Financial management Assignment Example | Topics and Well Written Essays - 750 words

Financial management - Assignment Example Present value of the expected cash flows is computed by discounting them at the required rate of return (also called minimum rate of return); a zero NPV means the project repays original investment plus the required rate of return. A positive NPV means a better return, and a negative NPV means a worse return, than the return from zero NPV. It is one of the two discounted cash flow (DCF) techniques (the other is internal rate of return) used in comparative appraisal of investment proposals where the flow of income varies over time†. ... The incremental costs remain the same throughout the five years. Depreciation is added back because it is a non-cash item; it is only deducted earlier to calculate the tax. It is assumed that tax is paid in the year in which it is accrued. Workings Direct Costs Yr 1 – $950,000(Sales in Year 1) * 55% = $522,500 Yr 2 onwards – $1,500,000 (Sales in Year 2 and onwards) * 55% = $825,000 Depreciation Depreciation for the five years on straight line basis = $1,000,000 ? 5 = $200,000 Conclusion Based on the fact that the project generates a positive Net Present Value of $397500, the project would have beneficial prospects for the company. Hence, the project should be undertaken. References Top of Form Bpp Learning Media. (2009).  Acca - F9 Financial Management: I-learn. Gardners Books. BusinessDictionary.com, Net Present value, Definition. http://www.businessdictionary.com/definition/net-present-value-NPV.html Bottom of

Comparison of note from underground, conclusion and aurora leigh Essay

Comparison of note from underground, conclusion and aurora leigh - Essay Example He can envisage of love only as the total control of a person over another. In order to feel that he has contributed to life in some way; he often initiates arguments with others and subjects himself to profound humiliation. This gives the Underground Man a sense of satisfaction and power, as he was the cause of the shame himself. He barely cares if the outcome is negative or positive as long as he can exercise his power. When we encounter the Underground Man, he is a complete nihilist: he has no desire to interact with anyone and has total contempt for the society at large. As a young man, he is misanthropic, proud, self-effacing and bitter although he clings to certain ideas. He craves for human attention and wants others to respect and admire him for his intellect and zeal. His inability to interact with people causes his attempts to form relationships and contribute to life ends in tragedy and drives him further underground (David, & David, 2009). When he meets Liza, he has absorbed the fictitious epitome of the converted prostitute and has shed himself as the superman who will set free Liza. Later, however, her character becomes more intricate. At first, she matches the typecast of a young prostitute: bored, cynical, and somewhat naà ¯ve. He gives her a speech that moves her and she decides to visit him where she is turned away by cold words. Liza, even though a prostitute, still idealizes romantic love and longs for respect and affection. She treasures the one affirmation of love she has received, a note from a medical student who has no idea she is a prostitute. The Underground Man is touched by the fact that Liza so clearly treasures this letter, but his attitude toward her emotion is somewhat flippant. She is disappointed at how the Underground Man treats her after she had come to him with help and love. In Elizabeth Barett Browning’s Aurora Leigh, there is the theme of love and people who are willing to love.