A chemical manufucturer is setting up capacity in europe

Assignment Help Management Theories
Reference no: EM13507546

A chemical manufucturer is setting up capacity in Europe and North America for the next three years, Annual demand in each market 2 million Kilograms(kg) and is likely to stay at that level, the two choice under concideration are buildind 4 million unit of capacity in North America and building and building 2 million units of capacity in each of two location,building two plants will incur an additional one-time cost of 2 million the variable cost of production in North America (for eather large or small plant) is currently $10/Kg, while the cost in Europe is 9eu/kg,the current exchange rate is 1 euro for US$1.33 over each of the next three years the dollar is expected to strengthen by %10 with probability of 0.5 or weaken by 5% with probability of 0.5, Assume a discount rate factor of 10%, what should the chemical manufucturer do? at what initial cost differential from building the two plants will the chemical manufucturer be indifferen between the two option? 

Reference no: EM13507546

Questions Cloud

What are the responsibilities of a dba : What are the responsibilities of a DBA? If we assume that the DBA is never interested in running his or her own queries, does the DBA still need to understand query optimization? Why?
Explain the specific heat of ethylene glycol : The specific heat of ethylene glycol is 2.42 J/g-k. How many J of heat are needed to raise the temperature of 62.0 g of ethylene glycol from 13.1 Celsius to 40.5 Celsius
What is the horizontal component of a drops velocity : When a train's velocity is 12.0 m/s eastward, raindrops that are falling vertically with respect to the earth make traces that are inclined 30.0 degree to the vertical on the windows of the train. What is the horizontal component of a drop's veloci..
Explain theoretical hydraulic retention time of the reactor : If the pollutant to be removed has a concentration of 100 mg/L and decays by 1st-order kinetics with a rate coefficient of 2.25 d-1, what percent removal is achieved if one uses the theoretical hydraulic retention time of the reactor. What percent..
A chemical manufucturer is setting up capacity in europe : A chemical manufucturer is setting up capacity in Europe and North America for the next three years, Annual demand in each market 2 million Kilograms
Find the magnitude of the velocity relative to the earth : In an action-adventure film, the hero is supposed to throw a grenade from his car, which is going 94.0 km/h, to his enemy's car, which is going 112 km/h. Find the magnitude of the velocity relative to the earth
What is the warmer temperature : A Carnot engine operating between a warmer unknown temperature and a reservoir of boiling helium at 1.76 K has an efficiency of 59% What is the warmer temperature
Why would you choose a database system instead of simply : Why would you choose a database system instead of simply storing data in operating system files? When would it make sense not to use a database system?
Explain crystal metal rod to support a tensile load : You have an application that requires a single crystal metal rod to support a tensile load (along the long axis) without experiencing plastic deformation.

Reviews

Write a Review

Management Theories Questions & Answers

  Learning in action

Learning contract proposal that will form the basis of your learning contract report.

  Change is the only constant

"Change is the only constant " Evaluate the different types of change that have occurred in Sony.

  How do advertisers try to use group influence

How do advertisers try to use group influence?  Will you find any specific examples and explain the relevant theory of group behavior and influence?

  Case study:saving sony

You have been appointed by Sony as a consultant on change management. Advise Sony on how they could implement the change by using the various theories of change you have learnt.

  How the stock market works

The purpose of this project is to help you to gain an understanding of how the stock market works and of the relationship between theory and practice.

  Find the optimal production quantities

Find not only the optimal production quantities, but also the optimal total cost.

  Describe the management process

Describe the management process and identify the skills required to manage business organizations.

  Case study : bert''s bonsai and aquatic sport museum

Case Study : Bert's Bonsai and Aquatic Sport Museum Prepare a knowledge management system.

  Knowledge management techniques

Demonstrate understanding of the many-sided nature of knowledge management

  Theory of transtheoretical model

Demonstrate understanding of the many-sided nature of knowledge management

  Write a paper on historical trends of management

Write a paper on Historical Trends of Management.

  Theory of reasoned action

Theory of Planned Behavior and Integrated Behaviors Model

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd