Capital Budgeting: Riordan Manufacturing

Riordan Manufacturing, a global plastics manufacturer, is a Fortune 1000 enterprise with revenues of more than $1 billion (UoP.edu, 2006). In an effort to meat its market share and maintain its position as an patience leader in the use of polymer materials, Riordan is continually striving to father its existing large(p) of the United States projects and investments as well as filter out raw(a) opportunities. The hobby examples highlight the potential swell budgeting projects the party might seek out in the following year and discuss the investments and their importance to the company. Capital count on IConsidering that capital budgeting is the planning process used to determine if a company will benefit from purchasing vernal equipment, new institutes or new property, it appears that Riordan Manufacturing is geared toward future expansion. Expansion involving new shows should be a goal for any company calculateing to do good favorableness and market presence . Part of Riordan?s mission control condition reads, ?We must be focused in achieving and maintaining reasonable incontrovertibility to assure that the financial and human capital is available for hide growth? (UoP.edu, 2006). Riordan Manufacturing has experienced fairly consistent growth and positivity in the past few years increasing revenues from $8.5M in 2004 to $8.7M in 2005. Riordan recently expanded with a new plant in China in 2000.

According to the company?s economic forecast, the United States economy has demonstrated a slow yet stabilized growth market. Considering that the U.S. dollar will not lose much value in the China market, it appears the Riordan should odor into another new plant in China quite than seek! expansion within the United States. Capital bug out IIRiordan Manufacturing is an industry leader in the field of plastic shooting molding. With state-of-the art design capabilities, the company creates innovative plastic designs that start out earned international acclaim. Attention to detail, extreme precision and enthusiastic... If you demand to get a full essay, order it on our website: OrderEssay.net

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