Capital Budgeting Mini Case Essay

There are many different methods business owners use to efficiently analyze business investment. One of these effective methods is the calculation of the net present value or NPV. The second most effective method would be the calculations of the internal rate of return or IRR. There are also other useful methods as well, for example, the payback rule and the profitability index. Many business owners use the above procedures to help them in their decision making of acquiring other businesses. â€Å"NVP is important to a project because if the cost of the investment is going to be, or is more than the revenue from that project, then it may be more cost effective to shut down the project all together rather than lose more money. If multiple projects are available, then it is wise to first calculate the NPV for each project, choose those that have a positive NPV, and reject the ones that have zero or negative NPVs. Moreover, the IRR method can be used, and generally, they should provide the same ranking of the projects because the projects with high NPV also tend to have high IRR (Hestwood, Lial, Hornsby, & McGinnis 2010)†. â€Å"There are many reasons the IRR is imperative to a company. If the rate of return is insufficient, it means additional cash is out flowing from the company than is inflowing into the company. This could lead to negative working capital. The IRR is imperative for a company to understand, so if necessary, they can afford to finance more activity or if necessary, they then can invest additional money (Hestwood, Lial, Hornsby, & McGinnis 2010)†. The formula used to calculate the PV is future value times (1/((1+i^n)) = present value. This calculation is useful in investment analysis to assess if an investment with a promised set amount of return in the future will give a net gain in the present value or will only appear to be increasing but containing the same or even less amount when time value of money is considered. For example, FV=$100, with an interest of 7.7% compounded annually and a period of 38 years. Using the formula and substituting the values into it, the equation is obtained: PV = 100 * [1/ (1+0.077)38] = 5.97 dollars The formula indicates the present value of $100 in 38 years from now given that the interest rate is 7.7% compounded annually is 5.97 dollars. Thus, it also means if an investment promises a return of 100 dollars after 38 years,  the interest rate is assumed to be fixed at 7.7%. Considering the effects of time and the value of money, the investor will have a net gain if the required initial investment is lower than 5.97 dollars, a breakeven point when the investment is 5.97 dollars and a loss if the required investment is higher than 5.97 dollars. In our capital budgeting case scenario, we will recommend acquiring Corporation B because it has higher NPV of $40,251.47 as compared to the Corporation A’s NPV of $20,979.20. In addition, Corporation B has higher IRR of 17% as compared to the Corporation A of 13%. There are many factors business owners should consider when acquiring other businesses. We believe financial forecasting should be used before the final acquisition decision is made. Financial forecasting is a very useful and an objective decision-making tool regarding the funding requirements of the organization in the future. By using forecasting, this helps the managers or owners plan properly and prioritize between multiple objectives of the firm such as growth, international expansion, cost cutting, research and development, and so on. It also helps to decrease potential failure by knowing and understanding the financial risks. Financial forecasting is therefore used for predicting realistically how the firm will perform financially in the future. A company uses three basic steps to forecast and project their financial needs correctly. Projecting a specific planning period’s revenue of sale and a company’s expenses are the first steps. During the first step it is important to use a method such as percent of sales, because this method will forecast financial variable of the company. Then we need to evaluate the stages of investment in both current assets and fixed assets to support the estimated sales. Throughout this stage, it is important to calculate the approximate sustainable growth rate. This rate will be the maximum rate in which sales may grow if the present financial ratio maintained without issuing new equity. The financial manager also needs to establish how the funds will be used in buying inventory, equipment, building, etc. that is capital expenditures. The step after investing in the current and fixed assets is to discover the financing  needs of a company during a specific period. Cash budget will play a significant role in this step because it provides and lays out a detailed plan of cash disbursements, cash receipts, and net changes. Moreover, it will identify new needs for any financing. In this capital budgeting case scenario, one must look at Corporation A’s data, Corporation with a discounted payback period of 4.6 months. This would recover its entire cash outflow by the end of the 5th year. Its cumulative cash inflow of up to the 4th year is -31,688 which is in negative. At the end of the 5th year it is at +20,979 thus, 31688/52668 = .6. Hence, discounted payback period will be 4.6 months. Corporation B has a discounted payback period of 4.24 months. Its cumulative cash inflow of up to the 4th year is -12964, which is in the negative. At the end if the 5th year it is +40251 thus, 12964/53215 = 24 hence, discounted payback period will be 4.24 months. With that being said, the best choice would be acquiring Corporation B because the payback period is shorter than of Corporation A. Not to mention Corporation B has a higher IRR of 17% compared to Corporation A which has an IRR of 13%. In addition, Corporation B has a higher profitability index of 1.16 compared to that of Corporation A, at 1.08. References Hestwood, D., Lial, M., Hornsby, J., & McGinnis, T. (2010). Quantitative reasoning for business. (custom e-text) Boston, MA: Pearson/Addison-Wesley. Sevilla, A., & Somers, K. (2007). Quantitative reasoning: Tools for today’s informed citizen (1st ed). Emeryville, CA: Key College Publishing.

Balancing of Rotating Machines

BALANCING OF ROTATING MACHINES The first thing to be explored to control vibrations is to try to alter the source so that it produces less vibration. This method may not always be feasible. Some examples of the sources of vibration that cannot be altered are earthquake excitation, atmospheric turbulence, road roughness, and engine combustion instability. On the other hand, certain sources such as unbalance in rotating or reciprocating machines can be altered to reduce the vibrations.This can be achieved, usually, by using either internal balancing or an increase in the precision of machine elements. The use of close tolerances and better surface finish for machine parts (which have relative motion with respect to one another) make the machine less susceptible to vibration. Of course, there may be economic and manufacturing constraints on the degree of balancing that can be achieved or the precision with which the machine parts can be made. The presence of an eccentric or unbalanced m ass in a rotating disc causes vibration, which may be acceptable up to a certain level.If the vibration caused by an unbalanced mass is not acceptable, it can be eliminated either by removing the eccentric mass or by adding an equal mass in such a position that it cancels the effect of the unbalance. In order to use this procedure, we need to determine the amount and location of the eccentric mass experimentally. The unbalance in practical machines can be attributed to such irregularities as machining errors and variations in sizes of bolts, nuts, rivets, and welds. In this section, we shall consider two types of balancing: The static unbalance can be corrected by removing (drilling) metal at the chalk mark or by adding a weight at 180 ° from the chalk mark. Since the magnitude of unbalance is not known, the amount of material to be removed or added must be determined by trial and error. This procedure is called single-plane balancing, since all the mass lies practically in a sing le plane. †¢The single-plane balancing procedure can be used for balancing in one plane that is, for rotors of the rigid disc type.If the rotor is an elongated rigid body, the unbalance can be anywhere along the length of the rotor. In this case, the rotor can be balanced by adding balancing weights in any two planes. For convenience, the two planes are usually chosen as the end planes of the rotor. However, in many practical applications, such as turbines, compressors, electric motors, and pumps, a heavy rotor is mounted on a lightweight, flexible shaft that is supported in bearings. There will be unbalance in all rotors due to manufacturing errors.These unbalances as well as other effects, such as the stiffness and damping of the shaft, gyroscopic effects, and fluid friction in bearings, will cause a shaft to bend in a complicated manner at certain rotational speeds, known as the whirling, whipping, or critical speeds. Whirling is defined as the rotation of the plane made by the line of centers of the bearings and the bent shaft. Reference link: http://classof1. com/homework-help/engineering-homework-help

Abstract Affirmative

Abstract affirmative (AA) action is a policy that the government created for counteracting discrimination against people. This happened for the reason of presenting people the chance of gaining equal opportunities for employment education and business. Many of our formal presidents has authorized executive orders that was meant for all hiring to be free from discrimination of race, color, or national origin with all government contractors and the other specifically for associations that had accepted federal contracts and subcontracts intended to end discrimination within the workforce towards individuals where the focus was on race, color, religion, and national origin. Soon after affirmative action was changed to include no prejudice against ones gender. Affirmative action consequently established preferential treatment towards all minorities and women in the hiring process and the chance to receive a higher education. affirmative action holds private employers accountable as well. during the civil rights movement affirmation action was a tool that proposed opportunities for women and minorities and to provide equality for them. there are noted changes in how colleges recruit and enroll students housing and also how using public transportation where now blacks can sit anywhere since Rosa Parks. Since affirmative action was primarily intended on improving chances for African Americans in employment and education but there is still a low percentage of improvement that is why an executive order was signed and it required all government and private industry jobs to increase the number of women disable individuals and minorities to either receive employment or to have the ability to gain an education or have additional training for work enhancement. There are numerous organization that uses affirmative action and equal employment opportunity policies within their business structure there is still a controversy today surrounding these issues. I researched to see if equal employment opportunity and affirmative action policies mean the same thing. equal employment opportunity definition is that it bans all types of discrimination. this means that no matter the race or gender everyone has the same chance of obtaining and getting promotions and the added incentive of training as the workforce continues to grow. But then affirmative action focus on past discrimination acts which were meant to give women, disabled individuals, and minorities an equal footing in gaining employment and a higher education. it was to create equality between the workers and employers however it has caused extra adversity in the workforce. because many believed that jobs held by whites were being jeopardized. has affirmative action been consistently and effectively used to create a more robust and productive workforce I would say yes; affirmative action has made it possible for many to see and earn their desired goals such as their life dreams. I feel that there are still many obstacles but if one applies themselves there are no limitations. Barak Obama was our nation's first black president and there are many who hold prominent leadership roles that which also includes women. recently in the news it was announced that the FBI for the first time in history may have a woman heading this department. though affirmative action has come a long way there are those who still discriminate and don't offer equal chances for others to succeed. Affirmative action has allowed the workforce to become more diverse in races genders and cultures. we must remember that the affirmative action is not about letting minorities to get into college or to get a job but it's about giving qualified individuals no matter their race a chance that they may not get otherwise. in conclusion has affirmative action been consistently and effectively used to create a more robust and productive workforce i would say yes it has worked extremely well. I hope to see it continue because there are many more who could benefit from this program.

Is poverty of the third world the fault of the first world Essay

Is poverty of the third world the fault of the first world - Essay Example In this paper I argue that the major reasons for poverty in third world countries is the activities of developed countries. Role of developed countries in causing poverty in third world In one world, as in one state, when I am rich because you are poor, and I am poor because you are rich, the transfer of wealth from the rich to the poor is a matter of rights; it is not an appropriate matter for charity.† Such are the angry claims of Julius Nyerere, president of the African nation of Tanzania. His sentiments are echoed by the Third-World revolutionary Frantz Fanon: â€Å"The question which is looming on the horizon is the need for a redistribution of wealth. Humanity must reply to this question, or be shaken to pieces by it (Davis, 2012). Nobody is taking birth in this world as rich or poor. In fact natural resources are equally owned by the people in this world. However, rich people control the majority of the natural wealth in this world, not because of their rights but becau se of their ability to exploit it. Such people have the ability to exploit the natural wealth of even underdeveloped countries. Lack of education, unemployment and poverty, force governments in under developed countries to accept the strict terms and conditions put forward by the developed nations, for granting financial aids. Thus, the debts of poor countries are getting accumulated as time goes on. In short, developing countries are exploiting the weaknesses of poor countries while providing financial aids and hence the poverty in third world is remaining as a answerless problem. Because people in developed nations may have more wealth and resources than those in developing countries, their standard of living is also generally higher† (Poverty at large: A dark spot in humanity, n.d.). Higher living standards force people in developed countries to practice consumerism at the highest level. For example, wealthy people in developed countries have more than one vehicle in their family. When the number of vehicles increases, the consumption of petroleum products also increase. Since oil is a nonrenewable energy source, uncontrolled consumption of petroleum products results in rapid exhausting of energy sources. Shortage of oil sources cause price hike for petroleum products in global market. Price hike of petroleum products in global market increases the living costs in poor countries since petroleum products are necessary for the transportation of goods like food and other commodities. In short, increased consumption of petroleum products in developed countries is indirectly causing poverty in developed countries. Current world is extremely globalized and interconnected. The problems or developments in one part of the world can affect other parts of the world. MNC’s from developed countries are currently investing heavily in third world countries not for helping but for exploiting the natural resources of those countries. It is reported that billion s of tons of food products are getting damaged in the warehouses of developed countries. In a globalized world, it is the duty of the developed countri

The Concept of Audience Impact Assignment Example | Topics and Well Written Essays - 1000 words

The Concept of Audience Impact - Assignment Example Sayles responded by stating that: â€Å"what I tend to do is to make these guys a little bit more appealing than they really were so that people would believe them† (Foner and Sayles 138). This was clearly corroborated by Fischoff who asserted that talk shows exist to satisfy the demands of the audience. As content, â€Å"the audience provides tribal impact, people provoking people to say and do things they would never say or do† (Fischoff: The Jeering Crowd par. 1). Thus, these authors have similarly affirmed the relevance of the audience in the creation of a film or a talk show, for that matter. Another concept that emerged from the essays is the relevant facet of catering to a particular gender. In â€Å"Movies and History†, Foner openly disclosed that â€Å"not many historical films are really that interested in women† (Foner and Sayles 149); of which, Sayles responded that â€Å"about ninety-five percent of them were directed by men. The decision-mak ers who finance the big films are also ninety to ninety-five percent of men. So part of it is just a lack of interest in women’s stories† (Foner and Sayles 149). On the contrary, in Fischoff’s essay, it was revealed that â€Å"like the soaps, shopping networks, and endless women-in-jeopardy movies of the week, talk shows owe their popularity primarily to women. They constitute over 70 percent of the viewing audiences†. These authors have disclosed that gender influences the creation of a film or talk show. Although it was taking the perspectives of the creators for the creation of historical movies, who were identified to be predominantly male, it was interesting that the gender of the audiences was not taken into consideration. On the other hand, in talk shows, it was clearly identified that since the composition of the audiences were predominantly women, therefore, the subject should actually cater to the demands of these women. There has been some revel ation regarding the concept of taking diverse perspectives or points of view when creating or viewing a film or a talk show. It was therefore insinuated that â€Å"talk shows occupy two realities.

Police Administration Essay Example | Topics and Well Written Essays - 1500 words

Police Administration - Essay Example Secondly, both of them emphasize on police-community relationship, whereby there is emphasis on communication through mutual understanding, even though such communication is practiced and projected on different levels in both programs. Thirdly, both programs deploy target hardening together with augmented community participation as part of their crime prevention initiative. This is evident through the assignment of specific officers and patrol officers in conducting security surveys (McElvain, Kposowa, & Gray, 2013). The major difference between NYPD Crime Control Model and the Community policing is that, community policing initiative focuses more so on the three Rs of decentralized policing (McDonald, 2002). That is rapid reactions, random patrols, as well as reactive investigations. However, NYPD Crime Control Model focuses on the refined three Rs principles, and which entails directing police resources to modern crime-control strategies, rather than just observing the three Rs pri nciples alone (McDonald, 2002). In other words, the NYPD Crime Control Model key mission and duty of the police is to prevent crimes, while the key mission and responsibilities of police under community policing is to respond to crimes and which is pegged on numbers of arrests, clearance rates, in addition to response time. (McDonald, 2002). CompStat emphasizes on risk taking instead of risk adversity through an accountability-focused strategies and management principles. Community policing has feel-good collaborative frameworks through its watered-down departmental versions, as the objective is to lessen policing to just standard regulations and routines (Walsh & Vito, 2004). Thus, the community-relation specialists under community policing are tasked in performing uncomplicated and repetitive functions, which requires no discretion. As such, the police role is to be law enforcers instead of also entailing crime prevention. In particular, success under community policing is measure d by number of arrests made rather than the level and number of crimes being committed (McDonald, 2002). However, the NYPD Crime Control Model acknowledges long-term service delivery with specific objectives, like decreasing drug sales by a certain percentage of the in general crimes. Furthermore, the model focuses on attaining precise and timely intelligence, so as to direct resources and personnel to crime areas. Hence, the police officers, patrol officers and detectives are deployed more efficiently compared to community policing (McDonald, 2002). On the contrary, Community policing does not place a huge emphasis on crime data or even communication between principal law enforcers, but on making the public to feel that the police are existing. It is this difference that community policing is known for making police leaders together with their units to operate independently. As a consequence, the patrols are not held liable for crimes within their geographic regions since investiga tions are conducted by specialized units separately, in order to attain their own individual objectives (McDonald, 2002). However, NYPD Crime Control Model ensures that patrols are held accountable for crimes in their region, and that, investigators and specialized units support them in patrol activities, so as to attain a common objective under an accountability framework. The assumption in community policing is that commanders are better able to conduct decisions solely, as they are filled with wisdom and creativity in fighting crimes compared to their line officers (McDonald, 2002).

Data Mining Theory Essay Example | Topics and Well Written Essays - 2000 words

Data Mining Theory - Essay Example Moreover, data mining methods and techniques are helpful for the companies to take actions against business queries that usually were prolonged to determine. They polish databases for unknown models, discovering analytical information that professionals can overlook for the reason that it resides external to their prospects (Thearling), (Berson, Smith and Thearling) and (Chen and Hu). In addition, classification and clustering analysis are two well-known data mining methods for discovering secret structures in large volume of data. On the other hand, classification and clustering are frequently known as identical, but actually they are dissimilar analytical techniques (Colet). This paper presents a detailed analysis of different data mining classification approaches. These classification techniques include Decision tree induction, Bayesian classification (Naive Bayes), Support Vectors Machines (SVM) and Lazy Learners (k-NN). 1- Introduction The one of the most useful techniques of da ta mining is classification that is a machine learning method employed to forecast cluster association for data samples. For instance, we can desire to utilize classification to forecast whether the weather of a specific week’s day will be â€Å"damp†, â€Å"bright† or â€Å"overcast†. Well-known classification methods comprise decision trees as well as neural networks (Chapple). Additionally, the technique of classification is a dissimilar from clustering technique. Though, the classification is related to clustering because it as well slices customer records into distinct sections known as classes. However, as compared to clustering, a classification analysis necessitates that the end-user/forecaster be acquainted with in advance how data and information classes are described. For instance, classes could be described to signify the probability that a client evades on a loan, and his answer could encompass (No/ Yes). In addition, it is essential that eve ry business record in the dataset utilized to develop the classifier previously encompassed a value for the aspect or attribute applied to describe the classes. For the reason that every business database record has a value intended for the attribute utilized to describe the classes, as well as for the reason that the end-user makes a decision on the attribute to utilize. Moreover, the classification is a great deal less investigative as compared to clustering method. On the other hand, the purpose of a classifier is not to discover the data to find out remarkable sections, however rather to make a decision how novel records should be classified, for example, if is this fresh customer likely to fail to pay on the loan he/she might borrow? (Colet) and (Berson, Smith and Thearling) This paper will outline the comparison of four data mining classification techniques including Decision tree induction, Bayesian classification (Naive Bayes), Support Vectors Machines (SVM) and Lazy Learner s (k-NN). This paper will also suggest the most effective technique for the better data assessment and analysis. 2- Problem Situation and Motivation Data mining and classification techniques are utilized by means of different algorithms, and the particular algorithm utilized in this scenario is able to influence the means records are grouped as well as classified. In