Essay Pumping Iron at the Cliffs

This paper will provide an analysis of 2 production scenarios. We will calculate costs associated with running a production facility. Furthermore, the analysis will be used to provide a basic understanding of how changes in staffing and productivity impact profit and loss.

Tucker Hansson, the owner of Hansson Private Label, is struggling in whether to execute the $50 million investment proposed by his manufacturing team. Under this situation, the subject of this report is to evaluate the potential investment of expanding production capacity at Hansson Private Label (HBL) and make a recommendation to Tucker Hansson. In this report, I will specifically focus on analyses of the project’s free cash flows (FCFs), weighted average cost of capital (WACC) and net present value (NPV). With a sensitivity analysis, it can help us to observe how change in some key project variables

Moreover, Robert Gates’ estimation of the price increase (2.0%) differs from the information provided in the case (1.7%). This overestimates revenue and thereby FCF. To make better projections for the firms’ FCF, Robert Gates would also have to consider the opportunity cost of alternative investments, the risk exposure throughout the project and operational risks after three years.

Clean coal technology usually addresses atmospheric problems resulting from burning coal. Historically, the primary focus was on sulfur dioxide and particulates, since it is the most important gas in the causation of acid rain. More recent focus has been on carbon dioxide (due to its impact on global warming) as well as other pollutants. Concerns exist regarding the economic viability of these technologies and the timeframe of delivery, potentially high hidden economic costs in terms of social and environmental damage, and the costs and viability of disposing of removed carbon and other toxic matter. More, the byproducts of coal power production range from fly ash sludge ponds full of mercury, arsenic, and sulfur in unlined ponds that can leak into the water supply.

All relevant costs located in worksheets #2, and #3 indicate that Shamrock manufacturing will benefit by replacing the machines at either equipment cost. However, worksheet #1 presents a problem for Mr. Fitzgerald as it shows a $6500 increase in the first year expenses, which are irrelevant in the long-run, but may encourage Mr. Fitzgerald not to purchase the new equipment because it may reflect badly on the short-run net operating income of his plant during the evaluation period for his promotion. Worksheet #3 offers a breakeven scenario in the first year and a $24,000 reduction in relevant cash flows in year two, which is the best option for Mr. Fitzgerald and Shamrock, if available.

To meet the growing demand for copper in Australia, mining is necessary but there is still a huge supply of recycled copper, as it plays a vital part in the conservation of the supply of chalcopyrite ore, which reduces energy consumption, decreases waste disposal, and conserves the environment. It is estimated that such recycling supplies 50% of copper used in the Australian copper industry. In 2010, it was reported that 770,000 metric tons of copper were recycled, at an estimated value of nearly six billion Australian dollars. First, the copper has to be reduced to a reusable form through baling. This form differs depending on the use of the copper. When the copper has gone through a process reducing it to a reusable form for industry, the final process is to transport the recycled copper to a smelter where it goes through melting, and is eventually smoothed into flat sheets for new industry

It is predicted that Australia’s carbon dioxide emissions would double if these mines were to be built, from 357.5 tonnes to 750 tonnes of carbon dioxide per year. Additionally, many of these mines will require additional train rails to be constructed for the purpose of transporting the mined goods to proposed ports on the coast of

Huntley Colliery has a modern dense medium cyclone and froth flotation type washery to prepare the saleable coal. It is capable of separating the different quality coal products from high grade coking coal and the various grades of steaming coal. Throughput of this plant is rated at 400 tonnes per hour and has worked at an average of one million tonnes per annum on a two shift operation setting.

One positive impact of copper mining is that it has a great impact on the economy, as it is a multi-purpose metal. It can be used for infrastructure, motor vehicle radiators and heating systems as well as electrical generators and motors for electrical wiring. Furthermore, various establishments will purchase the metal. Although it’s not as costly as gold, copper is sought out for its versatility.

The two plans, Sarnia 1 and Sarnia 2 are producing halobutyl and regular butyl, respectively. The newly regular butyl plant, Sarnia 2, is running at less than capacity. The plant should be able to produce 95,000 tonnes, but the actual production is only 65,000. This creates a lot of unabsorbed fixed costs and inefficiency.

The net present value (NPV) of each option has been calculated and included in Table 1, based on figures from the study group report. Unfortunately, these figures are flawed in the same manner as Wriston’s current performance and accounting mechanisms in that they don’t properly allocate revenue, nor do they recognize inherent manufacturing complexities. The plant closure option’s expected operational gain seems particularly suspect. A better valuation of the new plant options is perhaps

This report had been prepared requested by the Board. The content of this report concentrated on evaluating the performance of Iron Ore Mining and providing a recommendation of any potential financial justified growth strategies for the next strategic planning horizon (3 years).

When looking at the incremental cash flows for the new project, replacing the old machine with the Zinser machine is a good investment. The NPV of the investment is $6.33 million and the IRR is 28%, much higher than the 10% hurdle rate (see exhibit 4). While all the assumptions made could affect the NPV of the project, the major concern that could erode the value of the project is whether Aurora can survive for 10 years. In our early termination

The biggest problem of changing to a level production is the cash flow. As it changes to a level production, it will produce 542 dollars each month. However, the first seven months it is not selling more than 160 dollars each month

Rio Tinto is a multinational company that deals with mineral and metal mining, refining, processing, and marketing. Founded in 1873, this Australian-British company has grown into one of world’s leading mining and Metals Company, dealing in aluminium, copper, diamonds, coal, and iron ore. Refining of bauxite and iron ore are also part of its operations. The transformed metals and minerals give Rio Tinto access to markets across a diverse economic development spectrum, and exposure in varied sectors, including