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    F402 - Corporate Strategy and Governance Case Assignment - Due September 22, 2020 at 9:25AM "Victoria Chemicals PLC (A) : The Merseyside Project"

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    Harrison Galavan
    This document provides instructions for a case assignment analyzing the "Victoria Chemicals PLC(A): The Merseyside Project." Students are asked to: 1) Make any necessary changes to the discounted cash flow analysis for the project, considering points raised in the case. 2) Provide a list of changes made to the analysis and reasons for each change. 3) Make a recommendation on whether the company should proceed with the renovation project based on the updated analysis. The case assumes some level of sales erosion between plants due to increased output must be considered.

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    F402 - Corporate Strategy and Governance Case Assignment - Due September 22, 2020 at 9:25AM "Victoria Chemicals PLC (A) : The Merseyside Project"

    Uploaded by

    Harrison Galavan
    55 views1 page
    This document provides instructions for a case assignment analyzing the "Victoria Chemicals PLC(A): The Merseyside Project." Students are asked to: 1) Make any necessary changes to the discounted cash flow analysis for the project, considering points raised in the case. 2) Provide a list of changes made to the analysis and reasons for each change. 3) Make a recommendation on whether the company should proceed with the renovation project based on the updated analysis. The case assumes some level of sales erosion between plants due to increased output must be considered.

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    This document provides instructions for a case assignment analyzing the "Victoria Chemicals PLC(A): The Merseyside Project." Students are asked to: 1) Make any necessary changes to the discounted cash flow analysis for the project, considering points raised in the case. 2) Provide a list of changes made to the analysis and reasons for each change. 3) Make a recommendation on whether the company should proceed with the renovation project based on the updated analysis. The case assumes some level of sales erosion between plants due to increased output must be considered.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    55 views1 page

    F402 - Corporate Strategy and Governance Case Assignment - Due September 22, 2020 at 9:25AM "Victoria Chemicals PLC (A) : The Merseyside Project"

    Uploaded by

    Harrison Galavan
    This document provides instructions for a case assignment analyzing the "Victoria Chemicals PLC(A): The Merseyside Project." Students are asked to: 1) Make any necessary changes to the discounted cash flow analysis for the project, considering points raised in the case. 2) Provide a list of changes made to the analysis and reasons for each change. 3) Make a recommendation on whether the company should proceed with the renovation project based on the updated analysis. The case assumes some level of sales erosion between plants due to increased output must be considered.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    F402 - Corporate Strategy and Governance

    Case Assignment – Due September 22, 2020 at 9:25AM


    “Victoria Chemicals PLC(A): The Merseyside Project”

    Instructions:
     This is a group assignment. Please see the class web page for your team assignments.
     The case can be found in the F402 course pack. A spreadsheet of Exhibit 2 in the case is
    available on the F402 Canvas page. Make use of this during your analysis. Note that you
    may have to correct some of the entries made in this spreadsheet.

    Case Assignment

    Lucy Morris has asked for your assistance in evaluating the Merseyside Project.

    1) Make any changes you deem necessary to Frank Greystock’s discounted cash flow analysis.
    Consider the points raised by the Transport Division, the director of Sales, the assistant plant
    manager and the analyst from the Treasury staff. Also note there may be additional changes
    beyond those explicitly mentioned in the case. Update spreadsheet 2 to reflect these
    changes.
    2) On a separate page do the following:
    a) List each change you made to the spreadsheet, describe the change and the reason why
    the change was necessary. (you only need a sentence or two per change)
    b) Make a recommendation concerning whether Victoria Chemicals should proceed with the
    renovation project based on your analysis. Give your reasons why.

    One of the concerns raised in the case is that the increased output that results from the
    renovation at Merseyside will erode sales of the Rotterdam plant.  You must assume some
    level of erosion, and use the economics of the case to justify your choice.  You may not
    assume that there is no erosion for two reasons.  First, that would require perfect
    competition (which doesn't apply here) and second, I want to make sure you understand
    how to account properly for erosion.

    Discussion Preparation: For In-class Discussion Only (is not part of the write-up)

    Critique the way in which Victoria Chemicals evaluates its capital-expenditure proposals. Do an
    in-depth analysis based upon our previous class discussions. You may also draw upon previous
    courses' material (i.e., F301, F303 or other related classes.)

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