Contents
Introduction to the case study- History & Current market position of company
- Issues currently faced by the company
- Proposed capital budgeting project by the plant manager
- Conservative plan – Concerns raised by different departments, Conservative approach towards Hawkins polypropylene project, Conclusion on analysis report
- Aggressive plan of company
- Compromise plan on company
- Assumptions analysis
Description
This report analyses the various issues faced by Empirical Chemical Company (UK). The company is currently faced with the dilemma of whether to carry out the proposed modernization project involving a capital outlay of $7 million or to carry on with the current operations. After considering all the factors presently affecting the company and the factors which may have an influence on its future operations, a recommendation have been made to carry out the current proposed project but with some the necessary modifications. This is done in order to minimize the potential risks of the project.
