The case presents capital projects: The case may be used for the following:
LinkedIn Are you uncertain about any of the assumptions?
What does a sensitivity analysis of those assumptions reveal? It indicates that at the highest level of revenue growth rate and the lowest WACC level. The company could get the best possible returns. Are there qualitative issues that we should address but which are not reflected in the fundamental analysis?
The qualitative issues that are there to deal with in order to find out the feasibility and appropriateness of the investing opportunities are: Since the machine that will be acquired by the company would take the reduced space than the machines that are currently used by the company workers, less space utilization and more efficient performance would definitely help the operators to use that vacant space for some other purposes.
The storage or warehouse cost are saved by the efficient utilization of the machine. One thing that could requires to be dealt tactfully, is the potential issue with the labor union, that is there to be solved by the company representatives, because the new machine would add the potentials and requires less human capital.
The currently working workers would find this step offensive.
Proper settlements with increased compensation and redundancy benefits should be provided to the workers and steps should be taken to incorporate the workers to some other place based on their willingness or ability. It should be done with utmost care to avoid future possible drawbacks.
There is also some uncertainty about the economic outlook of the state, but given that the economic viability of the company is goad, so in long run it would be a balanced approach to move with the new venture and it would serve in the favor of company. What should Martina Bellucci recommend to her Board of Directors?
From the analysis and the free cash flow calculations of the new machine, it can be recommended as, Martina should opt for purchasing the new machine and making investment in the venture would not be bad option. She should propose to the board of directors to purchase the new machine, as the costs of the company would reasonably be decreased and the efficiency and capacity of the workers as well as the overall performance of the company increases.
FONDERIA di TORBOLE S.p.A. - production of grey cast iron and alloyed cast iron castings and machined parts for the automotive market - solid and vented brake discs for cars, light commercial vehicles, trucks and heavy duty vehicles, brake drums for cars and light commercial vehicles, flywheels, hubs, wheel hub caps, bearings caps, supports. University of the Philippines-Diliman Cesar EA Virata School of Business BA Managerial Accounting Case 4: VESUVIO FONDERIA S.p.A. BACKGROUND Back in the year , Vesuvio was founded by Benito Lombardi to produce castings for the armements industry in Naples, Italy. vesuvio fonderia s.p.a. In November , Angela Lombardi, managing director of Vesuvio Fonderia S.p.A., was considering the purchase of a “Bond-O-Matic” automated molding machine. This machine would prepare the sand molds into which molten iron was poured to obtain iron castings.
The new machine would save the cost and adds to the profits in long run, this would be a fruitful investment.fonderia di torino s.p.a. In November , Francesca Cerini, managing director of Fonderia di Torino S.p.A., was considering the purchase of a Vulcan Mold-Maker automated molding machine.
This machine would prepare the sand molds into which molten iron was poured to obtain iron castings. vesuvio fonderia s.p.a.
In November , Angela Lombardi, managing director of Vesuvio Fonderia S.p.A., was considering the purchase of a “Bond-O-Matic” automated molding machine. This machine would prepare the sand molds into which molten iron was poured to obtain iron castings.
Case Analysis: Vesuvio Fonderia The Opportunity Situational Summary The Decision Making Process MAXIMIZE SHAREHOLDER WEALTH Discussion/Conclusion Overall Project Decision.
vesuvio fonderia s.p.a. In November , Angela Lombardi, managi ng director of Vesuvio Fonderia S.p.A., 1 was considering the purchase of a “Bond-O-Matic” auto mated molding machine.
L'uomo è asciutto, sulla cinquantina, tutto muscoli guizzanti sotto la pelle tesa nello sforzo continuo, brunito dal sole, terrigno il volto su cui il tempo ha tracciato piccoli solchi col suo aratro implacabile. Get to know Fonderia di Torbole S.p.A. CEO & other corporate executives.
Learn about the Board of Directors, Executive Committees and CEO compensation in this industry.