Saturday, December 28, 2019
Illegal Immigrants Are Good For The Economy Of The United...
Throughout the history of independent United States, the country has attracted immigrants from different parts of the world. Illegal immigrants form the larger proportion of the immigrants into the United States. Policy analysts, government officials, as well as scholars have sought to ascertain the political, social, and economic impacts of the illegal immigrants (Hanson 11). Particularly, there has been raging debate regarding the economic impact of illegal immigration to the United States of America. It has become a matter of debate and study as it relates considerably to the nationââ¬â¢s politics and economy. At the centre of this debate is the question of whether illegal immigrants are good or bad to the economy of the United States (Dudley 18). Various studies have shown that majority of the United States citizens think that illegal immigrants are bad for the nationââ¬â¢s economy. However, there are those who believe that they are good for the economy. Several surveys show that there is consensus among many economists that both legal and illegal immigration is good for the economy as it provides cheap labor, gives net boost to the economy, reduce the cost of goods and services, and widens the market for goods and services (Kenney 23). This paper will discuss illegal immigration and its impact on the economy. In general terms, illegal immigrants are defined as all individuals who are foreign-born and are non-American citizens and who are not the legal residents of the nation.Show MoreRelatedImmigration Essay998 Words à |à 4 Pages Nation of Immigrants It is often said that America is a nation of immigrants. Generations have drifted to the United States in hope for opportunity and liberty, and have also helped this country become very wealthy. Many illegal immigrants left their country in hope for a greater life in America. These immigrants have brought their culture to the U.S. They have made a new America by changing economy, work and culture for the better. Immigration to the United States is a complicated analyticalRead MoreThe United States and Illegal Immigration Essay1086 Words à |à 5 PagesIllegal immigration was an issue in the past and is a pressing problem in the present. The U.S. Government has been trying to find a resolution to this issue for years. The United States approved the Immigration Reform and Control Act in 1986, which allowed the American Government to punish American companies that consciously employed illegal immigrants (Nadadur 1037-1052). The United Statesââ¬â¢ Government Immigration Reform and Control Act has been unsuccessful in controlling illegal immigrationRead MoreIllegal Immigrants1298 Words à |à 6 PagesThe Benefits of Illegal Immigrants Are illegal immigrants or undocumented immigrants beneficial to Americaââ¬â¢s economy? Most illegal immigrants have a positive impact on the United States (U.S.) economy. Illegal immigrants have a positive impact on the United States economy because they increase our tax revenue, they add to our social security, and they also increase our employment rates.â⬠In 2000, statistics revealed 8.7 million illegal immigrants resided in the United Statesâ⬠(KnickerbockerRead MoreAccording To An Article In Usa Today, ââ¬Å"Illegal Immigration1258 Words à |à 6 PagesAccording to an article in USA today, ââ¬Å"Illegal Immigration population declinesâ⬠Thomas Frank writes, ââ¬Å"The number of illegal immigrants in the USA fell for the first time in at least four years, as the nations tough economy discourages people from sneaking into the USAâ⬠. Illegal immigration has been on an all time rise for the last 4 to five years, as the nations economy struggles to sta y out of a depression. I believe illegal immigration has a great effect on how the economy is doing. It cost the nation millionsRead MoreThe Rights Of Illegal Immigration1690 Words à |à 7 PagesJuan Guarintino was a Spanish immigrant who moved here into the United States. Juan worked for General Faucets and Plumbing and loved every minute of his job. There was only one problem that Juan was struggling with in America. Juan Guarintino was an illegal immigrant who had paid someone to smuggle him into the United States and make him a fake visa card. Now, a few days ago, he shot a man for the twenty dollars in his pocket that way he could manage his chronic cocaine problem, but the police haveRead MoreThe Legal And Illegal Immigrants1726 Words à |à 7 Pagesââ¬â¢m an immigrant, I moved to this country three years ago, but since I was born here Iââ¬â¢m considered a legal immigrant, as many legal and illegal immigrants I believe that we help the economy of this country. There a re many immigrants in this country, they all come from all over the world. By no means I want to assume that they have all had my experiences. In my case Iââ¬â¢m here on the pursuit of new opportunities, in my mind, or in the way I was raised by my parents, and how am I supposed to achieveRead MoreCompare and Contrast Illegal Immigration1367 Words à |à 6 Pages English 100 Illegal Immigrationââ¬â¢s Effect towards the U.S The United States is a country affected by illegal immigration. The term illegal aliens or what is most commonly known as illegal immigrants, the word alien is simply a person who comes from a foreign country. A much more accurate expression for these groups of individuals is the term illegal alien. The term illegal alien is a much more precise term because it deals with both undocumented aliens as well as nonimmigrant visa overstayersRead MoreImmigration Is The Creation Of America938 Words à |à 4 PagesAmerica Illegal immigration is one of the number one talked about topics in America, that no one does anything about. Throughout the years more than millions of immigrants have been deported from the United States to their motherland countries. What not many see is that America is made up of immigrants, immigrants help bring up the United States of America. Many Americans do not want immigrants to be in the United States mainly because they do not speak English correctly. Illegal immigrants shouldRead MoreIllegal Immigrants : A Big Problem With Illegal Immigration1150 Words à |à 5 PagesIn the United States of America, there is a big problem with illegal immigration. Illegal immigration is an enormous issue that during the 2016 presidential primary debates. It was a problem when President Obama took office eight years ago, and it is an even greater problem now that he is getting ready to leave office. Most Americans want the border closed, but that will only solve half the problem. The o ther half of the problem can be solved by deporting the illegal immigrants that are alreadyRead MoreHow Immigration Helps United States1600 Words à |à 7 Pages Iââ¬â¢m an immigrant, I moved to this country three years ago, as many legal and illegal immigrants I believe that we help the economy of this country. There are many immigrants in America and they come from all over the world. By no means I want to assume that they have all had my experiences. In my case Iââ¬â¢m here on the pursuit of new opportunities, in my mind, or in the way I was raised by my parents, and how am I supposed to achieve my goals is exactly the way they work every day to support our
Friday, December 20, 2019
Blockbuster, Netflix, And The Media, Entertainment Rental...
My paper on Blockbuster, Netflix, and the Media, Entertainment Rental Industry, in 2011. (Summary). Introduction With this paper I am proposing to discuss Blockbusterââ¬â¢s issues and/or problems, as far as, gaining and retaining profitability, and well needed success. Why in 2010 the companyââ¬â¢s losses continued to rise? And the reason, they were eventually required to enter Chapter Eleven bankruptcy in Sept-10. In addition to, Netflix, which at the time had over 17 million subscribers in 2010, gaining profits, and a climbing stock price that exceeded $300 by June-2011, which was because of them introducing its own entertainment streaming service as a part of its DVD service for a low-cost of $10, charged monthly. However, this case study isâ⬠¦show more contentâ⬠¦The remaining 1,500 was liquidated. DISH announced, in Sept-2011, it would provide its subscribers a media download rental system similar to Netflixââ¬â¢s, but at a discount price. So, with all that being said, when we discuss concerning the worldââ¬â¢s top leading online streaming media company, Netflix first comes to mind because we know they committed in to distributing/circulating movies and TV shows for years by way of the internet or online services, as it has the required license and agreement with some of the worldââ¬â¢s largest, and most important, content providers, film studios, and TV channels as well. Furthermore, they charge minimal from the subscribers to watch videos from the stored videos by using the computer network. When, we also discuss concerning the existence, Netflix has over 50 million subscribers from across the globe, with 30 million of them from domestic partnerships and marketplaces. ââ¬Å"Description of the case study (summary)â⬠. Personalized or individualized user experience: The lesson learned from Netflix and Blockbuster success and failure to provide this service. As such, depending on the customerââ¬â¢s choice and interest for which they can view videos. The shared evidence of observing how Neflix uses personalized and individualization as a competitive advantage in engaging and retaining users, and planning content purchases. Integration or combining of streamingShow MoreRelatedAbstract: . Blockbuster And Netflix Are Two Exceptional1314 Words à |à 6 PagesAbstract: Blockbuster and Netflix are two exceptional companies that are in the home video rental market business, which accomplished enormously contrasting effects. While, Netflix considerably heightened its company value, Blockbuster lost itââ¬â¢s powerful and influential market position, and in 2010 slipped into bankruptcy. The paper will propose a study to discuss important insight into the many aspects of Blockbuster and Netflix, and other media entertainment industries, which includes each companyââ¬â¢sRead MoreStreaming Media and Video Content1055 Words à |à 5 PagesLooking strictly at the video rental industry, Netflix faces minimal internal rivalry because the industry is dominated by only a handful of firm in Europe, namely Blockbuster. Although Netflix faces little internal rivalry in its immediate industry, the company faces an intensely competitive broader market. Since home entertainment covers a broad spectrum of technologies and channels of distribution, Netflix is in direct competition with firms in a number of other industries including cable networksRead MoreSony And Panasonic : Video Rental Market1106 Words à |à 5 Pagesdropped and the number of households owning home video players increased, video rental stores began to proliferate across the United States. Rental stores innovated the home video market offering customers a less expensive alternative to consuming media, and in the beginning faced no technological or competitive threats in the marketplace. In 1985, David Cook opened the first Blockbuster store in Dallas, Texas. Blockbuster initially began as a competitor to smaller mom-and-pop video stores, offeringRead MoreMovie Analysis : Blockbuster Failure1460 Words à |à 6 PagesBlockbuster Failure Analysis Who is your Company? What kind of business are/were they in? When did they fail? where they rescued? (1) paragraph Our company is Blockbuster, LLC. They were in the entertainment to consumer industry, specifically rental and sale of videos, video games and film-accompanying snacks. We define failure as a ââ¬Å"point-no-returnâ⬠, when Blockbuster, LLC ceased to remain independently viable and were bought by Dish Network on April 26, 2011. According Dish Networkââ¬â¢s annualRead MoreNetflix Inc : Marketing Analysis1706 Words à |à 7 PagesNetflix Inc: Marketing Analysis By Eugene Simonov Washington Adventist University ECON 528 April 3, 2016 Abstract This paper examines and analyzes the marketing aspect of Netflix Inc. To develop a clear idea of the entertainment industry, this paper explores the background of Netflix Inc. and the present market conditions of its competitors. This paper finds that Netflix Inc. is the fastest growing online entertainment platform in the market. However, due to the nature of the industry it has manyRead MoreNetflix : Marketing Analysis And The Market Conditions Of Its Competitors1707 Words à |à 7 Pages Netflix: Marketing Analysis By Eugene Simonov Washington Adventist University ECON 528 April 4, 2016 Abstract This paper examines and analyzes the marketing aspect of Netflix Inc. To develop a clear idea of the entertainment industry, this paper explores the background of Netflix Inc. and the present market conditions of its competitors. This paper finds that Netflix Inc. is the fastest growing online entertainment platform in the market. However, due to the nature of the industry itRead MoreCompetition in the Movie Rental Industry in 2008: Netflix and Blockbuster Battle for Market Leadership1894 Words à |à 8 PagesCompetition in the Movie Rental Industry in 2008: Netflix and Blockbuster Battle for Market Leadership Although the corporate strategies implemented by Netflix and Blockbuster have allowed them to become leaders of competitive advantage in the movie rental industry, they sometimes encounter strategic issues that slow down their product and services process. My research of Netflix and Blockbuster will enable me to present a SWOT analysis and recommendations for each company. Netflix, founded in 1997 byRead MoreNetflix Five Forces Essay7219 Words à |à 29 PagesStrategic Report for Netflix, Inc. Hillary Carroll Alex Menenberg Ian Kwok April 20, 2009 Netflix, Inc. Table of Contents Executive Summary..........................................................................................................................3 History .............................................................................................................................................5 Business Model ............................................................Read MoreBlock Buster4607 Words à |à 19 Pagesemergence in the video rentals market. After detailing the intricacies of the video rental market, the case takes a deeper dive into Blockbusterââ¬â¢s business model, based on brick-and-mortar locations throughout the US. This costly infrastructure has slowed the entertainment giantââ¬â¢s growth in an industry that has rapidly transitioned from the traditional store-based model, to mail rental and video-on-demand alternatives. The rapid transition of customer demand and the emergence of Netflix (Blockbusterââ¬â¢s mainRead MoreNetflix vs. Blockbuster1033 Words à |à 5 PagesIntroduction Blockbuster opened in 1985 and in its ââ¬Å"first 20 years of business, the movie rental giant opened 9.100 stores in 25 countriesâ⬠(Laudon, 2007, p. 121). Netflix launched in 1998 using a new business model and became Blockbusters biggest threat. The paradigm shift in the rental industry from having to travel to a store and rent a movie to being able to have a movie delivered to your mailbox changed the way people think about media entertainment. The next shift will be having the technology
Thursday, December 12, 2019
Daniel Juarez (783 words) Essay Example For Students
Daniel Juarez (783 words) Essay Daniel Juarez Mcmillen English 101 13 March 2017 Are We in a Race Against the Machine? Technological advances have set up the foundation of todays society, but the question is,has technology actually made us smarterasClive Thompson claims in Smarter thanYou Think?There is no doubt that in the world today,weas humansrelyon oursmartphones, computers, social media,machinesand televisionin our everyday lives. They serve a fundamental purpose; to enhance the way we live, learn,communicate, andkeep up withwhat is going on in the world or inourlocal regions.Even though one might say technologyis making us stupidrather than smartasNicholas Carr claims in Is Google Making Us Stupid.Technology isactuallymaking us smarter because as our technologyadvances so does our minds. Working with technologyI believehas hadsucha great influence on the way wethink, build, and create ina positive means.On endless accounts throughout history you seeitsinfluence on human cognition,the great impact technology has hadonthe creation ofnewjobs,and on the way we live our livestoday. Advances in technology havehad a great impact on society today. During theIndustrial Revolution, automation allowed for the growth of new jobs in factories that created and distributed, farm equipment, and many other products with more proficiency and effectiveness than ever beforeas author Kevin Kelly explains in his article Better than Human: Why Robots Willand MustTake Our Jobs.What does this have to do with how technology is making us smarter?It has everything to do withhowtechnologyismaking us smarter. You see this throughout the history of the United States and you see it all around the worldevery day. From the end of the Industrial Revolution,till now;you see the endless appearance of new inventions such as the TV, phones,solar panels, the internet, and so on. As technology advances sodoesscience and the world we live in.Since the Industrial Revolution, youalsosee the growth and creation of new jobs; new jobs that require advanced degrees or the proper education and training to do them.In todays time not even a bachelors degree will suffice for getting a job that was commonly done with that same amount of education in the past decades.Technology is making it so that humans have to besmarter,able toadapt, andtowork with it to improve the quality of which we live.Brooke Gladstone, author of The Influencing Machines states in her article,Technologydoes change our brains.Humanitysfirst use of handheld tools coincided with the growth of the prefrontal cortex, as well as grammatical language and more complex social networks(334).Likewise, Clive Thompson supports these ideals in his wri ting by saying Our tools are everywhere, linked with our minds, working in tandem(347).Had there nothave been these primordial instincts to use and build tools, how might we have developed cognition otherwise?We couldnt possibly have. Many people would probably agree with the fact that technology has an influence on our lives on the dailyregardlessofifits oursmartphones, social media, TV, or any of the machines that we mightwork with, or use in our homes. It helps us learn in class rooms, stay in contact with family, friends, and pen pals all over the world with just the push of a button. Technology has become the staple of a thrivingand educatedsociety.But on the other hand,as Thompson explains,One of the great challenges of todays digital thinking tools is knowing when not to use them, when to rely on the powers of older slower technologies, like paper and books(355).I would agree that it is veryeasy to get caught up in using the technology in our pockets, and forget about reading a hard cover book or writingona notepad with a pen.AuthorNicholasCarr says,The kind of deep reading that a sequence of printed pages promotes is valuable not just forthe knowledge we acquire from the authors words but for the intellec tual vibrations those words set off within our minds (327).Wesurelyneed the silence of our own minds to absorb information and have time to think and comprehend what we are learning. It also allows you to just take your time and slowyour mind down toconcentrate on the words flowing together and stimulate all senses to bring words to life.
Wednesday, December 4, 2019
Financial Strategy Finance and Investment Analysis
Question: Discuss about the case study Financial Strategy for Finance and Investment Analysis. Answer: Introduction: Darth Plc has been operating for thirty years. It is a manufacturing unit, which manufactures supplies medical equipment. The company is a family run business and has four directors as its senior management. Initially, the company was financing with the debentures, and it used to borrow from the high street banks. (Oppong-Boakye and Addai2015 ). Therefore, the company was making debt capital to finance the business. The company was enjoying a high volume of sales until it faced competition from the Asian market. Unable to stand with the competition faced by the Asian market, the Darth family decided to import the supplies form the Asian market itself. This made them well acquainted with the overseas culture and despite so many obstacles; the company made it through and gained entered the growth phase. At present, the business is financed through equity that is it has become an all equity-financed company. The shareholders of the company are enjoying a favorable return on their invest ment. (Jain and Shao2014)In addition, what the senior management is pondering over is to maintain such growth in the future as well. Effectively analyzing the financial data and recommending whether Darth plc should purchase the new vehicles: The main purpose of the proposal is to help Dart Plc chose the best available option for purchasing the required vehicles to support its future endeavors. In addition, with the help of proposals, Dart plc is able to evaluate the impact of discounting factors, tax rate and government rebates on its vehicles purchase. Furthermore, the investment appraisal method used in the proposals mainly help in illustrating the best options, which might increase productivity and profitability of Dart Plc. Net present value Net present value is one of the most important capital budgeting methods that is used to derived present value of the projects. With the help of proper NPV analysis, the financial feasibility of Darth familys project proposals will be evaluated. Investment Appraisal Proposal 1 year 0 1 2 3 4 5 6 Cost (60,000.00) Fuel saving 15,770.00 15,770.00 15,770.00 15,770.00 15,770.00 Maintenance (5,472.00) (5,472.00) (5,472.00) (5,472.00) (5,472.00) Cash flow 7,000.00 7,140.00 7,282.80 7,428.46 7,577.03 Tax 20% (1,400.00) (1,428.00) (1,456.56) (1,485.69) (1,515.41) Tax saving 3,000.00 2,250.00 1,687.50 1,265.63 3,796.88 Net cash flow (60,000.00) 17,298.00 19,038.00 18,402.80 17,957.40 17,654.96 2,281.47 Discount fac 1.00 0.93 0.87 0.82 0.76 0.71 0.67 PV (60,000.00) 16,166.36 16,628.53 15,022.17 13,699.61 12,587.74 1,520.24 NPV 15,624.64 ARR 10% IRR 16% Year WDA CA TS 0 60,000.00 15,000.00 3,000.00 1 45,000.00 11,250.00 2,250.00 2 33,750.00 8,437.50 1,687.50 3 25,312.50 6,328.13 1,265.63 4 18,984.38 18,984.38 3,796.88 Proposal 2 year 0 1 2 3 4 5 6 Cost (60,000.00) Fuel saving 15,770.00 15,770.00 15,770.00 15,770.00 15,770.00 Maintenance (5,472.00) (5,472.00) (5,472.00) (5,472.00) (5,472.00) Cash flow 7,000.00 7,140.00 7,282.80 7,428.46 7,577.03 Tax 20% (1,400.00) (1,428.00) (1,456.56) (1,485.69) (1,515.41) Tax saving 3,000.00 2,250.00 1,687.50 1,265.63 3,796.88 Net cash flow (60,000.00) 17,298.00 19,038.00 18,402.80 17,957.40 17,654.96 2,281.47 Discount fac 1.00 0.93 0.87 0.82 0.76 0.71 0.67 PV (60,000.00) 16,166.36 16,628.53 15,022.17 13,699.61 12,587.74 1,520.24 NPV 15,624.64 ARR 10% IRR 16% Year WDA CA TS 0 60,000.00 15,000.00 3,000.00 1 45,000.00 11,250.00 2,250.00 2 33,750.00 8,437.50 1,687.50 3 25,312.50 6,328.13 1,265.63 4 18984 18984 3797 Proposal 3 year 0 1 2 3 4 5 6 Cost (75,000.00) After 10% dis (67,500.00) Fuel saving 15,770.00 15,770.00 15,770.00 15,770.00 15,770.00 Maintenance (5,472.00) (5,472.00) (5,472.00) (5,472.00) (5,472.00) Cash flow 7,000.00 7,140.00 7,282.80 7,428.46 7,577.03 Tax 20% (1,400.00) (1,428.00) (1,456.56) (1,485.69) (1,515.41) Tax saving 3,375.00 2,531.25 1,898.44 1,423.83 4,271.48 Net cash flow (67,500.00) 17,298.00 19,413.00 18,684.05 18,168.33 17,813.16 2,756.08 Discount fac 1.00 0.93 0.87 0.82 0.76 0.71 0.67 PV (67,500.00) 16,166.36 16,956.07 15,251.75 13,860.53 12,700.54 1,836.49 NPV 9,271.74 ARR 9% IRR 12% Year WDA CA TS 0 67,500.00 16,875.00 3,375.00 1 50,625.00 12,656.25 2,531.25 2 37,968.75 9,492.19 1,898.44 3 28,476.56 7,119.14 1,423.83 4 21,357.42 21,357.42 4,271.48 Proposal 4 0 1 2 3 4 5 6 Cost (75,000.00) Fuel saving 15,770.00 15,770.00 15,770.00 15,770.00 15,770.00 Maintenance (5,472.00) (5,472.00) (5,472.00) (5,472.00) (5,472.00) Cash flow 7,000.00 7,140.00 7,282.80 7,428.46 7,577.03 Tax 20% (1,400.00) (1,428.00) (1,456.56) (1,485.69) (1,515.41) Tax saving 3,750.00 2,812.50 2,109.38 1,582.03 4,746.09 Net cash flow (75,000.00) 17,298.00 19,788.00 18,965.30 18,379.27 17,971.37 3,230.69 Discount fac 1.00 0.93 0.87 0.82 0.76 0.71 0.67 PV (75,000.00) 16,166.36 17,283.61 15,481.33 14,021.46 12,813.33 2,152.74 NPV 2,918.83 ARR 8% IRR 8% Year WDA CA TS 0 75,000.00 18,750.00 3,750.00 1 56,250.00 14,062.50 2,812.50 2 42,187.50 10,546.88 2,109.38 3 31,640.63 7,910.16 1,582.03 4 23,730.47 23,730.47 4,746.09 Justification for selection of Project 1 In the given study we have taken four proposals. The financial position of the company regarding NPV, IRR and ARR gave in the appendix. By which these proposal actions will be taken: In proposal 1 and proposal 2, in this criteria proposal 1 is to be taken into consideration but if we look in to the below-given proposal 1 is to be given to be the best with high ARR. (Lockeet al. 2013) NPV is considered to be the most effective and efficient method of choosing the proposal. NPV indicates the discounted cash flow with a present value in the business. As a business, the rule says that NPV will be accepted if it has the highest value in positivity term. The accepted proposal criteria say that project which has the cash flows greater than zero has the acceptability criteria more. So finally, it is concluded that NPV with a positive value is accepted. Similarly, the project with negative and value is rejected. The overall proposal 3 mainly helps in depicting the return, which could generate with the help of NPV, IRR, and ARR method. Also, with the overall NPV of Proposal 3 is bat 9271.13. Which is effective than prosper 4, but is irrelevant as compared to another proposal. (Das et al. (2013) mentioned that NPV valuation is mainly used by a company to choose adequate investment opportunity, which in turn might increase its overall profitability. On the other hand, Baum and Crosby (2014) criticism that during an economic crisis the overall return from investment could be hampered, this in turn reduces the efficiency of the NPV method. Also, Darth Plc could ignore proposal 3 to reduce the overall risk in investment. Furthermore, they overall ARR for Proposal 3 is around 0.08634 and IRR is around 0.1187. Besides, both ARR and IRR of Proposal 3 are better than proposal 4, but are relatively lower than the other projects. (Eliasson and Brjesson 2014) Mentioned that IRR calculation mainly depicts the overall return percentage, which is generated from cash inflow of the proposed project. However, Penning et al. (2014) stated that the overall projected cash inflow could be changed due to the negative impact of external factors. Also, Proposal 3 could not provide the required return, which is being projected from other proposals. However, the Darth Plc after evaluating the entire proposal could effectively make adequate decisions based on higher NPV, IRR, and ARR. In addition, proposal 4 is mainly depicted the lowest NPV, which could be generated from the same amount of investment. This reduced NPV 2918.83196 mainly depicts the inefficiency of the investment plan depicted in proposal 4. In this context, (Stevanovic and Pucar2012) mentioned that investment appraisal techniques mainly helps in evaluating the time value of money and provide adequate return calculation. On the other hand, (Caulfield et al. 2013) criticizes that investment appraisal does not accommodate the negative impact of external factors, which might affect profitability of the company. Thus, ignoring proposal 4 could mainly help Darth Plc to conduct investment on affect proposals and get higher return from investment. Furthermore, the valuation of ARR and IRR is at 0.0777136 and 0.084, which is relatively lower than other proposal being evaluated by Darth Plc. Also, the overall tax saving from the proposal 4 is relatively low, which could not help in improving profitability of Darth Plc. In this context, Baxter et al. (2014) mentioned that the company to detect the overall rate of return, which will be provided from the investment, mainly uses ARR. On the other hand, Turnpennyet al. (2014) criticize that overall return from investment could change with the cash flow generated from the project. All things considered, for one thing, a part of month to month condominium expenses by and large goes toward long haul, first-class activities, for example, clearing and material. (Yuen 2013). You need the assets to be accessible when it's the ideal opportunity for the carports to be repaved and the rooftops to be re-shingled. Without a composed venture arrangement, another treasurer or new board could put resources into anything in light of the fact that there's nothing keeping the board from purchasing, for instance, stocks, common assets, wares or some other money related instrument. In a down business sector, exchanging those sorts of unpredictable securities could bring about a misfortune to stores, along these lines prompting the despondent outcome of having to uncommon survey unit proprietors. Evaluating the Leasing and buying: Assessing and evaluating the implication of various proposal available: Darth Plc is a successful company and is intending to continue the growth phase in its future. For this purpose, the directors of the company are proposing to make a five-year business case so that the profitability is maintained in the future. The company has various course of action, which they could take while seeking the said objectives, and thus maintain the reputation of the company (Lefley 2015) The Company has the option of switching from the conventional vehicles used in the business to the newly introduced hybrid vehicles. The logistic manager is considering the employment of hybrid vehicle as an ideal option as it is complying with being environment friendly (lease2016).There is a difference between leasing and buying. The main advantage of lease is lower amount of monthly payments and its disadvantage is that the person is not owning the project. However, in buying, one can be considered as the owner of the project. However, the coast of acquiring the vehicle is comparatively higher than that medium sized vehicle and the traditional vehicle being used. It is expected that using the hybrid vehicle would result in the net cash inflow of 7000 during the first year operation, and the growth fate would be constant for the next four year at the rate of 2%. Also, the capital allowances would be attracted at the rate of 25% as the government would be discounting the vehicles as they are considered eco-friendly and is more carbon conscious. The hybrid vehicle being fuel-efficient would result in the fuel saving. The company would be able to save the fuel of 15770 in total. The positive implication of adopting the hybrid vehicle is that the company's cash flow would increase, and it would be able to economize on the use of fuel as the fuel cost also is reduced. (Deshmukhet al. 2013) Therefore, the positive implications of deploying hybrid vehicles can be listed down: Increase in net cash inflow of the company for the first year Saving the fuel costs as the vehicles are fuel efficient (Reuteret al. 2012) Attract capital allowances Reputation of the company would improve by being eco-friendly The use of hybrid vehicles in to the operation also has some negative implications. These are following: The cost of acquiring the hybrid vehicle is also high than the conventional vehicle and the medium sized vehicle. The per month maintenance expense is also higher and is higher than the 20% of t amount being paid for maintenance of the conventional vehicles. Therefore, it can be seen that the employment of hybrid vehicles has both positive and negative implications but the positive implication is offsetting the negative one. Critically Discussing the Capital Structure: Darth Plc had been faced with many hurdles in carrying out their business due to the competition they faced form the Asian market. Since the company has imbibed itself with the overseas culture, it has been faced with the rapidly changing management culture. The company needs to finance its business strategically to continue flourishing in the market and providing their shareholders with the fair return. The financial performance of the company is assessed using several financial metrics (Langan 2014)The strategic financial goals would be measurable so as to ensure that the business is operating effectively and efficiently. The senior management regarding the five-year business case has proposed a draft to recognize few goals to maintain the profitability and reputation of the business. The company intends to appraise the Return on capital employed in future to a level of 15%, which is currently running at 13%. The directors of the company restricted the use of hybrid vehicles as against the current vehicles they are using for their service. (Rigopoulos 2015). The management was against the use of hybrid vehicles because after conducting the analysis, the return on capital employed stood at only 13% as against the proposed rate of 15%. Though the logistic manager was against using the current vehicle deployed and was of a view that the appraising the process financially is restrictive. This is because the hybrid vehicle is considered ideal for deliveries and collection and it would lead the company towards the more carbon conscious state. So the current vehicle deployed in the business is not compatible with being environment-friendly (Rossi 2015). There were few proposals laid by the staffs on the financial matters, which would help the business in making the long-term growth plan (Rossi 2014). The costs of acquiring the vehicle are much lower than that of the traditional vehicle used by the company. The discounts offered by the government would help in attracting the capital allowances. This would also lead to economize the company on their fuel expenses, as deploying would save the fuel. However, the maintenance cost would be higher than that of the conventional vehicle being used. The research conducted by the marketers provided with the idea that using the hybrid vehicles would promote the brand image of the company. For the first year of the proposed business methods, the company would be experiencing an increase in the value of the net cash inflow. The growth rate would also increase by 2% in each year for the next four year. However, the rate of growth is constant. Another financial metrics to be considered is the use of debt in the capital structure (Isselet al. 2015) The company after entering into the growth has financed its capital structure on a sole equity basis. This is preventing the company from gaining the advantage, which a company gets while financing the business using few proportion of in the capital structure. However, financing the growth with using a minimal amount of debt is a good option but eliminating it form the capital would not be an appropriate financial strategy. This is because it has several advantages. The dividend payable to the shareholders is not tax deductible, and it must be paid after deducting the tax amount. However, the interest on debt amount is treated as an expense against revenue and then the taxable income has arrived. So using debt in the capital structure would provide a tax shield. The company would also be able to retain the profits, as using debt would only lead them to pay an amount of interest f rom their revenue. The cost of financing would also go down if the business employs a mixture of dent sand equity financing in the capital. This would also enhance the value of the company. Therefore, financing the capital using the 100%, equity would not be appropriate, and this needs to revise. The company also needs to revise and consider their investment and dividend policies and the payout ratio whether they are paying the whole amount in the form of the dividend. In this perspective, the company needs to strategize itself. Interrelationship of Investment, Financing and Dividend policies: Another course of action available to the company is that the company has the option of using debt financing that is suing debt in its capital structure. Since the company is financing its capital with 100% equity. The idea of including debt would have positive implications as it would result in increasing the value of the company (Ahmed 2013). Including debt in the capital would lower the companys cost of capital. Positive implications can be listed down below: Reduction in cost of capital Using debt would provide tax shield as the interest on debentures is treated as an expense and is deductible against revenue (Baker and Weigand2015) Provides opportunity to increase the retained profits Another course of action is changing the dividend policy (Baker 2015). This would include lowering the payout ratio. By implementing this policy, the company would be able to lower the requirement of capital, as the sufficient capital would be available to the company. It also has positive impact. The impacts are mostly positive because the company's position regarding financials is satisfactory. Conclusion: It has been sending form the above discussion that the Darth Plc has been considering of implementing the use of hybrid vehicles, which would increase their net cash inflow by a good amount. Along with the introduction of the above proposals, the company also needs to look into their various financial policies that the dividend policies, investment policies and other financial policies. The company is enjoying its equity-based financing system but it should also consider the beneficial sides of employing debt. Also, the company needs to comply with the rules of being environmental friendly. For this, it should make use and calls for the implementation of the hybrid vehicles. The company does not have any liabilities. The company can also reduce their payout ratio as their investors have utmost faith regarding the better performance of the company. This would enable them to lower their capital requirement, which would be beneficial for the company as they would be partially dependant on outsiders. From the overall assessment it is concluded that proposal 1 fulfills the all the criteria of NPV, IRR and ARR which in terms applies that, it is best among all the proposal with highest and positive criteria. References: Ahmed, I.E., 2013.Factors determining the selection of capital budgeting techniques.Journal of Finance and Investment Analysis,2(2), pp.77-88. Baker, H. 2015,Dividends and Dividend Policy,2nd end, Emerald Group Publishing Ltd, GB. Baker, H.K. Weigand, R. 2015, "Corporate dividend policy revisited",Managerial Finance,vol. 41, no. 2, pp. 126-144. Baum, A.E. and Crosby, N., 2014.Property investment appraisal.John Wiley Sons. Baxter, S., Sanderson, K., Venn, A.J., Blizzard, C.L. and Palmer, A.J., 2014.The relationship between return on investment and quality of study methodology in workplace health promotion programs.American Journal of Health Promotion,28(6), pp.347-363. Caulfield, B., Bailey, D. and Mullarkey, S., 2013. Using data envelopment analysis as a public transport project appraisal tool.Transport Policy,29, pp.74-85. Das, I., Bhattacharya, K., Canizares, C. and Muneer, W., 2013.Sensitivity-indices-based risk assessment of large-scale solar PV investment projects.IEEE Transactions on Sustainable Energy,4(2), pp.370-378. Deshmukh, S., Goel, A.M. and Howe, K.M., 2013.CEO overconfidence and dividend policy.Journal of Financial Intermediation,22(3), pp.440-463. Eliasson, J. and Brjesson, M., 2014.On timetable assumptions in railway investment appraisal.Transport Policy,36, pp.118-126. Jain, B.A. Shao, Y. 2014, "Family Involvement and Post-IPO Investment Policy",Family Business Review,vol. 27, no. 4, pp. 287-306. Issel, L.M., Olorunsaiye, C., Snebold, L. and Handler, A., 2015. Relationships among providing maternal, child, and adolescent health services; Implementing various financial strategy responses; and performance of local health departments.American journal of public health,105(S2), pp.S244-S251. Langan, M., 2014. A moral economy approach to Africa-EU ties: the case of the European lease2016, , 6th edn, Oxford University Press. Lefley, F., 2015. The Perception That ICT Projects Are Different. InThe FAP Model and Its Application in the Appraisal of ICT Projects(pp. 21-33). Palgrave Macmillan UK. Locke, L.F., Spirduso, W.W. Silverman, S.J. 2013,Proposals that work: a guide for planning dissertations and grant proposals,Sixth edn, SAGE, Los Angeles. Opposing-Boakye, P.K. and Addai, E., 2015, January. Capital BUDGETING practices of firms: enpirial EVIDENCE from ghana. InGlobal Conference on Business Finance Proceedings(Vol. 10, No. 1, p. 213). Institute for Business Finance Research. Penning-Rowsell, E., Priest, S., Parker, D., Morris, J., Tunstall, S., Viavattene, C., Chatterton, J. and Owen, D., 2014.Flood and coastal erosion risk management: a manual for economic appraisal. Routledge. Reuter, W.H., Szolgayov, J., Fuss, S. Obersteiner, M. 2012, "Renewable energy investment: Policy and market impacts",Applied Energy,vol. 97, pp. 249. Rigopoulos, G., 2015. A review on Real Options utilization in Capital Budgeting practice.International Journal of Information, Business and Management,7(2), p.1. Rossi, M., 2014. Capital budgeting in Europe: Confronting theory with practice.International Journal of Managerial and Financial Accounting,6(4), pp.341-356. Rossi, M., 2015. The use of capital budgeting techniques: an outlook from Italy.International Journal of Management Practice,8(1), pp.43-56. Stevanovi, S. and Pucar, M., 2012. Investment appraisal of a small, grid-connected photovoltaic plant under the Serbian feed-in tariff framework.Renewable and Sustainable Energy Reviews,16(3), pp.1673-1682. Turnpenny, J., Russel, D. and Jordan, A., 2014. The challenge of embedding an ecosystem services approach: patterns of knowledge utilization in public policy appraisal. Environment and Planning C: Government and Policy,32(2), pp.247-262 Yuen, R.W.P., 2013. Project Evaluation Methods.Hong Kong Securities and Investment Institute Knowledge Portal.
Subscribe to:
Posts (Atom)