Underground Economy :: essays papers

Underground Economy The author of the article describe the illicit CD market that is taking place in Ukraine. He explains that 95% of the CDs shipped out the Ukraine are illicit, the producers of those CDs are not just burning low quality CDs, they are even producing their own polycarbonate discs with their own logos as a mark of quality. The International Federation of Phonographic Industry (IFPI), which is actively looking for pirates that counterfeit CDs, seems to be desperate regarding fighting piracy in Ukraine as the law are inadequate and the Ukrainians have little or no knowledge of intellectual property. Those Ukrainians producing illegal copies of CDs are involved in the Ukrainian and European underground economy as they are making profit out of an illegal activity. The author give the example of a copy of Microsoft Office XP CD which cost $ 2.20 in Kiev and the original copy cost $ 580.00 in the USA. Those huge differences in prices are diminishing the profit of companies selling their products on CDs and they are therefore paying less taxes to the government where they are operating. The author of the article conclude by saying that Ukrainian government doesn’t have the will to terminate the illegal copies of CDs as the manufacturer employ lobbyists that exploit the unstable political environment to derail any move from the government to terminate their activities. Furthermore it seems to be very difficult to stop the counterfeiting of CDs as they are on the market before the legitimate versions are released. The author compare the battle against piracy like the war on drugs, one of the similitude is probably the shadowy organized-crime customers that both activities have in common. I believe like the author that it is quite impossible for international companies to sue any of the CD counterfeiter if the Ukrainian government doesn’t take an active part in the banishment of those factories. I also don’t believe that it is the government number one matter of problem, as we know that it is a country that has been going through the communist year and just got out of it, and there are many other important issues that are challenging the country and its government. Underground Economy :: essays papers Underground Economy The author of the article describe the illicit CD market that is taking place in Ukraine. He explains that 95% of the CDs shipped out the Ukraine are illicit, the producers of those CDs are not just burning low quality CDs, they are even producing their own polycarbonate discs with their own logos as a mark of quality. The International Federation of Phonographic Industry (IFPI), which is actively looking for pirates that counterfeit CDs, seems to be desperate regarding fighting piracy in Ukraine as the law are inadequate and the Ukrainians have little or no knowledge of intellectual property. Those Ukrainians producing illegal copies of CDs are involved in the Ukrainian and European underground economy as they are making profit out of an illegal activity. The author give the example of a copy of Microsoft Office XP CD which cost $ 2.20 in Kiev and the original copy cost $ 580.00 in the USA. Those huge differences in prices are diminishing the profit of companies selling their products on CDs and they are therefore paying less taxes to the government where they are operating. The author of the article conclude by saying that Ukrainian government doesn’t have the will to terminate the illegal copies of CDs as the manufacturer employ lobbyists that exploit the unstable political environment to derail any move from the government to terminate their activities. Furthermore it seems to be very difficult to stop the counterfeiting of CDs as they are on the market before the legitimate versions are released. The author compare the battle against piracy like the war on drugs, one of the similitude is probably the shadowy organized-crime customers that both activities have in common. I believe like the author that it is quite impossible for international companies to sue any of the CD counterfeiter if the Ukrainian government doesn’t take an active part in the banishment of those factories. I also don’t believe that it is the government number one matter of problem, as we know that it is a country that has been going through the communist year and just got out of it, and there are many other important issues that are challenging the country and its government.

An Ergonomic Evaluation Of The Kinesis Computer Keyboard :: essays research papers

An Ergonomic Evaluation of the Kinesis Computer Keyboard 1. Introduction   Ã‚  Ã‚  Ã‚  Ã‚  In this information-technology age, everyday tasks are more and more related to computer. That ranges from basic jobs such as providing food recipes for housewives to complicated ones such as analyzing laboratory experimental data for scientists and engineers. This popularity of computer means that the time one has to spend with computer would be a lot more than in the past. Until now, the computers and computer peripherals in the market have been made according to the same design as the ones invented decades ago when computers are used only in large-scale scientific projects or big corporations. That means for most people the ergonomic value of these products obviously was not taken into account when designing them. Fortunately, at the moment, more companies are trying to change the way people work with computer by marketing a number of ergonomic products most notably keyboard, mouse and monitor. There are ergonomic keyboards, mice and monitors being released all the time. The reason why the focus is on these products is that they are the parts of computer one interfaces with the most while working with computer. The subject of whether these ergonomic keyboards, mice, monitors and other products really work attracts a lot of regular computer users. Thus, studies dedicated to it have been done. This report is based on one of the studies about an ergonomic keyboard from a manufacturer called Kinesis. This study looks not only on the effect of the keyboard on the users' body by mean of electromyographic activity but also on the learning rate of the users changing to this new style of keyboard. This is very useful since slow learning rate would lead to the decrease in effectiveness of work. Introduced in 1868 by Christopher Sholes, computer keyboard is still the primary data entry mode for most computer users. With the increase of computer, hence keyboard, usage at the moment, these problems of the keyboard users known as operator stress problems have developed. This is a kind of cumulative trauma disorders which is mainly caused by working excessively or repetitively with the same thing, keyboard, in this case, in the same position for a long period of time. This kind of disorder is considered to be the most expensive and severe one occurring in office environment. This leads to an amount of alternative designs introduced in the market with the main intention of reducing muscular stress required for typing. The reason why these designs have not yet replaced the old one is because of the familiarity of the

Essay on the Gods in Euripides Medea :: Euripides Medea Essays

Antigone Medea has just killed four people which are Creon the king of Corinth, the princess whom Jason is in love with, and her two little children. Jason then prays to gods, especially Zeus, father of all gods, to punish Medea for her crimes. From the context of the quote, the chorus is addressing the audience about the unexpected and unbelievable end of the play. Medea then gets away to Athens with a chariot lent to her by Helios, the sun god and her grandfather. Euripides always uses this kind of conclusion to end most of his works. Euripides suggests that the general theme of the quote is gods are not like what we think they are supposed to be. In other words, we can not expect much from the gods. Instead, we have to handle our matters on our own. The phrase, "Many are the Fates which Zeus in Olympus dispenses," tells us that gods do not favor mortal people. Even if gods do help mortals, that's only because those mortals have some kind of relationship with the gods. So, Euripides tells this story not in favor of the gods. The general thems is gods are not as good as they are supposed to be. Medea has been exiled for three times: from her home country near the Black Sea, from Jason's homeland Iolchos, and now from the city of Corinth. We would naturally think that a woman like Medea, being exiled for many times, is the most vulnerable and most powerless woman. She has got no friend and no citizenship. At the time of Euripides, being an exile is not an interesting position that a person wants to be in. It is like a suicide. Most people at that time in Greece view strangers as barbarians with no intelligence at all. In addition, Medea is going to be an exile with two children. She is supposed to be in lots of trouble. On the other hand, Jason has won the princess of Corinth's love. He is going to be Creon's son-in-law. Jason abandon's Medea after all she has done for him. Jason doesn't fear Medea at all because he has support from Creon, king of Corinth. Jason is supposed to be more powerful than Medea. Jason is the son-in-law of the king and Medea is an exile. But, as Eur ipides suggests, what the audience expects doesn't come true at all.

Project Management Essay

Scope of Project Since the project involves mega budget the evaluation and study of scope is necessary, to find if the country is prepared for such mega budget projects or not. In spite of having most of the odds against and the greater  challenge in front of owners, it is commendable the outcome they produced. The first Formula 1racing was grand success in India; it also saw the attendance of viewers more than 100,000. The world class quality produced in short span of time was commendable. After the grand success of first two editions of Indian Grand Prix this project has silenced the critics to an extent. The Indian GP boosted the economy, as it saw major boost in hotel industry. The hotel charges in Delhi and NOIDA were increased by 50% to 80% during the event. Travel and transportation services also made merry, while there was huge consumption increase for food and beverages. The formula 1 motor sport is huge money spinner and it is expected to bring more money in future. The assumption for revenues from F1’s commercial rights will reach $3.3bn in 2016, according to a report by Formula Money with sponsorship in 2011 returning fast. The research, based on data contained in the new edition of the annual Formula Money report, predicts that revenues for the sport’s commercial rights holder, the Formula One Group, will rise at a rate of 12.7 percent a year reaching $3,253m in five years’ time. Buddh International Circuit project was questioned as it was build keeping in the mind of Formula 1 Racing where Indian presentation is very less. There is only one Indian Team Force India co-owned by Dr. Vijay Malya that too has all foreign drivers. The only Indian driver who features in Formula 1 race is Narain Karthikeyan who drives for HRT. Seeing the response of first two F1 races experts are very much hope full about the success of such projects. Motor sport will develop in India; however, it will take time, Dr. Malya in an exclusive interview quoted â€Å"F1is not short term project, he gave example of champion team Red bull and the progress they made in 7 years.† The other countries like Malaysia and China have already ventured into Formula 1 race business. Most of the countries see it as investment to boost their tourism sector more than the sporting activity and indeed it does help in generating revenue in foreign currency as sport is having global presence and fans and followers in large numbers who travel across the globe for the love of sport. Economic Activity The project started with a mega budget of $400 million dollar. It had a great impact upon the economy. It brought India on the map of global motor sport, which is considered to be the biggest money spinning sport in the world  according to study conducted, the popularity of the sport can be measured by the fact that it had television viewers of 527 million Formula One world championship. Formula Ones economic effects and creation of jobs are significant, and its financial and political battles are widely reported. Its high profile and popularity make it a merchandising environment, which results in great investments from sponsors and budgets in the hundreds of millions for the constructors. Critics may question this project as the cost of the project is very high the track alone cost around $120 million and the operational cost of the circuit is $15 million to $20 million. Apart from the huge investment that Budhh International project has incurred, it is delivering rich dividends. The huge success of inaugural Indian Grand Prix which was full house already indicated the future of such projects in India. It has helped India gaining revenue from foreign countries. It will also give India exposure to high technology. The Site Buddh International Circuit is located in Greater Noida in the outskirts of Delhi. Greater Noida falls within the National Capital Region of India‟s capital – New Delhi and is adjacent to Noida, one of the largest industrial townships in Asia. It is located 40 kilometers (25 mi) to the south-east of New Delhi and 20 kilometers (12 mi) south-east of Noida. The Government of Uttar Pradesh then decided to incorporate the city of Greater Noida, as an extension to Noida, but with better planning, incorporating the lessons learned from the Noida development. The place is a perfect location for Budhh International Circuit as it takes only about 2.5 hours of road travel from Delhi making it easier even for fans of formula 1 coming for outside of the country for the love sport. Connecting the city to Agra is Yamuna Express way six lane express way which was formerly known as Taj Expressway. The circuit is part of the 2,500 acres (10 km2) Jaypee Greens Sports City, Greens Sports City home which also includes a 100,000 seat cricket stadium, 18-hole golf course, 25,000 seat field hockey stadium and a sports academy have been planned. The sports complex is expected to cost 40 billion ($820 million) and generate $170m of revenue annually, and employ 10,000 people. Infrastructural Development The projects like BIC boost infrastructural development in the area. It has encouraged the urbanization of the area. It is sign of fast developmental growth of the area. With infrastructure giant like Jaypee Group entering in the area, they can take the development to whole new level. The Jaypee Group is a conglomerate based in Noida, India. It was founded by Jaiprakash Gaur which is involved in well diversified infrastructure conglomerate with business interests in Engineering & Construction, Power, Cement, Real Estate and Hospitality. The project BIC has improved the interest of the people in considering Greater Noida as residential place. The other industries have also acknowledged the development in the area and now they are seeking this as an opportunity to grow their business and moving their business to the town. Such Mega projects not only require big budgets, they also required enhanced technology in order to finis the project on time. The Mega projects like BIC can not be accomplished without the use of high technology in other words; these projects also introduced high technologies to this area in order to boos the urbanization at fast pace. The urbanization of the area is helping in improving the quality of life of the people living in the area as they get to enjoy world class facility. The service level and quality of various important services such as hospitals and educational institutes has improved to great deal. The urbanization always attracts investment from company which will mean consumer will have more option and better quality of service. Trade and Tourisms The Buddh circuit has been built as a flagship development for a bigger project: a new town with a population of several hundred thousand, which will have malls, sports and education facilities, and will sit astride a new motorway linking it to Delhi, 32km away, and Agra, 190km away. The Buddh International circuit has brought, boost to the tourism and trade both as it has increased the number of foreign visitors who come follow the Formula 1 race. The world class architecture and the facilities available at the circuit give fans run for their money. The hospitality sector has gained a lot from the projects like Budhh International Circuit. Because of the  number of event this circuit is hosting, they getting increase numbers of foreign visitors. Hospitality sector will improve their status, as the auto-racing events might bring in great effects of tourism into the country. It promotes the country not only as one of the tourist attraction but will also attract sport lovers from all over the world. Hotel industry is expecting growth in their business as the people who come to watch events like Formula One try to find accommodation in near by location. It is also generating business opportunities for other sectors related to travel and transportation. The teams carry their own machines and equipments while venturing in such competitions which require good and fast moving transportation facilities. Hotel and the hospitality industry will benefit greatly from Formula One Entertainment as they would provide accommodation and food for their staff. The number of visitors expected to increase as the BIC is all set to stage Superbike World Championship (WSBK) in 2013. Increase number of events will definitely boost the foreign currency inflow to the country and will help to build and promote Indian tourism Industry. Environmental Effects Despite all the benefits from the BIC, there are several undeniable impacts it has on the environment. The new development will mean more pollution issues. The population are concerned that their health will be jeopardized by there recent increase of development. The motorsport adds to air and noise pollution as the roaring sound of the engine creates noise pollution, as result you may find most of the people watching formula 1 race in circuit wearing ear plugs. And this is a life threatening sport as cars run at alarming speed at which accident can easily take place jeopardizing the life or car drivers and others. Cultural Effects The development projects like BIC have changed the environment from agriculture base to new developed town. The state government has taken land from framers for this Mega project, which is a part bigger infrastructural development in this part of the state. The development has produced both employment and unemployment. Even though there are a lot of job opportunities since so much of development has happened, people facing  challenge as they have re-skill themselves. Developments in area, which once lack of modern facilities has offered more schools for the children‟s education, better hospital facilities, and more job opportunities. With the area getting international exposure more and more companies willing to invest in land here. Real estate business in the area has really picked up the pace as the rate of the land moving up high, creating business opportunities, as more and more people willing to invest in land here. Most of the Formula 1 fans are from western countries and the Indian will get too much exposure from the western cultures and values. This does not imply that the western cultures and values are negative but rather does not fit into the way of life of the Indian cultures. This might created what is called the generation gap between the younger generations and the older generations as the younger generations are influenced by western cultures while the older generations are by the traditional Indian cultures. The Controversy The disparity between headline-grabbing projects such as the Buddh circuit and the poverty that surrounds them has been well documented. But the myriad conflicts generated by the transformation of India are heard about less often. The track has been greeted with fanfare in journalist and sporting circles, and with legislation and protests elsewhere. Public-interest litigation was filed against the government of Uttar Pradesh, the state where the complex is located, and the Jaypee Group. The PIL claimed that because Formula One is an elitist sport, the state government has no right to exempt Jaypee from paying entertainment taxes, alleging that the exemption was granted only because the company is â€Å"very close to the political leadership.† In order to construct the circuit, the lands of some three hundred farmers were purchased by the state government. However, in August 2011 – three months before the inaugural race – the farmers in question expressed dissatis faction with the project and threatened to dismantle the circuit â€Å"with force if necessary†, demanding more money and stating that they felt the land should have been zoned for industrial estates to generate more employment in the area. Meanwhile, farmers on whose land the circuit now stands continue to protest. The land was bought by the state government in 2007 for the development of roads and industry.  Farmers complained they had not received the compensation or jobs they were promised. Bhatta-Parsaul made headlines in the summer when police attacked farmers who had been protesting about the compulsory purchase of their lands by the government of Uttar Pradesh. Allegations of police brutality and violence provoked by land disputes are commonplace. This is particularly true on the outskirts of cities where exploding populations, growing wealth and rampant property speculation combine with repressive colonial-era laws and corrupt officials. Objective The objective of the study is to evaluate the project and check the feasibility of such mega budget project and to see if India the country which is still going through economical reforms and the county which having high „Power Distance Index’ is ready for such mega budget projects. The study focuses upon the scope that project such as Buddh International Circuit carries. It takes upon the Formula 1 motor sports, potential for generating revenue and its scope in India. It also takes on its impact of economy and revenue generation. The number of business and employment opportunity it provides. Also take on its impact on the tourism industry in India and other sub industry in India. Bearing the fact in min it provides excellent international exposure for India as the sports is banking upon huge media coverage. It is having such a large viewership which only considered second to Olympic. Formula One can be seen live or tape delayed in almost every country and territory arou nd the world and attracts one of the largest global television audiences. The 2008 season attracted a global audience of 600 million people per race. According to the reports year 2011 saw global viewers 515 million. The precise figures for year 2012 are not available. However, there seems to be decline in the number of viewers for year 2012. The study also takes a look at the Indian representation at Formula 1. The only Indian Formula 1 driver Narain Karthikeyan who drives for HRT in an interview said it is very difficult to break in to Formula 1 circuit. However, the future of this sport is bright in India as, people in India have more knowledge about the sport unlike China where it is limited to Shanghai only. The Indian Team Force India performed well in the both the edition of the Indian Grand Prix. However, the performance was better in  the inaugural Grand Prix. The study also focuses upon the F1‟s impact on culture, environment and controversy related to the BIC project, the controversy which created political issues in the territory. 6. Analysis On the analysis of the sport we can find that Formula 1 is money draining spots, it requires large budget as an average formula one car can easily cost around $100 million dollar. On the contrary it has huge fan following, the sport is one the richest and one the viewed sports of the televisions, having viewership in hundreds of millions, making it big money spinning sport. According to sources the revenue generated by F1 from commercial right in year 2010 was an astonishing amount of $1.587 billion, which is expected to grow further in future. The sport promises to be the huge money spinner. The analysis of the BIC infrastructure and the world class facility it contains, one can say this is a worth project. BIC has successfully hosted the Indian Grand Prix twice and received and accolade from international fraternity. The CEO of F1 Mr. Bernie Ecclestone has already acknowledged BIC as one the best racing circuits of the world. The investment and operational cost analysis of BIC proj ects shows that it requires mega budget and the operational cost of the circuit is also very high which is almost around $15 million to $20million per year. The state of art and world class facility of this circuit makes it suitable for events, which are very necessary for preventing it from becoming white elephant. The circuit is also about to host World Superbike Series. The analysis of impacts of BIC it has some positive and some negative impact. It has really boosted the infrastructural development in the area. The events like F1 race giving India Global exposure and thereby giving Indian tourism and hospitality industry a chance to grow further. The Formula 1fans follow this sport from across the globe and most of them are wealthy and ready spend for luxuries. In that way project BIC has opened gate for foreign currency inflow. The projects also have some negative impact also it started on the land bought from farmers, which created controversy later and became big political issue, apart from this the owner group also came under scanner for tax exemption. This project was also seen as threat to environment as it causes both air and noise pollution. BIC has been successful in hosting two  of the mega event it has also given India a great recognition on the global world motor sport map. It is also creating employment and business opportunities.

Project Appraisal

Subject Code: PPA1C Paper: PROJECT APPRAISAL Specific Instructions: ?Answer all the four questions. ?Marks allotted 100. Each Question carries equal marks. ?Word limit is 200 – 300words General Instructions: ?The Student should submit this assignment in the handwritten form (not in the typed format) ? The Student should submit this assignment within the time specified by the exam dept ? Each Question mentioned in this assignment should be answered within the word limit specified ? The student should only use the Rule sheet papers for answering the questions. The student should attach this assignment paper with the answered papers. ?Failure to comply with the above Five instructions would lead to rejection of assignment. _____________________________________________________ Question No 1 A choice is to be made between two competing projects which requires an equal investment of Rs 50,000 and are expected to generate net cash flow as under: Project 1Project 2 End of year 1Rs. 50 ,000Rs. 20,000 End of year 2Rs. 30,000Rs. 24,000 End of year 3Rs. 20,000Rs. 36,000 End of year 4NilRs. 50,000 End of year 5Rs. 24,000Rs. 16,000 End of year 6Rs. 12,000Rs. 8,000 The cost of capital of the company is 10% . The following are the Present Value Factors @ 10% per annum: YearP. V . Factors @10% p. a 10. 909 20. 826 30. 751 40. 683 50. 621 60. 564 Which project proposal should be chosen and why? Evaluate the project proposals as under: †¢Discounted Cash Flow. †¢Pay back period methods, pointing out their relative merits and demerits. †¢Under what circumstances is the pay back period method and the NPV Method used for evaluating projects. Question No 2 (A)What is the rationale for NPV Method? Discuss the feature of NPV Method? (B) Teja international is determining the cash flow for a project involving replacement of an old machine by a new machine. The old machine bought a few years ago has a book value of Rs 800,000 and it can be sold to realize a post tax salvage value of rs 900000. It has a remaining life of 5 years after which its net salvage value is expected to be Rs 200,000. it is being depreciated annually at a rate of 25% under the WDV method . The incremental working capital associated with this machine is 500,000. The new machine cost rupees 300,000 . It is expected to fetch a net salvage value of Rs 1. 500,000 after five years . The depreciation rate applicable to it is 25% under the WDV method . The new machine is expected to bring a saving of Rs 650,000 annually in manufacturing costs(other than depreciation ). The tax rate applicable to the firm is 30% : a)Estimate the cash flow associated with the replacement project. b)What is the NPV of the replacement project if the cost of capital is 14%. Question No 3 a)The management of Parmila Ltd. is considering an investment project costing Rs. ,50,000 and it will have a scrap value of Rs. 10,000 at the end of its 5 years life. Transportation charges and installation charges are expected to be Rs. 5,000 and Rs. 25,000 respectively. If the project is accepted, a spare part inventory of Rs. 10,000 must also be maintained. It is estimated that the spare parts will have an estimated scrap value of 60% of their initial cost after 5 years. Annual revenue from the project is expected to be Rs. 1,70,000; and annual labour, material and maintenance expenses are estimated to be Rs. 15,000, Rs. 0,000 and Rs. 5,000 respectively. The depreciation and taxes for five years will be — YearDepreciationTax (Rs. )(Rs. ) 1 2 3 4 572,000 43,200 32,400 21,600 80011,200 22,720 27,040 31,360 39,680 Calculate the net cash flows for each year and cost of the project. Evaluate the project at 12% rate of interest. b)How gestation period of an on-going project affects Project financing decisions? Question No 4(A) The data concerning a site development project at the end of the 10th week of Implementation is given below: ActivityProgress (%) t the end of 10th weekBudgeted Cost at Completion (BAC)Actual Cost of work performed (ACWP) PlannedActual(Rs. Lakhs)(Rs. Lakhs) A B C D E F G H I J K L100 50 100 100 50 100 70 — — 100 200 2090 40 80 100 20 80 60 — 10 90 90 —5 35 5 10 20 10 15 5 10 15 10 207 15 5 10 5 10 9 — 1 13 9 — Total16084 The Project is scheduled to be completed at the end of the 20th week. Calculate the costs forecast at completion, assuming that the remaining work shall progress . Question No 4 (B): a)S Limited has Rs. 10, 00,000 allocated for capital budgeting purposes. The following proposals and associated Profitability Index have been determined. ProjectAmount (Rs. )Profitability Index 1 2 3 4 5 6300,000 150,000 350,000 450,000 200,000 400,0001. 22 0. 95 1. 20 1. 18 1. 20 1. 05 Which of the above investment should be undertaken? Assume that the Projects are indivisible and there is no alternative use of the money allotted for capital budgeting. b)Project Cost Estimation is a vital factor for starting the business. As a Financial Analyst, you are required to prepare the steps for cost estimation

Fin 419 Week 5 Team Assignment with Answers

Principles of Managerial Finance FIN/419 P12. 4 Break even analysis. Barry Carter is considering opening a music store. He wants to estimate the number of CDs he must sell to break even. The CDs will be sold for $13. 98 each, variable operating costs are $10. 48 per CD, and annual fixed operating costs are $73,500. A) Find the operating breakeven point in number of CDs. Q= FC / P- VC Q= 73,500 / 13. 98 – 10. 48 Q= 21,000 CDs B) Calculate the total operating costs at the breakeven volume found in part a. EBIT= Q x (P – VC) – FC EBIT= 21,000 x (13. 98 – 10. 48) – 73,500 EBIT= 21,000 x 3. 5 – 73,500 EBIT= 0 C) If Barry estimates that at a minimum he can sell 2,000 CDs per month, should he go into the music business? 2,000 CDs per month x 12 months = 24,000 CDs. Since the operating breakeven point in number of CDs is 21,000, this means that Barry will sell 3,000 more CDs that will be a profit. Depending on Barry’s outcome of the music store, if he were to go into the music business and sell 2,000 CDs a month, he would make a profit. The profit would not be that much more above the operating breakeven point; however, it will still be a profit. I would take the chance and go into the music business. D) How much EBIT will Barry realize if he sells the minimum 2,000 CDs per month noted in part c? EBIT= Q x (P – VC) – FC EBIT= 24,000 x (13. 98 – 10. 48) – 73,500 EBIT= 24,000 x 3. 5 – 73,500 EBIT= 10,500 P12-11 a. $0. 38 b. $1. 28 c. $1. 94 Ebit| | | | $24,600| $30,600| $35,000| less interest| | | $9,600| $9,600| $9,600| Net profits before taxes| | $15,000| $21,000| $25,400| Les Taxes| | | | $6,000| $8,400| $10,160| Net profits after taxes| | $9,000| $12,600| $15,240| Less preferred stock dividends| $7,500| $7,500| $7,500| Earings available for common| | $1,500| $5,100| $7,740| Earings per share| | | $0. 8| $1. 28| $1. 94| | | | | a| b| c| P12-24. : Integrative–optimal capital structure Intermediate a. Debt Ratio| 0%| | 15%| | 30%| | 45%| | 60%| EBIT| $2,000,000| | $2,000,000| | $2,000,000| | $2,000,000| | $2,000,000| Less: Interest| 0| | 120,000| | 270,000| | 540,000| | 900,000| EBT| $2,000,000| | $1,880,000| | 1,730,000| | $1,460,000| | $1 ,100,000| ? Taxes @40%| 800,000| | 752,000| | 692,000| | 584,000| | 440,000| Net profit| $1,200,000| | $1,128,000| | $1,038,000| | $ 876,000| | $ 660,000| Less: Preferred dividends| 200,000| | 200,000| | 200,000| | 200,000| | 200,000| Profits available to ?common stock| $1,000,000| | $ 928,000| | $ 838,000| | $ 676,000| | $ 460,000| # shares outstanding| 200,000| | 170,000| | 140,000| | 110,000| | 80,000| EPS| $ 5. 00| | $ 5. 46| | $ 5. 99| | $ 6. 15| | $ 5. 75| b. Debt: 0%Debt: 15% Debt: 30%Debt: 45% Debt: 60% c. The optimal capital structure would be 30% debt and 70% equity because this is the debt/equity mix that maximizes the price of the common stock. Chapter 16 Problem 16. For each of the loan amounts, interest rates, annual payments, and loan terms shown in the following table, calculate the annual interest paid each year over the term of the loan, assuming that the payments are made at the end of each year. Loan| Amount| Rate| Annual Payment| Term (in years)| Interest Paid Y ear 1| Year 2| Year 3| Year 4| Year 5| Year 6| A| $14,000| 10%| $4,416| 4 | $1400| $1098. 40| $766. 64| $401. 70| | | B| 17,500| 12%| 10,355| 2| 2100| 1109. 40| | | | | C| 2,400| 13%| 1,017| 3| 312| 220. 35| 116. 79| | | | D| 49,000| 14%| 14,273| 5| 6860| 5822. 18| 4639. 06| 3290. 31| 1752. 3| | E| 26,500| 16%| 7191| 6| 4240| 3767. 84| 3220. 13| 2584. 80| 1847. 80| 992. 89| Problem 16. 5 Lease versus purchase Northwest Lumber Company needs to expand its facilities. To do so, the firm must acquire a machine costing $80,000. The machine can be leased or purchased. The firm is in the 40% tax bracket, and its after-tax cost of debt is 9%. The terms of the lease and purchase plans are as follows: Lease The leasing arrangement requires end-of-year payments of $19,800 over 5 years. All maintenance costs will be paid by the lessor; insurance and other costs will be borne by the lessee. The lessee will exercise its option to purchase the asset for $24,000 at termination of the lease. Purchase If the firm purchases the machine, its cost of $80,000 will be financed with a 5-year, 14% loan requiring equal end-of-year payments of $23,302. The machine will be depreciated under MACRS using a 5-year recovery period. (See Table 3. 2 on page 108 for the applicable depreciation percentages. ) The firm will pay $2,000 per year for a service contract that covers all maintenance costs; insurance and other costs will be borne by the firm. The firm plans to keep the equipment and use it beyond its 5-year recovery period. a. Determine the after-tax cash outflows of Northwest Lumber under each alternative. Year| Lease after-tax outflows| Purchase after-tax outflows| 1| $11,880| $13,622| 2| 11,880| 10,459. 71| 3| 11,880| 15,391. 10| 4| 11,880| 18,512. 89| 5| 35,880| 19,516. 93| b. Find the present value of each after-tax cash outflow stream, using the after-tax cost of debt. Year| PV of outflows (Lease)| PV of outflows (Purchase)| 1| $10,893. 96| $12,491. 37| 2| 10,002. 96| 8,807| 3| 9,171. 6| 11,881. 93| 4| 8,411. 04| 13,107. 13| 5| 23,322| 12,686. 00| Total| $61,801. 32| $58,973. 51| c. Which alternative—lease or purchase—would you recommend? Why? The alternative that I would recommend is the purchase option because it has the lower present value of after-tax cash outflows as well as the most desirable. It is the most desirable because by purchasing the machine would be a less costly alternative. Reference s Gitman, L. J. (2009). Principles of Managerial Finance (12th ed. ). Retrieved from https://ecampus. phoenix. edu/content/eBookLibrary2/content/eReader. aspx.

Biblical Worldview Essay

Biblical worldview which can also be Christian worldview refers to the framework of ideas and beliefs through which a Christian individual, group or culture interprets the world and interacts with it. It is how one perceives the world through their Christian view. The world view impact the choices one may make throughout life and is based on our principles and ideas. Leadership for transformation: The impact of a Christian worldview states that â€Å"But worldviews are also ways of life, for beliefs direct us, values guide us, and principles motivate us to certain kinds of action and behavior.† There are many things in life that helps us shape our worldview in today’s society. Romans chapters 1-8 gives us vital information regarding identity, relationships, culture, and about the natural world. Natural world was created by God through his words. I believe and feel in my heart that God is the creator of heaven and earth and all things that exist. The article states that God is Creator, unseen but not without witness, beyond comprehension but not unknowable, powerful but not impersonal, and freedom granting but not controlling. In Romans 1:20 For the invisible things of him from the creation of the world are clearly seen, being understood by the things that are made, even his eternal power and Godhead; so that they are without excuse. God created day and night, he is responsible for the sun that shines in the day and the moon that is bight at night. He created men and women in the image of his likeness and with a purpose and plan. He created us so that we can form an intimate relationship with him. I also, believe that God created us in the natural world as sinners, and his son Jesus Christ was sent here to save us from our sins. Human Identity is based on our relationship that we form with God. Jeremiah 1:5 – Before I formed thee in the belly I knew thee; and before thou camest forth out of the womb I sanctified thee, and I ordained thee a prophet unto the nations. From the day that we were created it was for Gods purpose and plan for our lives. Once you accept Christ into your life you can then began to see your identity, it is based on our calling from the Lord. With Christ in your life you will see life in a whole different perspective. In Romans it talks about how our identity is rooted deeply in our commitment to God. For as many as are led by the Spirit of God, they are the sons of God† (Romans 8:14, KJV). So with that being said our identity is based on our relationship we have with God, not by our environment or surroundings. Romans teaches us  about how we should treat our human relationships. Sometimes human relationships are the most difficult and hardest to keep in order. In Romans the first chapter 29th verse. It explains how we are filled with unrighteousness, fornication, wickedness, covetousness, maliciousness; full of envy, murder, deceit, malignity; whispers. Romans shows us that we are all full of sin and we must turn to God and have a relationship with him, before we can have form human relationships. When you have a relationship with God you can learn how to treat others and respect others. Romans 12:10 Be kindly affectionate one to another with brotherly love; in honour preferring one another. When you help and be a blessing to others, God will bless you abundantly. When we are unfaithful to God we run the risk of affecting our human relationships. Being that we were created in God’s image it is only right that we love each other as God loves us. According to John Valk article all humans are to be treated with dignity and respect regardless of their situation or station in life. Romans also had messages containing culture in its scriptures. Romans 1:16 For I am not ashamed of the gospel, for it is the power of God for salvation to everyone who believes, to the Jew first and also to the Greek. God is not a God of color, or culture it is for anyone who believes in God and follow his commandments. D. Kim article states that we assume that morality is culturally relative, that ideas and beliefs emerge historically by cultural forces, and are not right or wrong in any final sense. Different cultures have different beliefs, but in Romans it speaks of only believing in the word of God. Romans tells us the God does not save according to cultures, he saves by people believing and having faith. So, now after the knowledge I received from reading Romans is that I have to trust and believe in God, no matter what culture I’m from. In conclusion after we have learned that Romans Is immense and detailed. It gives us information for our salvation. That nothing in our lives or without God or by accident. It teaches us that we must believe in God to know and understand or identity, to form our human relationships, and understand that culture does not exist when you believe in God. I am so glad that God saw fit to send his only begotten so that we can be saved from our sins. BIBLIOGRAPHY Kim, David. & McCalman, David. (2012). Journal of business ethics: The sacred/secular divide and the Christian worldview, Vol. 109 2: 203-208 Valk, J. (2010), Leadership for transformation: The impact of a Christian worldview. J Leadership Studies, 4: 83-86. doi: 10. 1002