Essay about Whirlpool Europe

Words: 1935
Pages: 8

Financial Management fin855
Whirlpool Europe Case Report
Date: March 2nd, 2015

The benefits proposed in the case are all reasonable. Half reduction in potential optimal DSI improvement is neither too optimistic, nor too conservative. The forecasting on profit margin is based on sales increase. As a benefit resulted from economies of scale enhance, but not from products upgrading, the limited .25% gross margin improvement is quite reasonable. Together with that, if the ERP system can be effective as expected, we do have reason to expect to improvement on sales and gross margin. The benefit improvement analysis is really comprehensive to include also internal changes such as employee elimination and related savings.
Although they all
…show more content…
schedule for 1999 Software License

0.12 0.12 0.12 0.12 0.12 - - - -
Amor. schedule for 2000 Software License

- 0.06 0.06 0.06 0.06 0.06 - - -

CapEx

4.30 8.60 6.90 4.10 - - - - -
Dep. schedule for 1999 Cap Ex 0.86 0.86 0.86 0.86 0.86 - - - -
Dep. schedule for 2000 Cap Ex

- 1.72 1.72 1.72 1.72 1.72 - - -
Dep. schedule for 2001 Cap Ex

- - 1.38 1.38 1.38 1.38 1.38 - -
Dep. schedule for 2002 Cap Ex

- - - 0.82 0.82 0.82 0.82 0.82 -

Licence maitainance - 0.10 0.20 0.30 0.40 0.40 0.40 0.40 0.40
Dep. Schedule for 2000 Expenses

- 0.02 0.02 0.02 0.02 0.02 - - -
Dep. Schedule for 2001 Expenses

- - 0.04 0.04 0.04 0.04 0.04 - -
Dep. Schedule for 2002 Expenses

- - - 0.06 0.06 0.06 0.06