Capital Budgeting and Investment Analysis

As per our calculations based above we recommend the company, Equator Ltd to accept plan A. this is so because Plan a offers higher net present value than plan B (Au and Au, 1992). as already mentioned plan a is a highly automated project which involved use of more machinery and use of less physical labour. Though using automated techniques of production has its own advantages, it also carries a lot of disadvantages (Bierman and Smidt, 1975). Therefore, before accepting the plan A based on its high Net present value, the company should also consider the following points: Therefore, before acceptance of proposal A the company should consider all monetary and non-monetary factors. (Jordan, 2014) Efficient capital market refers to the market structure where the share prices of an entity reflect the latest information. This statement implies that any event or action or information which may affect the financial position of the company (Seitz and Ellison, 1999), be it directly related to it or indirectly, gets incorporated in the share price as soon as the information is received. The intrinsic value of a financial security represents a claim on cash flows of company which are expected to be earned in future. This intrinsic value is the present value of the future cash flows. Therefore, if the future cash flows are affected in any manner by any information, then it should be reflected in the price of the security, this is the whole concept of efficient capital market. (Warren, 2017) Equator Limited in the given case plans to invest ina new line of product which will require huge investments (Shapiro, 2005). If the company decides to raise capital by way of Equity shares then efficient capital markets would be highly productive and beneficial for the company. This can be understood buy the following discussion. The above analysis of the plan of the company represents high returns. If the capital markets are efficient then the investors will also read the same information and would want to invest to invest in the shares of Equator seeing its high expected return and growth. The capital markets being efficient will incorporate the same information in the share price and in turn will help increase the value of the company. (WARREN, 2017) Therefore, the capital market efficiency will help Equator Limited to raise capital since the company has a high growth and return projected. Aldridge, A. (2005). The market. 1st ed. Cambridge: Polity. Au, T. and Au, T. (1992). Engineering economics for capital investment analysis. 1st ed. Englewood Cliffs, N.J.: Prentice Hall. Bernstein, P. (2007). Capital ideas evolving. 1st ed. Hoboken, N.J.: John Wiley & Sons. Bierman, H. and Smidt, S. (1975). The capital budgeting decision. 1st ed. New York: Macmillan. Capital Budgeting Valuation. (2013). 1st ed. Hoboken, N.J.: Wiley. Chernobai, A., Rachev, S. and Fabozzi, F. (2007). Operational risk. 1st ed. Hoboken, N.J.: Wiley. Danthine, J. and Donaldson, J. (n.d.). Intermediate financial theory. 1st ed. Dayanada, D. (2002). Capital budgeting. 1st ed. Cambridge, UK: Cambridge University Press. Fabozzi, F. (n.d.). Capital markets. 1st ed. Fleming, D. and Chamberlin, S. (n.d.). Surviving the future. 1st ed. Hitt, M., Ireland, R. and Hoskisson, R. (n.d.). Strategic management. 1st ed. Jordan, B. (2014). Fundamentals of investments. 1st ed. [S.l.]: Irwin Mcgraw-Hill. Seitz, N. and Ellison, M. (1999). Capital budgeting and long-term financing decisions. 1st ed. Fort Worth: Dryden Press/Harcourt Brace College Publishers. Shapiro, A. (2005). Capital budgeting and investment analysis. 1st ed. Upper Saddle River, NJ: Pearson/Prentice Hall. Warren, C. (2017). Financial & managerial accounting. 1st ed. [Place of publication not identified]: Cengage Learning. WARREN, C. (2017). ACCOUNTING. 1st ed. [Place of publication not identified]: SOUTH-WESTERN.

Acquisition Reform Research Paper Example | Topics and Well Written Essays - 1250 words

Acquisition Reform - Research Paper Example Now, it is evident that there exists mutual dependency between the US military and the economic performance of this country. In this context, it becomes logical to evaluate the eminent relationship between them. Therefore, the defense department depends so much on the economic sector of the American population. The military’s economic dependency is depicted in the budget allocation and on other aspects like military logistical acquisition. Based on these facts, the US government has seen the need to blend these two sectors together to harmonize their dependency on each other. This led to the formulation of the acquisition reform program (Hanks, 2005, p.234). Acquisition reform is an exercise meant to integrate the United States military with the civil business practices. The US department of defense acknowledged the need to integrate the civil industrial sector with the military. The economical production of the US had direct relations with the military in terms of logistics p roduction and supply. From the late 1980’s through 1990’s to the present times, the US department of defense has undertaken numerous exercises meant to develop an optimal program to integrate these two sectors. The goals of the reform exercise are aimed at streamlining the performance of the US military by initiating close relationship between the civil logistics producers and the defense department.... These deliverables were to provide an insight into the objective purpose of the acquisition reform process. The main objective of the reform exercise is for the civil economic sector to respond efficiently to the military needs. Based on this goal, the project designers saw the need of integrating the national industrial base into the military systems (Lorrel & Graser, 2005 p. 70). In this case, the Department of Defense considered adopting the ideal customer processes in their relationship with the US industrial sector. Since the program’s inception, the numerous modifications are aimed at focusing on the long-term emphasis of the business problems and solutions of the military. Some of the projected deliverables is meant to encourage commercial industries to work with the defense sector. Based on this underlying objective, every acquisition reform process is aimed at considering the policies, behavioral or cultural changes and the business values that will facilitate the ach ievement of the reform goals (Dirk, 1994 p. 38). Now, it is clearly understood that the main aim of the acquisition reform program is to address the issue of commercial relations between the military and the industrial sector in terms of logistical supplies and service provision. Before this program, there was an inherent problem in the military concerning the economical processes of acquisition and usage of military equipments and services. The producers of these equipments and providers of the services were the major stakeholders in the US civil industrial sector. Therefore, the masterminds of this program aimed at articulating the procurement practices of the defense department by blending the concepts of commerce and the consumer

Assignment Example | Topics and Well Written Essays - 1000 words - 9

Assignment Example It also involves sharing vision and the direction making it a mutual learning process for both the manager and the delegate; thus, it is a powerful employee empowerment tool. Delegation is a proper skill for supervisors at different levels since it involves working with the employees to establish goals by giving the substantial freedom on how such goals should be realized (Jha, 2004; Pratt, 1997; Elsig, 2011). Delegation is often different formwork directing since it does not involve telling the employee how to perform a specific task. In delegation, the employee decides the manner in which to perform specific task and this gives him freedom to perform his best, which can also be useful in gauging his abilities. This makes the employees fells important since he feels involved in the management and decision making of the company and this can be good learning tool for employees to improve their skills. Delegation can also be a challenge to employers since it involves giving control and confidence to the ability of others without knowing whether they will mess or perform well with the task entrusted with them. Delegation helps managers to free up a good time and to engage in other useful management activities. This helps the manager to reduce his workload so that he can engage in other areas for faster business process. Delegation is also important in fostering good relationship between the manager and the subordinate a condition necessary effective production process (Donado et al, 2008). This gives the subordinates the room and space to explore their talents thus flourishing their abilities making them feel important in return. With such trust upon the employees, they feel satisfied with their jobs and in turn increase the productivity of the company. The monotony broken through delegation is very important for skills improvement by the subordinates so that they can explore other fields in search for new talents and skills (Mitchelle, 2000). However, despite the se numerous benefits of delegation, the scholars have not focused on the negative effects of delegation in the management. Such minor negative effects can also have a significant effect to the management and profitability of an organization should be known. This may be due to lack of ideas on how to perform the task delegated and negative attitude of the employee (Sengul et al, 2004) Research question To explore the negative effects of delegation of duties to the subordinates To determine the extent in which the management delegate duties Methodology Qualitative research design will be employed to search for valuable information that will be able to explain the negative consequences of delegation of duties. The research design will be focused on the negative consequences, which rise form delegation of duties to the subordinate especially in the company set up. I will design a questionnaire, which will be designed in a manner to address the research questions. The sampling technique will be closed and open-ended questionnaires, which will be carefully designed according to the research objectives. This will enable us obtain a variety of responses form respondents form different levels of management. The study will be focused on workers and managers who are involved in delegation process in their day-to-day activities. The study will focus on 500 company workers form five different companies in different regions in order to come up with a representative sample necessary for this study.

Economic principles Essay Example | Topics and Well Written Essays - 250 words

Economic principles - Essay Example I find them much appealing to my values as compared to those that do not bear the incentive I desire. For instance, I am more than ready to study hard so that I can gain the incentive of one day becoming a successful economists. Another case is that I like helping others who are facing hardship because I believe they might be of use to my political agenda at one moment in time. In both of the above cases, there is always that incentive that motivates my present behavior. â€Å"Opportunity cost† is the other economic principle that often characterize my life. I desire so much yet I cannot get everything I want at the same time. For example, I like sleeping!!!! (But for the fear of being misquoted as lazy I accompany it with a disclaimer). On the other hand, I also want to attend classes so that I can gain the necessary knowledge in my major. Since I cannot sleep and attend classes at the same time, I am always forced to give up on sleep for the sake of attending classes. In this case, sleeping becomes my opportunity

Scientific American article about cholesterol Essay

Scientific American article about cholesterol - Essay Example s because, in the past, people used to think that altering the level of any of this would have an impact on the overall outcome on heart attacks occurrence and risk. After research, it was found out that lowering the levels of low density lipoproteins in the body had did not decrease the risk of one getting strokes or heart attack. The study also found out that increasing the levels of high density lipoproteins is not cardio-protective from heart attacks or the occurrence of strokes2. In as much as studies have been made on many causes of heart attack or stroke, people had believed that it was possible to lower the levels of low density lipoproteins to high density lipoproteins and improve one’s risks of getting heart attack or stroke. These research opened the eyes of many people especially doctors, since they were the ones dispensing drugs to convert low density lipoproteins to high density lipoproteins in order to achieve good cholesterol levels in the body. This research hence brought light to the people. From the study, giving of drugs that convert LDL to HDL may bring controversy. In the past, HDL was believed to be a transporter of cholesterol from the arteries to the liver. Low density lipoprotein in turn takes cholesterol from other places and deposits it to the arterial walls. Hence HDL is regarded as the good cholesterol and the LDL the bad cholesterol. LDL usually increases the risk of one developing blood clots since they can results to the formation of atherosclerotic plaque. More research will have to be done to ascertain other causes of heart attack or stroke other than these lipoproteins3. Many questions still remain to be answered. After finding out that there is no relationship between the risk of heart attack or stroke with HDL or LDL. More research still has to be done on the risk of heart attack or stroke. These days, more studies have been used to deduce other causes predisposing people to get heart conditions. Research is still made on

Five Star Beer Breweing--Pay for Performance Case Study Essay

Five Star Beer Breweing--Pay for Performance Case Study - Essay Example There are also cases wherein foreign matters are found inside the beer bottles, even unfilled or short filled and poor labeling and sealing of bottles and cans. In line with increasingly tight competition in the domestic and global markets, Mr. Zhao implemented the â€Å"Pay for Performance† system in order to increase the quality of Five Star beer production. In the process, Mr. Zhao believes that monetary punishment and rewards could be used as a strong incentive to motivate employees work a better performance. China’s new policy is to establish a new social welfare system and implement a state-owned enterprise (SOE) reform will eventually allow the domestic and foreign-funded companies to have a strong control over wages including the power to hire, discipline, and terminate employees. Problems to solve in the case of Five Star Brewing Co. include the production efficiencies particularly on the bottle-filling line where high cases of unfilled or half-filled bottles and cans as well as the packing line where most of misaligned labeling of bottles and cans occurred; the poor sanitation within the rice mill area causing insect infestation and a threat of flammable explosion; and the improvements in the company’s sales force. To solve the problem regarding the company’s bottle-filling line, Mr. Zhao should consider the technical causes that may result to the half-filled or empty sealed bottles and cans including the poor packaging. Considering that the company has been established back in 1915, there is a huge possibility that the company’s machinery used in bottle-filling line and packing line is already obsolete and outdated. In order to improve these technical errors, it is highly recommended that the company should consider investing on a new bottle-filling and packing machinery to improve its efficiency. In the long run, it is possible for the company

Economic principles Essay Example | Topics and Well Written Essays - 250 words

Economic principles - Essay Example I find them much appealing to my values as compared to those that do not bear the incentive I desire. For instance, I am more than ready to study hard so that I can gain the incentive of one day becoming a successful economists. Another case is that I like helping others who are facing hardship because I believe they might be of use to my political agenda at one moment in time. In both of the above cases, there is always that incentive that motivates my present behavior. â€Å"Opportunity cost† is the other economic principle that often characterize my life. I desire so much yet I cannot get everything I want at the same time. For example, I like sleeping!!!! (But for the fear of being misquoted as lazy I accompany it with a disclaimer). On the other hand, I also want to attend classes so that I can gain the necessary knowledge in my major. Since I cannot sleep and attend classes at the same time, I am always forced to give up on sleep for the sake of attending classes. In this case, sleeping becomes my opportunity