Groupe Ariel S A Parity Conditions And Cross Border Valuation Pdf
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- Groupe considering replacing the manual equipment used for
- Groupe considering replacing the manual equipment used for
- A case study Groupe Ariel S.A.: Parity conditions and cross-border valuation.
Groupe considering replacing the manual equipment used for
The information had arrived late Friday—too late for Martin to analyze—and was waiting for him Monday morning. As a financial analyst for a global manufacturer of printing and imaging equipment, Martin examined many cross-border projects, particularly since Ariel had accelerated its move into emerging markets several years earlier. The Mexican investment proposal called for the purchase and installation of new automated machinery to recycle and remanufacture toner- and printer cartridges.
Many office product retailers operated formal toner cartridge recycling programs, for both the environmental benefits of keeping materials out of landfills and demonstrated cost savings for their customers. They have simply come to expect recycling as an option, even for smaller cartridges at lower price points. The investment proposal called for replacing this process with new automated machinery from Germany that cost an estimated 3. As described in the project summary, Ariel-Mexico expected to realize substantial savings in labor and materials almost immediately.
Though the proposed expenditure was relatively small, Ariel required a discounted cash flow analysis for all such investments in its newer foreign markets and a review by corporate headquarters in Mulhouse. Luehrman and writer James Quinn prepared this case solely as a basis for class discussion and not as an endorsement, a source of primary data, or an illustration of effective or ineffective management. This case, though based on real events, is fictionalized, and any resemblance to actual persons or entities is coincidental.
There are occasional references to actual companies in the narration. This publication may not be digitized, photocopied, or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School. Groupe Ariel was a global manufacturer of printers, copiers, fax machines, and other document production equipment. Exhibit 1 presents selected consolidated financial data for Groupe Ariel.
Ariel had been a global firm for years, but did not move aggressively into emerging markets until — This was later than some of its competitors. Ariel conducted business in 28 countries around the world, with operations consisting of manufacturing facilities, small research labs, as well as sales and marketing subsidiaries. Ariel competed in a relatively mature market, and its chief competitors were both established multinational companies—some of which had developed their consulting and other after-sales services businesses to a higher level than had Ariel—as well as smaller players serving niche markets.
While Ariel marketed and sold its products across the full spectrum of industries, it had enjoyed particular success in financial services, health care, and government sectors. We wanted to diversify our operations and believed we needed to establish a strong presence in places besides Europe and the United States.
This creates loyalty and solid market positions in Mexico and other of our newer markets. Most of the products produced in the Monterrey plant were sold in Mexico and were distributed through large office-product retailers, department stores, as well as small specialty shops. Nevertheless, plant records indicated that there was a sizable increase in demand for recycled printer and toner cartridges.
Ariel pledged to recycle and remanufacture all returned toner and printer cartridges. Ariel-Mexico also had voiced its support for political efforts to pass legislation that would mandate recycling of printing cartridges used by most Mexican businesses and government offices.
Under very favorable circumstances, only three workers would be required. It would also eliminate some human error, which currently resulted in cracked or damaged cartridges which had to be destroyed rather than reused.
It also would require only minimal maintenance expenditures compared to the equipment it replaced, and no significant change in working capital. The new equipment would have a useful life of 10 years and would be depreciated under the straight-line method for both tax and financial reporting purposes. Salvage value was likely to equal disposal costs at the end of the useful life.
The manual equipment being replaced was very simple and, properly maintained, would last many more years. In June it had a book value and tax basis of , pesos and three years of straight-line depreciation remaining. However, its market value was thought to be lower, at about , pesos. Other macroeconomic data in Mexico, including bond yields, bank lending rates, and the consumer price index exhibited similar patterns in recent years.
Exhibit 3 shows selected macroeconomic and financial market data for Mexico. Martin had yet to decide whether to perform the discounted cash flow analysis in Euros or pesos, or indeed, whether NPV would be affected by the choice of currency. Longer-term peso-denominated corporate bonds were yielding 9. The spot exchange rate on June 23 was MXN Many analysts were on record predicting a real depreciation of the peso against both the U.
Selected macroeconomic and financial market data for France are presented in Exhibit 4. Related Papers. By Adrian Aguilar. By Angel Maria Casas Gragea. By Eva S. Keep the Union at Bay. By Francesca Coin. Download pdf. Remember me on this computer. Enter the email address you signed up with and we'll email you a reset link. Need an account? Click here to sign up.
Groupe considering replacing the manual equipment used for
When students have the English-language PDF of this Brief Case in a coursepack, they will also have the option to purchase an audio version. Groupe Ariel evaluates a proposal from its Mexican subsidiary to purchase and install cost-saving equipment at a manufacturing facility in Monterrey. The improvements will allow the plant to automate recycling and remanufacturing of toner and printer cartridges, an important part of Ariel's business in many markets. Ariel corporate policy requires a discounted cash flow DCF analysis and an estimate for the net present value NPV for capital expenditures in foreign markets. A major challenge for the analysis is deciding which currency to use, the Euro or the peso. The case introduces techniques of discounted cash flow valuation analysis in a multi-currency setting and can be used to teach basic international parity conditions related to the value of operating cash flows. Compare discounted cash flow and net present value analysis in multiple currencies.
Not Registerd? Create an account. You have an account Login here. Groupe Ariel is thinking about an idea from its Mexican subsidiary to purchase and actualize a practical device at a generation unit in Monterrey. The upgrades will empower the office to motorize the recycling and proliferation of toner and printer cases, which is a huge augmentation of Ariel's exchange in various markets.
Case solution for the Groupe Ariel case study in which the company reviews a proposal to buy and use cost-saving equipment at a manufacturing facility in Monterrey. The equipment will allow the company to automatically recycle and remanufacture cartridges of toner and printer. Recycling and remanufacturing of these cartridges is an important venture of Ariel's business. The corporate policy of Ariel necessitates an analysis of the discounted cash flow DCF and a net present value NPV estimate for capital expenditures in international markets. It is facing the challenge of coming up with the decision on which currency to use: the Euro or the peso. How should this NPV be translated into Euros?
Groupe Ariel Sa Case Analysis Groupe. Ariel S.A: Parity Conditions and Cross-. Border Valuation Abstract This case discusses Cross-Border valuation of.
A case study Groupe Ariel S.A.: Parity conditions and cross-border valuation.
This kind of analysis is common for companies that are operating in many countries. Groupe Ariel is one such company that is considering investing in a project in its own subsidiary in Mexico. The company manufactures and sells printers, copiers and other document production equipment in many countries. As far as, expansion into new markets is concerned, company is very slow in taking initiatives as compared to its competitors owing to the recent recession. But the management of the company believes that better durability and lower after-sales service costs of their products enable the company to build customer loyalty.
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Groupe Ariel S. When students have the English-language PDF of this Brief Case in a coursepack, they will also have the option to purchase an audio version. Groupe Ariel evaluates a proposal from its Mexican subsidiary to purchase and install cost-saving equipment at a manufacturing facility in Monterrey. The improvements will allow the plant to automate recycling and remanufacturing of toner and printer cartridges, an important part of Ariel's business in many markets. Ariel corporate policy requires a discounted cash flow DCF analysis and an estimate for the net present value NPV for capital expenditures in foreign markets. A major challenge for the analysis is deciding which currency to use, the Euro or the peso.
К началу 1990-х годов ключи имели уже более пятидесяти знаков, в них начали использовать весь алфавит АСКИ - Американского национального стандартного кода для обмена информацией, состоящего из букв, цифр и символов. Число возможных комбинаций приблизилось к 10 в 120-й степени - то есть к единице со 120 нулями. Определить ключ стало столь же математически нереально, как найти нужную песчинку на пляже длиной в три мили. Было подсчитано, что для успешной атаки на стандартный ключ самому быстрому компьютеру АНБ - секретнейшему Крей-Джозефсону II - потребуется более девятнадцати лет. К тому времени когда компьютер разгадает пароль и взломает шифр, информация, содержащаяся в послании, утратит всякую ценность. Оказавшись в условиях подлинного разведывательного затемнения, АНБ выпустило секретную директиву, одобренную президентом Соединенных Штатов.
Снова последовало молчание: Стратмор размышлял о том, что она сказала. - Следопыт? - Он, похоже, был озадачен. - Следопыт вышел на Хейла. - Следопыт так и не вернулся. Хейл его отключил.
С каких это пор заместитель директора начал действовать в обход фильтров. Сотрудникам лаборатории платили хорошие деньги, чтобы они охраняли компьютерные системы АНБ, и Чатрукьян давно понял, что от него требуются две вещи: высочайший профессионализм и подозрительность, граничащая с паранойей. Черт возьми! - снова мысленно выругался. - Никакая это не паранойя. Этот чертов компьютер бьется над чем-то уже восемнадцать часов.
Я не сказал ему про спутницу. - Взмахом руки Клушар величественно отверг вопрос Беккера. - Они не преступницы - глупо было бы искать их, как обычных жуликов. Беккер все еще не мог прийти в себя от всего, что услышал.
Наконец канадец опомнился. - Из консульства? - Его тон заметно смягчился. Беккер кивнул.
Да, если верить ему - не английские. - Стратмор приподнял брови, точно ждал объяснений. - Японские иероглифы. Стратмор покачал головой.
Он выкинул его автобиографию в мусорную корзину, даже не прочитав. Нуматака в очередной раз посмотрел на часы. Американец по кличке Северная Дакота должен был бы уже позвонить.
Пройдя помещение шифровалки и зайдя в лабораторию систем безопасности, он сразу почувствовал что-то неладное. Компьютер, который постоянно отслеживал работу ТРАНСТЕКСТА, оказался выключен, вокруг не было ни души. - Эй! - крикнул Чатрукьян. Ответа не последовало.
На этот раз ему очень вежливо ответили по-немецки, но снова сказали, что рыжих девочек у них .