Principles of Corporate Finance 3rd Edition

Question: Describe about the Principles of Corporate Finance 3rd Edition? Answer: Complete the following table by inserting your responses, in at least 30 words to the questions. Cite any sources you use. Define the time value of money. The central idea of time value of money is that the money in the present is dearer than money in the future. This is primarily due to the fact that interest can be earned on money (Brealey, Myers Allen, 2008). Provide a real-world example for the time value of money. Suppose I purchase a car on monthly installments. The vendor typically charges me some interest and thus I have to pay more amount in totality than I would have to if I paid the whole amount at one go today. Thus the incremental interest is due to the time value of money. Why is time such an important factor in financial matters? This is an important aspect in financial matter since there is an opportunity cost involved in terms of interest that could be earned on money and thus it needs to be evaluated whether adequate compensation is being given for this or not. How would you use the time value of money to your financial benefit? This concept would be utilized for financial benefits by ensuring that the returns earned on the investment should exceed the inherent opportunity cost due to time value of money (Brealey, Myers Allen, 2008). Part II: Complete the following table by calculating the ratios. Present Value Amount Compounding period Rate of interest Present value $150,000 Annual 6% for 10 years $ 83,759.22 $85,000 Annual 4% for 15 years $ 47,197.48 Internal Rate of Return Initial cost of investment Periods of useful life Estimated annual net cash inflow generated Look-up table value Rate of interest $75,000 7 $14,406 8% 8% $56,000 15 $8,222 12% 12% Payback Period: Assume there are no income taxes for both scenarios. Purchase price of equipment Period of useful life Annual revenue generated per year Operating costs associated with revenue Depreciation expense per year Payback period result $550,000 10 years $100,000 $32,000 $55,000 8 years $350,000 10 years $80,500 $36,000 $35,000 7.87 years References Brealey, R., Myers, S. Allen, F. 2008, Principles of Corporate Finance 3rd edition, New York: McGraw Hill Publications

Heroes, Born or Made free essay sample

The greatest Allied air ace of World War One, Canadian Billy Bishop, comes to mind. Some anti-hero types took it upon themselves to challenge the veracity of Bishops claim of 72 kills. Subsequently, their thesis was proved incorrect and Bishops honour and his Victoria Cross were shown to have been honourably and rightly earned. Another Canadian hero and VC winner was Lieutenant Alexander Roberts Dunn for his heroism during the charge of the Light Brigade at the Battle of Balaklava, October 1854. Dunn was the first Canadian to be awarded a VC; since then, 93 others, including Bishop, have received this highly respected and much valued military honour. Perhaps, of all the military medals awarded for valour anywhere in the world, the Victoria Cross stands above all others. Of course, the world knows of Canadian John McCrae and his world-famous poem, In Flanders Fields. McCrae and his poem are front and centre annually at Cenotaphs across Canada during November 11th Remembrance Day services. Not only in Canada, but also in many Western countries McCraes In Flanders Fields is recited or sung at services to honour those who stepped forward, volunteered and in some cases, died for democracy. We are the dead. Short days ago we lived, felt dawn, saw sunset glow, loved, and were loved, and now we lie In Flanders Fields. An interesting sidebar to the Victoria Cross is that three Winnipeggers all from the same street received this high honour. It is believed to be the only street in the world to have three VC winners who lived there. The City of Winnipeg named the street Valour Road in honour of Leo Clarke, Fred Hall and Robert Shankland. The streets previous name was Pine Street. Their war was the Great War or, World War One. The Canadian Navy, too, has its heroes; among them a VC winner. In the latter stages of World War Two, RCN pilot Lieutenant Robert Hampton Gray flew his flaming aircraft into a Japanese destroyer. For his heroic action, he was awarded the VC, posthumously. At the time, Gray was serving onboard the Royal Navy aircraft carrier, HMS Formidable. More recent times have seen the Canadian Navy perform admirably under duress; and while this next part is not centred on a particular person, the hero of the piece is the ship itself and its complement. During Operation Apollo, HMCS Ottawa was tasked to patrol the Arabian Gulf region with explicit instructions to intercept any vessel sailing in those troubled waters with a view to checking its identity, examining its cargo and passengers and ascertaining its destination. The interdiction duty included boarding when and where necessary in search of contraband goods or fugitives fleeing from Iraq. Ottawa received intelligence that a ship a contact of interest was about to weigh anchor in the Arabian Gulf. The ships destination was unknown and that heightened the interest Ottawa had in the vessel. Later, it was learned that the contact of interest was M/V [motor vessel] Roaa. The Canadian warship was ordered to search for Roaa in the Straits of Hormuz, a narrow passage in the Gulf between territorial waters of Oman and Iran. For about three days, Ottawas ships company, especially the ships communications crew, queried ships passing through the Strait about their identities and voyage information. As the area is narrow and with much traffic, the querying of the ships identities and destinations was hectic. The task was formidable and exhausting. As one Ottawa sailor put it later, We were just all anxious to find the guy and get the job done. The task of identifying the passing ships was more than just hailing them and asking about their nationality. Ottawas acoustic section b ecame involved as the department tested the data collected for legitimacy. Each vessel was checked against its destination. After three days on intense interdiction duty and hundreds of checks, there was no sign of Roaa. Had she slipped the noose and sailed away unchallenged? The thought was troubling to Ottawas crews pride. Then, additional intelligence was received that indicated that the contact of interest was anchored in the approaches to a nearby port. This particular port had gained the name of The Parking Lot. There, hiding among dozens of other vessels, was M/V Roaa. The sharp on top eye of a Canadian Aurora maritime patrol aircraft had spotted the ship. Apparently, the Roaas captain had thought that if he dropped anchor and remained quiet among the many other vessels in the Parking Lot, his ship would avoid detection. Clearly, he had not considered the Canadians determination to find their prey. Now that Roaa -the needle in the haystack -had been sighted, it was important that Ottawa not give away her position to the enemy. Under cover of darkness, Ottawa slipped undetected into the area and took over surveillance from another multinational naval unit. Roaa was, after all, Ottawas target, her contact of interest. We had to weave through about 20 ships anchored close together just to find her. Those words from a member of Ottawas crew as he related the event later. HMCS Ottawa maintained contact with Roaa all the while waiting for the contact of interest to make a move that would permit the Canadian ships naval boarding party [NBP] to move into position. In a move that would bring credit to the best of Hollywood, Ottawas helicopter moved into position. To be certain that the ship was the correct vessel the helicopters infrared camera was used. It confirmed that the suspect vessel was the Roaa. When daylight came, it was apparent that the contact of interest had changed its name and had a different national flag flying at its stern. It seemed that Ottawas persistence had paid off and that Roaas subterfuge had failed. Ottawa tracked Roaa for about 12 hours and as soon as the contact of interest moved out of territorial waters into international waters, the Canadian ship increased speed to 30 knots and slipped in alongside the other vessel, and, as darkness has fallen, illuminated her with high-power search lights. Ottawas commanding officer signalled his intentions to board Roaa, Ottawas NBP stealthily scaled the side of the foreign vessel. Before Roaas crew knew that they were being overtaken, the bridge and engine room were secured and Ottawa had control of the ship. Just like out of the movies a classic John Wayne style manoeuvre only better, because these were real Canadians carrying out their duty rather than Hollywood actors pretending to be heroes. After the boarding, one of the NBP crew was asked, What was it like to be the first person up the ladder? He replied, No real worries. Were always ready for whatever might happen. You trust the other members of your team; besides, if they [the enemy] cant see you coming, it doesnt make you a target. This heroic Canadian sailor added, At first, the crew were really stunned. But when they realized that we would take care of them, they relaxed a bit. Once upon the contact of interest, Ottawas boarding party secured the vessel before the Roaas crew could affix the anti-boarding devices lying in wait at every door, hatch and window; sheets of metal ready to be welded on at the hint of a boarding. Training and a little creativity paid off. It was a beautiful boarding. Training and a little creativity, indeed! Rather typical of Canadas naval personnel. Ready, Aye, Ready. After Roaa was in Ottawas control, a small crew from the Canadian ship took command and sailed the vessel to a detention area. The captain said, later, What an experience. It was nice change from routine ops. The interim captain added, Roaa was absolutely filthy, but, fortunately, I only had to stand on the bridge and didnt have to search through the galley or the heads. Eight hours was long enough. The captain sailed Roaa to a holding area in the Arabian Gulf where local authorities began a legal process. The value of this action by Ottawas crew is two-fold: One, the Canadian ships crew gained firsthand experience and an opportunity to test their readiness in this new battlefield, and two, the evidence gained offered links that might lead to the capture of bigger foe. Canadas contribution to the Arabian Gulf operations was as evidenced in the above example exemplary and put the countrys navy at the top of any list of stalwarts capable of getting on with the grunt. Unfortunately, Ottawas continued soft approach to evil tends to take away from the heroics of Canadas naval personnel as they carry out their duties. One is reminded of the Cuban Missile Crisis of October 1962 when the Soviets were intent on installing missile sites on Cuban soil. The Americans [USN] placed a naval blockade around Cuba to stop each Soviet ship suspected of carrying missiles or missile launching equipment. At the time, Ottawa refused to assist Washington. The Canadian Navy, however, saw the need and despatched several ships to join with the U. S. Navy in the blockade. This action was taken by the Canadian Navy admiral in charge without sanction by Ottawa. As it turned out, the Canadian prime minister was unaware of how the Canadian Navy had assisted the American Navy. By Ottawa being kept out of the loop, good things were able to be carried out. Had Ottawa been involved, probably a heated discussion between the politicians and their fawning bureaucrats in Ottawa and the Navy would still be underway, four decades later. Let the Navy get on with the grunt and good things will happen; keep Ottawa out of the loop and let the greater good over the lesser evil prevail. Heroes; are they born or are they made? Do they rise to unexpected heights because of circumstances or because of fate? [All quotes are from Anatomy of a boarding, a national defence current operations article. ]

Step Recipe for Success free essay sample

I know the best way to grow our business is to climb with care and confidence. † †¢ With 1,240-plus Chick-fil-A restaurants in 38 states and Washington, D. C. , Chick-fil-A is the second-largest quick-service chicken restaurant chain in the nation, based on annual sales. 2. CREATE A â€Å"LOYALTY EFFECT† â€Å"Our people are the cornerstone of all that we do at Chick-fil-A. As a chain, we believe that attracting great people helps create an unforgettable experience for our customers. It requires a lot of time and effort to make sure you have the right people working the right jobs, but we believe this is time well spent. The bottom line is that our people, from our restaurant Operators to the team members they hire, enjoy their work. Fewer than five percent of our franchise Operators leave the chain in any given year. The more we can foster the feeling that we are a group of people working together, depending on each other, the more likely we are to be loyal to each other. We will write a custom essay sample on Step Recipe for Success or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Customer satisfaction is the payoff for spending the time to search for the best employees. Our restaurant team members have proven time and time again that going out of your way to make sure our customer has a pleasurable dining experience will build customer loyalty. †¢ â€Å"This loyalty effect, the full range of economic and human benefits that accrue to leaders who treat their customers, Operators, and employees in a manner worthy of their loyalty, is at the core of most of the truly successful growth companies in the world today. And there is no clearer case study of the loyalty effect than Chick-fil-A. † –Fred Reichheld, Harvard Business Review and author of The Loyalty Effect. Truett Cathy’s 5 Step Recipe for Business Success / Page 2 * Exerpts adapted from Truett Cathy’s Second Book: Eat Mor Chikin: Inspire More People (2002 Chick-fil-A, Inc. ) 3. NEVER LOSE A CUSTOMER â€Å"Ever since I was a teenager delivering newspapers (for seven straight years), I have tried not to lose a single customer. I treated each one like the most important person in the world and delivered each paper as if I were delivering it to the front door of the Governor’s mansion. The key to succeeding with a paper route and the restaurant business, I would later learn, is to take care of the customer. Whether on the paper route or in my restaurants, I have found that the most effective way of promoting my business didn’t cost me anything but a little kindness to my customers. †¢ In 1935, at age 14, Truett delivered the Atlanta Journal newspaper to residents of America’s first public housing project, Atlanta’s Techwood Homes and developed his â€Å"people first† business philosophy. Chick-fil-A’s commitment to this principle is reflected in its mission statement to â€Å"Be America’s Best Quick-Service Restaurant at Winning and Keeping Customers. † †¢ 4. PUT PRINCIPLES AND PEOPLE AHEAD OF PROFITS â€Å"I’d like to be remembered as one who kept my priorities in the right order. We live in a changing world, but we need to be reminded that the important things have not changed. I have always encouraged my restaurant Operators and team members to give back to the local community. We should be about more than just selling chicken, we should be a part of our customer’s lives and the communities in which we serve. † †¢ Through the WinShape Centre Foundation, Truett operates foster homes for more than 150 children and sponsors a summer camp for more than 1,800 children each year; in addition, he provides college scholarships for Chick-fil-A restaurant employees (more than $20 million awarded since 1973). Chick-fil-A partners with nearly 1,200 elementary schools nationwide by providing the Core Essentials Character Education Program, which teaches students one value trait each month. Additionally, Chick-fil-A restaurants are involved in the local community with activities such as blood drives, school fundraisers, family nights and children’s sports sponsorships. †¢ Truett Cathy’s 5 Step Recipe for Business Success / Page 3 5. CLOSED ON SUNDAY â€Å"I was not so committed to financial success that I was willing to abandon my principles and priorities. One of the most visible examples of this is our decision to close on Sunday. Our decision to close on Sunday was our way of honoring God and of directing our attention to things that mattered more than our business. † †¢ Chick-fil-A is the only major fast-food restaurant chain to be closed on Sundays, one of the busiest days of the week in the restaurant business. Despite being closed on Sundays, Truett Cathy has led Chick-fil-A on an unparalleled record of 38 consecutive years of sales increases, with its core free-standing restaurants achieving higher sales per unit in six days (with shorter operating hours) than most major chains in the industry.

Land mines essays

Land mines essays There are many different types of land mines that still exist today,that were planted to kill soilders back in Vietnam and other wars. There are five types of antipersonal mines. Blast mines are the most common. When someone steps on them they explode. Because it has a very large charge it often kills people rather than just injuring them. Fragmentation mines have tripwires which lie a few centimeters above the ground. When someone walks into them, the mine shoots out hundreds of metal fragments at twice the speed of an ordinary bullet. Bounding framentation mine jump into the air when activated, to about the hight of a persons chest before they explode . They kill the person who sets them off and can kill over a wide area. Directional Fragmentation mines shoot out steel balls in one direction at high speed. They are set off by tripwires or remote. Also Scatterable mines do not have to be laid by hand they can be droped by an airplain or by artillery. They land on the ground without exploding and some even set their own tripwires. There are around 110 million land mines in 64 countries still lodged in the ground. Just like today and in Vietnam children pick up or step on the devices while herding animals, or working in the fields or just playing. Since many of the explosives look just like toys, tops, pineapples or butterflies, children are drawn to them. In some areas, children scavenge mines for scrap metal. Limbless and blind children around the world bear witness to the land mines path of destruction. Since 1975, the devices have killed more than one million people. They continue to kill more than 800 victims each month and disable more than 1,000 others. Women and children in Angola account for more than 20,000 amputees. Many of todays land mines, which can remain active for decades, were planted before their youngest victims were born. ...

Cheap Labor and Outsourcing Research Paper Example | Topics and Well Written Essays - 3000 words

Cheap Labor and Outsourcing - Research Paper Example y workers with robots.† (Musil, 2012) But for the cheap labor available in the thickly populated countries like China, India and Indonesia there is no other justification for shifting or creating new facilities in these countries by the American companies. In fact, the companies do make several compromises in other areas to exploit the cheap labor. Do we have plans to shift the production facilities back to America, if labor could be replaced with robots? The indiscriminate outsourcing drive is neither in the interest of the host countries nor in the interest of the USA in the long run. This paper seeks to analyze the causes for outsourcing either within the country or to foreign countries, its impact on the business and economy of the USA and the host countries. It is not the question of what is good to American economy. The issue has several dimensions. Is corporate social responsibility of the multinational companies engaged in outsourcing spree limited to only the USA? Are they not responsible for human rights issues involved in the operations of the suppliers? Disturbance of the existing equilibrium in the employment market either locally or internationally creates serious imbalances in the economic system in the long run and result into a situation of ‘catching the tail of a tiger’, meaning neither you can afford to leave the tail nor holding it for long! â€Å"Outsourcing is generally recognized as a strategy for producing cost saving, however, by simply following a traditional cost-focused approach, companies may be missing opportunities to gain further competitive advantage† (Deloitte, 2008). The following points need to be carefully considered in respect of cheap labor in view of its impact in general on the economy. 3. The market is saturated locally and establishment of production facilities in a third country could meet the local demand in such country and this unit could act as a hub for export of such products to other countries. In

More perfect union speech Essay Example | Topics and Well Written Essays - 500 words

More perfect union speech - Essay Example The problem was first caused by the white race subgroup in the United States as against other racial subgroups, especially the African-American subgroup. No matter what side it is, having and spreading resentments does not help alleviate conflicts and sharp differences. Anger and resentment does not solve any problem. In fact, sentiments and notions of anger and resentment add more fuel for problems to escalate. Anger and resentment only encourage animosity and division among people and groups. Conflicts arise when anger gets in the way of better judgment, and clouds rationality and logic. The world is already rife with too many prejudicial tendencies by groups that espouse ambivalent notions. Even religious leaders are guilty of preaching such messages, basing their sermons and teachings on personal beliefs and experiences. In relation to that part of his speech, Obama quoted William Faulkner by saying that, â€Å"the past isnt dead and buried. In fact, it isnt even past". What Obama is trying to say is that issues of the past regarding race relations are still ongoing, and have never been put to rest. This was especially visible and expected during Obama’s campaign for presidency, in which the likeliness of him winning the post was unexpected. Take into consideration the fact that all the United States presidents before Obama were Caucasians. This implies that American society still considers race as a factor and issue in national decisions. That being the case, the question that arises is whether a trans-racial society is possible and desirable in the United States. It is possible for such a society to exist, but only if the people learn and are educated to see society and state beyond the differences of race. There needs to be a change in cultural awareness, which plays a significant role in social activities. Differences in

Kindergarten Language Lesson Plan Term Paper Example | Topics and Well Written Essays - 1000 words

Kindergarten Language Lesson Plan - Term Paper Example ideology puts focus on the needs of the times and what are needed to become a productive member of society and thereby design the educational curricula according to the assessed need of the time. It emphasizes skills and competencies that have to be learned in order to survive in the real world. Refer to your copy of the Goal Three Standards. List three(3) appropriate standards and describe the activities provided for students in this lesson that demonstrate the Goal 3 Standards. How do these relate to the assignment? In introducing the lesson to the pupils, the audience has to consider as children who loves to play and have short attention span. Such, the lesson has to be presented as fun and engaging for the lesson to be effective. 1. Encourage children to talk what is their favorite game and then ask them to describe them. Most likely boys will talk about sports while girls will talk about their friends. The importance in this activity is to engage the pupils to express themselves. 2. Second, ask them why they like such games. This will provide the teacher an opportunity to assess the language skill level of pupils and can apply necessary changes in the lesson plan when appropriate. Kindergarten is the stage where children are beginning to read or has just learned how to read. This skill must be enhanced to enable the pupils to acquire other knowledge through the skill of reading. 1. Colorful representation of the alphabets should be used where consonants and vowels are segregated. Most likely, children already know what they are but it would be necessary for them to recite them just to familiarize them. 3. When the pupil has already a grasp that the combination of consonants and vowels actually forms a word, they will be engaged in a game of word creation where they will be given letter blocks to construct words by pairing the letters. 1. To encourage children to work independently and still interested with the subject matter, present them