1 / 3

Case 20 Aurora Textile Company

Case 20 Aurora Textile Company. 1. Background Aurora was questioning whether it should install a new ring-spinning machine, Zinser 351 ($8.25 million) whose efficiency will reduce operating costs.

ansel
Télécharger la présentation

Case 20 Aurora Textile Company

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Case 20 Aurora Textile Company

  2. 1. Background • Aurora was questioning whether it should install a new ring-spinning machine, Zinser 351 ($8.25 million) whose efficiency will reduce operating costs. • But Aurora had losses last 4 years and limited cash ability and working capitals. Difficult financial environment is expected to go on in future.

  3. 2. Questions • 1) Briefly summarize Text-Mill Industry. • 2) Does Aurora have to keep using the existing ring-spinning machine or purchase the Zinser? • (Using NPVand IRR, answer this question) • 3) Is it really best interest to shareholders in the changing environment – lifting quota (WTO) and in terms of liability risks associated with customer return?

More Related