Whitewater Industory Limited

To: Geoffrey Chutter From: Financial Analyst Re: Analyzing Relocation of Fibreglass Moulding Manufacturing Facilities stage setting I have reviewed Specialties Financial Statements and cost bud drum for one-third location alternatives. The relocation is a big issue that would significantly affect our consolidated Financial Statements in the coming years. Because of the prevalent nature, our company will have to report publicly with necessity to comply with GAAP. The users of the Financial Statements, you, creditors (bank and investors), and shareholders will be very raise in predicting future operating cash flows resulting from this change. While creditors nail down their pay back by evaluating the earnings, you, as a termination maker, would like to see if the decision leads our company to a advantageous direction to which accomplish the objective of the company. Shareholders, on the other hand, would clientele about if their outstanding shares produce possibility of increasing note value accompanying by the relocation. Since the purpose of relocation is to increase market place share, to diversify business scope, and to be environmental friendly, the result comes to be good for both our company and the society in appreciate of the long-run development.

However, as your concern, a considerable amount of investiture is at stake that will impact our company as a whole. Therefore, cost and benefit analysis appears to be precise to determine which plant is perfect for relocation and which method (renting or buying) is financially favourable for our company. Basically, my analysis follows statistical data on Specialties past 4 years of Financial Statements. But I have to make some assumptions due to lack of unavoidable information on amortization, interest rate, and tax rate etcetera There are two options for setting new facility-renting and buying. below each option, there are 3 alternatives. After figure net cash flow and payback period on a lower floor each option, I will discuss pros and... If you want to get a full essay, order it on our website: Orderessay

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