Animal Farm Vs. The Godfather Essays - British Films, Cold War Films

Animal Farm Vs. The Godfather Animal Farm versus The Godfather George Orwell and Mario Puzo composed Animal Farm and The Godfather (from the book The Godfather), individually, to communicate their frustration with society and human instinct. Animal Farm, written in 1944, is a book that tells the animal tale of a ranch where the livestock rebel against their human bosses. It is a case of social analysis in writing wherein Orwell ridiculed the occasions in Russia after the Bolshevik Revolution. He humanizes the creatures, and escapes every one to a partner in Russian history. The film The Godfather, coordinated by Francis Ford Coppula, additionally embodies this sort of writing. Other than the focal topic of horde life, is another predominant subject, that of a transformation turned sour. He gives us that, tragically, human instinct makes us be wrathful and, for a few of us, excessively goal-oriented. Both of these works are comparable in that both portray how, even with good motivations, our desire bamboozle us. Both of the creators additionally show that viciousness and the Machiavellian disposition of the finishes supporting the methods are unfortunate. George Orwell composed Animal Farm, to dishonor the Soviet framework by indicating its cruelty and its apostatizing from standards [he] esteemed (Gardner, 106) Orwell noted, there exists in England practically no writing of frustration with the Soviet Union. Rather, that nation is seen either with oblivious dissatisfaction or with uncritical adoration. (Orwell, 10) different creatures acknowledge this idealistic thought, and one day really revolt and drive the people out. Two pigs develop as pioneers: Napoleon and Snowball. They continually contended, however one day, because of a distinction over designs to manufacture a windmill, Napoleon banished Snowball. Very quickly, Napoleon set up an authoritarian government. Before long, the pigs started to get unique favors, until at last, they were undefined from people to different creatures. Promptly the peruser can start to draw matches between the books characters and the administration in 1914-1944 Russia. For instance, Old Major, who designed the possibility of animalism, is viewed as speaking to Karl Marx, the maker of socialism. Snowball speaks to Trotksy, a Russian chief after the unrest. He was driven out by Napoleon, who speaks to Stalin, the most impressive figure in the nation. Napoleon at that point continued to evacuate the opportunities of the creatures, and built up an autocracy, under the open shroud of animalism. Pigs speak to the decision class due to their generalization: grimy creatures with voracious cravings. Fighter, the exhausted, staggeringly solid, moronic pony speaks to the 2 of 4 normal laborer in Russia. The two encompassing homesteads speak to two of the nations on the worldwide stage with Russia at that point, Germany and England. Orwell starts his book by scrutinizing the entrepreneurs and administering first class, who are spoken to in Animal Farm by Mr. Jones, the rancher. He is appeared as a careless alcoholic, who continually starved his creatures. His character is as of now settled as liberal and merciless. (Ruler, 8) Orwell gives us how, if just creatures got mindful of their quality, we ought to have no control over them, and that men abuse creatures similarly as the rich adventure the low class. (Gardner, 97) What was set up in Russia after the Bolshevik Revolution was false socialism (animalism), which Orwell affirmed of, where the individuals claimed all the industrial facilities and land. Or maybe, state socialism was built up, where a focal government claimed them. Orwell felt that such a political framework, state socialism, was available to misuse by its pioneers. Napoleon, in the wake of increasing unlimited oversight, did anything he wished saved the best for the pigs, and rewarded different c reatures savagely. The creatures couldn't do anything, except if they again understood their quality in numbers against their own sort. Lamentably, they were too inept to even think about realizing this and acknowledged the norm. It started when the milk and apples were appropriated to the pigs, and proceeded to when the pigs could drink and rest on beds, until at long last the pigs were the human bosses to the remainder of the creatures. Orwell scrutinized Germany, speaking to it as Pinchfield Farm, which sold out Animal Farm by paying for stumble with fake cash. In actuality, this speaks to the Soviet-Germany

Advantages Choosing Fabricated Timber House â€Myassignmenthelp.Com

Question: Talk About The Advantages Of Choosing Fabricated Timber Based House? Answer: Presentation In case one ganders at a pre-amassed timber layout house to spots of other sort inside such characteristics as warmth insurance, improvement speed, collection of choices for inside and outside advancement, and, most importantly clearly, the improvement costs, by then pre-gathered timber diagram sort houses are no. 1 in any of those characteristics. Lower advancement costs. The improvement costs of a pre-gathered timber diagram house are unfathomably low, if one ponders them to other structure techniques and advancements. In case constructing a timber layout house, you will save fund advancement materials, time and work. Furthermore, you will accomplish higher floor space viability per square meter, than for a square or strong structure. Least upkeep costs. The upkeep of a pre-collected timber diagram house is broadly more affordable, on bookkeeping of all around made warm security. A position of this sort will give a warm and agreeable microclimate in the midst of the winter quite a while in any event warming cost. The glow insurance level of a 20 cm thick timber plot house divider thinks about to an enormous segment of a meter thick strong square divider. Especially due to its beneficial warmth security, timber plot houses are viewed as earth very much arranged as they require cut down proportion of customary advantages for be exhausted to flexibly warming. Endless advancement courses of action: The pre-amassed timber layout house development engages to satisfy any structure necessities. Our association is totally fit for executing any timber layout house adventure. And furthermore the outside progress is absolutely liable to customer's taste and cash related breaking point. A timber diagram house with totally improved outside can be made to look both as timber or a square house. Time compelling turn of events. The improvement advancement of pre-gathered timber diagram houses licenses to totally whole a house for home inside a quarter of a year for the depiction of improvement start. The improvement of a pre-collected timber plot house can be finished in the midst of any season, including winter. Unprecedented, once more this is practiced by using the timber diagram house building development Delicacy. The greatness of a pre-amassed timber layout house is fundamentally light and in this manner it doesn't fade away instead of a strong, piece or a square house. In like manner the outside beautification should be possible legitimately after the satisfaction of advancement and furthermore it is reasonable the specific moment. Foundations' turn of events. As a result of the light weight of a pre-amassed timber layout house, it doesn't require inordinate foundations. Thusly the improvement time is abridged, and one will save fundamentally on materials, transport and advancement. Durability. Timber diagram houses are astoundingly appropriate for seismically unique territories on account of its solidness and light weight and as communicated before it doesn't require stone landmark and extravagant foundations. The toughness of a pre-collected timber plot house expect a basic part in its life expectancy. Life expectancy. The existence time of a pre-collected timber plot house will prop up for longer than a century, because of its specific progressions and absolutely fixed packaging. Along these lines you are building a house for yourselves just as for the coming periods of your family. The life expectancy is given by our expansive experience and utilization of refined headways, which stems well in the past from such countries as Scandinavia, Japan, USA and Canada. The antecedents of the current timber plot houses can be found in Germany, which are more than 800 years old. Characteristic kind attitude. The materials that are used as a piece of the improvement of pre-amassed timber layout houses are environmentally all around arranged. The timber plot house diagram is associated with an answer that shields it from moistness, ruining and expending. Furthermore, said some time as of late, the upkeep of the house requires least resource usage. Research Gap To totally abuse the ability of, and to manufacture the adequacy in, timber improvement, an extended speculative and realistic cognizance of the business moreover, the methodology progression is required. Rational and speculative contraptions that engage a joint improvement of timber structuring and development in wood advancement with the business parts dynamic demands on customization and leanness, to centered costs, are up 'til now insufficient. Hypothetical Framework These picked portions can be parceled into some unprecedented speculative reaches. Procedure orchestrating and undertaking organization can be inspected similar to dynamic for example regarding lean turn of events. Learning creation is an incredibly mind boggling zone besides; it was hard for me to choose which speculations I should focus. My choice advanced toward turning out to be to inspect data creation to the extent various leveled learning c.f. additionally, indicating adventures c.f. As it is suggested that demonstrating exercises should be used as an approach to grow the usage of timber in housing improvement. Approach Exploratory relevant investigation - it is a reasonably new sort of work named to understudies of higher enlightening establishments, so there are constantly issues with forming it. According to the word reference, this errand incorporates an organized research of the given point went for exhibiting an all out understanding of this subject. Members The overview members of the exploration will other venture supervisors just as development chiefs working in various development organizations or designers. Information Collection In the examination information assortment would incorporate reviews and surveys. Information Analysis and Discussion Information investigation would be finished utilizing SPSS in the ebb and flow inquire about. Centrality of Research In like manner this consider gives a unique opportunity to depict, research and explain the frameworks likewise, methodology of the introduction of another material and new on-screen characters to advancement. A comparable appraisal shows higher productivity in the amassing industry than in the improvement business. One essential issue in the improvement business is the crack of the business. In all honesty, what we regularly call the improvement business is completely a fiscal portion then an industry. It is involved a couple of related sub-bundles that have unmistakable clarifications behind their collaboration being developed activities. This detachment controls the strategy and the store system to work together for transport of the right thing to the right expense for the customer. Grasping some key thoughts (for example lean considering, teaming up and legitimate learning) from the amassing industry is shown out as a likelihood decline creation costs in housing improvement. Research Milestones Errand Admirable September October November December January January February February Determination of theme and quest for legitimization Developing writing Choosing suitable techniques Information assortment Information investigation and portrayal Checking on the results Ends and proposals Submitting draft of the task Printing and last accommodation Assets Required Assets required to investigate resources consolidates: Libraries-Libraries are the most clear choice for by and large researchers, Journals Diaries are an uncommonly important, normally misjudged wellspring of research, giving fitting information on the progression of common contention, essential assumption and sensible speculation. The Internet-The web can be a noteworthy resource for article investigate anyway be cautious with tricky goals and unauthenticated information. Likely the most empowering and relevant theory representations take investigate from all structures and media, from motion pictures and tapes to interviews drove by the paper writers themselves with key researchers, reporters, writers or researchers. References Bailey, D. (2016).A execution assessment of standard timber confined and conventional stone work lodging in the UK(Doctoral thesis, University of Nottingham). Birchmore, R., Davies, K., Etherington, P., Tait, R., Pivac, A. (2017). Overheating in Auckland homes: testing and mediations in full-scale and mimicked houses.Building Research Information,45(1-2), 157-175. Boafo, F. E., Kim, J. H., Kim, J. T. (2016). Execution of Modular Prefabricated Architecture: Case Study-Based Review and Future Pathways.Sustainability,8(6), 558. Brege, S., Stehn, L., Nord, T. (2014). Plans of action in industrialized structure of multi-story houses.Construction Management and Economics,32(1-2), 208-226. De Araujo, V. A., Vasconcelos, J. S., Cortez-Barbosa, J., Morales, E. A., Gava, M., Savi, A. F., Garcia, J. N. (2016). WOODEN RESIDENTIAL BUILDINGS-A SUSTAINABLE APPROACH.Bulletin of the Transilvania University of Brasov. Ranger service, Wood Industry, Agricultural Food Engineering. Arrangement II,9(2), 53. Dodoo, A., Gustavsson, L., Sathre, R. (2014). Lifecycle carbon ramifications of traditional and low-vitality multi-story timber building systems.Energy and Buildings,82, 194-210. Dodoo, A., Gustavsson, L., Sathre, R.

The Best Comics We Read in March

The Best Comics We Read in March Quantum Teens Are Go #1 by Magdalene Visaggio, Eryk Donovan, Claudia Aguirre, Zakk Saam (Jamie Canaves) My love for Kim Kim is so great that I will add Visaggio’s comics to my pull list without even reading the summary or investigating what the comic is aboutas I did with Quantum Teens Are Go. I make great decisions sometimes! Two high school teens (a transgender girl and her boyfriend) are working on a time machine that they’re building from parts they steal from abandoned labsis that actually stealing? Anyways, I already love Nat and Sumesh and am buckled in for this guaranteed fun ride! So much so that even though I’m a much-prefer-volumes reader I’m waiting for every single issue like it’s the only water in the desert. Spider-Man Loves Mary Jane by Sean McKeever, Takeshi Miyazawa, and Christina Strain (Charles Paul Hoffman) Gonna be honest: Spider-Man Loves Mary Jane and the preceding Mary Jane and Mary Jane: Homecoming miniseries are my favorite comics I’ve read in quite a long time. They take the tried-but-true idea of Spider-Man in high school, but flip it on its head. Rather than focusing on Peter and his time as Spidey, the focus is on Mary Jane and her friends, and Peter and Spidey barely even show up. Instead, we get manga-influenced teen drama that’s rarely found in American comics. Unfortunately, it’s all out of print and tracking down the whole series might be a bit of a pain, but lucky for you it’s all on Comixology and Marvel Unlimited. Shirley Jacksons The Lottery: The Authorized Graphic Adaptation by Miles Hyman (Jan Rosenberg) Shirley Jackson’s ‘The Lottery’ is one of the most bone-chilling short stories of all time. If you haven’t read it, I suggest doing your Homework before trying this. The graphic novel adaptation is written by Shirley Jackson’s grandson. The artwork is gorgeous, and nothing can describe the mix of elation and horror of seeing the events of the story unfold in these illustrations. Shaman King, Vol. 11  by Hiroyuki Takei (Megan Cavitt) I have a complicated relationship with Shaman King as a whole Takei’s a great cartoonist and he likes to tweak shonen manga archetypes in unexpected ways, but holy cultural appropriation, Batman! This volume, though, features a (mostly) self-contained story about one of the side characters getting lost in the wilderness, befriending a park ranger, and confronting his own weaknesses in the guise of helping to relocate a stubborn bear. It’s a far cry from the tournament-style fighting that dominates the series, and I got pretty emotional over a thus-far less-developed character which is precisely what I want from a long-running shonen series. Giant Days, Volume 4 by John Allison, Max Sarin, Liz Fleming (Emma Nichols) I’m a recent fan of this long-running comic, which is kind of great because I tore through volumes 1-3 and only had to wait a few weeks for volume 4 to come out. Still, the wait was painful. Giant Days isn’t especially plot-driven, it’s simply about three young women who befriend each other at university. But there is something so compelling about the comic, so honest and hilarious in its depiction of friendship, romantic entanglements, and adulting. When I’m not reading about them, I desperately miss the main characters Esther, Susan, and Daisy. In fact, I think I’ll go start at volume 1 again. Right now. Carl Barks Greatest Ducktales Stories, Volume 1 by Carl Barks, Walt Disney Company (Priya Sridhar) With the new Ducktales reboot coming out this year (with David Tennant as Scrooge McDuck), I thought it would be best to go back to the roots. Ducktales chronicles Scrooge’s adventures, as he recruits his nephew Donald and great-nephews Huey, Dewey and Louie, so that he can make more money and add to his bin. He deals with realistic problems like aging, lost loves, and protecting his assets. The not-so realistic problems include aliens no bigger than matchsticks, an Abominable Snowman that collects human items, and expensive pills that instantly reverse memory loss. I recommend reading this since we don’t know when the reboot will air. Secret Path by Gord Downie, Jeff Lemire (Thomas Maluck) Chanie Wenjack, called “Charlie” by his teachers, was 12 years old when he ran away from the Cecilia Jeffrey Indian Residential School in search of home. The Canadian government had separated him from his family in an attempt to re-educate him and thousands of other native children. Unbeknownst to him, home was 400 miles away with little hope of survival, and he died on October 22, 1966 along railroad tracks. Lemire’s cartooning is intense and melancholy, telling a spare tale informed by flashbacks that suggest Wenjack’s abuse. His flickering matchstick of hope withers during a slowly freezing escape. The book includes lyrics from Gord Downie’s album of the same title, as well as links to his music and a documentary about the Canadian government’s abduction of a generation. Alters #5 by Paul Jenkins and Leila Leiz (Shiri Sondheimer) Aftershock Comics’ Alters is a remarkable book I wish was getting more air time. The first arc, which concludes in the current issue, focuses on Charlie, who has been transformed into a superhero by a mysterious quantum phenomenon affecting humans seemingly at random; Charlie is, at the same time, transitioning from male to female and has yet to decide which will present more of a challenge to explain to her family. It’s only as Chalice, her superhero persona Charlie can truly express her gender identity but as a hero, she faces a whole other set of challenges, including figuring out who she can trust and the constant attacks of her nemesis, Matter Man. Jenkins handles the all aspects of the story deftly and with great sensitivity and Leiz’s art is kinetic and in a classic vein which helps ground the more fantastic elements of the plot, with an updated color palette that gives off her work a futuristic edge. I got to talk to Jenkins a bit at New Jersey Comic Expo last fall and he gave me a few hints as to where the book will go from here; catch up quick because it’s only going to get more amazing. Mighty Morphin Power Rangers: Pink #1 by Brenden Fletcher, Kelly Thompson, Daniele Di Nicuolo, and Sarah Stern (Keri Crist-Wagner) I’m late to the Power Rangers party. Like decades late. I saw the new movie last weekend and enjoyed it more than I thought I would. Inspired, I decided to pick up the first comic detailing the life of the Pink Ranger, Kimberly Hart that came out last summer. While obviously a different version of the character than what was portrayed in the film, Pink #1 was a fun, Scoobie-Do-esq start to a limited series run. I really enjoyed Di Nicuolo’s art in particular, and I’m definitely picking up trade when it comes out in April. Its All Absolutely Fine by Ruby Elliot, aka rubyetc (Nicole Brinkley) Anybody who has spent any time on the internet at all would recognize Ruby Elliot’s artwork. Her wiggly, minimalist drawings tackle issues relating to her own life to her anxiety, to her bipolar disorder, to how much she loves her dog. I’m a sucker for webartists that compile their standalone comics into a collection for me to read, and Ruby’s with a handful of mini-essays spliced throughout was completely fun to read. Goldie Vance, Vol. 1 by Hope Larsen and Brittney Williams (Rachel Manwill) I’m not sure why I was so late to the party on this, but after waiting forever for my library hold to come in, I finally just bought the damn thing. The long hold list at my library should have tipped me off that this cute comic was worth the wait. A brown queer Nancy Drew? Goldie Vance is my hero. It’s fun and the art is bright and matches the story so well. I can’t wait for Volume 2 (May 9, 2017). Better get on that hold list now! Shattered Warrior by Sharon Shinn and Molly Ostertag (Swapna Krishna) Ive been a fan of Molly Ostertags for years, so I had pretty high expectations for this sci-fi graphic novel, about humans living in servitude on Earth after aliens have invaded and taken over our planet. I wasnt prepared to absolutely adore it. A strong PoC lady lead, queer characters, deep and complex relationships, all against a lushly drawn and colored backdrop of Earths dim future. I adored this graphic novel and think this is a breakout year for Ostertag; by the end of 2017, I hope shes a household name. Sign up to The Stack to receive  Book Riot Comic's best posts, picked for you.

Essay on Things Fall Apart by Chinua Achebe - 954 Words

Umuofia is a village in Africa, and the inhabitants there are usually united. However, when the Christians arrive and permeate the village, the clan changes but also falls apart. The novel in which this story takes place is called Things Fall Apart by Chinua Achebe. The story is about a well-respected man named Okonkwo who has three wives and many children, the oldest being Nwoye. Okonkwo is banished for seven years from Umuofia, and during those seven years, Umuofia is changed fundamentally by the Christian faith. Many people are converted, but the whole clan is in conflict. This novel demonstrates that Christianity destroys but also guides the Ibo culture in Umuofia. Initially, the Christians help guide the Ibo culture by giving some†¦show more content†¦It was Okonkwo’s uncle, Uchendu. ‘Are you mad?’ Okonkwo did not answer. But he left hold of Nwoye, who walked away and never returned†(132). The scene ironically shows both guidance and destroying. Nwoye demonstrates confidence in his new Christian faith by not yelling back to his father and simply walking away to what he believes. Okonkwo, however, is driven insane by Christianity. Since Okonkwo does not believe the Christian faith, he does not want anyone else to join. When Nwoye does join, Okonkwo takes his anger out on him. Christianity both gives confidence to people and tears apart family units. Secondly, the Christians unite the converts, but this unity does not prevent the new converts from demeaning others because of their religion or beliefs. When Mr. Kiaga, the missionaries’ interpreter, persuades the converts to accept the osu, or those who are cast out of the clan, Achebe writes, â€Å"‘Before God,’ he [Mr. Kiaga] said, ‘there is no slave or free. We are all children of God and we must receive these our brothers’†(136). The people are guided by Mr. Kiaga’s words as he teaches that they are all children of God and are, therefore, equal. One might think that converts would subsequently show the other religion in Umuofia an equal amount of respect as before, but they do not. While the church is still new to the village and does not perish in Evil Forest, Achebe says, â€Å"Three converts had gone into the village andShow MoreRelatedThings Fall Apart By Chinua Achebe1415 Words   |  6 Pagesbook Things Fall Apart by Chinu a Achebe does just that. This book should be taught in schools because it shows the values and traditions of Achebe’s Igbo culture, persistently teaches life lessons throughout the book, and shows the darker reality of European colonialism in Africa. Chinua Achebe is known as one of the most influential and famous authors to ever write. Chinua Achebe originates from an Igbo background and he expresses that through his writings very well including Things Fall ApartRead MoreThings Fall Apart by Chinua Achebe1324 Words   |  6 Pages Chinua Achebe chose to write his novels in English to reveal a deep response of his people to colonisation and to make that response understood to people all over the world. Things Fall Apart was written in English to teach people worldwide of the struggles he faced and the people of Nigeria faced growing up. Many authors and critics have written about Achebe’s ‘Things fall apart’ adding their valued opinion on what he was trying to say and his decision to write in English. In the followingRead MoreThings Fall Apart By Chinua Achebe Essay1203 Words   |  5 Pages who took their land for monetary gain. This was a dark period of time for Africans that live there. The U.S. Civil War and The Great Depression both can be related, in this instance, to how down their people were because of what happened. Chinua Achebe said it best, â€Å"I would be quite satisfied if my novels...did no more than teach my readers of their past...was not a long night of savagery from which the first European acting on God’s behalf delivered them†(qtd. in â€Å"Morning Yet† 45). In theRead MoreThings Fall Apart By Chinua Achebe1452 Words   |  6 Pagesassume control over the Roman Empire. However, imperialism in Africa remained a recorded element from 1750 to 1945. This paper visits how control and changes were influences over the Africans during this time period as seen through Chinua Achebe’s novel Things Fall Apart. (UKEssays, 2015) Europe was experiencing a few financial and political changes that forced the major European forces to investigate abroad regions to add to their resources during the seventeenth century. In order for the EuropeanRead MoreThings Fall Apart By Chinua Achebe2361 Words   |  10 PagesThings Fall Apart Book Critique Things Fall Apart by Chinua Achebe is a historical fiction novel describing the life of Okonkwo in a Nigerian village succumbing to European ways, in order to portray Achebe’s view on imperialism. It was chosen for us to read by our teacher because it describes imperialism and its effects in an Ibo village of Nigeria. It also shows the treatment of natives by the Europeans and how the natives reacted. Things Fall Apart is useful to our course of studies because itRead MoreThings Fall Apart By Chinua Achebe1265 Words   |  6 PagesThings Fall Apart by Chinua Achebe is markedly relevant to our current course of studies in World History, as it tells a story based on European Imperialism in Africa. Coming off the heels of our Imperialism unit, this post-colonial novel provides very helpful context on different civilizations’ perspectives throughout the Age of Imperialism; aside from analyzing death tolls, descriptions of conflicts, and names of countries, it was previousl y hard to envision what life was actually like during thatRead MoreThings Fall Apart by Chinua Achebe 735 Words   |  3 PagesThings fall apart. Achebe. Ernest Gaines once said, â€Å"I write to try to find out who I am. One of my main themes is manliness. I think Im trying to figure out what manliness really is.† Indeed, every society or culture has its own understanding of an ideal man. Even though these characteristics are different in various parts of the world, the significance of masculinity can never be overestimated. â€Å"Things Fall Apart† by Chinua Achebe is considered as one of the best examples of a riseRead MoreThings Fall Apart by Chinua Achebe692 Words   |  3 Pagesthe way to go. Through commercial trading Islam spread into Igboland, and this led to more Igbo people leaving the Igbo way of life for another, whether it be Islam or Christianity which divide the country in two. In the novel Things Fall Apart written by Chinua Achebe British colonialism and the migration of Muslims to Nigeria led to the change in the faith, social and economic changes in the Igbo society. Traditional Igbo faith believes that there is only one creator or god known as ChinekeRead MoreThings Fall Apart By Chinua Achebe897 Words   |  4 PagesIn the novel, â€Å"Things Fall Apart† by Chinua Achebe the Igbo tradition revolves around structured gender role. Everything essential of Igbo life is based on their gender, which throughout the novel it shows the role of women and the position they hold, from their role in the family household, also planting women crops, to bearing children. Although the women were claimed to be weaker and seemed to be treated as objects, in the Igbo culture the women still provided qualities that make them worthyRead MoreThings Fall Apart By Chinua Achebe Essay1851 Words   |  8 Pageschoice and styles are critical not only to the reader’s understanding of the text but to his appreciation as well. How language is effectively manipulated in their writings enhances the reader’s valuing of the works. The selected novel Things Fall Apart by Chinua Achebe is a representation of Igbo culture and their language. It explores the life of an Igbo tribe at the time of when colonization hit Africa. It could be considered as a post-colonial text, as the protagonist of the story and the other

Expanding The Dreamx Coffee Business - 1527 Words

Expanding the Dreamx Coffee Business The Dreamx coffee business would be expanding one day keeping in view the trend in the area. This paper aims at proposing the desired expansion plan of Dreamx coffee business which is a small scale business. Financial plan: The expansion of a business will be based upon debt financing as all the available sum was used in launch of first branch. Thus, the Dreamx Coffee Parlor business plan has been created mostly by views that are all the basic components of an ideal business plan. One must realize that financing is needed at every stage of the business. It is needed from starting up business till ramping it up to the profitability. Financing needs vary from business to business. For example retailers†¦show more content†¦Efficient budget allocation is the prime duty of the finance department. Financial plan of the new branch will ensure a specific profit margin after the payment of finance cost (Ayyagari et al., 2007). The following financial terms will help us to lay a sound financial plan for our new branch: Solvency: Solvency can be defined as financial health of the company in long term. In order to interpret about the financial health of the company, the following ratios will help us; Debt Ratio: Debt ratio can be calculated as; Total Liabilities /Total assets * 100 The debt ratio of the company is expected to follow the following trend with dip in some years due to more current liabilities and leverage of the company. Ages of payables: Increase in the ages of the payable was due to increased and improved relationship with suppliers. Cash Debt Coverage: Cash debt Coverage can be calculated as; Net Operating Cash Flow / Average Total liabilities There are negative cash flows expected during launch of any new business plan. This negative cash would improve due to reduction in total liabilities and improvement in the cash flows. Interest Coverage Ratio Interest Coverage Ratio can be calculated as; Profit before interest tax / Interest The interest cover ratio provides the basis for the company higher returns. This ratio would be lower in the initial period because of the increased debt expenses. Later on it will become higher due to paying of all the debts. Profitability:

Corporate Financial Management Lecturer’s Guide Free Essays

CFML_A01v3. QXD 8/6/08 3:51 PM Page 1 Lecturer’s Guide Corporate Financial Management Fourth edition Glen Arnold For further lecturer material please visit: www. pearsoned. We will write a custom essay sample on Corporate Financial Management Lecturer’s Guide or any similar topic only for you Order Now co. uk/arnold ISBN 978-0-273-71064-6  © Pearson Education Limited 2008 Lecturers adopting the main text are permitted to download and copy this guide as required. CFML_A01v3. QXD 8/6/08 3:51 PM Page 2 Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies around the world Visit us on the World Wide Web at: www. pearsoned. co. uk ––––––––––––––––––––––––––––––––––– First published under the Financial Times Pitman Publishing imprint in 1998 Second edition published 2002 Third edition published 2005 Fourth edition published 2008  © Financial Times Professional Limited 1998  © Pearson Education Limited 2002, 2005, 2008 The right of Glen Arnold to be identified as author of this Work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988. ISBN-978-0-273-71064-6 All rights reserved. Permission is hereby given for the material in this publication to be reproduced for OHP transparencies and student handouts, without express permission of the Publishers, for educational purposes only. In all other cases, no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without either the prior written permission of the Publishers or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd. , Saffron House, 6-10 Kirby Street, London EC1N 8TS. This book may not be lent, resold, hired out or otherwise disposed of by way of trade in any form of binding or cover other than that in which it is published, without the prior consent of the Publishers. CFML_A01v3. QXD 8/5/08 4:16 PM Page 3 CONTENTS Preface Location of answers to questions and problems SUPPLEMENTARY MATERIAL FOR CHAPTERS Chapter 1 The financial world Chapter 2 Project appraisal: Net present value and internal rate of return Chapter 3 Project appraisal: Cash flow and applications Chapter 4 The decision-making process for investment appraisal Chapter 5 Project appraisal: Capital rationing, taxation and inflation Chapter 6 Risk and project appraisal Chapter 7 Portfolio theory Chapter 8 The capital asset pricing model and multi-factor models Chapter 9 Stock markets Chapter 10 Raising equity capital Chapter 11 Long-term debt finance Chapter 12 Short-term and medium-term finance Chapter 13 Treasury and working capital management Chapter 14 Stock market efficiency Chapter 15 Value management Chapter 16 Strategy and value Chapter 17 Value-creation metrics Chapter 18 Entire firm value measurement Chapter 19 The cost of capital Chapter 20 Valuing shares Chapter 21 Capital structure Chapter 22 Dividend policy Chapter 23 Mergers Chapter 24 Derivatives Chapter 25 Managing exchange-rate risk  © Pearson Education Limited 2008 5 6 7 10 14 20 24 29 33 38 40 43 47 51 54 58 59 64 66 72 74 77 81 84 86 91 96 3 CFML_A01v3. QXD 8/5/08 4:16 PM Page 4 Supporting resources Visit www. pearsoned. co. uk/arnold to find valuable online resources Companion Website for students ? Learning objectives for each chapter ? Multiple-choice questions with instant feedback to help test your learning ? Weblinks to relevant, specific Internet resources to facilitate in-depth independent research ? A wide selection of FT articles, additional to those found in the book, to provide real-world examples of financial decision making in practice ? Interactive online flashcards that allow the reader to check definitions against the key terms during revision Searchable online glossary For instructors ? Complete, downloadable Instructor’s Manual including answers for all question material in the book ? A brand new set of over 800 PowerPoint slides that can be downloaded and used as OHTs Also: The regularly maintained Companion Website provides the following features: ? Search tool to help locate specific items of content ? E -mail results and profile tools to send results of quizzes to instructors ? Online help and support to assist with website usage and troubleshooting For more information please contact your local Pearson Education sales representative or visit www. earsoned. co. uk/arnold CFML_A01v3. QXD 8/5/08 4:16 PM Page 5 PREFACE This Guide is designed to assist lecturers and tutors using Corporate Financial Management fourth edition. Supplementary material for chapters For each chapter: †¢ The learning outcomes are outlined. †¢ Key points and concepts are listed. †¢ Solutions to selected numerical problems (those marked with an asterisk in the main book) are provided. Note that there is often more than one possible correct solution to a problem. Different answers, which nevertheless follow the logic of the argument presented in the text, may be acceptable. Overhead projector transparency masters Also available on the website in PowerPoint ® for downloading are over 800 selected figures, tables and key points reproduced in a form suitable for creating overhead projector transparency masters. These are arranged in the order in which they appear in Corporate Financial Management. The learning objectives and summary points from the chapters are also included. Glen Arnold  © Pearson Education Limited 2008 5 CFML_A01v3. QXD 8/5/08 4:16 PM Page 6 LOCATION OF ANSWERS TO QUESTIONS AND PROBLEMS (No answers given to those in final column) Chapter No Answered in Appendix VII Answered in Lecturer’s Guide 1 Essay answer required (see text) All (see note in Appendix VII) 2 1, 2, 4, 5, 6 3, 7 3 1, 2, 3, 6, 9, 11, 13, 15 4, 5, 7, 8, 10, 12, 14 4 1, 2, 4, 5 3 5 1, 2, 3, 5, 6, 9, 10 4, 7, 8 6 1, 4, 5, 6, 7, 8, 9, 10, 11 2, 3, 12 7 1, 2, 3, 7, 8, 9, 10, 11, 12, 13, 15 4, 5, 6, 14a, b, c 8 1, 3, 4, 5, 7, 8, 9, 10 6, 7, 8, 9 14d 2, 6, 11 9 1–11 10 12 8 1–7, 9–11, 13–19 11 1, 2, 3, 4, 5, 6, 10, 11, 13, 16 7 8, 9, 12, 14, 15, 17–20 12 1, 2, 4, 9, 10, 11 5, 12 3, 6, 7, 8, 13, 14, 15 13 1, 4, 5, 7, 9, 10 3a, 6, 8, 23, 25a , 3b, 11, 12, 13–22, 24, 25b, 25c 14 2 15 8, 9 1, 3–17 7, 10 16 1–6 1–4 17 1, 5, 6, 7 18 1, 2 19 2, 3 1 20 3, 4, 5, 6, 7, 9 8, 10 1, 2 21 2, 3, 6a, 9 1 4, 5, 6b, 7, 8 22 4, 5, 8 23 6 1, 3, 4, 5 2, 7, 8, 9 24 1, 2, 3, 4, 5, 7, 10 6, 8, 9 11, 12, 13 25 1, 2, 7, 8a, 10, 11 4, 9 3, 4b, 5, 6, 8b 6 2, 3, 4, 4a 8 1, 2, 3, 4, 7  © Pearson Education Lim ited 2008 CFML_CH01v3. QXD 29/7/08 17:25 Page 7 SUPPLEMENTARY MATERIAL FOR CHAPTERS Chapter 1 THE FINANCIAL WORLD L EARNING OUTCOMES It is no good learning mathematical techniques and theory if you lack an overview of what finance is about. At the end of this chapter the reader will have a balanced perspective on the purpose and value of the finance function, at both the corporate and national level. More specifically, the reader should be able to:  ¦ describe alternative views on the purpose of the business and show the importance to any organisation of clarity on this point;  ¦ describe the impact of the divorce of corporate ownership from day-to-day managerial control;  ¦ explain the role of the financial manager;  ¦ detail the value of financial intermediaries;  ¦ show an appreciation of the function of the major financial institutions and markets. K EY POINTS AND CONCEPTS Firms should clearly define the objective of the enterprise to provide a focus for decision making.  ¦ Sound financial management is necessary for the achievement of all stakeholder goals.  ¦ Some stakeholders will have their returns satisfied – given just enough to make their contribution. One (or more) group(s) will have the ir returns maximised – given any surplus after all others have been satisfied.  ¦ The assumed objective of the firm for finance is to maximise shareholder wealth. Reasons: – practical, a single objective leads to clearer decisions; – the contractual theory; – survival in a competitive world; it is better for society; – counters the tendency of managers to pursue goals for their own benefit; – they own the firm.  ¦ Maximising shareholder wealth is maximising purchasing power or maximising the flow of discounted cash flow to shareholders over a long time horizon.  ¦ Profit maximisation is not the same as shareholder wealth maximisation. Some factors a profit comparison does not allow for are: – future prospects; – risk; – accounting problems;  © Pearson Education Limited 2008 7 CFML_CH01v3. QXD 29/7/08 17:25 Page 8 Glen Arnold, Corporate Financial Management Lecturer’s Guide, 4th edition – communicati on; – additional capital. Corporate governance. Large corporations usually have a separation of ownership and control. This may lead to managerialism where the agent (the managers) take decisions primarily with their interests in mind rather than those of the principals (the shareholders). This is a principal-agent problem. Some solutions: – link managerial rewards to shareholder wealth improvement; – sackings; – selling shares and the takeover threat; – corporate governance regulation; – improve information flow.  ¦ The efficiency of production and the well-being of consumers can be improved with the introduction of money to a barter economy. Financial institutions and markets encourage growth and progress by mobilising savings and encouraging investment.  ¦ Financial managers contribute to firms’ success primarily through investment and finance decisions. Their knowledge of financial markets, investment appraisal methods, treasu ry and risk management techniques are vital for company growth and stability.  ¦ Financial institutions encourage the flow of saving into investment by acting as brokers and asset transformers, thus alleviating the conflict of preferences between the primary investors (households) and the ultimate borrowers (firms). Asset transformation is the creation of an intermediate security with characteristics appealing to the primary investor to attract funds, which are then made available to the ultimate borrower in a form appropriate to them. Types of asset transformation: – risk transformation; – maturity transformation; – volume transformation.  ¦ Intermediaries are able to transform assets and encourage the flow of funds because of their economies of scale vis-a-vis the individual investor: – efficiencies in gathering information; – risk spreading; – transaction costs.  ¦ The secondary markets in financial securities encourage investment by enabling investor liquidity (being able to sell quickly and cheaply to another investor) while providing the firm with long-term funds.  ¦ The financial services sector has grown to be of great economic significance in the UK. Reasons: – high income elasticity; – international comparative advantage.  ¦ The financial sector has shown remarkable dynamism, innovation and adaptability over the last three decades. Deregulation, new technology, globalisation and the rapid development of new financial products have characterised this sector. Banking sector: – Retail banks – high-volume and low-value business. – Wholesale banks – low-volume and high-value business. Mostly fee based. – International banks – mostly Eurocurrency transactions. – Building societies – still primarily small deposits aggregated for mortgage lending. – Finance houses à ¢â‚¬â€œ hire purchase, leasing, factoring. 8  © Pearson Education Limited 2008 CFML_CH01v3. QXD 29/7/08 17:25 Page 9 Glen Arnold, Corporate Financial Management Lecturer’s Guide, 4th edition  ¦ Long-term savings institutions: – Pension funds – major investors in financial assets. Insurance funds – life assurance and endowment policies provide large investment funds.  ¦ The risk spreaders: – Unit trusts – genuine trusts which are open-ended investment vehicles. – Investment trusts – companies which invest in other companies’ financial securities, particularly shares. – Open-ended investment companies (OEICs) – a hybrid between unit and investment trusts.  ¦ The risk takers: – Private equity funds – invest in companies not quoted on a stock exchange. – Hedge funds – wide variety of investment or speculative strategies outside regulators’ control.  ¦ The markets: Th e money markets are short-term wholesale lending and/or borrowing markets. – The bond markets deal in long-term bond debt issued by corporations, governments, local authorities and so on, and usually have a secondary market. – The foreign exchange market – one currency is exchanged for another. – The share market – primary and secondary trading in companies’ shares takes place on the Official List of the London Stock Exchange, techMARK and the Alternative Investment Market. – The derivatives market – LIFFE (Euronext. liffe) dominates the ‘exchange-traded’ derivatives market in options and futures. However there is a flourishing over-the-counter market. There are no numerical questions in this chapter; answers may be found from reading the text.  © Pearson Education Limited 2008 9 CFML_CH02v3. QXD 29/7/08 17:26 Page 10 Chapter 2 PROJECT APPRAISAL: NET PRESENT VALUE AND INTERNAL RATE OF RETURN L EARNING OUTCOMES By the end of the chapter the student should be able to demonstrate an understanding of the fundamental theoretical justifications for using discounted cash flow techniques in analysing major investment decisions, based on the concepts of the time value of money and the opportunity cost of capital. More specifically the student should be able to:  ¦ calculate net present value and internal rate of return;  ¦ show an appreciation of the relationship between net present value and internal rate of return;  ¦ describe and explain at least two potential problems that can arise with internal rate of return in specific circumstances;  ¦ demonstrate awareness of the propensity for management to favour a percentage measure of investment performance and be able to use the modified internal rate of return. KEY POINTS AND CONCEPTS  ¦ Time value of money has three component parts each requiring compensation for a delay in the receipt of cash: the pure time value, or impatience to consume, – inflation, – risk.  ¦ Opportunity cost of capital is the yield forgone on the best available investment alternative – the risk level of the alternative being the same as for the project under consideration.  ¦ Taking account of the time value of money and opportunity co st of capital in project appraisal leads to discounted cash flow analysis (DCF).  ¦ Net present value (NPV) is the present value of the future cash flows after netting out the initial cash flow. Present values are achieved by discounting at the opportunity cost of capital. NPV = CF0 +  ¦ (1 + k)2 + †¦ CFn (1 + k)n 0 accept 0 reject CF1 1+r + CF2 (1 + r)2 + †¦ CFn (1 + r)n =0 The internal rate of return decision rule is: IRR IRR 10 CF2 Internal rate of return (IRR) is the discount rate which, when applied to the cash flows of a project, results in a zero net present value. It is an ‘r’ which results in the following formula being true: CF0 +  ¦ 1+k + The net present value decision rules are: NPV NPV  ¦ CF1 opportunity cost of capital – accept opportunity cost of capital – reject  © Pearson Education Limited 2008 CFML_CH02v3. QXD 29/7/08 17:26 Page 11 Glen Arnold, Corporate Financial Management Lecturer’s Guide, 4th edition  ¦ IRR is poor at handling situations of unconventional cash flows. Multiple solutions can be the result.  ¦ There are circumstances when IRR ranks one project higher than another, whereas NPV ranks the projects in the opposite order. This ranking problem becomes an important issue in situations of mutual exclusivity.  ¦ The IRR decision rule is reversed for financing-type decisions.  ¦ NPV measures in absolute amounts of money. IRR is a percentage measure.  ¦ IRR assumes that intra-project cash flows can be invested at a rate of return equal to the IRR. This biases the IRR calculation.  ¦ If a percentage measure is required, perhaps for communication within an organisation, then the modified internal rate of return (MIRR) is to be preferred to the IRR. ANSWERS TO SELECTED QUESTIONS 3 Confused plc a Project C IRRs at 12. 1% and 286%. See Fig. 2. 1. NPV + 12. 1 – 286 Discount rate Fig. 2. 1 Project D No solution using IRR. See Fig. 2. 2. + NPV Discount rate – Fig. 2. 2 b This problem illustrates two disadvantages of the IRR method. In the case of project C multiple solutions are possible, given the non-conventional cash flow. In the case of project D there is no solution, no IRR where NPV = 0. c NPV Project C: +? 646 Project D: –? 200 Using NPV the accept/reject decision is straightforward. Project C is accepted and Project D is rejected.  © Pearson Education Limited 2008 11 CFML_CH02v3. QXD 29/7/08 17:26 Page 12 Glen Arnold, Corporate Financial Management Lecturer’s Guide, 4th edition 7 Seddet International a Project A At 20%: –5,266 + 2,500 ? 2. 1065 = 0, ? IRR = 20% Project B At 7%: –8,000 + 10,000 ? 0. 8163 = +163 At 8%: –8,000 + 10,000 ? 0. 7938 = –62 IRR = 7 + 163 163 + 62 (8 – 7) = 7. 7% Project C At 22%: –2,100 + 200 ? 0. 8197 + 2,900 ? 0. 6719 = +12. 45 At 23%: –2,100 + 200 ? 0. 8130 + 2,900 ? 0. 6610 = –20. 5 IRR = 22 + 12. 45 12. 45 + 20. 5 (23 – 22) = 22. 4% Project D At 16%: –1,975 + 1,600 ? 0. 8621 + 800 ? 0. 7432 = –1 ? IRR is slightly under 16%. The IRR exceeds the hurdle rate of 16% in the case of A and C. Therefore if all projects can be accepted these two should be undertaken. b Ranking under IRR: Project Project Project Project C A D B IRR 22. 4% 20% 16% 7. 7% best project c Project A –5,266 + 2,500 ? 2. 2459 = 349 Project B –8,000 + 10,000 ? 0. 6407 = –1,593 Project C 2,100 + 200 + 0. 8621 + 2,900 ? 0. 7432 = 228 Project D –1,975 + 1,600 ? 0. 8621 + 800 ? 0. 7432 = –1 12  © Pearson Education Limited 2008 CFML_CH02v3. QXD 29/7/08 17:26 Page 13 Glen Arnold, Corporate Financial Management Lecturer’s Guide, 4th edition Ranking Project A Project C Project D Project B NPV 349 best pro ject 228 –1 –1,593 Project A ranks higher than project C using NPV because it generates a larger surplus (value) over the required rate of return. NPV measures in absolute amounts of money and because project A is twice the size of project C it creates a greater NPV despite a lower IRR. This report should comment on the meaning of a positive or negative NPV expressed in everyday language. It should mention the time value of money and opportunity cost of capital and explain their meanings. Also the drawbacks of IRR should be discussed:  ¦ multiple solutions;  ¦ ranking problem – link with the contrast of a percentage-based measure and an absolute moneybased measure;  ¦ additivity not possible;  ¦ the reinvestment assumption is flawed.  © Pearson Education Limited 2008 13 CFML_CH03v3. QXD 29/7/08 17:26 Page 14 Chapter 3 PROJECT APPRAISAL: CASH FLOW AND APPLICATIONS LEARNING OUTCOMES By the end of this chapter the reader will be able to identify and apply relevant and incremental cash flows in net present value calculations. The reader will also be able to recognise and deal with sunk costs, incidental costs and allocated overheads and be able to employ this knowledge to the following:  ¦ the replacement decision/the replacement cycle;  ¦ the calculation of annual equivalent annuities;  ¦ the make or buy decision;  ¦ optimal timing of investment;  ¦ fluctuating output situations. KEY POINTS AND CONCEPTS  ¦ Raw data have to be checked for accuracy, reliability, timeliness, expense of collection, etc.  ¦ Depreciation is not a cash flow and should be excluded.  ¦ Profit is a poor substitute for cash flow. For example, working capital adjustments may be needed to modify the profit figures for NPV analysis.  ¦ Analyse on the basis of incremental cash flows. That is, the difference between the cash flows arising if the project is implemented and the cash flows if the project is not implemented: – opportunity costs associated with, say, using an asset which has an alternative employment are relevant; – incidental effects, that is, cash flow effects throughout the organisation, should be considered along with the obvious direct effects; sunk costs – costs which will not change regardless of the decision to proceed are clearly irrelevant; – allocated overhead is a non-incremental cost and is irrelevant; – interest should not be double counted by both including interest as a cash flow and including it as an element in the discount rate.  ¦ The replace ment decision is an example of the application of incremental cash flow analysis.  ¦ Annual equivalent annuities (AEA) can be employed to estimate the optimal replacement cycle for an asset under certain restrictive assumptions. The lowest common multiple (LCM) method is sometimes employed for short-lived assets. Whether to repair the old machine or sell it and buy a new machine is a very common business dilemma. Incremental cash flow analysis helps us to solve these types of problems. Other applications include the timing of projects, the issue of fluctuating output and the make or buy decision. 14  © Pearson Education Limited 2008 CFML_CH03v3. QXD 29/7/08 17:26 Page 15 Glen Arnold, Corporate Financial Management Lecturer’s Guide, 4th edition A NSWERS TO SELECTED QUESTIONS 4 Mercia plc a Proposal 1 Consultant’s fee – sunk cost Central overhead – irrelevant Depreciation – irrelevant Time (years) ?000s 0 Earthmoving Construction Ticket sales Operational costs Council Senior management Opportunity cost Cash flows –1,650 3? 2 –100 –1,650 Discounted Cash flows 1 –150 –1,400 –200 +600 –100 –100 –50 +600 –100 –50 +150 0 +450 150 (1. 1)2 450/0. 1 (1. 1)2 + NPV = + ? 2. 193m Proposal 2 Central overhead (? 70,000) – irrelevant Consultants fees (? 50,000) – sunk cost Time (years) ?000s 0 1 2 3 –100 5,000 –4,000 –400 –100 5,000 –4,000 –400 –100 Design build Revenue Operating costs Equipment Executive Opportunity cost Sale of club –9,000 Cash flow –9,100 –100 Discounted cash flow –9,100 –100 1. 1 –100 +11,000 500 + 500 (1. 1)2 +11,500 + 11,500 (1. 1)3 NPV = –? 137,566 Recommendation: accept proposal 1 IRR Proposal 1: 20. 2% Proposal 2: 9. 4%  © Pearson Education Limited 2008 15 CFML_CH03v3. QXD 29/7/08 17: 26 Page 16 Glen Arnold, Corporate Financial Management Lecturer’s Guide, 4th edition 5 Mines International plc a Survey – sunk cost Time (years) ?m Profit (loss) Add depreciation Capital equipment Survey 0 1 2 3 4 5 0 0 –4. 75 –2. 1 0 –4. 75 0. 30 3. 9 2. 0 4. 7 2. 0 4. 7 2. 0 2. 9 2. 0 1. 5 0 0 0 2. 0 –2. 0 2. 0 2. 25 –0. 25 2. 25 2. 25 0 2. 25 1. 75 +0. 50 1. 75 0 +1. 75 0. 125 0. 125 0. 125 0. 10 0 –0. 25 0. 10 0 –0. 10 Debtor adjustment: Opening debtors Closing debtors Creditor adjustment Opening creditors Closing creditors 0 0. 15 +0. 15 Overheads Hire cost Cash reserves Government refund Cash flow Discounted cash flow 0. 2 0. 15 0. 10 0. 10 0. 125 –0. 05 +0. 025 0. 2 0. 2 –0. 1 0. 2 –1. 0 5. 125 0. 2 +1. 0 +0. 2 –5. 75 –5. 75 –6. 20 4. 05 6. 575 6. 9 8. 075 1. 85 –6. 20 + 4. 05 + 6. 575 + 6. 9 + 8. 075 + 1. 85 1. 12 (1. 12)2 (1. 12)3 (1. 12)4 (1. 12)5 (1. 12)5. 125 = –5. 75 – 5. 536 + 3. 229 + 4. 680 + 4. 385 + 4. 582 + 1. 035 = ? 6. 625m The maximum which MI should bid in the auction is ? . 625m. This additional cash outflow at time zero would result in a return of 12% being obtained. (Some students may time the final debtor and creditor payments at time 5. 25 as time 6. ) b IRR = 29. 4%. c Points to be covered:  ¦ Time value of money.  ¦ Opportunity cost of money for a given risk class.  ¦ Sunk cost.  ¦ Treatment of depreciation.  ¦ Allocated overhead treatment.  ¦ Cash injections.  ¦ Hire cost – opportunity cost. Comparison of NPV with other project appraisal methods: Advantages over IRR: – measures in absolute amounts of money; – ranking problem; – multiple solution problem. 16 Pearson Education Limited 2008 CFML_CH03v3. QXD 29/7/08 17:26 Page 17 Glen Arnold, Corporate Financial Management Lecturer’s Guide, 4th edition  ¦ Advantages over payback: – time value of money a llowed for; – all cash flows considered; – cash flows within pay back period considered properly.  ¦ Advantages over ARR: – firm theoretical base, time value of money; – defined decision criteria. 7 Reds plc One-year cycle: Time (years) 0 1 –10,000 –12,000 8,000 – 4,000 NPV = –10,000 – 4,000 ? 0. 9009 = –13,604 AEA = –13,604 0. 9009 = –? 15,100 Two-year cycle: Time (years) 0 1 2 –10,000 –12,000 –13,000 ,500 –6,500 NPV = –10,000 – 12,000 ? 0. 9009 – 6,500 ? 0. 8116 = –26,086 AEA = –26,086 1. 7125 = –? 15,233 Three-year cycle: Time (years) 0 1 2 3 –10,000 –12,000 –13,000 –14,000 3,500 –10,500 NPV = –10,000 – 12,000 ? 0. 9009 – 13,000 ? 0. 8116 – 10,500 ? 0. 7312 = –39,039 AEA = –39,039 2. 4437 = –? 15,975 Reds should replace the machinery on a one-y ear cycle.  © Pearson Education Limited 2008 17 CFML_CH03v3. QXD 29/7/08 17:26 Page 18 Glen Arnold, Corporate Financial Management Lecturer’s Guide, 4th edition 8 Immediate replacement: Time (years) 0 1? +4,000 –15,100 +4,000 –15,100 0. 11 = –? 133,273 Replacement after one year: Time 0 + 2? –2,000 –2,000 1 3,000 –15,100 0. 9009 – 15,100/0. 11 1. 11 3,000 ? = –? 122,966 Replacement after two years: Time 0 1 2 3? –2,000 –1,000 +1,500 –15,100 –2,000 –1,000 ? 0. 9009 + 1,500 ? 0. 8116 –15,100/0. 11 (1. 11)2 = –? 113,097 Recommendation: Commence replacement cycle after two years. 10 Curt plc Incremental cash flows Time (years) 0 –70,000 –28,000 28,000 37,000 47,100 68,410 ? ? ? ? ? 0. 8621 0. 7432 0. 6407 0. 5523 0. 4761 2 3 4 5 0 –70,000 100,000 –80,000 –48,000 110,000 –82,000 121,000 –84,000 133,100 –86,000 146,410 –88,000 10,000 –70,000 Current cash flows New plan 1 –28,000 28,000 37,000 47,100 68,410 = = = = = = –70,000 –24,139 20,810 23,706 26,013 32,570 8,960 The positive incremental NPV indicates that acceptance of the proposal to manufacture in-house would add to shareholder wealth. 18  © Pearson Education Limited 2008 CFML_CH03v3. QXD 29/7/08 17:26 Page 19 Glen Arnold, Corporate Financial Management Lecturer’s Guide, 4th edition Other factors: some possibilities The relative bargaining strength of Curt and its supplier. Perhaps a search for another supplier would be wise. Perhaps it would be possible to negotiate a multi-year price agreement. Are there some other incidental effects Curt has not considered, e. g. factory space usage? 12 Netq plc Output per year: 1,000 ? 0. 3333 ? 2 1,000 ? 0. 3333 ? 0. 75 ? 2 1,000 ? 0. 3333 ? 0. 5 ? 2 = 667 500 333 1,500 Cost of annual output 1,500 ? ?4 = ? 6,000 PV = 6,000/0. 13 = ? 46,154 Both machines replaced: Annual costs 1,500 ? ?1. 80 = ? 2,700 PV = 14,000 + 2,700 0. 13 = ? 34,769 One machine is replaced: Old Output: first third of year second third of year last third of year New 333. 3 166. 7 0 500 333. 3 333. 3 333. 3 1,000 Annual costs 500 ? 4 + 1,000 ? 1. 8 = ? 3,800 PV = 7,000 + 3,800 = ? 6,231 0. 13 The lowest cost option is to replace both machines. 14 Opti plc Costs One-year replacement: PV = 20,000 – 6,000/1. 1 = 14,545 AEA = 14,545/0. 9091 = 16,000 Two-year replacement: PV = 20,000 + 6,000/1. 1 – 1,000/(1. 1)2 = 24,629 AEA = 24,629/1. 7355 = 14,191 Three-year replacement: PV = 20,000 + 6,000/1. 1 + 8,000/(1. 1)2 + 4,000/(1. 1)3 = 35,072 AEA = 35,072/2. 4869 = 14,103 Four-year replacement: PV = 20,000 + 6,000/1. 1 + 8,000/(1. 1)2 + 10,000/(1. 1)3 + 10,000/(1. 1)4 = 46,410 AEA = 46,410/3. 1699 = 14,641 The optimal replacement cycle is 3 years.  © Pearson Education Limited 2008 9 CFML_CH04v3. QXD 29/7/08 17:27 Page 20 Chapter 4 THE DECISION-MAKING PROCESS FOR INVESTMENT APPRAISAL LEARNING OUTCOMES The main outcome expected from this chapter is that the reader is aware of both traditional and discounted cash flow investment appraisal techniques and the extent of their use. The reader should also be aware that these techniques are a small part of the overall capital-allocation planning process. The student is expected to gain knowledge of:  ¦ the empirical evidence on techniques used;  ¦ the calculation of payback, discounted payback and accounting rate of return (ARR); How to cite Corporate Financial Management Lecturer’s Guide, Essay examples

Management and Organisations in a Global Environment Outsourcing

Question: Discuss about tehManagement and Organisations in a Global Environment for Outsourcing. Answer: Introduction Outsourcing is the process followed by different organisations to transfer their job to the suppliers. Outsourcing assists the company to reduce internal workload and to attain the desired goals more efficiently. The strategy helps to decrease the productivity cost that affects the enterprises business performance and sales growth. It helps the company to reduce operational costs. The company shares the work with the specific vendors that assist the organisation to reduce the cost of recruiting new employees. In the opinion of Patil and Wongsurawat (2015), outsourcing helps the company to maintain their internal resources. It is observed that the corporation fails to grip different aspects of the internal business process. Therefore, the company depends on the outsourcing process that aids the business firm to manage internals works in an efficient manner. Gobble (2013) has mentioned that outsourcing assists the company to avail skilled labors in low-cost with high quality work. In t he process of outsourcing, the company gets of competent vendors that influence their business operation. The involvement of experts aids to complete the task in a short period. It helps the organisation to increase their internal process of business. The outsourcing process supports the business firm to share their responsibilities with outsourced experts that reduce the risk factors in the business process. Gerbl et al. (2016) have opined that outsourcing increases the chances of violating confidential data and information of the enterprise that affects their position and business operation. In the case of choosing an unscrupulous outsourcing partner, the company faces issues like delay in delivery of work, low quality output product that hampers operational function. The present study deals with the outsourcing process followed by the three companies of Australia- HCL Technologies, SMS Management and Technologies and Infomedia that affects their organisational function. It is noticed that these companies have used their businesses have used the outsourcing as a management trend that aids to distribute their works in smaller parts and to complete the within a period with the help of skilled vendors. The outsourcing process helps these IT companies to increase their economic growth that impacts business performance (Schniederjans et al. 2015). It is followed that IT companies in Australia focus on incorporating the outsourcing process that aids the firm to drive high returns on their investment. The involvement of outsources process assists the business enterprise to resist the outflow of the cash and to minimize the utilization of resource materials. The speed and accuracy of outsourced activities help the organisation to increase the ratio of pro fit (Gobble 2013). However, the introduction of outsourcing decreases the control of an agency on their private activities. Involvement of outsourced vendors owes the chances of protecting persona data of the company. Here, the success and failure of these companies have also been discussed that helps to understand the impact of outsourcing in the business process. The outsourcing process aids these IT corporations to lower the price of productivity that increases the economic scale. Outsourcing plays a pivotal role in improving the business process in Australian companies. The deal of outsourcing between different companies affects the economy of the country. The IT companies in Australia have considered the impact of outsourcing that helps to decline the cost of workers and to derive service from outsourced suppliers. Therefore, Australia has planned to contribute $63.8 million of dollars in IT sectors that helps the country to improve the economic condition to hold a firm stance I the international market of business (Gerbl et al. 2016). Outsourcing as a part of the management strategy helps the IT companies in Australia to derive a stable condition in their internal business situation. Boguslauskas and Kvedaraviciene (2015) has mentioned that the outsourcing helps these Australian IT businesses to get fruitful work in cheap productivity cost. In the present situation of HCL Technologies, it is noticed that the firm has worked on the outsourcing system to control the function of their offices in Australia. The business firm has inaugurated the first office in Sydney and has later launched several offices in various parts of the country. The company has to target customers from different sectors such as banking, retail, logistic and incorporation of the outsourcing process helps the company to distributor their work among the suppliers that influences their work system. The system assists the business firm to change the business structure and to develop the service delivery system that helps to attain changing needs o f end-users. The introduction of outsourcing process assists the company to improve their management system that contributes in handling clients efficiently (Lacity and Willcocks 2014). The process of outsourcing followed by HCL helps the company to offer high quality customer services. The business firm has derived benefits from including the business process outsourcing. It helps the company to increase the relation between employees that affects their business operation. HCL Technologies endeavours to expand their outsourcing strategy that contributes to declining the expense their total cost. Outsourcing helps the corporation to outsource their products like services, different computer component for clients (Gobble 2013). It is noticed that the company has worked on improving their communication skills to make their outsourcing plan successful. HCL has focused on their outsourcing process to enhance the productivity that affects their business in Australia. Australian Governmen t work on introducing the IT outsourcing that assists the country to increase their economic gain in low cost. Therefore, HCL Technologies has signed a deal with Sydney Trains of $35 million. It aids the firm to save the cost of products (Harmon 2014). HCL focuses on improving their delivery system to arrest the interest of different clients in the global scenario. Therefore, HCL seeks the assistance of experts that assists the company to improve their services for the clients. The company possesses flexibility in their outsourcing process to build a strong relation with the outsourced vendors. The company considers the interests of their suppliers to retain their trust and loyalty that affects their professional association. HCL endeavours to maintain rules and regulations in the contract with their clients that assist the firm to improve their business. Ethical consideration supports the company to preserve the authenticity of their private services provided to end-users (Hcltech. com 2016). In the case of SMS Management and Technology Limited helps the company, one of the leading IT service offering firm in Australia, it is noticed that the corporation has inclined to outsource to work with different contractors that affect their decision for marketing their business. It aids the company to address current market trends to offer proper service to the service users. Outsourcing process assists the company to reduce the internal cost of introduction of the new employee, requirements of spacious office and much more. The outsourcing system of SMS Management and Technologies assists the firm to attain their revenue target that increases their business up to 15% in the recent year (Rosemann and vom 2015). The organisation introduces outsourced specialists to improve their quality of work. Involvement of the internal employees also assists the enterprise to balance the external and interior. Offshoring outsourcing facilitates the chances of securing capital expenditure. There fore, SMS has worked on introducing the process to increase their profit margin. The revenue ratio of the firm has fallen 10.02% that affects their business. Therefore, the company has worked on distributing small tasks among their outsourced vendors that assist the business to their revenue to $176.4 million in recent years (Technology 2016). In the opinion of Jeston and Nelis (2014), outsourcing helps the firm to transfer their task in portions to different outside contractors that helps them to finish the work more efficiently. In the instance of SMS, the corporation follows this system to transfer their critical tasks to experts. In the absence of suppliers, the company has to spend considerable amount of money to improve their external operational service to dissolve the challenges (Blokdijk 2012). Therefore, the company saves its executive price that affects their business profit. Outsourcing heightens the flexibility of changing the oganisational function to reach the present trend of business. SMS Management and Technology has also worked on developing their outsourcing method that aids the enterprise to increase the operational function that affects their market share value. SMS has focused on updating their contracts with outsourced to secure the ethical issues. It helps the company to keep their internal affairs confidential. The company keeps professional relation with the suppliers to reduce the chances of violating their company protocols (Luo et al. 2012). Infomedia focuses on providing global service to the companies of automobile sector. The company focuses on selling automobile parts to the companies of this area. The enterprise offers electronic goods to different automobile businesses that affect their business operation. T is noticed that the firm has worked on introducing different products that help the company to attain the broad range of service users. The Australian automotive industry has recently faced the decline due to the scarcity of the supply of car subsidies. Therefore, Infomedia has worked on introducing the outsourcing that helps to improve their service to provide car subsidies to the automobile companies in Australia (Infomedia 2016). Infomedia has worked on including online selling of car items that helps to draw the attention of the wide range of service users. It is noticed that the company has considered the outsourcing process that assists the company to take help of the experts to improve their internal service. The outsourcing process helps the firm to develop their operation and to attain the advice of the skilled suppliers regarding the business activity (Becker et al. 2013). Incorporation of outsourcing process assists the company to reduce the cost of manufacturing different automobile parts. Involvement of experts helps the organisation to enhance the quality and longevity of their vehicle parts. Therefore, the company has attained the subscription of 75,000 customers for their service that affects their performance. The research and data analysis system of Infomedia focuses on providing service to automobile manufacturers that help these companies to derive relevant information about their products. T he present IT Company has followed the outsourcing to attain the help of experts to finish their operations. The opinion of these experts helps the firm to improve their department of research and data analysis to offer proper service to the clients. In the view of Luo et al. (2012), outsourcing aids in conducting works in different locations between the suppliers and organisations. Outsourcing process in Infomedia assists the firm to take help of skilled experts all around the world. It aids the business organisation to decrease the unnecessary expense of delivery services. The organisation has focused on incorporating different strategies to prevent the risk of outsourcing that affects the internal system of the company. Blokdijk (2012) has mentioned that Australian Government also introduces several policies to monitor and regulate the outsourcing process. Infomedia follows these rules to obtain fair trade in the market. Conclusion In the present scenario, it can be concluded that the outsourcing as a part of management system plays a significant role in improving the business in different IT firms of Australia. Outsourcing has a positive impact on the economy of the present country. It has brought stability to the vulnerable situation prevalent in the IT companies of the country. The process of outsourcing assists the firm to reduce the cost of employees and to avail high quality work. It increases the chances of availing the involvement of experts for the particular task. Therefore, it aids the business organisations to reduce their internal work pressure. Lack of job demand derives the best service from the private employees that enhance the quality of business operation. Here the example of three IT companies of Australia has been given that assists the company to increase their service. In the case of HCL Technologies, the company has used the outsourcing process to reduce their private costs and to enhanc e their productivity. The company endeavours to strengthen their relation with suppliers to attain better service from them. In the present scenario of SMS Management and Technologies, it is noticed that the organisation has vowed to strengthen their core process of business. Therefore, outsourcing plays a vital role in decentralizing their work among the vendors and internal staffs that help to accomplish their tasks in a short span of time. The company has taken the conscious decision of making contracts with outsourced suppliers to avoid hidden costs. It assists the firm to control the excessive cost possessed for the outsourcing system. On other hand, Infomedia has observed online selling the assists the company to reach wide range of clients all around the world to sell their automobile parts. Therefore, outsourcing aids the business corporation to improve control their service more efficiently. Summary: Outsourcing is a process that helps the company to increase their productivity and to decrease the ratio of their cost. In this process the company assigns the tasks to skilled persons of that respective field. It is observed that the outsourcing process has changed the picture of the Australian economy in last few years. Australian companies from different industries focus on introducing the outsourcing process to lower their production cost and better service from skilled suppliers. Australian Government has also worked on adding law to facilitate the process of outsourcing in legal manner. Outsourcing plays a major part to bring stability in the business process followed by IT companies in Australia. It helps the company to deduct the amount used for buying the internal materials of the enterprise. HCL Technologies has worked on introducing outsourcing to improve their IT services that help company to increase their business both in the national and international market. Involveme nt of outsourcing helps the IT firm to need the help of experts to improve their technical service. The company has introduced partnership business in the different location that assists the company to add their business in different countries that assist the company in increasing their business in global market. Therefore, outsourcing facilitates the company to manage their work with the help of experts in that field. SMS Management has used the outsourcing process to enhance the quality of their business that helps to increase their economic stability. IT outsourcing assists the firm to introduce flexibility that contributes to improve their business operation. Infomedia has worked on introducing outsourcing process that aids the company to increase their business in the international market. 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