Why Npv Is the Best Method for Project Appraisal

A rational capital budgeting functionality should answer two major questions. First is that, whether one particular project is a good one? Second, if we get more than one available project opportunities, but we should choose only one of them, which one should be that â€Å"one†? In real life we very frequently come across with question like whether to pick up a lump some payment of retirement account accumulated during years or receiving monthly retirement pensions until the rest of our life. In this case, NPV is the most appropriate answer out of two or three most widely used techniques in capital decision making.While doing so we also should keep in mind two major features of NPV: 1) in monetary terms, NPV is the difference between today’s market value of the investment and its original cost. 2) a financial manager should always act on behalf of the interests of shareholders through distinguishing and picking up projects with positive NPV, since it’s very clear that the ultimate target of any investment is the maximization of owners’ wealth. Another major characteristic of NPV is that they cannot be straightforwardly originated in the market, so they need to be estimated.Since there’s always the possibility of a poor estimation, financial managers need to use a number of other criterions for project evaluation for additional information regarding whether or not an investment has a positive NPV indeed. (fundamentals corporate finance) Internal rate of return and payback period are the major evaluation tools used by supervisors as an alternative to NPV. It might be feasible to use mentioned methods during evaluation process as well, however each of these methods has very significant shortcomings.For example: Major drawback of IRR is that it states the result in terms of percentage rather than through monetary amounts (variances in scale). Comparison through only percentage results while considering the overall purpose of maxim ization of shareholders’ wealth can be a misleading approach during evaluating investments. (Atrill/McLnaey) Then when assessing mutually exclusive projects IRR rule can lead to an incorrect decision making, due to its reinvestment assumptions. The assumption of reinvestment of proceeds derived from the project supports the consideration of superiority of NPV over IRR.According to the assumption if NPV is accepted then the cash flows derived from the project could be reinvested maximum as the cost of capital. But IRR assumes that all cash flows from the investment can be reinvested with the same IRR of the original project. Theory states that, a firm should take all projects which a return that exceeds the cost of capital but any other available funds could only be reinvested at the cost of capital and this assumption is consistent with NPV approach mentioned. drury) Major shortcomings of payback period can be concluded as 1) ignorance of cash flows beyond the payback period, 2) its failure to contribute to the owners’ wealth while it underlines taking projects that recover original costs most quickly and 3) its ignorance of time factor. For instance: If one borrows a student loan which has a payback period of 13 years, the full amount of the loan is due 13 years after the first payment, which occurs on an agreed-upon date. Over the course of the payback period, a borrower must either pay back the loan with his own finance take out a different loan to pay off the first.As a conclusion I would like to stress that, during project evaluation two essential facts should be considered thorugh a well-grounded method of assessment. The first one is the rule â€Å"cash is the king† (cash can be invested anyway or another when it’s available) and the second one is the time value of money. This suports the fact that the money is to be invested immediately where it could result in capital gain and. Then since purchasing power diminishes year by year due, the most correct method of the capital budgeting is the one that combines both the risk,inflation and time factors such as NPV. (management acc for business decisions)

Illicit Drug Use during Pregnancy Essay

Drug exploitation in pregnancy is an elaborate public health problem with conceivably serious conflicting effects for the mother, the fetus and spreading to the developing child. When a mother becomes pregnant, it is important to her baby’s health that she has a healthy lifestyle. This includes eating plenty of nourishing foods, getting a decent amount of rest and exercising normally. For a pregnant woman, pregnancy substance abuse is twice as dangerous because not only is it affecting her, its also affecting the baby that’s inside of her. Drugs may harm her own health, which will intervene with her ability to support the pregnancy; also some drugs can directly reduce prenatal development. All illegal drugs pose a danger to pregnant woman, Even legal substances such as tobacco, alcohol, and prescription drugs are dangerous to woman that are expecting. As many as one in ten babies may be born to woman that use illegal and prescription drugs while being pregnant. ( Kallen, Bengt; 2009) Alcohol consumption and illegal drug abuse is intensely precarious during pregnancy and therefore pregnant woman should admire their value to their child and never exploit them. Studies shown in 2008 that the amount of babies born to drug addicted mothers has almost doubled since 2003. Pregnant mothers have been using drugs during pregnancy for decades without knowing the effects it can have on their child. Even though many people assume that illicit drugs used by pregnant mothers cause no harm to the fetus there have been studies shown otherwise. If a mother uses cocaine in the early stages of pregnancy it can increase the risk of a miscarriage, when it is used later in pregnancy cocaine usage can lead to muscle spasm, feeding difficulties and sleeplessness. Cocaine has many street names such as crack, blow, snow, and coke. It is highly addictive and it is a central nervous system stimulant.  Cocaine comes from a plant that has been used for thousands of years in the most parts of the world, it comes from the coca leaf and it is the most dangerous stimulants of the natural origin. The drug can be injected, snorted, or smoked. It increases the addictâ€⠄¢s blood pressure, body temperature and heart rate. The risks that cocaine may cause to a pregnant woman are respiratory failure, heart attacks, nausea, seizures and also abdominal pain. Sudden death may also occur to first time users, because the body is not use to the adrenalin the drug is giving it. When a pregnant woman uses cocaine it crosses through the placenta and circulates through the fetus’s body, fetuses eliminate cocaine from their bodies more slowly then adults do. In assertive rare chances perinatal cerebral infraction associated with cocaine use has also been known to happen, this drug decreases uttering blood flow and increases maternal blood pressure. When placental abruption happens it can lead to preterm birth, severe bleeding and even a fatal death. Studies show that woman who use cocaine during pregnancy are at least twice and likely as other woman to have a premature baby, since cocaine cuts the flow of nutrients and oxygen to the fetus, the baby may be much smaller at birth than it would be otherwise. Physically cocaine exposed babies tend to have smaller head which indicates a smaller brain. Post pregnancy babies of woman who use cocaine regularly during pregnancy are between three and six times more likely to be born at a low birth weight, less than 5.0 pounds than babies who do not use the drug. Pre-mature birth is caused by low birth weight and can be caused by poor growth before birth. Low-birth weight babies are 20 times more likely to die in their first month than normal weight babies are. The babies that actually survive are at an increased risk of lifelong disabilities such as mental retardation, cerebral palsy, visual and hearing impairment. In the USA, the 2004 Survey on Drug Use and Health showed that 5% of American women reported the use of an illicit drug during pregnancy. In the UK, national estimates for pregnant drug users are lacking, but studies report that approximately a third of drug users in treatment are female and over 90% of these women are of childbearing age (15–39 years of age). A study comparing the profiles of pregnant drug users presenting to a perinatal addictions service in London (UK) found illicit heroin use (38%), followed by cocaine use (24%) as primary drugs of abuse, with poly substance use common. (Rashekhar Moorthy  Madgula, MD ; 2011) Pregnancy should be taken seriously and one should implement a healthy lifestyle to keep them and their unborn child safe. A pregnant woman’s lifestyle habits as well as her partner’s can severely affect the health of their unborn baby. If the pregnant woman and her spouse have already taken these actions into consideration it should be continued throughout the entire pregnancy. It is never too late for a pregnant woman to start thinking about making behavioral changes or having withdrawals. Staying acting during pregnancy can only have a positive effect on the baby and the expecting mother with providing her feeling more energy and developing a healthy lifestyle. References BabyCentre Medical Advisory Board (2014, July). Illegal drugs in pregnancy – BabyCentre. Retrieved from http://www.babycentre.co.uk/a541318/illegal-drugs-in-pregnancy Health and Pregnancy (n.d.). Drug Use and Pregnancy. Retrieved 2009, from http://www.webmd.com/baby/drug-use-and-pregnancy Kà ¤llà ©n, B. (2009). Drugs during pregnancy. New York: Nova Biomedical Books. Narconon (2013). Drug Use During Pregnancy. Retrieved from http://www.drugrehab.co.uk/drug-use-pregnancy.htm Using Illegal Drugs During Pregnancy | American Pregnancy. (2011, May). Retrieved from http://americanpregnancy.org/pregnancyhealth/illegaldrugs.html

Teaching Vocabulary Essay Example | Topics and Well Written Essays - 1250 words

Teaching Vocabulary - Essay Example Teaching Vocabulary demands the use of various strategies as not all the students have the same capabilities to understand and comprehend the foreign as well as local languages. The issue of teaching vocabulary of a foreign language becomes more complicated due to the common lack of understanding of the foreign language of the children. (Council) It also further depends as to how the children are willing to learn and what methods can effectively be used to teach the children in most optimum way so that the capabilities of the children are maximized. However large part of this learning depends upon the curriculum and various ideologies of curriculum adopted by the schooling systems to impart knowledge into the students. This further trickles down to the goals and objectives set by the teacher in teaching the class. Therefore the issue of teaching vocabulary and various methods of teaching it largely depend upon the way a teacher intends to follow the overall plan of teaching the students. This essay will look into the various strategies for teaching the vocabulary to the students however, before doing so we will be discussing various curriculum methodologies which are being followed in order to set stage for our final analysis of the situation. Curriculum Ideologies Curriculum ideologies are defined as beliefs about what schools should teach, for what ends, and for what reasons. (Lu). All schools have at least one ideology - and usually more than one - that provides direction to their functions. An ideology can be tacit rather than explicit. Curriculum is the way through which these different ideologies can be implemented. The curriculum refers to the content and purpose of an educational program together with their organization. Curriculum is one of developing knowledge through which it can be organized into subjects and fields for educational purposes. Curriculum is also a way to ask questions as to how the knowledge and learning are linked to particular educational purposes. It is because of this reason that curriculum is considered as a best tool for learning. As many pedagogues have noted in their work, both radical pedagogy and critical theory have struggled Sisyphus-like against the forces of vocationalization, corporatization, the instit utionalized Romantic Humanist educational curriculum, and the commodification of knowledge that currently plague institutes of learning today. Apart from that there was also an attempt to institutionalize the critical theory. In this issue, theorists and teachers discuss the practical difficulties in "transforming thinking and revising habitual ways of reading texts and reading the world in their students." (Spurlin) Ideological positions pertaining to curriculum and to other aspects of education exist in a state of tension or conflict. They are competing on what schools should teach and for what ends in a political marketplace. Regardless of how powerful an ideological view may be in an individual's or even group's orientation to the world, it is seldom adequate to determine what the school curriculum shall be. There is a political process that inevitably must be employed to move from ideological commitment to practical

Business law, English leagal system, Contract law Essay

Business law, English leagal system, Contract law - Essay Example In the first scenario, it can be noted that The English National Operetta Company entered into a contract with Costumes R Us for the purchase of theatre costumes which were to be made according to designs supplied by the English National Operetta Company. All terms were agreed and the initial deposit was paid where the remaining balance will be paid upon delivery of the goods. Unfortunately, the premises of Costumes R Us were destroyed by fire before the delivery day. By any standard, this scenario represents a typical contract explained in the definition above. This type of contract involves the sale of goods and is governed by the Sale of Goods Act of 1979. Gibson (1988) suggests that the seller has a duty to deliver the goods purchased upon payment and the buyer has a duty to pay for the goods where ownership can be exchanged. The S.2(1) of The Sale of Goods Act 1979 concurs with this assertion and goes on to define a contract for the sale of goods as: ‘A contract by which a seller transfers or agrees to transfer the property (ownership) in goods to a buyer for a money consideration called the price.’ The contracting partners in this case are bound by certain conditions which are very important to the contract so as to protect the victim in the event of breach of contract which entitles him to repudiate and sue for damages. From this given scenario, it can be noted that there is a valid contract between English National Operetta Company and Costumes R Us. Legally, English National Operetta Company is entitled to claim for its refund of the amount paid following the failure by Costumes R Us to deliver the consignment before the date. Though it may be argued that this is a breach of a contract, it can be noted that to a greater extent, this scenario was a result of circumstances that were beyond the control of the suppliers of the costumes. Their premises were gutted by fire which was caused by the children playing so it would be unfair to lay the blame on them. This unfortunate incidence is what is normally called frustration of contract. Macintyre (2010) posits to the effect that the result of an event which occurs after offer and acceptance (the agreement) which prevents performance being carried out and which, as a consequence will terminate the contract legally with no risk to either party to be sued for breach. In this scenario, it will be unfair to say that Costumes R Us has breached a contract given that that the frustrating event involving the outbreak of fire is not the fault or a result of the actions of this organisation in question. It becomes impossible for the other party to fulfil their duty in the event of destruction of the subject matter of the contract for example Taylor v. Caldwell (1863). In such a situation, it is assumed that the contract has been cancelled naturally. Against this background, it is therefore advisable to English National Operetta Company not to sue this company for damages given that there will be likely chances that they will lose the case. It is the duty of the court of law to weigh the circumstances surrounding the frustration of the contract and come with an informed decision hence the chances of winning this case are very few. However, it is advisable that English National

Nursing Interventions to Prevent Falls in Elderly Research Paper

Nursing Interventions to Prevent Falls in Elderly - Research Paper Example Common chronic problems like hindered vision, hearing failure and impaired memory arise in old age which leadsto different problems and severe distress. Elderly people are generally subjected to polypharmacy (using multiple medications) due to multiple problems of old age. A study shows that there are about as many elderly who take nonprescription drugs as take prescription drugs. This however, may cause adverse drug effects (categorized as serious, life-threating and fatal)if the drugs interact with each other within the body.Another complexity is the refusal of elderly people to cooperate due to the fear of consequences of treatmentand they reject taking any medical care. However, many of these problems are treatable, if proper nursing measures are taken. Overview: Falls in Elderly Falls among elderly are not related to normal aging; rather, they are regarded as a geriatric syndrome because of discrete multifactorial and interacting, predisposing (intrinsic and extrinsic risks), an d precipitating (vertigo, syncope) causes. We have taken two studies into consideration based on the randomized trials of the elderly people living in: Homes (Day et al., 2002) Residential care facilities (Jensen, Lundin-Olsson, Nyberg & Gustafson, 2002) There has been a lot of research in the past decade on randomized controlled trials based on fall prevention. Day et al. (2002) report that exercise, minimization in medication, professional support services and home modifications have proved to be effective interventions as supported by RCT.Trails of multiple interventions have also shown to be effective in fall prevention. While in another study Jensen, Lundin-Olsson, Nyberg & Gustafson (2002) has designed a hypothesis intervention program based on specific multiple risk factors for falls in elderly residents of residential care facilities and conducted RCT for fall prevention. Designs Study-I Day et al., (2002) designed the evidence based study which targeted fall risk factors: s trength, balance disorder, impaired vision, and home hazards (included because of its extensive presence although no strong evidence was available). The study used a full factorial design, designating eight groups on the basis of three interventions. Seven groups availed at least one intervention and the remaining one group didn’t till the end of the study.â€Å"Adaptive Biased Coin† technique was used to select the participants. A flow chart of the scheme is provided in appendix-I. Placement – CityofWhitehorse, Melbourne, Australia Participant Age– 70 years and above (residing at own homes) Data Assessment– The researchers compared and divided individuals into different groups according to the available data on the basis of higher percentage: Sample size–On the basis of 25%annualfall-reductionconsidered to be an achievable target the studies required 914 participants and 1143 participants for a non-intervention assessment and main effect co mparison(annual fall-rateof 35 per 100 individuals) allowing a 20% dropout. Study-II Jenson’s (2002) study was designed onelderly people (having cognitive dysfunction)residing in residentialcare facilities. The study reports that out of 25 residents, nine met the criterion and were split into groups A and B (based on age, number and type of facility setting and record of previous falls). To maintain the discreetness the medical staff

Australian waste Essay Example | Topics and Well Written Essays - 1250 words

Australian waste - Essay Example The most polluted sites in Australia include transport sites, roadsides, park/waterfront areas, rivers and creeks, school grounds, coastal/beach areas, as well as shops and malls. A recent trend exists that seeks to move away from burying and burning of waste in Australia towards its reuse and recycling. This shift towards sustainable development and conservation ideals with regards to waste disposal, as well as policies aimed at recycling, reusing, reduction of generation, and extraction of energy from the waste have caught on in Australia. Since the 1990s, household waste recycling has become more popular. Reasons for this trend can be explained by the presence of kerbside recycling; raising commodity prices, as well as increased levies for land fill services to prohibitive levels. However, mobile phones have introduced a new dilemma since they contain harmful products. This has necessitated novel ways of disposal. AUSTRALIAN WASTE Australia generates approximately one tonne of was te every year that is sent into a landfill. After the United States and Israel, Australia ranks as the third largest producers of landfill among developed countries. Significantly, most of this waste is resultant from goods that Australians do not even use with waste of over $10.5 billion per year occurring. This habit has begun developing in the early 20th century as ideas of convenience and hygiene gave rise to disposable products, which was justified because the consumer was assured of un-contaminated products. Buying into disposability is easy because new products are cheaper than fixing a broken one. However, this kind of disposability is a fantasy that exists because Australians do not have to see, smell, or handle their waste. This is unlike natural systems where waste is critical in the maintenance of life and, therefore, is not removed, but used as a resource for another system. While organic material in nature can decompose and be used to create something new, this is not possible for industrial objects. It, therefore, becomes important to recognize the regenerative power that waste can have. Australia’s recycling habits, however, have been improving, although there is room for improvement. The most important waste management principle, including recycling, repair, reuse, and reduce, is refuse. Australians are encouraged not to buy a lot of products to begin with since the realization of a sustainable environment also needs a reduction in consumption (O'Connor, 2007). For fourteen years, plastics make up the majority of waste collected in Australia with 31.75 of all collected waste being plastics. Miscellaneous items like cigarette butts made up 17.7% of all rubbish. Metal, especially aluminium ranked third at 14.6%, followed by glass at 13.1%, and finally paper at fifth accounting for 12.6% of all collected rubbish (Australia Bureau of Stastistics, 2007). Other material included polystyrene and rubber. These are the major sources of rubbish i n Australia. When it comes to rubbish items, cigarette butts rank first accounting for 29.6% of items surveyed. Alcoholic beverage containers made of glass were second with 5.4%. The other rubbish items in order of prevalence include confectionary and plastic chip bags, plastic bottle caps, pieces of glass, PET drink containers, metal items, especially aluminium, and paper. The most polluted sites in Australia include transport sites,

Robert Mondavi and the Wine Industry Essay Example | Topics and Well Written Essays - 500 words

Robert Mondavi and the Wine Industry - Essay Example However, owing to the economic downturn the sales of wine had reduced over the tenure of six months. Moreover, the company has been facing several threats from various sectors of the society both at national and international level. The economic downturns have affected the wine market leading to a fall in the sales of wine over the tenure of the past six months. The company has been planning to change the strategy so that it can increase the sales of the company and ensure long term sustainability. However, it was noted that the Robert Mondavi’s wine industry to maintain the high quality of the wine used grapes from the personally owned vineyards. It has also been observed that the cost of land acquisition has also gone up, which has led to the increase in the cost of production. Conversely, the company even has an intangible strength of being innovation oriented. This initiates the ability of the company to enhance their quality as per the changing taste and preferences of the consumers. This would help the company to meet their sales need in the long run. Providing quality as per the preferences of consumer is an important consideration fo9r the business sustainability (Roberto 1-32). Contextually, Mondavi in order to maintain their competitive advantage should be selecting a particular segment and then market their product. This would help the company to gain a profitable index providing the company with brand equity and incorporate the culture of innovation. Since, the company is inclined towards producing high-quality of wine it would be able to meet the changing needs of the consumers successfully. In order to develop its productivity the company should provide clarity to their product. This would enhance their share in the US market. Moreover, with a positive trend in the growth of wine consumption the company can claim its competitive advantage in the long run.