Several topics included in the uploaded file (questions from the case Essay

Several topics included in the uploaded file (questions from the case study) - Essay Example There are many methods of investment appraisal. Each method analyses the investment in different ways. The three main methods are: ‘Payback time’, ‘Average / Annual rate of return’ and ‘Net present value (NPV)’. Payback method is used to compare various projects for a business; the project which gives the best returns is considered. It generally calculates the time taken for the return of capital invested. Similarly if the annual return rate is considered, the projects are selected based on the one providing highest annual returns. The company’s cash flow can change from time to time; thus, this method is helpful as it considers the ‘rate of returns’. Usually, there is a time lag in receiving the payment for the business done and money value might be inflated or deflated during this time lag. Hence, in the ‘Net Present Value’ or ‘Discounted Cash Flow’ method, the ‘real value’ of the mone y is considered. The returns calculated using this method is called ‘Real Return’ (Investment Appraisal, 2008). With respect to Hazlewood Sandwiches, capital investment was made for the following reasons: It was observed that people, in general, had become very busy with their existing jobs or multiple jobs and hence had very little time to cook. This was the main reason to foresee an increase the demand for sandwiches. Secondly, due to good earning and spending power of the people, they preferred to pay others to get their food prepared, rather than painstakingly cooking food themselves. This served as a time saver and therefore increased demand for readymade sandwiches. Thirdly, Hazlewood Sandwiches could provide foodstuffs with better quality than the best existing in market, promising exponential growth in market. In support to these factors, the new factory setup assured a superior production flow line which decreased the number of workers needed to move materials within the factory and helped to manage the inward movement of raw materials to outward movement of finished goods. Hence, these three reasons mainly influenced Hazlewood Sandwiches’ decision to make capital investment. Q2: Discuss the differences, advantages and disadvantages of the three investment decision techniques mentioned in the case. Investment appraisal decisions are very crucial for any company, since it involves the future of the company. Decisions have to be made between various alternative project plans which decide the next steps of the company. There are 3 techniques of investment appraisal: The first technique is ‘The Payback Method’. It directly calculates how quickly the return of the investment covers the investment on the project. Returns on investment are calculated for all the alternative projects in hand. It is based on the shortest payback period, contributing in the prevention of cash flow problems. It is known for its simplicity and ada ptability to changing technology as the cost of machinery can be recovered before the next new model is released. The disadvantage is that the returns after this period are ignored. Additionally, the real value of money is not accounted since value of money is considered directly without considering the inflation effects on money value (Business Studies online, Investment appraisal, Chapter 4a.2.2, 4a.2.3). The ‘Average Rate of Return’

Final exam Essay Example | Topics and Well Written Essays - 750 words - 1

Final exam - Essay Example To undertake the responsibilities charged to the army, the US government deploys large military troops to maintain law and order as well as ensure that all the activities under the US control are run efficiently. According to the international law, the occupying powers in the stated territories should take all the measures within their power to restore law and order and to ensure that the safety of the public is maintained (Moten 157). One of the goals and objectives that the US military is supposed to accomplish in their services is the general protection of human life, through the implementation of the humanitarian law which protects human beings against life violation through murder, torture or inhuman treatment (Moten 179). They also uphold the humanitarian law by protecting the citizens from being taken hostages and ensuring that the personal dignity of the citizens is guaranteed. The US military also accomplishes the objective of caring for the sick and ailing people by providi ng food and medicine. The military ensures that the sick are collected and cared for, and that food and medical supplies are availed where they are inadequate. Another objective the US military accomplishes through Iraq and Afghanistan is applying adequate forces and correct procedures to enhance the prosecution of criminals involved in the violation of human rights (Moten 183). What type of government would be recommended in a non western nation? If asked to develop a government in a non western developing nation, I would recommend the establishment of a democratic government. Democracy means a rule by the people where the people govern. A democratic government is where the people are given a chance to elect the leaders of their choice to represent them. This type of government will allow the citizen to be directly involved in government decisions, an act which is not common in monarchy, dictatorial and communism systems. Unlike other forms of government such as dictatorial, commun ism and monarchy, democracy also ensures the change of government without violent behaviors. To prevent monopoly in the ruling authorities as practices in a monarchy and dictatorship governments, a democratic government allows elections after certain periods of time to ensure change of authority. Unlike in the other forms of governments, a democratic government gives the people a sense of pride having participated in the choosing of their ruling authorities (Moten 98). Democratic governments however have the disadvantage because the citizens may make the wrong choices while electing their leaders due to influence by the majority. What could be the reason why countries that are not democratic governments go to wars with each other? Unlike the democratic government where the citizens elect the leaders of their choice, countries practicing forms of government such as dictatorship, monarchy and communism are subjected to one kind of leadership. In dictatorship governments, the authority is held by one person who rules according to his beliefs. Dictatorship may lead to internal wars due to differences in the views of the leadership approach. In a communist type of government, all the economic activities are controlled by the central government. This may cause internal conflicts due to lack of economic independence by other citizens. A reason for conflicts in the communist government could be the scrabble for resources such as minerals and cash