Diamond Chemicals: Merseyside and Rotterdam Project Investment decision analysis Group Name- fInatics Group Members- 1. Nishant Kumar (MP13037) 2. Rahul Naredi (MP13039) 3. Samardarshi Sarkar (MP13046) 4. Shadab Akhtar (MP13050) Summary About the case Diamond Chemicals is a leading producer of polypropylene, the polymer used in a variety of products (ranging from medical products to packaging film, carpet fibers, and automotive components) and is known for its strength and elasticity. Diamond Chemicals is producing polypropylene at Merseyside, England and in Rotterdam, the Netherlands. Both factories are identical in size, age, and plant design. Merseyside is a factory built in 1967. Merseyside production process is …show more content…
6 yrs | 3.6 years | 8.2 years | EPS | Positive | £ 0,018 | £ 0.029 | Conclusion Of the four project selection criteria set by Diamond Chemicals we can see that the Merseyside project has met all the criteria there. While on the other hand, the Rotterdam project does not meet the Payback Period criteria. So we propose to James Fawn to select Merseyside projects. There was also a reason that is included in strategic factors, namely: 1.
For centuries, diamonds have been regarded as one of the most valuable commodities in the world and the industry has evolved into billions of dollars. At the top, De Beers dominated the entire industry worldwide, from exploration to retail selling. However, it has a reputation of a monopolist, where it influences supply and demand. The two critical factors that De Beers carefully maintained throughout the century to remain in monopoly was to create the illusion of the scarcity of the diamonds and to keep the prices high. Realizing the benefits of the cooperation and the dangers of the oversupply, most
The rock cycle has the effect of many different things that we hold so dear in our society today. Both oil and diamond are very much impacted by the rock cycle. Both are affected by where we can find them, also how they are made. I believe that because of the rock cycle we have both oil, and diamond without the rock cycle we would not have oil or diamond.
Diamond Chemicals is a leading producer of polypropylene, the polymer used in a variety of products (ranging from medical products to packaging film, carpet fibers, and automotive components) and is known for its strength and elasticity.
Five Star Tools is a small family-owned business that manufactures diamond-coated cutting tools (chisels and saws) used by jewelers. The production of these tools involves three major processes. The first of these processes involves steel “blanks” (tools without the diamond coating) that are cut to size. The second process involves the blanks being sent to a chemical bath that prepares the tools for the coating process. The final process is the major process in the line. The blanks are coated with diamond chips in a proprietary process that simultaneously coats and sharpens
This essay supports the statement “The price of diamonds is too high”. Diamonds have always been presumed to be rare. They have been present in history as a symbol of wealth and luxury as they were so difficult to find. Nowadays diamonds are mined and are found all over the world but they are sold through a cartel. (Epstein 1982) A cartel limits the supply of a product in order to keep prices high and to limit competition. (South African Pocket Oxford Dictionary: 2002) This raises the question of whether diamonds are actually worth their price. This essay focuses on the origins and the basic theory behind the diamond cartel; the early operation of the cartel; De Beers’ strong market campaign; determining De Beers’ current
For the year of 2017, the science fair topic chosen is about the growth of rock candy crystals and how acid interferes with the development of the crystals. For this experiment, 5 ml, 10 ml, 15 ml, and 20 ml of lemon juice will be added to a sugar solution and this is the independent variable. The sizes of the crystals will be measured in millimeters and the experiment, will help to find, if an acid such as lemon juice, does affect the diameter of sugar crystals. The hypothesis is if the amount of lemon juice in the solution increases, then the diameter of the rock candy will decrease because the acid within the lemon juice will break down the sugars in the sugar water and will stunt the crystallization process. The control group is the sugar
We found that Polypropylene was our 5th unknown. Polypropylene (C3H6) or more commonly referred to as PP, is used for labeling, packaging, textiles, and stationery. In 1957, the crystallization of polymer was discovered. Soon fabric was made from the polymer, and was in high demand. It can also be used for moldings of cars, film, tape, foam and carpet. Polypropylene can not be glued to any objects or itself, and so it is melded. After Polyethylene, Polypropylene is the highest produced synthetic plastic. Polypropylene also holds up well over time, which is one of the reasons that it is the second most produced plastic. The melting point is between 130-171 degrees celsius. Because polypropylene is tough and flexible it can be used as an engineering plastic. Finally, polypropylene can be used be manufactured into a living hinge. A
The Dinosaur Diamond, or as it is officially known, the Dinosaur Diamond Scenic and Historic Byway, is not the kind of excursion you take in just one day. This 512-mile loop is located in Western Colorado with parts extending into neighboring Utah, where it is called the Dinosaur Diamond Prehistoric Highway. The diamond offers opportunities for history buffs, science nuts and dinosaur lovers of all ages.
Members of the Diamonds feel protected with each other regarding protection from police. As I mentioned earlier, these youngsters had a strong rejection towards police officers, so feeling protected within the gang promotes defense against police invasion and apprehension. They carry out their job responsibilities in groups, at least three members, a work arrangement aimed at offering reliable protection. This arrangement keeps members alert and informed about the different threats surrounding them (Padilla 1996, 111). They are always on constant watch for police officers. When a call is made, members of the Diamonds are extra cautious (Padilla 1996, 147). In other words, protection makes them feel more secure within themselves, but also within
Brilliance in Diamonds is a jewelry store that is located in Metairie, Louisiana. They want to guide their customers through the process of creating the perfect engagement ring at a wholesale price. They view every single creation as a partnership between them and their clients. Brilliance in Diamonds is GIA certified. They are certified diamond experts.
1. Manipulation of commodity cost. As a common practice in the company, management would instruct related accounting employee to decrease the commodity costs by a small incremental at a time, until the desired earning numbers for that period was achieved.
The beliefs for having this type of mining band are due to the huge impact on how removing soil along the coast forever changes the shorelines and the expansion of mining destroys natural animal habitats which intern is decreasing wildlife populations. Any kind of mining process is hurtful to our environment by polluting our soil, water and air. Diamond Mining is no different. The carbons are released in our air come from the use of diesel fuels, electricity and hydrocarbons. These chemicals are known to cause smog, climate change and other environmental hazards yet to be
The Merseyside project clearly provides a superior return to the Rotterdam project based on the profit, cash flow and payback criteria. In addition, the positive net
Overall, we have decided that the Merseyside project should be accepted based on the achievement of Diamond Chemicals decision criteria. The project produces a positive NPV of €6.07, holds an IRR greater than their cost of capital at 21.4%, has a payback period less than 6 years at 5.71 years, and adds to earnings per share by generating an extra £.0203 per share. This project satisfies all 4 decision criteria requirements, making Morris’s choice easy in deciding to continue funding the project. Lucy Morris and Diamond Chemicals should go forward with the Merseyside project.
Victoria Chemicals’ Intermediate Chemicals Group (ICG) is evaluating two mutually exclusive proposals on their capital expenditures. The Liverpool and Rotterdam plants have compiled separate proposals. Each proposal had the potential to increase the polypropylene output by 7 percent for their plant respectively. Victoria Chemicals could not view a 14 percent increase companywide being feasible, but agreed half of it would. The board would approve only one of the projects. James Fawn must support one proposal and then submit it to the board for consent.