Dayton Dockyards Is Considering a Portable Piece of Transport Equipment

question 82

Essay

Dayton Dockyards is considering a portable piece of transport equipment to help in offloading ships and uploading tractor trailers. The equipment has an initial capital cost of $5,000,000 but would increase operating cash flow by $1,500,000 each year for five years. The equipment could be sold for a net cash flow of $1,000,000 in five years. If the hurdle rate is 14%, and the initial cost of working capital is $500,000, should the dockyard purchase the equipment?

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Definitions:

PR

Short for Public Relations, it involves managing and distributing information between an individual or an organization and the public to shape perceptions and maintain a positive reputation.

Page Principles

A set of guidelines created by Arthur W. Page to define the roles and behaviors of effective public relations practice.

Arthur W. Page

A prominent figure in public relations history, known for establishing corporate communications principles and serving as a VP for AT&T.

PR Professionals

Public Relations professionals who strategize communication efforts to build and maintain a positive public image for individuals, organizations, or brands.