Capital Projects Recommendation 2 Assignment Example | Topics and Well Written Essays - 250 words

Capital Projects Recommendation 2 - Assignment Example Operating cash flows includes; sales revenue, cost of production, income before taxes, marginal tax rate, depreciation, increase in working capital. Terminal cash flow includes; decrease in working capital, salvage value, marginal income tax rate. Cost of capital evaluates the cost of borrowing to pay for the project. This value is set as the benchmark for the lowest possible return. Opportunity cost determines the cost for taking advantage of one option over another. Break-even point determines if the project would contribute to the growth of the company. Capital budgeting technique uses different formulas for analysis of financial values to determine if a company should proceed with the planned investment or not. These formulas contain various parameters, and they have specific concepts. These parameters are Net Present Value (NPV), Internal Rate of Return (IRR), and Payback method. Embedded concepts of these parameters helped me evaluating fully equipped facility cost. Capital budgeting technique requires calculating OCF. All three parameters; NPV, IRR, and Payback use OCF values. NPV evaluates present value of the future cash flows that the project generates during its life (â€Å"What is NPV†). In simple language if the value of money generated during the project life is higher that the initial investment, the project makes money. IRR determines (Mohr) the cost of return at which all cash inflows (revenues) equals the present value of cash outflows (initial investment plus any other expenses). In other way, it is the cost of capital at which NPV is zero. Hence, if IRR is higher than the cost of capital, the project is making money. Payback period calculates the length of the time it will take to get back company’s initial investment. In other words, this method defines how long would it take to get the investment money back. Theses three parameters tell me; (1) how long would it take to get the initial investment back, (2) how much money the

High School Experience Essay Example | Topics and Well Written Essays - 750 words

High School Experience - Essay Example Therefore, my expectations in the International school have been a little different from my prior exposure. I encounter a new set of challenges. First, I had a problem getting along with my colleagues who I could see they were taken aback by my presence. In several occasion, I had been frustrated because I was unwelcome to join the groups. Every time I did, they would abruptly stop talking and stare at me. This made me run over weeks without making even a single friend. For this reason, I have had a problem learning about the programs and activities of my new school. In my former high school, learning was easy, and I could get along with my teachers. However, in my new school I have had a problem understanding the teachers. Learning has been different, as I have been used to writing notes on the chalkboard. Here, the teachers teach as student writes their note. This made my learning so difficult at first, but I have come to understand, and now things are much better. I took the time getting to know my new teachers. The school has a huge population and getting an appointment is much difficult. This made learning a bit difficult in the beginning, as I could not seek help from most of the teachers. Moreover, my new school is among the best performing in the State, and this is the reason that made my parent seek transfer from my former school. Therefore, the expectation of teachers from the student has been higher compared to what I have been used. This got me in trouble, as I could not perform well compared to another student. I felt like in the wilderness alone for a long period until I improved my grades. It is through class work that I first made friends. Out of sheer frustration to get my class work done, I had to consult my classmate. However, with time my new friends introduced me to sports. I have been a football player, but I could not get it easy in my new school. I resulted in playing basketball. It was my first time playing