CASE 57
EVERLAST
Ever last is well-known battery manufacturer headquartered in the United States. It is holding a meeting to review plans for a new plant in Arabia, a small country on the Persian Gulf. At the meeting is Ed Phillips, the CEO; Robert Strauss, treasurer and CFO; and Susan Altman, head of the international division. Susan Altman is making the presentation. ALTMAN Today we're here to discuss a proposal to build a battery manufacturing plant in Arabia. The Plant will cost $ 10 million and generate a rate of return of 18.4 percent and an NPV of $945,800. Our share of the cost is $ 7.5 million, with the remainder provided by our prospective partner in Arabia, Mr. Mohammed Jeddah. Mr. Jeddah owns a facility in Arabia that was previously used by a firm that went bankrupt. The plant is in good condition, and all necessary facilities such as railroad sidings, electricity, water, and telephone service are already in place. Mr. Jeddah has agreed to transfer ownership to our new subsidiary, Ever last Arabia, in return for a 25 percent interest in the new company. We will provide working capital, machinery, technical expertise, and sales outlets. The machinery for the plant can be built in our plant in Houston and shipped to Arabia. Based on our experience at opening other plants, we expect minimal start-up problems. Unlike many countries, the rulers in Arabia are very probusiness. There is little threat of expropriation, and the tax code and investment code are reasonable. There is a requirement that locals own 25 percent of the enterprise. That reduces our profits, but it's better than some other countries in the area that require local control of a majority of the shares. Also, unlike many other countries, the regulations and tax rates are the same for foreigners and nationals. Finally, there are no local currency controls. As overseas projects go, this one is a piece of cake.
PHLLIPS Can you step us through the financials ?
ALTMAN Certainly . As you can see from your handout, Exhibit 1 shows annual sales of 20 million units.
กรณี 57EVERLASTEver last is well-known battery manufacturer headquartered in the United States. It is holding a meeting to review plans for a new plant in Arabia, a small country on the Persian Gulf. At the meeting is Ed Phillips, the CEO; Robert Strauss, treasurer and CFO; and Susan Altman, head of the international division. Susan Altman is making the presentation. ALTMAN Today we're here to discuss a proposal to build a battery manufacturing plant in Arabia. The Plant will cost $ 10 million and generate a rate of return of 18.4 percent and an NPV of $945,800. Our share of the cost is $ 7.5 million, with the remainder provided by our prospective partner in Arabia, Mr. Mohammed Jeddah. Mr. Jeddah owns a facility in Arabia that was previously used by a firm that went bankrupt. The plant is in good condition, and all necessary facilities such as railroad sidings, electricity, water, and telephone service are already in place. Mr. Jeddah has agreed to transfer ownership to our new subsidiary, Ever last Arabia, in return for a 25 percent interest in the new company. We will provide working capital, machinery, technical expertise, and sales outlets. The machinery for the plant can be built in our plant in Houston and shipped to Arabia. Based on our experience at opening other plants, we expect minimal start-up problems. Unlike many countries, the rulers in Arabia are very probusiness. There is little threat of expropriation, and the tax code and investment code are reasonable. There is a requirement that locals own 25 percent of the enterprise. That reduces our profits, but it's better than some other countries in the area that require local control of a majority of the shares. Also, unlike many other countries, the regulations and tax rates are the same for foreigners and nationals. Finally, there are no local currency controls. As overseas projects go, this one is a piece of cake.PHLLIPS สามารถก้าวเราผ่านการเงินALTMAN แน่นอน คุณสามารถดูจากเอกสารประกอบคำบรรยายของคุณ 1 แสดงแสดงยอดขายประจำปีของหน่วย 20 ล้าน
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CASE 57
EVERLAST
Ever last is well-known battery manufacturer headquartered in the United States. It is holding a meeting to review plans for a new plant in Arabia, a small country on the Persian Gulf. At the meeting is Ed Phillips, the CEO; Robert Strauss, treasurer and CFO; and Susan Altman, head of the international division. Susan Altman is making the presentation. ALTMAN Today we're here to discuss a proposal to build a battery manufacturing plant in Arabia. The Plant will cost $ 10 million and generate a rate of return of 18.4 percent and an NPV of $945,800. Our share of the cost is $ 7.5 million, with the remainder provided by our prospective partner in Arabia, Mr. Mohammed Jeddah. Mr. Jeddah owns a facility in Arabia that was previously used by a firm that went bankrupt. The plant is in good condition, and all necessary facilities such as railroad sidings, electricity, water, and telephone service are already in place. Mr. Jeddah has agreed to transfer ownership to our new subsidiary, Ever last Arabia, in return for a 25 percent interest in the new company. We will provide working capital, machinery, technical expertise, and sales outlets. The machinery for the plant can be built in our plant in Houston and shipped to Arabia. Based on our experience at opening other plants, we expect minimal start-up problems. Unlike many countries, the rulers in Arabia are very probusiness. There is little threat of expropriation, and the tax code and investment code are reasonable. There is a requirement that locals own 25 percent of the enterprise. That reduces our profits, but it's better than some other countries in the area that require local control of a majority of the shares. Also, unlike many other countries, the regulations and tax rates are the same for foreigners and nationals. Finally, there are no local currency controls. As overseas projects go, this one is a piece of cake.
PHLLIPS Can you step us through the financials ?
ALTMAN Certainly . As you can see from your handout, Exhibit 1 shows annual sales of 20 million units.
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