0% Plagiarism Guaranteed & Custom Written

Danforth & Donnalley Laundry Products Company Determining Relevant Cash Flows

16 / 01 / 2019 Research Papers

This paper circulates around the core theme of Danforth & Donnalley Laundry Products Company Determining Relevant Cash Flows together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.

Danforth & Donnalley Laundry Products Company Determining Relevant Cash Flows 1 answer below » At 3:00 p.m. on April 14, 2010, James Danforth, President of Danforth & Donnalley (D&D) Laundry Products Company, calle to order a meeting of the
financial directors. The purpose of the meeting was to make a capital-budgeting decision with respect to the introduction and production of a new product, a
liquid detergent called Blast. D&D was formed in 1993 with the merger of Danforth Chemical Company (producer of Lift-Off detergent, the leading laundry
detergent on the West Coast) and Donnalley Home Products Company (maker of Wave detergent, a major Midwestern laundry product). View complete question » At 3:00 p.m. on April 14, 2010, James Danforth, President of Danforth & Donnalley (D&D) Laundry Products Company, calle to order a meeting of the
financial directors. The purpose of the meeting was to make a capital-budgeting decision with respect to the introduction and production of a new product, a
liquid detergent called Blast. D&D was formed in 1993 with the merger of Danforth Chemical Company (producer of Lift-Off detergent, the leading laundry
detergent on the West Coast) and Donnalley Home Products Company (maker of Wave detergent, a major Midwestern laundry product). As a result of the merger,
D&D was producing and marketing two major product lines. Although these products were in direct competition, they were not without product differenciation:
Lift-Off was a low-suds, concentrated powder, and Wave was a more traditional powder detergent. Each line brought with it considerable brand loyalty; and, by
2010, sales from the two detergent lines had increased ten-fold from 1993 levels, with both products now being sold nationally. In the face of increased
competition and technological innovation, D&D spent large amounts of time and money over the past 4 years researching and developing a new, highly
concentrated liquid laundry detergent. D&D’s new detergent, which they call Blast, had many obvious advantages over the conventional powdered products. The
company felt that Blast offered the consumer benefits in three major areas. Blast was so highly concentrated that only 2 ounces were needed to do an average
load of laundry, as compared with 8 to 12 ounces of powdered detergent. Moreover, being a liquid, it was possible to pour Blast directly on stains and
hard-to-wash spots, eliminating the need for a pre-soak and giving it cleaning abilities that powders could not possibly match. And, finally, it would be
packaged in a lightweight, un-breakable plastic bottle with a sure-grip handle, making it much easier to use and more convenient to store than the bulky boxes
of powdered detergents with which it would compete.The meeting participants included James Danforth, president of D&D; Jim Donnalley, director of the
board; Guy Rainey, vice-president in charge of new products; Urban McDonald, controller; and Steve Gasper, a newcomer to the D&D financial staff who was
invited by McDonald to sit in on the meeting. Danforth called the meeting to order, gave a brief statement of its purpose, and immediately gave the floor to
Guy Rainey. Rainey opened with a presentation of the cost and cash flow analysis for the new product. To keep thing clear, he passed out copies of the
projected cash flows to those present (see Exhibits 1 and 2). In support of this information, he provided some insights as to how these calculations were
determined. Rainey proposed that the initial cost for Blast include $500,000 for the test marketing, which was conducted in the Detroit area and completed in
June of the previous year, and $2 million for new specialized equipment and packaging facilities. The estimated life for the facilities was 15 years, after
which they would have no salvage value. This 15-year estimated life assumption coincides with company policy set by Donnalley not to consider cash flows
occurring more than 15 year…


100% Plagiarism Free & Custom Written


International House, 12 Constance Street, London, United Kingdom,
E16 2DQ

Company # 11483120

STILL NOT CONVINCED?

We've produced some samples of what you can expect from our Academic Writing Service - these are created by our writers to show you the kind of high-quality work you'll receive. Take a look for yourself!

View Our Samples

Benefits You Get

  • Free Turnitin Report
  • Unlimited Revisions
  • Installment Plan
  • 24/7 Customer Support
  • Plagiarism Free Guarantee
  • 100% Confidentiality
  • 100% Satisfaction Guarantee
  • 100% Money-Back Guarantee
  • On-Time Delivery Guarantee
FLAT 25% OFF ON EVERY ORDER. Use "FLAT25" as your promo code during checkout