Net Present Value Essay - 603 Words

1. 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 three years followed by a single receipt of $10,000 at the end of Year 4. The company has a 16% rate of return. 2. Cash flow calculations and net present value On January 2, 20X1, Bruce Greene invested $10,000 in the stock market and purchased†¦show more content†¦The following information is available: Cost of boat $500,000 Service life 10 summer seasons Disposal value at the end of 10 seasons $100,000 Capacity per trip 300 passengers Fixed operating costs per season (including straight-line depreciation) $160,000 Variable operating costs per trip $1,000 Ticket price $5 per passenger All operating costs, except depreciation, require cash outlays. On the basis of similar operations in other parts of the country, management anticipates that each trip will be sold out and that 120,000 passengers will be carried each season. Ignore income taxes. Instructions: By using the net-present-value method, determine whether STL Entertainment should acquire the boat. Assume a 14% desired return on all investments- round calculations to the nearest dollar. 5. Equipment replacement decision Columbia Enterprises is studying the replacement of some equipment that originally cost $74,000. The equipment is expected to provide six more years of service if $8,700 of major repairs are performed in two years. Annual cash operating costs total $27,200. Columbia can sell the equipment now for $36,000; the estimated residual value in six years is $5,000. New equipment is available that will reduce annual cash operating costs to $21,000. The equipment costs $103,000, has a service life of six years, and has an estimatedShow 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 Value1958 Words   |  8 Pagestimes 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 methods of payback, discounted net present value (NPV) and internal rate of return (IRR) undervalues the long-term benefits; that traditional financial appraisals assume a far too static view of future industrial activity, under-rating the effects and pace of technological change; that thereRead 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 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

The Canadian Mental Health Association - 1396 Words

Introduction â€Å"The Canadian Mental Health Association estimates that 1 in 5 Canadians will develop a mental illness at some time in their lives.† Mental illness is defined as a mental pattern that causes an impaired ability to function normally in ordinary life. Mental illnesses can affect persons of any age, race, religion, or income and are not the result of personal weakness, lack of character or poor upbringing. A number of factors can contribute to whether an individual will develop a mental illness, with these factors being present individually or in multiples. A number of factors have been identified that contribute towards initiating mental illness, but no individual factor has been definitively identified as ‘the’ factor that causes a mental illness. Symptoms of mental illness can range from mild to severe and are classified into two main categories as being either organic disorders or functional disorders. Organic disorders cause a decrease in the mental function of the brain due to a medical disease; while functional disorders cause a derangement of the mind. The type and severity of the disorder determines if it will be short-term and treatable or if it will be permanent or degenerative and untreatable. There are a variety of community and medical services available to assist those who are affected by mental illness. These services are available on an in-patient or out-patient basis depending on the level of severity, with the general trend towardsShow MoreRelatedMental Illness And The Canadian Mental Health Association1800 Words   |  8 PagesMental Illness affects all Canadians at some point in their life, whether directly or indirectly, through a family member, colleague or friend. It does not merely affect people of a certain age; it affects people of all ages. One in five Canadians experience mental illness (The Canadian Mental Health Association, n.d.). Anything can trigger mental illness, and it is important to rememb er that if a person is battling this disease, in it is not a sign of weakness. Unfortunately, there is a stigma andRead MoreThe Effects Of Bipolar Disorder On Individuals, Families And Society1109 Words   |  5 PagesMental illness is a leading cause of disability in Canada. All Canadians are likely to be indirectly affected through a mental illness in a family, friend or colleague. Statistics showed that 1 in 5 Canadians experiences a mental health or addiction problem. (Mental Illness and Addictions: Facts and Statistics, n.d.). This report will be focusing on one of the more common mental illness — bipolar disorder. Bipolar disorder, also known as manic-depressive illness, is a serious medical condition thatRead MoreThe Prevalence Of Mental Illness1348 Words   |  6 PagesMental illness is increasingly being recognized as a challenge faced by many Canadians. The Mental Health Strategy for Canada estimates that ‘in any given year, one in five people in Canada exp eriences a mental health problem or illness’. (Bartram et al., 2012) The prevalence of mental illness is not exclusive to the Canadian population and it is estimated that these figures are rising. In 2004, the World Health Organization ranked major depression as third in terms of the overall burden of diseasesRead MoreGlobal Health Issue Project : Canada Essay1562 Words   |  7 PagesGlobal Health Issue Project: Canada Canada is the second largest country by total area in the world, extending from the Pacific to the Atlantic Ocean and north into the Arctic Ocean. Canada has ten Provinces and three Territories, bordering the United States on the South and Northwest sides. Ottawa is Canada capital city located in Ontario. Canada became its own country July 1, 1867 with the creation of the Constitution Act. Currently, Canada is home to a little over 36 million people, ranking asRead MoreHealth And Safety Of Canada And Bangladesh1703 Words   |  7 PagesIntroduction The second cross-cultural ethical issue discussed in this paper is workplace health and safety. Having occupational health and safety laws in place ensures a safe environment for employees, the public, and stakeholders. The organization as a whole becomes more productive, creative, and happy. Many countries have in place laws and regulations to ensure that the workforce is protected, however, there are still several other countries who lack these necessary laws. Canada and BangladeshRead MoreAnalysis of Mental Health in Canada1588 Words   |  7 PagesClose to six million Canadians live with mental illness; let alone the thousands that are undiagnosed. Mental illness has made big headlines in the news in the recent years. The people suffering from mental illness have been faced with discrimination a caused by a stigma towards them. Mental illness can be caused by many different factors whether they are psychological or environmental. Although only twenty percent of Canadians persona lly experience mental illness in their lifetime, it affects everyoneRead MoreRelationship Between Physical And Emotional Wellness1600 Words   |  7 PagesAmanda C Jara De La Vega Personal Health 250 Sasha Grenier 05/26/2016 Health Issue Paper: The relationship between physical and emotional wellness â€Å"To keep the body in good health is a duty, otherwise we shall not be able to keep our mind strong and clear.† -Buddha. Emotional and physical wellness are completely tight to each other. There are multiple links between both dimensions of wellness that significantly can change a person’s health. The book Your Health Today by Teague, Mackenzie, RosenthalRead MoreWork-Life Balance: The Relationship Between Stress and Health1212 Words   |  5 Pages Work-Life Balance: The Relationship Between Stress and Health March 10th 2012 The relationship between employment related stress and workplace uncertainty directly impacts health today. Studies have identified employment strains caused by uncertainty of work that may be measured by scheduling and earning uncertainty (Tompa et al, 2009). The effort required in commuting to the workplace and effort required to handle multiple jobs are also strains that will be addressed in relation toRead MoreCanadas Mental Health System1404 Words   |  6 PagesCanada’ mental health system has struggled to implement compassionate mental health treatment and the persistent problem of stigmatization negatively impacts its development. There are prevailing misconceptions and misunderstanding that result in those with mental illnesses being labelled as â€Å"idiots†, â€Å"imbeciles† and lunatics (Kirby Keon, 2004). Fighting this stigma is of paramount importance to ensure the support of those with mental illness and enable them to seek the necessary treatmen t. Read MoreMental Health Incidents Have Effected Policing1439 Words   |  6 Pagesaddress mental health incidents have effected policing. Through my research I have determined that Canadian law enforcement has failed to manage the new demands placed on them from historical and societal changes towards mental illness. This failure to properly manage has caused inefficiencies Police have long been the default resource to manage new demands from changes in society, and in regards to mental illness, they have been referred to as the â€Å"informal first responders of mental health† (Council

Summary Of The Book Annie John Essay Example For Students

Summary Of The Book Annie John Essay Summary of the book Annie JohnBy: Jamaica Kinkaid. This book is a book of reality, a book of self-discovery. This is a book that you read and as you are reading it you can identify with the character, what he/she does and how she/he reacts to happenings around her/him. The story is set in and around the Dominican Republic, around the 1950-60s. The main character in this book is Annie John, she is a black girl in a English ruled and own colony. She is a smart tall girl of an inquisitive nature. She has always been smart in school, but her more wild side has always driven her towards yearning other experiences. She is a slightly conceded girl and always wants to be the best in her circle of friends and in school. She enjoys being the center of attention and does everything she can to achieve this. She has changing relationships with a couple of girls throughout the book and we can see how those relationships change her, and also change themselves as her character matures. Annies relationship with her mother is a main point of the whole book. We follow the relationship going from being a admiring and respectful mother-daughter relationship to becoming a hatred and dreaded black creature. Many of Annies thoughts are quite reflective on the way she was raised and where she was raised. Many if the characteristics also are easy to find within our selves. I find this book to be an easy read book about universal truths, knowledge, and experiences that most of us have already experienced or if not, should experience. Annie John is a definite must on a list of leisure and fun books to read.

The Delights of Diversity free essay sample

Throughout my years of academic schooling, I have immersed myself in both my academic and artistic studies. Throughout both middle and high school, I have explored my creative expression through dance, song, the playing musical instruments, and drama. Most significantly, ballet has consumed the majority of my time away from pursuing academics, because it has become my true passion. In addition, it has been a true pleasure to meet a variety of other artistic souls. Through my prolonged study of many mediums within the performing arts, I have had the wonderful opportunity to create life-lasting friendships with artists of all nationalities, ethnicities, and socio-economic backgrounds. These friendships have enhanced my love of the arts, because I truly feel that fellowship and friendship provide significant learning experiences that singular study cannot provide alone. However, while I feel confident that I have met many fellow thespians, dancers, singers, and musicians thus far in my life, I hope to create new relationships with students who have passions outside the world of performing arts. We will write a custom essay sample on The Delights of Diversity or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page In college, I hope to be able to form friendships with students who are as passionate about their own goals and interests as I am about my artistic studies. For example, I would relish the occasion to discuss a home football game with a player in hopes of playing for the NFL. Similarly, it would be fascinating to discuss new technological discoveries in stem-cell research with a biochemistry major. Sharing the glorious classicism of Swan Lake to a classmate who had never had the opportunity to enjoy ballet would be a joy for me. It is my firm belief that peers with completely diverse interests can foster new interests for both themselves and others. Oftentimes, these newly stimulated comradeships create avenues to explore new ideas. Collaboration and teamwork are essential ingredients for success. In short, the opportunity to discuss and discover a diverse variety of topics with fellow classmates would truly give me a fully stimulating and intellectually-satisfying college experience.