarn that would be used for higher-quality and higher-margin products. In deciding whether or not to invest this new machine, NPV and the payback period are critical factors. Firstly

Aurora’s financial situation. It is obvious that Aurora has been facing economic pressures because of the business risks that arose from the intensive competition in the textile industry, which led to the decline in sale margins. Sales after 1999 quickly fell below standards, additionally, sales growth steadily declined at an average of 15.3% (-40% between 1999 and 2002). The company has failed to turn a profit for the past four years, although in 2002 Aurora showed a positive operating profit (See the

seed of this huge empire was sown by Syed Maratib All, a renowned supplier for British Army and the Indian Railways before partition. The group launched a joint venture with Lever Brothers soon after 1947, but massive production of Pakistan Tobacco Company later reportedly made Syed Maratib All and sons install a packaging Unit by the names of Packages. Two of Maratib's sons-Syed Amjad All and Syed Babar Au have remained Pakistan's finance Ministers and two of his well-known grand-children-Syeda Abida

and your company …3 Who Are Using Marketplace ………………………………………………… 5 Game Scenario and Decisions by Quarters …………………………………7 Targeted Participants……………………………………………………………… 9 Program Level of Difficulty and Decisions by Functions……………………… 10 Program Schedule 1 (3 days) & 2 (2 days comparison) ………………………12 Facilitator Background…………………………………………………………… 14 Program Expenses ……………………………………………………………… 18 Project Flow on Customerization…………………………………………………19 Marketplace Simulation &

tool. The study conducted online surveys by selected hundred hotels from the travel trade show in Thailand, 2010. Moreover, two selected hotels are interviewed by telephone and through telephone the results will be analysesis and compared asinto two case studies. The findings of the two different methods will be analysed in order to compareison the use of events as a marketing tool. Furthermore, limitations of this study and recommendations for future research will be given at the end of the project