United Piano Makers

The United Piano Makers firm was a large 19th Century piano manufacturer in New York City. The firm was originally charted in New York in May 1860. By 1864 the firm was located at 86 Walker Street. The firm was affiliated and apparently controlled by William A. Pond, one of New Yorks more illustrious piano manufacturers. Although the firm produced pianos sold under their own name (primarily square grand pianos), they also specialized in building pianos for small independent piano dealers across the country who would affix their own names to the instrument.

By 1870, the United Piano Makers had moved to larger factories on Bleecker Street in New York City.The firm distributed pianos across the United States as well as Canada and The West Indies. As the popularity of the square grand piano waned by the end of the 19th Century, the firms success began to diminish in the 1870s. Before disappearing, The United Piano Makers decided to expand its business into other fields such as organ manufacturing and music publishing.

The United Piano Makers firm faced increasing competition from other piano manufacturers who were transitioning to the more popular upright piano design. The upright piano offered advantages such as a smaller footprint and improved sound quality compared to the square grand piano. This shift in consumer preferences, coupled with the economic challenges of the time, led to a decline in demand for square grand pianos.

To adapt to the changing market, The United Piano Makers expanded their business into organ manufacturing. Organs were in demand for use in churches, concert halls, and homes, providing an opportunity for the firm to diversify its product offerings. They also ventured into music publishing, likely aiming to capitalize on the growing interest in sheet music and compositions.

List of electronic organ makers

1. Ahlborn-Galanti Bensenville, Illinois (division of family company,General music)
2. Allen Organ Company Macungie, Pennsylvania
3. Baldwin Piano Company Nashville, Tennessee
4. C.G. Conn Chicago, Illinois
5. Gulbransen
6. Hammond Organ Company Chicago, Illinois
7. Lowrey Organ Company Chicago, Illinois
8. Marshall & Ogletree Needham, Massachusetts
9. Thomas Organ Company
10. Walker Technical Company- Center Valley, Pennsylvania

Tables 1 provides a brief description of the projects and initial cost and the estimated cash flow of each project (after-tax profit plus depreciation) over its estimated life.

Table -1 Investment Opportunities (in thousands)
Project	Investment	Cash flow	Project Life
A	$50	$18.47	5
B	$20	$5.11	7
C	$20	$5.59	6
D	$50	$19.56	4
E	$70	$31.00	3
F	$10	$3.03	5
G	$25	$4.87	8

In 2022, the Company had a net income of $175 thousand, and total assets of $450 thousand.

The company has a policy of retaining 30 percent of the net income.

Questions:

1. How much is available for investments?
2. What is Internal Rate of Return (IRR), Net Present Value (NPV), Profitability Index of each project using 10 percent cost of capital?
3. What projects should the company take for the coming year?

Is there any conflict between NPV, IRR, and PI in ranking the projects? Explain