Net Present Value - 1958 Words

Critics to DCF methods Ducht an UK companies * However, it is found inappropriate to use DCF methods for investments that have got strategic implications. * There are various reasons for the use of open approach. Since the outcomes of these projects are highly unforeseen, according one interviewee, the application of quantitative tools is not plausible. Therefore, companies tend to apply the rule of thumb methods rather than standardized quantitative models. The justification for not applying quantitative models is some times attributed to the nature of a project. Capital inv appraisal of new technologies: Problems, misconceptions and research directions * Specifically, it has been alleged that the traditional appraisal†¦show more content†¦The missapplication of capital investment appraisal techniques * Surveys of capital budgeting practices in the UK and USA reveal a trend towards the increased use of more sophisticated investment appraisals requiring the application of discounted cash flow (DCF) techniques. Several writers, however, have claimed that companies are underinvesting because they misapply ormisinterpret DCF techniques. * the only justification we can think of for using the accounting rate of return method is because top management believe that reported profits have an impact on how financial markets evaluate a company. This is further reinforced in many companies by linking management rewards to short-term financial accounting measures. Thus a project’s impact on the financial accounting measures used by financial markets would appear to be a factor that is taken into account within the decision-mak ing process. * Dimson and Marsh (1994) have expressed concern that many UK companies may be using excessively high discount rates to appraise investments and, as a result, these companies are in danger of underinvesting. In the USA it has also been alleged that firms use discount rates to evaluate investment projects that are higher than their estimated cost of capital (Porter, 1992). Conclusions: Ducht an UK companies * All the UKShow MoreRelatedNet Present Value1157 Words   |  5 Pagesobtained and that authorised capital spending was not exceeded. Investment appraisal method; There are four methods which we can use to evaluate the investments. 1) The Payback period 2) The accounting rate of return 3) The net present value method 4) The internal rate of return method A. The Payback period; The payback period is the number of years it takes to recover its initial investment. This method assists with the project risk and liquidity. The projects with theRead MoreNet Present Value1875 Words   |  8 Pagesyear and reported the following information. The company had current assets of $153,413, net fixed assets of $ 412,331, and other assets of $83,552. The firm also has current liabilities worth $65,314, long-term debt of $178,334, and common stock of $162,000. How much retained earnings does the firm have? a. $ 405,648 b. $243,648 c. $167,918 d. $573,566 6.) Tre-Bien Bakeries generated net income of $233,412 this year. At year end, the company had accounts receivables of $47,199Read MoreNet Present Value/Present Value Index2559 Words   |  11 PagesNet Present Value/Present Value Index The management team at Savage Corporation is evaluating two alternative capital investment opportunities. The first alternative, modernizing the company’s current machinery, costs $45,000. Management estimates the modernization project will reduce annual net cash outflows by $12,500 per year for the next five years. The second alternative, purchasing a new machine, costs $56,500. The new machine is expected to have a five-year useful life and a $4,000Read MoreNet Present Value and Salvage Value1144 Words   |  5 Pages------------------------------------------------- FINC5001 Capital Market and Corporate Finance ------------------------------------------------- Workshop 5 – Capital Budgeting II 1. Basic Concepts Review a) In applying Net Present Value, what factors do we include, and what factors do we ignore? Use cash flows not accounting income Ignore * sunk costs * financing costs Include * opportunity costs * side effects * working capital * taxation * inflation Read MoreNet Present Value Essay940 Words   |  4 Pagesgrow. Although, this is true it much more valuable to know about the value and benefit of the investment. Selecting the best investment choice will ensure growth in the future and will generate value. The problem typically arises when trying to utilize capital budgeting skills in determining different tasks with the same risk. There are many ways to determine the correct return gained from investments. The (NPV) Net Present Value has proven to be the best method for organizations to use. NPV givesRead MoreNet Present Value Essay603 Words   |  3 Pages1. Basic present value calculations Calculate the present value of the following cash flows, rounding to the nearest dollar: a. A single cash inflow of $12,000 in five years, discounted at a 12% rate of return. b. An annual receipt of $16,000 over the next 12 years, discounted at a 14% rate of return. c. A single receipt of $15,000 at the end of Year 1 followed by a single receipt of $10,000 at the end of Year 3. The company has a 10% rate of return. d. An annual receipt of $8,000 for threeRead MoreNotes On The Net Present Value1462 Words   |  6 PagesQuestion C [1] The Net Present Value [NPV] is the total sum of the present values of all the expected cash flows. For a project with a normal cash flows, this would mean that the NPV is the present value of expected cash flows minus the initial cost of the project. The formula is as such; NPV = -CF0 + CF1 (1+k)-1 + CF2 (1+k)-2 + †¦ + CFn (1+k)-n where; CF0 is the initial investment outlay, or cash outflow CFt is the after-taxed cash inflows at time t k is the required rate of return for the projectRead MoreNet Present Value ( Npv )1530 Words   |  7 PagesNet present value (NPV) is a discounted cash flow technique used to determine the overall value of a project or a succession of cash flows (Blocher et al, 2008). See Appendix 1 for a simplified calculation. Belli (2001) argues that NPV is more suitably applied to mutually exclusive projects; these types of projects are those that if accepted, prevent other contending projects to be approved (Mowen et al, 2009). NPV is understood to be an absolute measure, therefore when selecting between mutuallyRead MoreNet Present Value and Project3264 Words   |  14 Pagesbe 13.487% and a Weighted Average Cost of Capital (WACC) to be at a value of 9.70%. Factoring in the WACC into our projections we found that if the demand maintains at an average rate the project will be at a positive Net Present Value of $5,997,505.31 with an IRR of 13.21%, a profitability index of 8.84, and an approx imate payback period of 6.84 years. Please see Exhibits below for a snapshot of the capital budget and NPV values. This information seemed to be very promising for the project inRead MoreNet Present Value and Question5593 Words   |  23 Pagesof capital. C) If you are unsure of your cost of capital estimate, it is important to determine how sensitive your analysis is to errors in this estimate. D) If the cost of capital estimate is more than the internal rate of return (IRR), the net present value (NPV) will be positive. Question 2 If it is feasible to undertake a project irrespective of the decision concerning the acceptance of another, the two projects are said to be: A) independent. B) dependent. C) mutually exclusive. D) none of

Benefits Of Genetically Modified Foods - 1354 Words

GMO’s Genetically Modified Foods is a new contervserasonal topic on the health on agricultural of the world. It is heavily debated for the reason that it can be seen as a health risk or a major advancement in Agriculture. One on hand, it can be used to increase production, as well has have foods that could be altered to be pest-resistant and greater nutritional values (WHAT ARE THEY). While on the other hand, many consider ‘Safety testing of whole foods is difficult. Generally assessment of ‘safety/toxicity’ relies on the description of dose–response relationships.’(sciencedirect). The issue on Genectally modifed foods is a important topic to argue, because food is one of the most important factors in sustaning life, for without food, we are not able to survive and if we are tampering with food genetics, it could very well change the way we eat. Although, it could be argued that Genetically Modified Foods is indeed a benefit to society for it can benefit third world countries, and alter foods to become pest and disease resistant and weather resistant, be able to give a food more nutritional value, and with modern technology be able to detect if a genetically modified food is safe to eat. In this paper I will examine the reason why the government should not allow genetically modified foods, I will show that first that it is not enough research to determine that genetically modified foods, secondly will be that there has been examples of Genetically modified foods hasShow MoreRelatedBenefits Of Genetically Modified Food967 Words   |  4 PagesA genetically modified food is food that was made using organisms that were genetically modified as well. What the engineers do is take certain traits that they like from each crop and transfer them to another to get their desired food. There is a company called Arctic Apples which uses biotechnology to identify certain genes that, when mixed with polyphenolics, turns the apples bro wn. When they identify it, they remove the genes that cause it and the apples don’t go brown. This is one of many geneticallyRead MoreBenefits Of Genetically Modified Food1330 Words   |  6 Pages Everyone has heard of genetically modified food. They have become so prominent in the United States and fill up a majority of our supermarkets. There has been controversy over the past few years on whether genetically modifying animals and crops is ethical and safe. But what a majority of Americans lack is knowledge of genetic engineering (GE). Many Americans hear the term genetically modified organism (GMO) and think it sounds scary or bad. They decide to be against the techniques of GE beforeRead MoreBenefits Of Genetically Modified Foods905 Words   |  4 Pagesthree decades since the discovery of genetically modified foods (foods formed by organisms that have gone through altering DNA using the procedures of genetic engineering.) In the year 1983, the original geneticall y modified herb was manufactured with antibiotic-resistant tobacco. A near decade after, the FDA (food and drug administration) had finally approved to put a genetically modified tomato on the market. Countless organizations are proclaiming the benefits of GMO’s, whereas, other believe it’sRead MoreBenefits Of Genetically Modified Foods1647 Words   |  7 Pages What foods are genetically modified? Well, most food that â€Å"contains sugar from sugar beets, soy, or corn,† is genetically modified (Mercola, 2015, p. 4). Most people consume genetically modified, or GM, foods every day without even being aware. While some do avidly monitor their food consumption and avoid GM foods, others simply eat GM foods because, to them, GM foods seem safe to consume. In â€Å"Genetically Modified Foods Are Not Safe to Eat,† osteopath, Joseph Mercola, advocates his concerns of consumingRead MoreBenefits Of Genetically Modified Food Essay1443 Words   |  6 Pageseats o nly fresh, unprocessed foods that are marked as non-GMO or certified organic; chances are that one eats food that has been genetically modified. Up to eighty percent of food in stores in America are genetically modified. America pushes these foods and the biotech industry so intensely. But, are these foods truly safe? Many people don’t exactly know what a GMO is. A GMO is a genetically modified food. They are plants or seeds that have been changed genetically by scientist. Scientist do thisRead MoreBenefits Of Genetically Modified Foods938 Words   |  4 Pages Have you ever thought of what would happen to everyone on Earth if Genetically Modified Foods were allowed? According to the World Health Organization, Genetically Modified Foods or Genetically modified Organisms are organisms where the genetic material has been modified in a way that does not occur naturally by mating and/or natural recombination(World Health Organization). Genetically Modified Foods are foods that are altered to give more portions and cause people to earn more money. They alsoRead MoreBenefits Of Genetically Modified Foods998 Words   |  4 Pagesengineering of foods, scientist, researchers, and farmers have changed the way food is grown. And this has started raising questions about the methods they use and their possible risks and side effects. To understand the risks and benefits of genetically modified foods you must first understand what they are. Genetically modified foods may also be referred to as GM foods, GMO, modified crops, GM organisms, or bio-tech foods. (Wohlers, Anton E, 2013, p73-84) You may see me referring to Genetically ModifiedRead MoreBenefits Of Genetically Modified Foods1203 Words   |  5 PagesGenetically modified organisms, sometimes known as GMO’s, are plants or animals that are created through the process of genetic engineering. Modified foods are often viewed as a valuable solution to ending world hunger, because they take less time to produce into larger crops. The use of gmos have increased in recent years,because they can grow bigger and faster than regular fruits and vegetables in much harsher environments.Also have seem to sustain and fight off many of the pests that have troubledRead MoreBenefits Of Genetically Modified Foods1553 Words   |  7 Pages Genetically Modified foods are made when genetic material from the DNA of one species of a plant’s genes is extracted and forced i nto the genes of different plants in a laboratory. Everything that is living is made of billions of cells. Inside each of these cells there is a nucleus that contains DNA. DNA is what carries the genetic information that the organisms on from one generation to another have to make a new organism and keep it functional. Genes are made of DNA. They make up the partsRead MoreBenefits Of Genetically Modified Foods1350 Words   |  6 PagesAbstract Rise of genetically modified foods that are sold to markets were analysed in the areas around USA, Argentina, Brazil and Canada. The aim of this report is to provide a detailed benefits and disadvantages of genetically modified crops where it was observed that it will be good alternative with the advancing biotechnology on overpopulation feeding requirements. Introduction Foods that are produced from organisms that had modification on their DNA structure using methods of genetic engineering

Impact of Online Sportswear Sales

Question: Discuss about the Impact of Online Sportswear Sales. Answer: Introduction The internet has facilitated alterations and innovations in modern technologies. Online shopping through E-commerce websites is one of the significant offerings from the internet. E-commerce can be defined as an online trading platform, which assists the users to buy and sell, and products online (Verbeke, 2013). The sportswear business segment has been one of the biggest users of E-commerce and has able to sell goods to a large number of consumers The E-commerce has been an effective business tool to develop business sustainability by touching a large number of consumers worldwide in the global market. Problem Statement In the global market, online shopping has been a significant development to gain a competitive edge over the competitors in the market. Werbach (2013) mentioned that shopping through traditional way of visiting retail stores to initiate the purchase decision-making process is a less popular popular among the buyers. Thus, the business enterprise has been able to develop the online channels that have facilitated the sales in the market. As such, Madsen (2016) noted that this form of shopping is less costly than the traditional mode of shopping and shall help the business entity in raising the awareness levels of the consumers. Thus, online shopping platforms have a far greater reach than the traditional mode of shopping and help to develop informal relationships with consumers (Madsen, 2016). In this regard, it can be said that online shopping has faced various issues. There were negative reviews from consumers. However, no action was taken to rectify the situation. Here, customer feedback a must be to address customer issues. This shall have a positive impact on the year-ended sales revenue of a sportswear business enterprise. Aims and objectives The project aim is to examine the influence of online sales through various e-commerce channels compared to the sales revenue of a physical store. To achieve the goals of the research study, the following objectives have been stated. To examine the e-commerce business representation of the firm and its merits To evaluate the possibilities in the execution of an online business form in the context of a sportswear brand Research Questions The aim of the research study is to examine the influence of the online portals on the sales revenue of a sportswear entity. Besides this, it examines the existing customer choices and preferences in the online promotion of products. About this, the following are the research questions of the study. What are the essential characteristics of online shopping that can have an impact on the consumer behavior? How potent are existing consumer shopping portals that shall enhance the sales revenue of the organization ? What necessary suggestions that can be presented to prevent negative consumer reviews that can result from online shopping of sportswear products? Methodology The following research methodology is adopted in attaining the goals and the objectives of the research study, Research Design: In depth and descriptive information would be important to evaluate the impact regarding the online sales on the business performance of a retail business entity. Market analysis: Market analysis shall have to be done, in the context of the costs as well as profitability of e-commerce channels and various online web portals. M Gathering necessities - The research necessities shall refer to hardware , software as well as the resources that shall assist the researcher in conducting the research procedure in an appropriate manner . Sampling choice: The sampling choice can be classified as probability as well as non-probability method of sampling. References Verbeke, A. (2013). International business strategy. Cambridge University Press. Madsen, T. L. (2016). Business Policy and Strategy. Zikmund, W. G., Babin, B. J., Carr, J. C., Griffin, M. (2013). Business research methods. Cengage Learning. Werbach, A. (2013). Strategy for sustainability: A business manifesto. Harvard Business Press.