Star River Electronics Ltd.

STATEMENT OF THE PROBLEM Star River Electronics Ltd. is a large manufacturing business and supplier of CD-ROMS. It was founded as a joint venture in the midst of New Era Partners and Starlight Electronics Ltd. It has enjoyed a great deal of supremacy in the past decade, imputable in large initiate to their excellent reputation. Star River does need to talking to several issues with the juvenile resignation of their former CEO. Digital exposure Disks be evaluate to cut into the CD-ROM market in the very move up future, and with only 5% of their gross gross revenue approaching from this area, Star River ask capital expenditures to increase their capacity in this sector. To finance this expenditure, they privy use either debt or equity. Also, a juvenile forwarding machine which would cut down on labor and command processing overhead equals has been proposed, and Star River needs to come whether to approve the purchase now, or wait three years, where new equipment would have to be purchased to allot the projected growth rates. Finally, a weighted average make up of capital needs to be estimated for the firm, which depart help to issue this question of whether to wait or buy this equipment at the confront time. RELEVENT FACTS AND ASSUMPTIONS         DVDs have 14% more(prenominal) storage capacity than CD-ROMs         1999: CD-ROMs accounted for 93% of sales o         Estimated to decrease to 41%         2001: DVDs accounted for slight than 5% of sales o         Estimated to increase to 59%         The new DVD manufacturing equipment bequeath cost SGD54.

6 million o         The new equipment be will be paying throughout the next both years. o         The new equipment will be depreciated over sevensome years. o         Assume that funding for the new equipment will be through debt         Interest expense is weighted for short-term debt and long-term debt: 6.53%         The new packaging machine will cost SGD1.82 million. This written report is not correct. Many of the numbers are incorrect, and rough sentences are identical to the book which is just plain plagiarisms. If you insufficiency to clear a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper