Whirlpool Europe Case

1.) What is the marginal cost estimate of the Phase 4 hospital services, assuming that 60 percent of the designated costs are fixed and the remaining costs are variable?

During the period of 5 years (from 1994 to 1998), if the discount rate is 20%, Waltham plant is the only one that has a positive amount in NPV. The total net present value of this plant is approximately $6.4 million, while the other two plants have a negative number (Santa Clara: negative $3,882,499; Greenfield: negative $29,386,827).

Q2. What are the financial implications of the three options? How does it impacts the lead time?

1. If Mrs. Beach wanted to invest a lump sum of money today to have $100,000 when she retired at 65 (she is 40 years old today) how much of a deposit would she have to make if the interest rate on the C.D. was 5%?

Since this project is a going concern, the levered terminal and present values are calculated using the weight average cost of capital (WACC) as the discount rate, which we calculate to be 16.17%.

* Compute the value with leverage, VL, by discounting the free cash flows of the investment using the WACC.

Company is planning to develop a flight simulation game. There are two game platforms: Xbox

the start of a project, or a mine with shutdown option is examples of such

Based on my calculation and the assumptions from the case text, I would recommend this project. It can provide an 82.98 million positive economic value to Whirlpool Europe. However I do have a few concerns. The forecasting and calculations are based on large quantity of assumptions, and some of them are pretty optimistic, such as the 25% percent increase in unit sold. Thus, the actual result of this project is subject to a volatility based on the accuracy of the date and forecasting provided in case.

As a world’s largest producer of frozen chips which is opened by the McCain family in New Brunswick, Canada in 1957, McCain Foods is growing rapidly and became a market leader after entering UK market. To maintain a competitive advantage, McCain Foods insist continuous innovation by investing in new technologies to reduce costs and meet customer demand. McCain Foods is a major user of energy for the production process; As a result, McCain Foods decide to build a wind turbine system which will provide renewable energy to reduce electricity costs. However, there are many investment appraisal techniques for a company to assess that if a project is worth doing and making profits, such as Payback Period (PP), Net Present value (NPV), Internal Rate of Return (IRR), and Average Rate of Return (ARR). In this report we will first provide an academic background for PP followed by the analysis of

| |Reduce the 79 order desk employees by 18%, at an average cost of $40,000 per year per employee. |

The Whirlpool Corporation (“Respondent 1”), is a multi-national company incorporated in U.S.A under the laws of the State of Delaware. TVS Whirlpool Ltd. (“Respondent 2”) is a private limited company incorporated in India in which the Respondent 1 is a majority shareholder. Respondent 1 since 1957 had 2000 trademark registrations all over the world across 65 countries. In 1956, Respondent 1 obtained the trademark registration of “WHIRLPOOL” but in 1977 the trademark registration expired as a result of a failure of renewal.

The owners of the company believe that WHCL will be poised to be a major player in the Canadian and the US heating and cooling markets in three years. However, after collecting information and auditing all the financial statement, we found that there is numerous issues need to be concerned for WHCL in recent years.

21. A futures contract covers 5000 pounds with a minimum price change of $0.01 is sold for $31.60 per pound. If the initial margin is $2,525 and the maintenance margin is $1,000, at what price would there be a margin call?

The savings that Whirlpool has predicted in the case for its European options is composed primarily of the savings associated with reducing inventory turnover and the improvement of sales and sales margins. These two categories represent roughly ninety percent of the savings that Whirlpool expects to save this the integration of an ERP system. These saving estimates are summarized in the following table: