The Best Accounting Software Systems Essay Example | Topics and Well Written Essays - 250 words

The Best Accounting Software Systems - Essay Example The software is best for small and medium-sized businesses because first of all, it prides itself with a very easy to use system where you can do almost all accounting job done from calculating payroll checks with correct federal, state, and local taxes, keep track of employees’ pay records including vacation and sick leaves, produce accurate payroll register reports, calculate and print employees W2, W3, 1099-M at the year-end, create direct deposit files and a lot more! Computer specifications to get the most of the software would be at least 1gb RAM, 600 MB of free disk space, and preferably Windows Server 2003. What is great about this is that prices start at $249 only depending on the package you need (Accounts Receivable, Accounts Payable, Direct Deposit, n.d.) The second alternative to payroll accounting system would be Andica software manufactured by Andica which is suitable for all types of businesses because it complies with the latest government legislation that would be sure to allow payments of salaries and at the same time be able to monitor the deductions by allowing you to do statutory calculations without being an accountant. Also, what is great about this software is that you can immediately view employee data on the screen and would give you an organized file in easy to follow reports. Some of its essential features are as follows: calculation of PAYE, National Insurance Contributions, Statutory Payments such as Statutory Sick Pay SSP, Statutory Maternity Pay SMP, Statutory Paternity Pay SPP, Statutory Adoption Pay SAP, students loan deductions and perform a range of other payroll functions.

Place of Consumerism in New Middle Classes

Place of Consumerism in New Middle Classes What is the place of Consumerism in the lifestyle of emergent new middle classes in Ireland? Basically an application of a Bourdieu/ Featherstone argument about new middle classes to the Irish case. Chapter One: Introduction In order to examine the place of Consumerism in the lifestyle of emergent new middle classes in Ireland, the ideas of ‘Consumerism’, ‘lifestyle’ and ‘emergent new middle classes’ must first be defined. Accordingly these definitions will occupy the preliminary discussions of this thesis in the relevant sections. The thesis will examine the role of emergent middle classes, and will attempt to tie this discussion to analysis of how and why demographic trends such as the emergence of new middle classes have evolved, and what place Consumerism has in the lifestyles of those individuals within these new demographic cleavages. Economic events and socio-economic developments (both historical and contemporary) linked to these events have been the main precipitative forces responsible for these emergent sociological contours[i]. The economic and socio-economic climate in Ireland and how this has developed will therefore be a centre point in examining the role of emergent new middle classes and how Consumerism has impacted the role and lifestyle of these sectors. These ideas will be introduced in the literature review and they will be fleshed out throughout the thesis in order to gain a holistic and comprehensive insight into the place of Consumerism in the lifestyle of emergent new middle classes in Ireland. This analysis will be contextualised with reference to the theories of Bourdieu (1979) and Featherstone (1992) whose cultural perspectives on society have mainly rationalised Consumerism in terms of subjectivity and individual perceptions; therefore repudiating the idea that Consumerism is simply an objective, independent market force which operates within neo-classical[ii] and laissez-faire[iii] boundaries. Images of Irish society will be very important in this thesis and the images/themes which will be examined throughout the thesis to facilitate this discussion of Consumerism are images of secularisation, images of Class Dealignment, images connected with the Celtic Tiger and the process of diversification. The next section will examine the methodology of the thesis. This will link the above mentioned theoretical definitions, arguments and analysis into the wider empirical and qualitative aims of the thesis. The chosen methodology is discourse analysis, and turning to a discussion of the definition of what exactly this is, is a natural progression. Accordingly, this discussion of definition will follow in the next section. The next section will also introduce the methodological framework of the thesis. It will define the various applications and forms of discourse analysis and it will explain how these will be considered throughout the thesis. Chapter Two Methodology: Discourse Analysis This thesis will rely primarily upon empirical evidence gathered through discourse analysis. The writer has selected a number of cultural themes from selected publications and these will be examined empirically and through discourse analysis. These are diversification[iv] (both political and cultural), images of Class Dealignment, images of secularised society and the imputations which arise from the phrase ‘Celtic Tiger[v]’. These will be looked at in depth as the thesis progresses, and will be placed within the context of wider themes of economic, political and socio-economic factors which the writer will also examine in terms of broad and contextual discourse analysis. Discourse analysis is an interdisciplinary[vi] method of analysing sociological trends[vii] through the analysis of language[viii] and speech[ix], and how political ideas are disseminated through language[x]. This method will be used throughout the dissertation as a means of analysing the place of Consumerism in the lifestyle of emergent middle classes. Discourse analysis has been differentiated and divided into niche areas in terms of its application. For example, discourse analysis may be used on a micro scale which would involve minute analysis of grammatical structure[xi], language and the composition[xii] of language[xiii]. This is not a method which will be concentrated upon in this thesis, as the more expansive niches within discourse analysis, which concentrates upon context[xiv] and cultural, political and other sociological forces are more appropriate ways to analyse the question title. This is because the concentration of discourse analysis in terms of wider context[xv] and a focus on specifically identified themes rather than minute form[xvi] and constructions[xvii] gives the writer a lot more room to analyse political, cultural, sociological, demographic and economic trends, which is the ultimate goal of this thesis enquiry. Chimombo, M. and Roseberry, R. (1998) give us the following in depth definition of discourse analysis: ‘Discourse is a process resulting in a communicative act. The communicative act itself takes the form of a text. A text is commonly thought of as consisting of written or printed words on a page; but a text may also consist of sign language or spoken words, or it may comprise only the thoughts of a writer, or speaker, on the one hand, or a reader or listener, on the other. In addition to words, a text may consist of other symbols, sounds, gestures, or silences, in any combination that is intended to communicate information such as ideas, emotional states, and attitudes. It may fail to communicate, but if the intention to communicate is clearly there, it must be regarded as a text†¦..[xviii]’. Chimombo, M. and Roseberry, R. (1998) then go on explain how this abstract definition applies within the context of methodology: ‘Analysis of discourse is a methodology for examining texts and the communicative process that gives rise to them. Its primary purpose is to enable discourse analysts to gain a deeper understanding and appreciation of texts. Because most texts are goal oriented, part of the purpose of discourse analysis is to enable people to recognize the intended goal of the writer or speaker and thus achieve some measure of control over the discourse†¦..The understanding that may be gained in this way helps to equalize the power relationship and enables an escape from the role of victim such that individuals may assume a greater degree of control over their lives. This book demonstrates that discourse is typically used to a greater or lesser degree for exploitation. Different types of discourse are intended to exploit consumers, voters, employees, children, women, minorities, and many other groups within society. An ability to analyze discourse offers such groups a means of protectionâ € ¦.[xix]’. A discourse is therefore an amalgam of perspective. These perspectives are often political, economic or ideological in nature, since the articulation of a perspective through discourse is often underpinned by struggles for political power and influence[xx]. This in turn imputes that a discourse has a special connection with politics and with economics and that cultural discourses have often been appended to these primary discourses. Chimombo, M. and Roseberry, R. (1998) make this point very strongly in the following passage: ‘†¦.The term control implies a power relationship between those who produce texts and those for whom these texts are intended. For example, politicians, lawyers, doctors, advertisers, business executives, teachers, and many others exercise power over their clients through the discourse that is characteristic of these professionals. Analysis of professional discourse can reveal these power relationships and the goals that may be hidden in them. †¦.[xxi]’. Cultural discourses may also be seen as having evolved indirectly from political, economic and ideological discourses[xxii]. A cultural discourse may therefore be rationalised as secondary in many ways to a political/ideological and to an economic discourse. However, it is important to understand that cultural discourses often exist within the framework of these arguably more primary discourses[xxiii]. Also, one must remember that an analysis of cultural discourse, without an adequate analysis of the wider context of the discourse and its relationship with other discourses will not be a credible analysis. The writer’s regard for a cultural discourse as a secondary discourse is an explanation of how cultural discourse has evolved; it is not intended to demarcate cultural discourse as less relevant than political, economic or ideological discourse. Clearly, cultural discourses have qualified and enriched these wider, politically tuned discourses and this in itself is a unique an d powerful mechanism of change. This explains the central nature of wider political discourse analysis in this thesis and it also explains why Fairclough (1995) [xxiv] in particular has argued that discourse analysis centres on the interpretation of political and ideological discourses. It is important to remember however that cultural discourse analysis is intertwined with these primary discourses in a subtle but imperative way. The following chapters will deal with definitions of lifestyle and consumerism. They will also introduce a general discourse analysis which will centre on the selected themes mentioned above and how they ultimately relate to politics, economics, and the demographic and sociological trends which have been emerging in Ireland over the last twenty years[xxv]. The concept of emergent middle classes will be defined in the following chapters also and this definition will lead into a broad and contextual discourse analysis of how middle classes emerged in Ireland. The effects of this emergence will be discussed, but all of these threads of analysis will ultimately be drawn together to look at the place of Consumerism in the lifestyle of emergent new middle classes in Ireland, and the arguments that have been made in this area by Bourdieu (1979) and Featherstone (1992). Chapter Three: Literature Review: What is ‘Consumerism’? Clarke (2003) gives us the following definition and explanation of Consumerism within the context of culture: ‘†¦.Bauman (1992c, 24) reflects that the strange dialectic of dependence and autonomy between consumer and consumer society is indeed not unlike that of the grammar and vocabulary of language and formed sentences of speech: the latter are in no way determined by the former and move freely within the frame it provides. The practice of consumption amounts, in other words, to an act of enunciation, which takes place in a space filled with unattached signifiers †¦ a space awaiting attribution of meaning (ibid.). The consumer is in no way manipulated, nor consumer behaviour determined, even though the consumer is formally deprived of autonomy in all forms but the duplicitous form of freedom of choice. The proliferation of relations of trust, the reliance on specialist knowledge and expertise, and the privatization of the task of constructing some form of continuity of life-experience are unavoidable features of life in a consumer society. But consumers are nonetheless in a position to make of their situation something other than what is intended. The problem, however, is that, as an act through which the presence of the individual †¦ can be confirmed and reasserted (ibid.), consumption and the relations of trust it entails provides an opportunistic means for the perpetuation and dramatic expansion of capitalism.†¦.[xxvi]’. Therefore, as has been argued above, Consumerism is a term which describes the links between happiness, material goods/possessions and humans[xxvii]. It can be argued that Consumerism refers to the idea that material goods and possessions induce feelings of happiness and accordingly all behaviours which may be linked to the endorsement of this rationale may also be described as Consumerism[xxviii]. Consumerism is an idea which was considered by Karl Marx[xxix], whose famous critique of Consumerism and capitalist ideology (Communism[xxx]) interpreted ideas of Consumerism as immoral and subversive[xxxi]. In modern terms Socialism rejects ideas related to Consumerism in a more moderate way, but the premise upon which Socialism is built mirrors Communism in its suspicion of Consumerism[xxxii]. Consumerism may also be described in terms of economic behaviour and policy. If one considers Consumerism in an abstract manner, it is possible to argue that the freedom of individuals to choose how to spend money/dissipate resources manifests itself as Consumerism, since the marketing of goods to a consumer encourages them to exercise their freedom to choose what to purchase. Clarke (2003) has noted that this is an ongoing and repetitive process: ‘The act of consumption is destined to repeat itself, since the human subject is irresistibly compelled to seek a unity and coherence it can never know†¦[xxxiii]’. Ideas relating to Consumerism have traditionally been associated with Western societies and have also been particularly synonymous with neo-liberal capitalism. However, it may be argued that with the growing influence of globalisation and technological advancements, the impact of Consumerism is a global one as opposed to the more traditional interpretation of Consumerism as being tied particularly to certain cultures, more so than to others. Ultimately, however, Consumerism is connected to the ideas of human rationality, freedom and choice and has evolved as a means whereby human wants are satisfied. Accordingly, Consumerism may also be seen as a sociological force since, the recognition of social standings within society can be defined in many ways according to material wealth and the accumulation of material possessions. Consumerism is a complex idea which may be interpreted objectively as well as subjectively. This characteristic of Consumerism has invited the levels of cultural, sociological and economic analysis which the theory of Consumerism seems to have attracted. Therefore, the evolution of Consumerism and the various interpretations of the current status of Consumerism will be relevant to this thesis. Consumerism; its construction and its manifestation can be seen to oscillate with cultural mores and the development of society. This is how Consumerism may also be seen as an evolving social construct. Certainly Bourdieu (1979), Lash and Urry (1994) as well as Baudrillard (1993) consider Consumerism as a malleable social construct[xxxiv], which has developed mostly as a result of the growing economic affluence[xxxv] which may be seen in Ireland[xxxvi]. Their views are that class is demarcated in terms of taste, culture and lifestyle[xxxvii], whereas historically this demarcation was less obvious since economic limitations precluded individuals from expressing taste, culture and lifestyle in the diverse ways that are possible today. Their analysis goes on to argue that Consumerism is the vehicle through which this transition has taken effect, since diversities in taste, culture and lifestyle have largely been introduced through the marketing of Consumerism and consumerist values. Therefore the accessibility of diversity to individuals has increased as economic conditions and Consumerism have delivered more choice to the individual. Emergent New Middle Classes ‘Middle classes’ is a somewhat overused term. It has historically been used to differentiate the economically disadvantaged within society from those whose incomes and resources provide them with enough money to live independently and relatively affluently within society, generally occupying the middle ground between rich and poor within society. The emergent new middle classes that are referred to in the scope of this thesis can be recognised as the product of an increasingly affluent society within Ireland[xxxviii], emerging as more individuals benefit from the higher standards of living that may be seen as a result of what is colloquially known as the Celtic Tiger[xxxix]. Cronin (2000) has an analysis of individual cultural consciousness which allows us to interpret the emergence of middle classes in a purely cultural and subjective context. He argues: ‘Diprose (1994) states that the Lockean model defines the individual as an entity which maintains the same consciousness over time and through corporeal changes, for example illness or pregnancy, thus giving primacy to the mind or consciousness over the body. Further more, the individual is defined as having identical self-presence in which, an entity is identical with itself if it has the same origin in time and space (Diprose 1994:9). So the individuation necessary for the processes of mutual recognition to occur requires a temporally bounded entity. Simultaneously, the individual is spatially bounded through the distinction between self and not-self which is produced in that same process of recognition. Here arises the constitutive contradiction of contract, identical self-presence and exchange: in these political fictions, the individual is said to have a self-contained identity prior to contract or relations with others (Diprose 1994). Patemans (1988) analysis of the contr adictory production of womens and subordinate groups status in contract echoes this tension. For the processes of contractual exchange to occur, an individual must recognise another as an individual. The characteristics that this requires are rationality and the possession of property†¦Ã¢â‚¬ ¦[xl]’. Therefore, it is arguable that the emergence of new cleavages of middle classes in Ireland has arisen both through a combination of objective, market forces combined with the forces which drive individual self-perception and this in turn drives an individual to represent themselves and ultimately project this representation. Chapter Four: Discourse Analysis of Economic Growth in Ireland The development of the economy in Ireland[xli] has created unprecedented[xlii] levels of wealth[xliii] and affluence[xliv] within Ireland[1]. Accordingly this section will specifically examine the nature and underpinnings of economic progress in Ireland as this has largely given rise to[xlv] and sustained[xlvi] emergent new middle classes as the Consumerism which has evolved alongside these sectors. Economic growth in Ireland may be explained in terms of ideological transition[xlvii], the influence of the European Community[xlviii] and the influence of political leaders[xlix] throughout this period of economic transition[l]. Macro economic convergence theories[li] may also help explain the shifts in economic conditions seen in Ireland[lii]. These factors are given more in depth analysis below. The decline of state interventionism and state protectionism[liii] in Ireland led to palpable ideological shifts within the country[liv]. In an international setting, the ideological foundations of the welfare state[lv] were being replaced with more modern neo-liberal[2] conceptions of political philosophy[lvi]. This trend was particularly notable in Britain with the election of Margaret Thatcher and her subsequent repudiation of Keynes’ economic[lvii] theory[lviii]. These ideological shifts, which influenced Ireland[lix], (although not until many years later) partly laid the foundations for the economic revolution[lx] which was to come about in the mid-nineties[lxi]. Charles Haughey who had been in power periodically since 1979, was re-elected Taoiseach in 1987, during a deep economic recession[lxii]. Haughey’s predecessor in 1987 was G. Fitzgerald. These two individuals are widely recognised as having laid the foundations for economic stability in the Republic of Ireland, with a recognition that taxation needed to be reorganised to stimulate economic enterprise and growth. Consequently, under Haughey public spending was decreased and spending on public sector employment and bureaucracy was also reduced[lxiii]. This produced a dividend in the form of economic stability, lower levels of inflation and relatively rejuvenated economic growth. Again this affected employment conditions, reducing unemployment and creating the conditions for investment in enterprise. Tax cuts were then directed at the manufacturing industries[lxiv], and later tax breaks for particular sectors of industry augmented these economic dividends in the form of a stimulat ed economy and greater levels of employment. These economic conditions led to a reduced reliance on agricultural enterprise[lxv] and this is known as ‘economic diversification’[lxvi]. The relationship between Ireland and the European Community and Ireland’s accession to the European Community in the early 1970s marked a high point politically[lxvii], culturally and economically[lxviii] for Ireland[lxix]. However, the influence of the European Community on the situation of Ireland is a controversial area of debate at the moment[lxx]. Some have argued that the influence of the European Union has been instrumental in the growth of Ireland’s economy[lxxi], whereas conversely there are arguments which suggest that the role of the European Community has been over stated, misunderstood and even misrepresented[lxxii]. Both propositions will be considered by the writer in following sections. The theory that Ireland prospered due to entry to the European Community has been critiqued as a facile theory[lxxiii] and this argument may be seen as even more cogent given that Powell (2003) has argued that if Ireland had prospered due to entry to the European Community, then the effects of EC investment would be identifiable and tangible. The reality is that European investment in Ireland produced some economic benefits, but the prosperity which Ireland enjoyed was precipitated by a plethora of events and shifts, which cumulatively produced the effects known as the Celtic Tiger[lxxiv]. One such shift is known as the convergence theory and economic growth in Ireland has been rationalised in terms of the convergence theory in the following way. This theory suggests that the ‘Celtic Tiger’ was not precipitated by circumstances, affiliations (in particular to the European Community) or events, but rather by the operation of a group of economic forces which argues that over time similar countries with similar institutions tend to perform economically in a congruous way. In this sense, the Celtic Tiger has been rationalised as a convergence as opposed to a phenomenon. Historically, this theory is plausible, as Ireland was dogged by recession in spite of entry into the EEC in 1973, under the tenure of Jack Lynch[lxxv]. This recession continued until the advent of Charles Haughey, and G. Fitzgerald who addressed the failing tax system in the Republic of Ireland[lxxvi]. The conception of taxation had been fundamentally challenged and revised in Ireland over the last twenty years[lxxvii]. This shift led to the realisation of the above mentioned ideological ideas substantively and not just rhetorically. The mid eighties in Ireland was a period characterised by high taxation and low employment[lxxviii]. Taxation was regarded as a method of bolstering the economy[lxxix] This had an adverse effect of investment, thwarted business and led to high levels of unemployment[lxxx]. In many ways this is what thwarted the progress of the economy, forcing class alignment along economic lines. Powell (2003) has argued that just prior to the millennium GDP in Ireland was $25,500 per capita, whereas in Britain this figure was approximately $23,000 per capita. This can be contrasted with the fact that in the late 1980s GDP per capita in Ireland was only approximately 65%, that of the UK GDP per capita[lxxxi]. This economic revolution has been referred to in colloquial and cultural terms as the growth of the ‘Celtic Tiger’. The use of the term Celtic Tiger is of great significance and it may be rationalised in terms of cultural symbolism in the following way: ‘Human encounter with the world has always been a profoundly enigmatic affair. Traditionally, human societies attained a measure of ontological security from social arrangements that accepted the fundamental ambivalence of the world (Giddens 1990; 1994). Because traditional modes of existence were symbolically tied to the world of appearances, such societies were able to employ well established, ritualized ways and means of being-in-the-world†¦[lxxxii]’. The effects of cultural symbolism may be further delved into through examining this explanation of existence and illusions which are imparted through the ‘appearance of things’: ‘The continuity of such an existence was assured by the experience of tradition alone, and legitimated by forces beyond human powers. Nature †¦ in the infinite detail of its illusory manifestations †¦ was conceived above all as the work of hidden wills (Bloch 1962, 83). This world of illusion amounted, in other words, to an acceptance of the illusion of the world (the term illusion is apt not in the sense of its power to fool you, but in its power to put something into play, to create something: scene, space, a game, a rule of the game to invent, in fact, the mode of appearance of things (Baudrillard 1993b, 59-60)). Modernity, in stark contrast, was founded firmly on the disavowal of the fact that ambivalence is inevitable; that appearances are intrinsically deceptive. Modernity was founded on a commitment to the reality of the world (Bauman 1991). Modernity thus held out the dream of an attainable order. And order, as the promise of the removal of ambivalence and co ntingency from the world, necessarily cast contingency as a threat, and demonized ambivalence. This was, of course, a complex and multifaceted affair. It involved, for instance, a transformation of time, as time became the property of man (Le Goff 1980, 51)†¦[lxxxiii]’. Therefore the concept of a tiger married to the concept of ‘Celtic’ and Celticness[lxxxiv] conveys, in metaphorical terms the speed and the pervasiveness of the new found wealth which swept through Ireland in the mid nineties, changing and fuelling market forces such as Consumerism. This terminology[lxxxv] is relevant in cultural terms since it conveys the prosperity which pervaded Ireland during this period, and continues to drive the Irish economy as one of the wealthiest countries in the European Union[lxxxvi]. This led to a dramatic shift in cultural mores and led to a redefining of class boundaries. The term ‘Celtic Tiger’ also cast Ireland in an advantageous light internationally, advertising the economic growth and success which the country was experiencing. This attracted foreign investment interest and raised the profile of Ireland internationally, as well as serving to extricate Ireland from the damaging and often distorted image of a country dependent on EEC funding and support. Demographically, the influence of economic forces was also dramatic and widespread. More people were in employment in Ireland and this led to a surge in industry, investment and enterprise[lxxxvii]. The tourist and the service sector industries surged forward economically, changing the sociological and cultural contours of the Republic of Ireland. Small businesses expanded and more people built hotels, shops, restaurants and food outlets[lxxxviii]. This impacted upon the tourist industry which thrived as more people were attracted to visiting locations within Ireland that were more accessible and inviting[lxxxix]. This trend too had a knock on effect with more leisure facilities being built, and a general emphasis on regenerating services and facilities in the interests of attracting tourists

McDonaldization in Modern Culture Essay -- Social Studies

Today’s society and culture is becoming more and more McDonaldized. This paper will illustrate what the process of McDonaldization is. In addition, this paper will show how today’s society has adapted to this process along with using the theories from Max Weber. The McDonaldization theory defines the process of which the principles of the fast-food restaurant are coming to dominate more and more sectors of American society as well as the rest of the world (Ritzer 1). Within McDonaldization there are five different concepts embedded into this theory, which are efficiency, calculability, predictability, control and lastly irrationality of rationality. These concepts are not just used in fast-food restaurants, but are becoming more popular with in malls, health care, religion, and even education (Aldredge, Lectures on McDonaldization of Society). Efficiency is the optimum method for getting from one point to another (Ritzer 13). By controlling a method or process this also allows a business to become more efficient. Henry Ford found that assembly lines are a way to control how much one can do and get the job done faster (Ritzer 32). Streamlining happens when a business or society cuts out the unimportant to make something more simplistic. When one simplifies the process this makes the employee go even faster or makes the customer choose what they want even faster. The second step in McDonaldization is calculability. Calculability is the importance of numbers on the sold products (Ritzer 79). Calculability makes it easier to determine efficiency by making steps that can be clocked and ensuring one can do a step at a faster rate (Ritzer 79). The three basic elements one would will find in calculability are replacing qua... ...ontinue down the path off McDonaldization, our society will be walking robots living about each other. In conclusion, McDonaldization is a process that today’s society has consumed and adapted as a norm. Blinded by efficiency, calculability, control, predictability and the irrationality of rationality, consumers and employers play into the theories of McDonaldization. As seen, McDonaldization is not just in fast food establishments. One can see this theory played out in shopping malls, health care, dating sites and casinos. Bibliography Aldredge, Marcus. Culture Lecture Amy Schumaker. 19 11 2009. Aldredge, Marcus. Lectures on McDonaldization of Society Amy Schumaker. 29 9 2009. Ritzer, George. The McDonalization of Society. 5th. Los Angeles: Pine Forge Press, 2008. Tischler, Henery L. Introduction to Sociology. 9th. Belmont: Thomson-Wadsworth, 2007.

Osmosis Case Study Essay

These two Case Studies come from a National Center on Case Studies. I think that a case study approach is very useful in applying knowledge and this is what makes you learn it better. They may be a little daunting when you read them but I will help you go through them. Please ask for help so this topic becomes more enjoyable for you. Part I—Too Much of a Good Thing Times were difficult in Habersham County. The skyrocketing prices of fuel and food were threatening to bankrupt the Johnson family’s small farm, which was no match for the multi-million-dollar mega-farms that had been popping up all over the southeast. Joseph, the family patriarch, was especially troubled by the farm’s financial circumstances. He knew that this year’s corn crop was his best chance to save the farm, and his distress was evident to his family as they sat around the dinner table. â€Å"Michael, I’m going to need your help tomorrow,† Joseph said to his eldest son. â€Å"I have to go into town to pick up a part for the combine so I can fix it before it’s time to harvest in a few months. I need you to spread the potash and phosphate on the corn because we’re expecting some rain by the end of the week. † Michael, his mouth full of fried chicken, nodded in agreement. He wasn’t all that interested in farming, which over the years had been a point of contention between him and his father. At the moment Michael was thinking more about the time he’d be missing with his friends, but he also realized how vital this chore was to his father and the farm. â€Å"I’ll do it right after school, Dad,† he replied. The following afternoon, Michael was loading heavy bags of fertilizer into the drop spreader on the farm tractor. His father’s cheerless demeanor the previous evening weighed heavily on him. Michael knew that 25 bags of the potassium and phosphorous-based fertilizer was the normal load to cover the 40 acres of corn the family had planted that spring. But as he was emptying the 25th bag into the spreader, an idea flashed through his mind: â€Å"If we need a good corn crop to make it, maybe I should add a little extra fertilizer. † Michael decided that some extra fertilizer couldn’t hurt, so he quickly loaded 15 extra bags. He was certain that adding the extra fertilizer would produce a massive crop when it came time to harvest in a few months. Michael hadn’t told his father about the extra fertilizer he’d added to the corn, wanting to see his father’s surprise over the size of the harvest in a few months. As expected, the rain started Friday afternoon; Michael was certain it would start an incredible growth spurt in the newly fertilized, young corn plants and that his family would hit pay dirt in a few months. He was out of bed early on Saturday morning, taking his four-wheeler down to the cornfields. He expected to see a vibrant green sea of young corn, extra healthy due to the fertilizer â€Å"boost† he had given them. His stomach dropped a bit as he stared out at a field of sickly looking corn plants, their leaves pale green and slightly wilting. â€Å"Maybe it rained too hard and that beat the plants up a little,† thought Michael, trying to be optimistic. â€Å"I’ll check on them again in a few days. I’m sure they’ll have perked up by then! † The next few days didn’t bring the results Michael was hoping for. The corn plants looked even worse! The leaves were beginning to yellow significantly and were continuing to wilt. Having watched his father grow corn for most of his 14 years, Michael knew this crop wasn’t going to make it. A lump was forming in his throat as he made his way back to the house, not sure how to tell his father about the corn. Questions 1. What sort of environment (hypotonic, hypertonic, isotonic) did the extra fertilizer create around the roots of the corn? 2. Keeping in mind your answer to the previous question, what do you believe caused the corn plants to wilt and eventually die? 3. If Michael’s mistake had been caught earlier, is there anything that could have been done to prevent the corn from dying? 4. Generally, people water their plants with 100% H2O—no solutes added. What sort of environment does this create around the roots of the plant? Part II—Too Little, Too Late Meanwhile, elsewhere in Habersham County, Tom was feeling slightly nervous as he exited the staff lounge and entered the hustle and bustle of County Hospital’s ER to begin his first shift as an RN. The first few hours of his shift passed slowly as Tom mostly checked vital signs and listened to patients complain about various aches, pains, coughs, and sniffles. He realized that the attending physician, Dr. Greene, who was rather â€Å"old  school† in general about how he interacted with nursing staff, wanted to start him out slowly. Tom knew, though, that the paramedics could bring in a trauma patient at any time. After his lunch break, Tom didn’t have long to wait before the paramedics burst in through the swinging double-doors of the ambulance bay wheeling in a young man on a gurney. Edward, a veteran EMT, recited the vital signs to Tom and Dr. Greene as they helped push the gurney into the trauma room, â€Å"18-year-old male, GSW to the right abdomen, heart rate 92, respiratory rate 22, blood pressure 95/65, no loss of consciousness. † A gunshot wound! Tom knew that gunshot wounds were sometimes the most difficult traumas to handle. Once inside the trauma room, Dr. Greene began his initial assessment of the patient while Tom got busy organizing the things he knew would be needed. He attached a pulse-ox monitor to the patient’s index finger so Dr. Greene could keep an eye on the O2 levels in the patient’s blood and he inserted a Foley catheter so the patient’s urine output could be monitored. After finishing his initial duties, Tom heard Dr. Greene saying, â€Å"It looks like the bullet missed the liver and kidney, but it may have severed an artery. That’s probably why his BP is a bit low. Tom, grab a liter of saline and start a fast IV drip †¦ we need to increase his blood volume. † Tom grabbed one of the fluid-filled bags from the nearby shelf, attached a 12-gauge IV needle to the plastic tubing, and gently slipped the needle into the patient’s antecubital vein. He then hung the plastic bag on the IV stand and let the fluid quickly start to flow down the tubing and into the patient’s vein. The reaction was quick and violent. The patient’s heart rate began to skyrocket and Tom heard Dr. Greene shouting, â€Å"His O2 saturation is falling! Pulse is quickening! What is going on with this guy?! † Tom stood frozen in place by the fear. He heard Dr. Greene continuing, â€Å"Flatline! We’ve lost a pulse †¦ Tom, get the crash cart, we need to shock this guy to get his heart going again! † Tom broke free from his initial shock and did as Dr. Greene had ordered. He then started CPR as Dr. Greene readied the cardiac defibrillator to shock the patient. They continued to alternate between CPR and defibrillation for almost an hour, but to no avail. As Dr. Greene announced the time of death, Tom felt a sickening feeling in the pit of his stomach. He couldn’t believe that he had lost his first trauma patient! Then Tom noticed that the fluid in the Foley catheter bag was bright red. â€Å"Dr. Greene, there’s hemoglobin in the Foley bag,† he said. â€Å"How could that be? † responded Dr. Greene. Tom began to trace back over his steps in the trauma, trying to think of anything that could have caused the hemoglobinuria. His mounting fear turned to outright terror as he looked at the now empty bag on the IV stand. Its label didn’t read â€Å"Saline,† but rather â€Å"Distilled Water. † He looked at Dr. Greene, his heart quickly sinking, and said, â€Å"I think I may have killed the patient. † Questions 1. What problem did the distilled water in the patient’s bloodstream create? 2. What happed to the patient’s blood cells as a result? 3. Considering the function of red blood cells, why did the patient’s oxygen levels fall? 4. After Tom made his error, is there anything that could have been done to save the patient’s life?

Corporate Financial Management Lecturer’s Guide

CFML_A01v3. QXD 8/6/08 3:51 PM Page 1 Lecturer’s Guide Corporate Financial Management Fourth edition Glen Arnold For further lecturer material please visit: www. pearsoned. co. uk/arnold ISBN 978-0-273-71064-6  © Pearson Education Limited 2008 Lecturers adopting the main text are permitted to download and copy this guide as required. CFML_A01v3. QXD 8/6/08 3:51 PM Page 2 Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies around the world Visit us on the World Wide Web at: www. pearsoned. co. uk ––––––––––––––––––––––––––––––––––– First published under the Financial TimesPitman Publishing imprint in 1998 Second edition published 2002 Third edition published 2005 Fourth edition published 2008  © Financial Times Professional Limited 1998  © Pearson Education Limited 2002, 2005, 2008 The right of Glen Arnold to be identified as author of this Work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988. ISBN-978-0-273-71064-6 All rights reserved. Permission is hereby given for the material in this publication to be reproduced for OHP transparencies and student handouts, without express permission of the Publishers, for educational purposes only.In all other cases, no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without either the prior written permission of the Publishers or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd. , Saffron House, 6-10 Kirby Street, London EC1N 8TS. This book may not be lent, resold, hired out or otherwise disposed of by way of trade in any form of binding or cover other than that in which it is published, without the prior consent of the Publishers.CFML_A01v3. QXD 8/5/08 4:16 PM Page 3 CONTENTS Preface Location of answers to questions and problems SUPPLEMENTARY MATERIAL FOR CHAPTERS Chapter 1 The financial world Chapter 2 Project appraisal: Net present value and internal rate of return Chapter 3 Project appraisal: Cash flow and applications Chapter 4 The decision-making process for investment appraisal Chapter 5 Project appraisal: Capital rationing, taxation and inflation Chapter 6 Risk and project appraisal Chapter 7 Portfolio theory Chapter 8 The capital asset pricing model and multi-factor models Chapter 9 Stock markets Chapter 10 Raising equity capitalChapter 11 Long-term debt finance Chapter 12 Short-term and medium-term finance Chapter 13 Treasury and working capital management Chapter 14 Stock market efficiency Chapter 15 Value management Chapter 16 Strategy and value Chapter 17 Value-creat ion metrics Chapter 18 Entire firm value measurement Chapter 19 The cost of capital Chapter 20 Valuing shares Chapter 21 Capital structure Chapter 22 Dividend policy Chapter 23 Mergers Chapter 24 Derivatives Chapter 25 Managing exchange-rate risk  © Pearson Education Limited 2008 5 6 7 10 14 20 24 29 33 38 40 43 47 51 54 58 59 64 66 72 74 77 81 84 86 91 96 3 CFML_A01v3.QXD 8/5/08 4:16 PM Page 4 Supporting resources Visit www. pearsoned. co. uk/arnold to find valuable online resources Companion Website for students ? Learning objectives for each chapter ? Multiple-choice questions with instant feedback to help test your learning ? Weblinks to relevant, specific Internet resources to facilitate in-depth independent research ? A wide selection of FT articles, additional to those found in the book, to provide real-world examples of financial decision making in practice ? Interactive online flashcards that allow the reader to check definitions against the key terms during revision Sear chable online glossary For instructors ? Complete, downloadable Instructor’s Manual including answers for all question material in the book ? A brand new set of over 800 PowerPoint slides that can be downloaded and used as OHTs Also: The regularly maintained Companion Website provides the following features: ? Search tool to help locate specific items of content ? E-mail results and profile tools to send results of quizzes to instructors ? Online help and support to assist with website usage and troubleshooting For more information please contact your local Pearson Education sales representative or visit www. earsoned. co. uk/arnold CFML_A01v3. QXD 8/5/08 4:16 PM Page 5 PREFACE This Guide is designed to assist lecturers and tutors using Corporate Financial Management fourth edition. Supplementary material for chapters For each chapter: †¢ The learning outcomes are outlined. †¢ Key points and concepts are listed. †¢ Solutions to selected numerical problems (thos e marked with an asterisk in the main book) are provided. Note that there is often more than one possible correct solution to a problem. Different answers, which nevertheless follow the logic of the argument presented in the text, may be acceptable.Overhead projector transparency masters Also available on the website in PowerPoint ® for downloading are over 800 selected figures, tables and key points reproduced in a form suitable for creating overhead projector transparency masters. These are arranged in the order in which they appear in Corporate Financial Management. The learning objectives and summary points from the chapters are also included. Glen Arnold  © Pearson Education Limited 2008 5 CFML_A01v3. QXD 8/5/08 4:16 PM Page 6 LOCATION OF ANSWERS TO QUESTIONS AND PROBLEMS (No answers given to those in final column)Chapter No Answered in Appendix VII Answered in Lecturer’s Guide 1 Essay answer required (see text) All (see note in Appendix VII) 2 1, 2, 4, 5, 6 3, 7 3 1 , 2, 3, 6, 9, 11, 13, 15 4, 5, 7, 8, 10, 12, 14 4 1, 2, 4, 5 3 5 1, 2, 3, 5, 6, 9, 10 4, 7, 8 6 1, 4, 5, 6, 7, 8, 9, 10, 11 2, 3, 12 7 1, 2, 3, 7, 8, 9, 10, 11, 12, 13, 15 4, 5, 6, 14a, b, c 8 1, 3, 4, 5, 7, 8, 9, 10 6, 7, 8, 9 14d 2, 6, 11 9 1–11 10 12 8 1–7, 9–11, 13–19 11 1, 2, 3, 4, 5, 6, 10, 11, 13, 16 7 8, 9, 12, 14, 15, 17–20 12 1, 2, 4, 9, 10, 11 5, 12 3, 6, 7, 8, 13, 14, 15 13 1, 4, 5, 7, 9, 10 3a, 6, 8, 23, 25a , 3b, 11, 12, 13–22, 24, 25b, 25c 14 2 15 8, 9 1, 3–17 7, 10 16 1–6 1–4 17 1, 5, 6, 7 18 1, 2 19 2, 3 1 20 3, 4, 5, 6, 7, 9 8, 10 1, 2 21 2, 3, 6a, 9 1 4, 5, 6b, 7, 8 22 4, 5, 8 23 6 1, 3, 4, 5 2, 7, 8, 9 24 1, 2, 3, 4, 5, 7, 10 6, 8, 9 11, 12, 13 25 1, 2, 7, 8a, 10, 11 4, 9 3, 4b, 5, 6, 8b 6 2, 3, 4, 4a 8 1, 2, 3, 4, 7  © Pearson Education Limited 2008 CFML_CH01v3. QXD 29/7/08 17:25 Page 7 SUPPLEMENTARY MATERIAL FOR CHAPTERS Chapter 1 THE FINANCIAL WORLD L EARNING OUTCOMES It is no good learning mathe matical techniques and theory if you lack an overview of what finance is about.At the end of this chapter the reader will have a balanced perspective on the purpose and value of the finance function, at both the corporate and national level. More specifically, the reader should be able to:  ¦ describe alternative views on the purpose of the business and show the importance to any organisation of clarity on this point;  ¦ describe the impact of the divorce of corporate ownership from day-to-day managerial control;  ¦ explain the role of the financial manager;  ¦ detail the value of financial intermediaries;  ¦ show an appreciation of the function of the major financial institutions and markets. K EY POINTS AND CONCEPTS Firms should clearly define the objective of the enterprise to provide a focus for decision making.  ¦ Sound financial management is necessary for the achievement of all stakeholder goals.  ¦ Some stakeholders will have their returns satisfied – gi ven just enough to make their contribution. One (or more) group(s) will have their returns maximised – given any surplus after all others have been satisfied.  ¦ The assumed objective of the firm for finance is to maximise shareholder wealth. Reasons: – practical, a single objective leads to clearer decisions; – the contractual theory; – survival in a competitive world; it is better for society; – counters the tendency of managers to pursue goals for their own benefit; – they own the firm.  ¦ Maximising shareholder wealth is maximising purchasing power or maximising the flow of discounted cash flow to shareholders over a long time horizon.  ¦ Profit maximisation is not the same as shareholder wealth maximisation. Some factors a profit comparison does not allow for are: – future prospects; – risk; – accounting problems;  © Pearson Education Limited 2008 7 CFML_CH01v3. QXD 29/7/08 17:25 Page 8 Glen Arnold, Corporat e Financial Management Lecturer’s Guide, 4th edition – communication; – additional capital. Corporate governance. Large corporations usually have a separation of ownership and control. This may lead to managerialism where the agent (the managers) take decisions primarily with their interests in mind rather than those of the principals (the shareholders). This is a principal-agent problem. Some solutions: – link managerial rewards to shareholder wealth improvement; – sackings; – selling shares and the takeover threat; – corporate governance regulation; – improve information flow.  ¦ The efficiency of production and the well-being of consumers can be improved with the introduction of money to a barter economy. Financial institutions and markets encourage growth and progress by mobilising savings and encouraging investment.  ¦ Financial managers contribute to firms’ success primarily through investment and finance decis ions. Their knowledge of financial markets, investment appraisal methods, treasury and risk management techniques are vital for company growth and stability.  ¦ Financial institutions encourage the flow of saving into investment by acting as brokers and asset transformers, thus alleviating the conflict of preferences between the primary investors (households) and the ultimate borrowers (firms). Asset transformation is the creation of an intermediate security with characteristics appealing to the primary investor to attract funds, which are then made available to the ultimate borrower in a form appropriate to them. Types of asset transformation: – risk transformation; – maturity transformation; – volume transformation.  ¦ Intermediaries are able to transform assets and encourage the flow of funds because of their economies of scale vis-a-vis the individual investor: – efficiencies in gathering information; – risk spreading; – transaction costs.  ¦The secondary markets in financial securities encourage investment by enabling investor liquidity (being able to sell quickly and cheaply to another investor) while providing the firm with long-term funds.  ¦ The financial services sector has grown to be of great economic significance in the UK. Reasons: – high income elasticity; – international comparative advantage.  ¦ The financial sector has shown remarkable dynamism, innovation and adaptability over the last three decades. Deregulation, new technology, globalisation and the rapid development of new financial products have characterised this sector. Banking sector: – Retail banks – high-volume and low-value business. – Wholesale banks – low-volume and high-value business. Mostly fee based. – International banks – mostly Eurocurrency transactions. – Building societies – still primarily small deposits aggregated for mortgage lending. – Fina nce houses – hire purchase, leasing, factoring. 8  © Pearson Education Limited 2008 CFML_CH01v3. QXD 29/7/08 17:25 Page 9 Glen Arnold, Corporate Financial Management Lecturer’s Guide, 4th edition  ¦ Long-term savings institutions: – Pension funds – major investors in financial assets. Insurance funds – life assurance and endowment policies provide large investment funds.  ¦ The risk spreaders: – Unit trusts – genuine trusts which are open-ended investment vehicles. – Investment trusts – companies which invest in other companies’ financial securities, particularly shares. – Open-ended investment companies (OEICs) – a hybrid between unit and investment trusts.  ¦ The risk takers: – Private equity funds – invest in companies not quoted on a stock exchange. – Hedge funds – wide variety of investment or speculative strategies outside regulators’ control.  ¦ The markets: The money markets are short-term wholesale lending and/or borrowing markets. – The bond markets deal in long-term bond debt issued by corporations, governments, local authorities and so on, and usually have a secondary market. – The foreign exchange market – one currency is exchanged for another. – The share market – primary and secondary trading in companies’ shares takes place on the Official List of the London Stock Exchange, techMARK and the Alternative Investment Market. – The derivatives market – LIFFE (Euronext. liffe) dominates the ‘exchange-traded’ derivatives market in options and futures.However there is a flourishing over-the-counter market. There are no numerical questions in this chapter; answers may be found from reading the text.  © Pearson Education Limited 2008 9 CFML_CH02v3. QXD 29/7/08 17:26 Page 10 Chapter 2 PROJECT APPRAISAL: NET PRESENT VALUE AND INTERNAL RATE OF RETURN L EARNING OUTCOMES By the end of the chapter the student should be able to demonstrate an understanding of the fundamental theoretical justifications for using discounted cash flow techniques in analysing major investment decisions, based on the concepts of the time value of money and the opportunity cost of capital.More specifically the student should be able to:  ¦ calculate net present value and internal rate of return;  ¦ show an appreciation of the relationship between net present value and internal rate of return;  ¦ describe and explain at least two potential problems that can arise with internal rate of return in specific circumstances;  ¦ demonstrate awareness of the propensity for management to favour a percentage measure of investment performance and be able to use the modified internal rate of return. KEY POINTS AND CONCEPTS  ¦ Time value of money has three component parts each requiring compensation for a delay in the receipt of cash: the pure time value, or impatience to consume, – inflation, – risk.  ¦ Opportunity cost of capital is the yield forgone on the best available investment alternative – the risk level of the alternative being the same as for the project under consideration.  ¦ Taking account of the time value of money and opportunity cost of capital in project appraisal leads to discounted cash flow analysis (DCF).  ¦ Net present value (NPV) is the present value of the future cash flows after netting out the initial cash flow. Present values are achieved by discounting at the opportunity cost of capital.NPV = CF0 +  ¦ (1 + k)2 + †¦ CFn (1 + k)n 0 accept 0 reject CF1 1+r + CF2 (1 + r)2 + †¦ CFn (1 + r)n =0 The internal rate of return decision rule is: IRR IRR 10 CF2 Internal rate of return (IRR) is the discount rate which, when applied to the cash flows of a project, results in a zero net present value. It is an ‘r’ which results in the following formula being true: CF0 +  ¦ 1+k + Th e net present value decision rules are: NPV NPV  ¦ CF1 opportunity cost of capital – accept opportunity cost of capital – reject  © Pearson Education Limited 2008 CFML_CH02v3. QXD 29/7/08 17:26 Page 11Glen Arnold, Corporate Financial Management Lecturer’s Guide, 4th edition  ¦ IRR is poor at handling situations of unconventional cash flows. Multiple solutions can be the result.  ¦ There are circumstances when IRR ranks one project higher than another, whereas NPV ranks the projects in the opposite order. This ranking problem becomes an important issue in situations of mutual exclusivity.  ¦ The IRR decision rule is reversed for financing-type decisions.  ¦ NPV measures in absolute amounts of money. IRR is a percentage measure.  ¦ IRR assumes that intra-project cash flows can be invested at a rate of return equal to the IRR.This biases the IRR calculation.  ¦ If a percentage measure is required, perhaps for communication within an organisation, th en the modified internal rate of return (MIRR) is to be preferred to the IRR. ANSWERS TO SELECTED QUESTIONS 3 Confused plc a Project C IRRs at 12. 1% and 286%. See Fig. 2. 1. NPV + 12. 1 – 286 Discount rate Fig. 2. 1 Project D No solution using IRR. See Fig. 2. 2. + NPV Discount rate – Fig. 2. 2 b This problem illustrates two disadvantages of the IRR method. In the case of project C multiple solutions are possible, given the non-conventional cash flow.In the case of project D there is no solution, no IRR where NPV = 0. c NPV Project C: +? 646 Project D: –? 200 Using NPV the accept/reject decision is straightforward. Project C is accepted and Project D is rejected.  © Pearson Education Limited 2008 11 CFML_CH02v3. QXD 29/7/08 17:26 Page 12 Glen Arnold, Corporate Financial Management Lecturer’s Guide, 4th edition 7 Seddet International a Project A At 20%: –5,266 + 2,500 ? 2. 1065 = 0, ? IRR = 20% Project B At 7%: –8,000 + 10,000 ? 0. 8163 = +163 At 8%: –8,000 + 10,000 ? 0. 7938 = –62 IRR = 7 + 163 163 + 62 (8 – 7) = 7. 7% Project CAt 22%: –2,100 + 200 ? 0. 8197 + 2,900 ? 0. 6719 = +12. 45 At 23%: –2,100 + 200 ? 0. 8130 + 2,900 ? 0. 6610 = –20. 5 IRR = 22 + 12. 45 12. 45 + 20. 5 (23 – 22) = 22. 4% Project D At 16%: –1,975 + 1,600 ? 0. 8621 + 800 ? 0. 7432 = –1 ? IRR is slightly under 16%. The IRR exceeds the hurdle rate of 16% in the case of A and C. Therefore if all projects can be accepted these two should be undertaken. b Ranking under IRR: Project Project Project Project C A D B IRR 22. 4% 20% 16% 7. 7% best project c Project A –5,266 + 2,500 ? 2. 2459 = 349 Project B –8,000 + 10,000 ? 0. 6407 = –1,593 Project C 2,100 + 200 + 0. 8621 + 2,900 ? 0. 7432 = 228 Project D –1,975 + 1,600 ? 0. 8621 + 800 ? 0. 7432 = –1 12  © Pearson Education Limited 2008 CFML_CH02v3. QXD 29/7/08 17:26 Page 13 Glen Arnold, Corporate Financia l Management Lecturer’s Guide, 4th edition Ranking Project A Project C Project D Project B NPV 349 best project 228 –1 –1,593 Project A ranks higher than project C using NPV because it generates a larger surplus (value) over the required rate of return. NPV measures in absolute amounts of money and because project A is twice the size of project C it creates a greater NPV despite a lower IRR. This report should comment on the meaning of a positive or negative NPV expressed in everyday language. It should mention the time value of money and opportunity cost of capital and explain their meanings. Also the drawbacks of IRR should be discussed:  ¦ multiple solutions;  ¦ ranking problem – link with the contrast of a percentage-based measure and an absolute moneybased measure;  ¦ additivity not possible;  ¦ the reinvestment assumption is flawed.  © Pearson Education Limited 2008 13 CFML_CH03v3. QXD 29/7/08 17:26 Page 14 Chapter 3 PROJECT APPRAISAL: CAS H FLOW AND APPLICATIONS LEARNING OUTCOMESBy the end of this chapter the reader will be able to identify and apply relevant and incremental cash flows in net present value calculations. The reader will also be able to recognise and deal with sunk costs, incidental costs and allocated overheads and be able to employ this knowledge to the following:  ¦ the replacement decision/the replacement cycle;  ¦ the calculation of annual equivalent annuities;  ¦ the make or buy decision;  ¦ optimal timing of investment;  ¦ fluctuating output situations. KEY POINTS AND CONCEPTS  ¦ Raw data have to be checked for accuracy, reliability, timeliness, expense of collection, etc.  ¦Depreciation is not a cash flow and should be excluded.  ¦ Profit is a poor substitute for cash flow. For example, working capital adjustments may be needed to modify the profit figures for NPV analysis.  ¦ Analyse on the basis of incremental cash flows. That is, the difference between the cash flows arisin g if the project is implemented and the cash flows if the project is not implemented: – opportunity costs associated with, say, using an asset which has an alternative employment are relevant; – incidental effects, that is, cash flow effects throughout the organisation, should be considered along with the obvious direct effects; sunk costs – costs which will not change regardless of the decision to proceed are clearly irrelevant; – allocated overhead is a non-incremental cost and is irrelevant; – interest should not be double counted by both including interest as a cash flow and including it as an element in the discount rate.  ¦ The replacement decision is an example of the application of incremental cash flow analysis.  ¦ Annual equivalent annuities (AEA) can be employed to estimate the optimal replacement cycle for an asset under certain restrictive assumptions. The lowest common multiple (LCM) method is sometimes employed for short-lived as sets. Whether to repair the old machine or sell it and buy a new machine is a very common business dilemma. Incremental cash flow analysis helps us to solve these types of problems. Other applications include the timing of projects, the issue of fluctuating output and the make or buy decision. 14  © Pearson Education Limited 2008 CFML_CH03v3. QXD 29/7/08 17:26 Page 15 Glen Arnold, Corporate Financial Management Lecturer’s Guide, 4th edition A NSWERS TO SELECTED QUESTIONS 4 Mercia plc a Proposal 1 Consultant’s fee – sunk cost Central overhead – irrelevant Depreciation – irrelevant Time (years) ?000s 0Earthmoving Construction Ticket sales Operational costs Council Senior management Opportunity cost Cash flows –1,650 3>? 2 –100 –1,650 Discounted Cash flows 1 –150 –1,400 –200 +600 –100 –100 –50 +600 –100 –50 +150 0 +450 150 (1. 1)2 450/0. 1 (1. 1)2 + NPV = + ? 2. 193m Propos al 2 Central overhead (? 70,000) – irrelevant Consultants fees (? 50,000) – sunk cost Time (years) ?000s 0 1 2 3 –100 5,000 –4,000 –400 –100 5,000 –4,000 –400 –100 Design & build Revenue Operating costs Equipment Executive Opportunity cost Sale of club –9,000 Cash flow –9,100 –100 Discounted cash flow –9,100 –100 1. 1 –100 +11,000 500 + 500 (1. 1)2 +11,500 + 11,500 (1. 1)3 NPV = –? 137,566 Recommendation: accept proposal 1 IRR Proposal 1: 20. 2% Proposal 2: 9. 4%  © Pearson Education Limited 2008 15 CFML_CH03v3. QXD 29/7/08 17:26 Page 16 Glen Arnold, Corporate Financial Management Lecturer’s Guide, 4th edition 5 Mines International plc a Survey – sunk cost Time (years) ?m Profit (loss) Add depreciation Capital equipment Survey 0 1 2 3 4 5 0 0 –4. 75 –2. 1 0 –4. 75 0. 30 3. 9 2. 0 4. 7 2. 0 4. 7 2. 0 2. 9 2. 0 1. 5 0 0 0 2. 0 –2. 0 2. 0 2. 25 –0. 25 2. 25 2. 25 0 2. 25 1. 75 +0. 50 1. 75 0 +1. 75 0. 125 0. 125 0. 125 0. 10 0 –0. 25 0. 10 0 –0. 10 Debtor adjustment: Opening debtors Closing debtors Creditor adjustment Opening creditors Closing creditors 0 0. 15 +0. 15 Overheads Hire cost Cash reserves Government refund Cash flow Discounted cash flow 0. 2 0. 15 0. 10 0. 10 0. 125 –0. 05 +0. 025 0. 2 0. 2 –0. 1 0. 2 –1. 0 5. 125 0. 2 +1. 0 +0. 2 –5. 75 –5. 75 –6. 20 4. 05 6. 575 6. 9 8. 075 1. 85 –6. 20 + 4. 05 + 6. 575 + 6. 9 + 8. 075 + 1. 85 1. 12 (1. 12)2 (1. 12)3 (1. 12)4 (1. 12)5 (1. 12)5. 125 = –5. 75 – 5. 536 + 3. 229 + 4. 680 + 4. 385 + 4. 582 + 1. 035 = ? 6. 625m The maximum which MI should bid in the auction is ? . 625m. This additional cash outflow at time zero would result in a return of 12% being obtained. (Some students may time the final debtor and creditor payments at time 5. 25 as time 6. ) b IRR = 29. 4%. c Poin ts to be covered:  ¦ Time value of money.  ¦ Opportunity cost of money for a given risk class.  ¦ Sunk cost.  ¦ Treatment of depreciation.  ¦ Allocated overhead treatment.  ¦ Cash injections.  ¦ Hire cost – opportunity cost. Comparison of NPV with other project appraisal methods: Advantages over IRR: – measures in absolute amounts of money; – ranking problem; – multiple solution problem. 16 Pearson Education Limited 2008 CFML_CH03v3. QXD 29/7/08 17:26 Page 17 Glen Arnold, Corporate Financial Management Lecturer’s Guide, 4th edition  ¦ Advantages over payback: – time value of money allowed for; – all cash flows considered; – cash flows within pay back period considered properly.  ¦ Advantages over ARR: – firm theoretical base, time value of money; – defined decision criteria. 7 Reds plc One-year cycle: Time (years) 0 1 –10,000 –12,000 8,000 – 4,000 NPV = –10,000  œ 4,000 ? 0. 9009 = –13,604 AEA = –13,604 0. 9009 = –? 15,100 Two-year cycle: Time (years) 0 1 2 –10,000 –12,000 –13,000 ,500 –6,500 NPV = –10,000 – 12,000 ? 0. 9009 – 6,500 ? 0. 8116 = –26,086 AEA = –26,086 1. 7125 = –? 15,233 Three-year cycle: Time (years) 0 1 2 3 –10,000 –12,000 –13,000 –14,000 3,500 –10,500 NPV = –10,000 – 12,000 ? 0. 9009 – 13,000 ? 0. 8116 – 10,500 ? 0. 7312 = –39,039 AEA = –39,039 2. 4437 = –? 15,975 Reds should replace the machinery on a one-year cycle.  © Pearson Education Limited 2008 17 CFML_CH03v3. QXD 29/7/08 17:26 Page 18 Glen Arnold, Corporate Financial Management Lecturer’s Guide, 4th edition 8 Immediate replacement: Time (years) 0 1>? +4,000 –15,100 +4,000 –15,100 0. 11 = –? 133,273Replacement after one year: Time 0 + 2>? –2,000 –2,00 0 1 3,000 –15,100 0. 9009 – 15,100/0. 11 1. 11 3,000 ? = –? 122,966 Replacement after two years: Time 0 1 2 3>? –2,000 –1,000 +1,500 –15,100 –2,000 –1,000 ? 0. 9009 + 1,500 ? 0. 8116 –15,100/0. 11 (1. 11)2 = –? 113,097 Recommendation: Commence replacement cycle after two years. 10 Curt plc Incremental cash flows Time (years) 0 –70,000 –28,000 28,000 37,000 47,100 68,410 ? ? ? ? ? 0. 8621 0. 7432 0. 6407 0. 5523 0. 4761 2 3 4 5 0 –70,000 100,000 –80,000 –48,000 110,000 –82,000 121,000 –84,000 133,100 –86,000 146,410 –88,000 10,000 –70,000 Current cash flowsNew plan 1 –28,000 28,000 37,000 47,100 68,410 = = = = = = –70,000 –24,139 20,810 23,706 26,013 32,570 8,960 The positive incremental NPV indicates that acceptance of the proposal to manufacture in-house would add to shareholder wealth. 18  © Pearson Education Limited 200 8 CFML_CH03v3. QXD 29/7/08 17:26 Page 19 Glen Arnold, Corporate Financial Management Lecturer’s Guide, 4th edition Other factors: some possibilities The relative bargaining strength of Curt and its supplier. Perhaps a search for another supplier would be wise. Perhaps it would be possible to negotiate a multi-year price agreement.Are there some other incidental effects Curt has not considered, e. g. factory space usage? 12 Netq plc Output per year: 1,000 ? 0. 3333 ? 2 1,000 ? 0. 3333 ? 0. 75 ? 2 1,000 ? 0. 3333 ? 0. 5 ? 2 = 667 500 333 1,500 Cost of annual output 1,500 ? ?4 = ? 6,000 PV = 6,000/0. 13 = ? 46,154 Both machines replaced: Annual costs 1,500 ? ?1. 80 = ? 2,700 PV = 14,000 + 2,700 0. 13 = ? 34,769 One machine is replaced: Old Output: first third of year second third of year last third of year New 333. 3 166. 7 0 500 333. 3 333. 3 333. 3 1,000 Annual costs 500 ? 4 + 1,000 ? 1. 8 = ? 3,800 PV = 7,000 + 3,800 = ? 6,231 0. 13 The lowest cost option is to replace both m achines. 14 Opti plc Costs One-year replacement: PV = 20,000 – 6,000/1. 1 = 14,545 AEA = 14,545/0. 9091 = 16,000 Two-year replacement: PV = 20,000 + 6,000/1. 1 – 1,000/(1. 1)2 = 24,629 AEA = 24,629/1. 7355 = 14,191 Three-year replacement: PV = 20,000 + 6,000/1. 1 + 8,000/(1. 1)2 + 4,000/(1. 1)3 = 35,072 AEA = 35,072/2. 4869 = 14,103 Four-year replacement: PV = 20,000 + 6,000/1. 1 + 8,000/(1. 1)2 + 10,000/(1. 1)3 + 10,000/(1. 1)4 = 46,410 AEA = 46,410/3. 1699 = 14,641 The optimal replacement cycle is 3 years.  © Pearson Education Limited 2008 9 CFML_CH04v3. QXD 29/7/08 17:27 Page 20 Chapter 4 THE DECISION-MAKING PROCESS FOR INVESTMENT APPRAISAL LEARNING OUTCOMES The main outcome expected from this chapter is that the reader is aware of both traditional and discounted cash flow investment appraisal techniques and the extent of their use. The reader should also be aware that these techniques are a small part of the overall capital-allocation planning process. The studen t is expected to gain knowledge of:  ¦ the empirical evidence on techniques used;  ¦ the calculation of payback, discounted payback and accounting rate of return (ARR);

How to Write Headlines and Subheads

How to Write Headlines and Subheads How to Write Headlines and Subheads How to Write Headlines and Subheads By Mark Nichol The first thing most readers notice in print or online is a headline. Think of it as a virtual handshake. If your headline is the text equivalent of a cold, dead fish, you’ll make a poor first impression. Or think of it as analogous to a cover letter or a request for a date. You only get one chance to introduce yourself make it good. Various types of headlines exist, and some are more suitable than others for various types of content. Here are eight categories appropriate for selling something, whether it’s a product or an idea, along with a sample headline of that type: 1. Direct: â€Å"Lawn Mowers on Sale† Such an approach may seem dull, but consider that no single reader personality prevails; some people like an unadorned statement. Many people looking for lawn mowers on sale will be gratified to see the headline â€Å"Lawn Mowers on Sale† â€Å"Ah, just what I was thinking.† 2. News: â€Å"Remote-Control Lawn Mower to Debut in April† A journalistic headline conveys authority and is straightforward without being plain. 3. How-To: â€Å"How to Select the Best Lawn Mower for Your Yard† The words â€Å"how to† have launched a million headlines (many of them right here on this site), and for good reason: What do you type into a search engine when you want to learn how to do something? â€Å"How to† tells readers that somebody out there wants to help them. 4. Question: â€Å"Is Your Lawn Mower the Right One for the Job?† A query to readers is an invitation, a promise that they’ll get something out of the experience; all they have to do is pick up the magazine or click on the link and read. 5. Command: â€Å"Go to Lawn Mowers R Us for the Best Deals† You don’t have to be a current or former military service member to know that a directive gets one’s attention. Of course, it’s more likely to succeed in a marketing pitch if it aligns with the target audience’s desires. 6. List: 7 â€Å"Things to Look for in a New Lawn Mower† The next-best approach to a how-to headline is a list. Look in the archives here at Daily Writing Tips and notice how many headlines start with a number. People like enumeration; it offers a promise that they will come away from the reading experience with quantifiable results. 7. Testimonial: â€Å"I Got a Great Deal on a New Lawn Mower† A testimonial, an authentic or fictional statement about the value of a good or service, is a time-honored advertising strategy. People are drawn to anecdotal evidence especially if it is accompanied by a photograph of a celebrity or an attractive model who has ostensibly offered the claim even though such overtures are notoriously unreliable. But if you routinely employ testimonials that stand the test of trust, even readers who practice critical thinking will find them appealing. 8. Teaser: â€Å"The Most Important Purchase You’ll Make This Year† Take care with this approach, because you can easily overextend yourself. â€Å"My most important purchase of the year will be a lawn mower? Really?† If you can back up the tease a survey of real estate agents concludes that good lawn care drives up property values and is a significant factor in home sales over the asking price then by all means use it. But be careful: One unsubstantiated teaser headline can drive a reader away forever. Conciseness Notice that none of the sample headlines above is more than ten words long. Many effective headlines are half that long, or even shorter. Make sure your headlines are no longer than they need to be, but nail the technique or catch the vibe you want first, then reduce the word count if possible. Take care, however, not to truncate unnecessarily: You might think, for example, that â€Å"How to Select the Best Lawn Mower for Your Yard† has three extraneous words at the end, but the best lawn mower overall may not be the best lawn mower for your yard, and the use of the word your personalizes the message hey, reader, I to help you! Originality Copy and paste your final draft into a search engine. If it comes up, consider altering one or more words or starting over again. There’s nothing wrong with using an existing headline there are only so many ways to string together a handful of words about a topic but you may not want your article to be associated with the content beneath that existing one, especially if it’s of inferior quality. And don’t hesitate to use a basic, functional headline, or to assume that it’s already been taken: In an online search, the headline for this post (the most fundamental wording I can think of for the topic) came up only in a single extent reference, and was in an obscure video tutorial. Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Freelance Writing category, check our popular posts, or choose a related post below:Using "a" and "an" Before Words10 Colloquial Terms and Their MeaningsPrepositions to Die With

Side jobs. Bringing in cash

Side jobs. Bringing in cash High-paying side jobs You may witness people who have an insatiable desire to accomplish more every day. They are goal-oriented and ambitious, and they need an additional occupation to develop professionally and become a person they always wanted to be. Perhaps, what we said above may be attributed to you as well. In this case, this is what we have to offer in terms of job proposals. One day, you may find yourself in a tight position of a student or an office employee, who is on a limited budget or an adult, trying to pay the bills. Whenever you feel extra money will make you happier, we suggest applying for a side-job that is going to bring extra cash and professional satisfaction. Some of the most attractive options are listed below: Fitness instructor. In case you want to obtain a side hobby and earn money at the same time, becoming a fitness instructor will certainly blend in your daily routine. There are individual instructors, who are paid to train with a particular person, and there are those who are doing group classes. If you prefer to be surrounded by people, the last option will suit you well. Normally, you will be required to get a certificate for this type of job, and six months of prior trainings are compulsory to see if you fit in a specific company of instructors, depending on your ability to communicate and establish connections with people. Commonly, group classes are fun and need you to stay determined and organized, as you may have people of different ages coming to get their fair share of personal training. Your main task would be to monitor the work out process and check on the client’s progress the whole time. Archivist. Unlike the first job, this one is for people, who can spend hours, gathering information. For those, who love catalogues and works of art, being employed as an archivist is the best chance to show themselves in the professional sphere. Sometimes, your local museum would require specialists to check on the backlogs and organize papers in alphabetical order. Apparently, you will need a degree in archive management or any other discipline, closely related to the said sphere. Marketing manager. Marketing managers create plans for companies and reach out to inform clients of these plans. They can also attend the sponsorship events to see if the product has established itself among the audience, and have the responsibility of analyzing current situations in business. You will need a certain amount of qualification for this job, and you should know it will be a temporary occupation in case you don’t have experience or happen to be currently enrolled in the university. Writer. You can work as a writer with a part-time schedule, if you feel creativity is something you can’t live without. This type of profession is perfect for those, who want to study and gain experience at the same time. Besides, they pay you well if you manage to meet the deadline and provide clients with authentic, 100% original content. Working as a writer pays off in case you want to devote your life to that sphere, too, as it develops your verbal talents as well as written communication practice, which is important if you are employed by an educational institution or an essay service company. City-guide blogger. Companies and corporations love bloggers, who write articles on their local city attractions. You can be focused on anything that draws your attention and sounds entertaining, like recreation, cultural events and architecture. The key to this side-job is being able to provide sufficient information on the sightseeing tours in your area and making sure your readers enjoy the views as they collect ideas from your blog. Some real estate companies are also interested in this kind of advertising, as they work with sales and management department and need promotion for business. The vacancy is ideal for the lovers of travel and tourism – you just have to be unique and find a personal shtick that will later become your trademark. Business consultant. Business consulting represents a broad sphere of professional knowledge, but generally, you will have to talk to the business owners and provide them with valuable advice on how to improve their performance. Business consultants can make a lot of money by facilitating several companies in finding their perfect strategy and are often present at meetings, whenever administrative help is required. You have to be a good organizer with a rhetorical talent and an excellent conversationalist to maintain a level that is required for a specific business field. You also need to possess a degree in business administration and be able to handle conflict situations at work. Stress management is important for the side jobs such as this, as you never know who you are going to cooperate with.H

I Have a Story to Tell

I Have a Story to Tell The email I received read like this: I have an incredible story to write and need guidance as I have never done this before. This was not a spur of the moment decision. Could you please contact me. Such emails are a daily presence in my email. Its difficult to explain to a new writer, who sees writing as not all that difficult to master because, after all, theres so much of it out there, that good writing takes time. So many think a good story is good writing. So many think good writing is in the genes. So many think if you write long enough to produce 50,000 words, youve earned the right to publish. At the same time, I know many people have a great story to tell. Fiction, nonfiction, memoir . . . they want their tale distributed to the masses. Many are afraid to think it will make money, but they dare to hope so. Who am I to dash those hopes? The following is close to what I tell people who dare to make themselves vulnerable enough to write their story: 1) First of all, do not even think about publishing yet. Your job is to learn how to write, which is not a quick task. Give this a long-term goal so you do it justice. 2) Read successful books in your genre so you can see what has worked before you. Keep reading them. Never stop reading them. Realize you always have something to learn about how to write better. 3) Get your hands on a couple of how-to writing books, such as those at https://fundsforwriters.com/resources/ . I stand 4) Try to outline the story. It has to read like a novel, even if it might be a memoir. Beginning, middle, end like a three-act play. Learn what that means. Always outline your first book so you can determine if there is a journey worth telling. Writing 5) Start writing. No backstory to start with . . . just start writing where the problem, action, issue begins. Much like you would tell a story at a face-to-face gathering. 6) Write daily. Writing is not something you do like a hob 7) Try writing short stories about your subject matter. Books are for the seasoned writer. You might find that these stories could become chapters in your book. You will learn which chapters are crap and dont need to be published. Not all writing should be published. Frankly, as you are learning, youll learn later that maybe a tenth of what you write can be polished into something worth reading. It might feel wasted, but its not. Without sifting through the refuse, you never find the gold. 8) Find a critique group, either online or in person. Attached is a list of where to start looking online. www.AbsoluteWrite.com/forums   www.MyWritersCircle.com   http://mwf.ravensbeak.com/ www.GreatWriting.co.uk www.CritiqueCircle.com www.Critique.org   www.InkedVoices.com www.ladieswhocritique.com/get-started/faqs/ www.TheNextBigWriter.com www.Scribophile.com   www.SFNovelist.com www.WritersCafe.org www.Writers-Network.com/site/about   www.Writing.com www.Wattpad.com www.internetwritingworkshop.org/ Take your time. Give it a couple years or more if this is your first effort. Once written itll need serious editing. Then, and only then, will you consider how to publish traditional or indie or whatever is new at the time. You cannot think of that now because publishing will change before you get this manuscript ready. Sothis is how you start. Good luck with it.

Types of Convergent Plate Boundaries Essay Example | Topics and Well Written Essays - 750 words

Types of Convergent Plate Boundaries - Essay Example In a continental collision, the subducting plate is usually a plate with the oceanic crust that moves beneath the other plate with oceanic crust, therefore, moving beneath the other plate which can be made of either oceanic or continental crust. It is evident that during collisions between two continental plates large mountains ranges such as the Himalayas Mountains are made in the process. There are three types of convergent boundaries that can be subdivided into subduction and non-subduction. During the subduction types, there are two plates that the meet, the denser, cooler and heavier plate will dive below the lighter. The most floating plate one as it gets deeper into the mantle it then melts and creates a new magma (Ernst, 325-330). In this convergent boundary, two plates meet with the oceanic crust colliding, the one plate will be denser and heavier than the other, therefore, making it subduct. After the creation of the new magma, it then rises to the surface and pokes through the ocean surface as a submarine volcano. Connectively continuing eruptions will form a larger seamount where more and more eruptions will then eventually create a dry volcanic island in the ocean floor that will continue to erupt and build as long as it has a continued magma source. There is the presence of water in the rocks of the oceanic plate since they are made under the water in the oceanic floor. As the plate moves further down into the subduction zone more water contained in the plate is then squeezed out from the rocks when the plate begins to subduct. Nevertheless, the recrystallization of ocean floor rocks such as the serpentine that is unstable in the upper mantle recrystallizes forming olivine, causing dehydration through a loss of hydroxyl groups. In this case of oceanic-oceanic collision, the made magma will be mafic in nature with high iron and magnesium low silica making it very viscous. This result to shield volcanoes, due to this activity along an entire plane many volcanoes are made hence having a volcanic island and an arc of the chain of volcanoes.  

Sweatshop Economy Essay Example | Topics and Well Written Essays - 1250 words

Sweatshop Economy - Essay Example One summons ‘moral and political’ dimensions to the argument since if and when progressive changes are brought about in the conditions of sweatshops, the role of moral and political leaders will be significant for such changes. Corporations are amoral on the one hand and are the pillars of political establishments on the other and the conflict of interests is right in front of us. One has to resolve this conflict, understand the mindset of eastern world before moving to help ease woking conditions in sweatshops. Economic realities Globalization of economies of the world has effectively broken international barriers. As natural as water finding its own level, corporations around the world drift towards cheapest possible resources for their operations. Both raw materials and labor, two of the fundamental factors of production, are available in plenty in the third world countries. End of colonialism in the mid-sixties ensured that the developed countries of the West have to find other ways and means to sustain the high living standards of their citizens.

Project Scheduling for Effective Project Planning and Management Essay

Project Scheduling for Effective Project Planning and Management - Essay Example In fact the basic goal of any project management is to develop high quality engineering and technology products. In addition, the high quality project management practice of engineering products and technology can be a realistic activity that involves project management resources for each engineer, professional, experienced architecture and managers moving into management roles. Moreover, in order to ensure the high quality project development; project managers as well as their team members collectively perform an important role. Furthermore, project team members and their awareness of high quality management practices, organized project improvement, development and maintenance procedures, are able to decide corporate success of or failure (Rose, 2005; Kerzner, 2006). This part of the assignment presents a general discussion on project management and quality related concepts. This part discusses the importance of quality in project management along with other issues that can influenc e the quality of project management. These aspects can be related to cost, human resource or project requirements. In order to ensure the development of high quality processes there is need to follow some rules and regulations defined by different organizations. Nowadays there are a number of certifications and standards which are commonly implemented as consumers demand high quality management and controls. In this scenario, project managers need to be conscious about technology and quality standards like that those published through the IEEE (Institute of Electrical and Electronics Engineers), in addition to frequently developing practices, and standards developed by international standard organization (ISO) (Futrell et al., 2001; Young, 2013; Sower et al., 1999). While managing quality in engineering project management, engineering standards and quality goals are essential however not

One Year Action Plan based on based on Epstein's 6 Types of Essay

One Year Action Plan based on based on Epstein's 6 Types of involvement - Essay Example Such feasibility studies were done to ensure that the action plan was measurable, specific, time-bound and achievable. These factors were not considered only in the selection but also in the implementation of the plan. As much as possible, over elaboration and sensationalism were avoided. To this effect, the action plan comes with specific activities on what needs to be done to achieve the set targets. These measures indeed make the implementation of the 3-way Action Plan feasible as there are clearly stated measures for achieving the objectives. In the academics for instance, it is stated for example that ways of achieving goal one would be â€Å"Parent involvement, increase in Benchmarks, six weeks test, report cards, TAKS testing†. With measures of this nature running through all the goals, the implementation of the plan is indeed feasible. Factors that will Support the Plan As suggested by Epstein, there have been specific factors picked from the home, community as well as the school as supporting factors for the successful implementation and achievement of the action plan. ... h the academic goals where students will be taken through reinforced lessons in the areas of reading, spelling and the organization of academic competitions to boost students’ desire to learn more. Factors that will Hinder the Plan Not withstanding the carefully crafted factors above, there is no denying the fact that there are still foreseeable factors that may possibly hinder the successful implementation of the Action Plan. Some of these factors include the fact that there may be conflict of targeted goals between the home and the school in one hand and the community and the school at the other hand. This is to mean that there is the likelihood that goals that the home may want to achieve in this period of one year may not just be different from that of the school but opposite to it, causing a lot of inconvenience in striking the balance of pursuing both goals. The same is true for the community. Again, since Epstein suggests that the implementation of the action plan shoul d be out of a collaborative effort between the school and other stakeholders, it is expected that there will be maximum cooperation from the home and community. However, there could be the likelihood that these agents or stakeholders may not have enough time to participate in the implementation of the Action Plan. There could even be apathy on the part of some stakeholders. Financial inadequacies are also hindrances that cannot be overlooked. Extent to which the action plan already supports the Partnership that already exists in School Farlex (2011) explains that â€Å"a relationship between individuals or groups that is characterized by mutual cooperation and responsibility, as for the achievement of a specified goal† As the adage goes, â€Å"there is nothing new under the sun†. As a matter of

Accounting Information Systems - Information Needs for the AIS Research Paper

Accounting Information Systems - Information Needs for the AIS - Research Paper Example However, it is noteworthy that the benefits of the package generally outnumber the development cost. Accounting Information System delivers useful information to its user in a timely and systematic manner. The system is utilised by management for governing various organisational functions such as cash transactions, account receivables, account payable and so on and so forth. In every organisation, the accounts department is responsible for management of large volume of transactional data. The excess load of the accounts department is eased by the AIS. The AIS collect these data, arrange and store them accordingly and deliver them whenever necessary. The AIS is a computerised system comprising almost all automated functions; even so, the components of the system include involvement of human resource, instructions, procedures, data, information technology, security measures and internal controls. Considering all these factors, it can be ascertained that AIS is not completely automated and this is the reason that the software is prone to certain drawbacks. It has been observed that may corporate leaders and managers often make wrong assumptions regarding AIS resulting to ineffective performance of the system (Fuhong, 2012; Romney, et al., 2000). Argument: According to various authors, the excessive availability of information to a decision maker is considered as noise to the information environment. Consumers, presently, have significant access to vast data through internet and telecommunication channels which consequently enhances their options and confuse them. A number of authors advocated that managers can make influential decision only when they can consciously distinguish between necessary information and noise within a particular system. Noise generally incapacitates even the most resourceful decision maker, resulting to poor outcome (Lau, 2008). Argument: Research suggests that learning various aspects of the accounting information system can be time

How smoking affect in your health (CLASSICAL ARGUMENT) Essay

How smoking affect in your health (CLASSICAL ARGUMENT) - Essay Example Many people look out for long-term effects of smoking; however, there are also short-term health implications on smokers. Short-term effects of smoking on health cover such aspect as an increase in heart rate, a drop in skin temperature as well as increased respiration rate of the smoker. Other immediate effects of smoking might also include diarrhoea and vomiting may occur especially in novice smokers. Many smokers feel that by smocking, there central nervous system becomes relaxed but the health experts report the opposite as research has shown smoking stimulates the central nervous system (Andreassi 425). Additionally, health effects of smoking concerns the negative implication it has on the digestive system of the smoker especially being linked to gastric and duodenal ulcers, which are twice likely to be the cause of death for smokers than non-smokers. These health implications are also experienced on the healing ability of skin wounds with smokers having a reduced ability due to depletion of vitamin C from the body (Foulds, Delnevo, Ziedonis and Steinberg 429). Long-term effects of smoking are more fatal than the short-term ones with cancer and cardiovascular diseases being more common health implications of smoking. Health statistics indicates that smoking among the deadly causes of cancer infections in the world with about 90 percent of new lung cancer cases being related to smoking (Hou 115). It is estimated that an average smoker has a higher chance of up to ten times of getting lung cancer compared with a non-smoker. This figure implies that smoking is responsible for more cancer related deaths than other causes with statistics indicating a 30% contribution in all cancer deaths. Even as lung cancer continues to be the deadliest disease caused by smoking, there are other types of cancers such as that of the bladder, mouth, colon, throat, pancreas, cervix, kidneys and,

Accounting Information Systems - Information Needs for the AIS Research Paper

Accounting Information Systems - Information Needs for the AIS - Research Paper Example However, it is noteworthy that the benefits of the package generally outnumber the development cost. Accounting Information System delivers useful information to its user in a timely and systematic manner. The system is utilised by management for governing various organisational functions such as cash transactions, account receivables, account payable and so on and so forth. In every organisation, the accounts department is responsible for management of large volume of transactional data. The excess load of the accounts department is eased by the AIS. The AIS collect these data, arrange and store them accordingly and deliver them whenever necessary. The AIS is a computerised system comprising almost all automated functions; even so, the components of the system include involvement of human resource, instructions, procedures, data, information technology, security measures and internal controls. Considering all these factors, it can be ascertained that AIS is not completely automated and this is the reason that the software is prone to certain drawbacks. It has been observed that may corporate leaders and managers often make wrong assumptions regarding AIS resulting to ineffective performance of the system (Fuhong, 2012; Romney, et al., 2000). Argument: According to various authors, the excessive availability of information to a decision maker is considered as noise to the information environment. Consumers, presently, have significant access to vast data through internet and telecommunication channels which consequently enhances their options and confuse them. A number of authors advocated that managers can make influential decision only when they can consciously distinguish between necessary information and noise within a particular system. Noise generally incapacitates even the most resourceful decision maker, resulting to poor outcome (Lau, 2008). Argument: Research suggests that learning various aspects of the accounting information system can be time

Macro economics Essay Example | Topics and Well Written Essays - 2750 words - 1

Macro economics - Essay Example This essay aims at explaining how fall in household savings can have a negative effect on the UK macro economy. Savings kept in bank accounts are key part of money. To the extent banks decide to finance commercial investment with respect to amount of deposits they receive, an increased personal savings could raise investment by the established international organization. If money deposited is changed in equity subscription in ones own secure, savings serve for personal independence and careers, again with a possible connection to investment in a macro-economic sense. Invested in the Treasury bonds, and savings finance public expenditure inform of shares, they may directly or indirectly fund the firms. Savings may also be transfer overseas by remittances, leading to rise to a new option between savings and consumption. For instance, in the form of buying an existing house or in funds on entrepreneurial activity). Insufficient and minimized savings due to a deliberate policy to promote the growth of GDP by independent consumption alone can reduce, if the policy is only feebly effective, the national economy capability to absorb treasury bonds, which in certain circumstances may put the country under high pressure by foreign creditors, when public debt is huge and prevalently held by foreigners (Swan, 2007). The paradox of thrift remains an important idea from the Keynesian economics. Reduced saving is observed as negative because it does not provides the money to finance the capital investments needed to promote a long-term economic growth. But if many people in UK start saving more in the same time, it may causes a drop in the consumer demand and even deeper recession. What can be rational and good for an individual can be damaging for whole economy at large, Monetary easing (ME) is a type of monetary policy used by central banks, whereby it purchases financial assets from existing commercial banks and other private financial