09‚ Part 8 – Topics in Capital Budgeting Professor James P. Dow‚ Jr. Part 8. Topics in Capital Budgeting In part 7 we learned the basics of capital budgeting. However‚ we ignored some of the complications that can arise when evaluating projects. In this section we look at a few of those issues. How Uncertainty Affects the Capital Budgeting Decision Every project has uncertainty and so we need to determine how risk affects how we make decisions. Large corporations often use very sophisticated methods
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Summary of Dear America‚ “So Far from Home” “So Far from Home” starts with Mary Driscoll at home in Ireland where her family and neighborhood are poor and hungry. Mary got a letter from her aunt‚ with a ship ticket in it. It meant she could come to America. Her aunt had been there for six years. Aunt Nora earned enough money so Mary’s big sister Kate to come‚ first. Then they earned enough money for Mary to come. They are trying to get the whole family over to start a new life. Mary’s mom thought
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Again if there is less money available for the program some things (or rather people) will be cut. Much like a bank account if there’s less money in it then the less you can spend on groceries‚ gas‚ or frivolous expenses‚ meaning you’d have to eliminate certain expenses. But in this case‚ the cut in funding along with the switch to the
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Review of Capital Budgeting 1. The Kramer Tool Company has a photocopying machine that it purchased two years ago for $70‚000. The machine is being depreciated straight line over 5 years to a zero salvage value. A competing firm is offering a new photocopying machine that cost $60‚000 and can be depreciated over 5 years to a zero salvage value. Kramer has been assured that the new machine can be sold for $10‚000 after five years. The new machine requires less maintenance and operator attendance
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AACE International Recommended Practice No. 34R-05 BASIS OF ESTIMATE TCM Framework: 7.3 – Cost Estimating and Budgeting Acknowledgments: Todd Pickett‚ CCC (Author) Peter R. Bredehoeft‚ Jr. Ted A. Downen Larry R. Dysert‚ CCC Bruce G. Elliott‚ CCC John K. Hollmann‚ PE CCE Copyright 2010 AACE International‚ Inc. Stephen M. Jacobson CCC Carlton W. Karlik‚ PE Christopher L. Kinney Donald F. McDonald‚ Jr. PE CCE PSP Bernard A. Pietlock CCC Richard A. Selg‚ CCE AACE International Recommended Practices
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Table of Contents 1.0 Abstract Biovail Corporation‚ a large pharmaceutical company and had applied advanced drug-delivery technologies to improve the clinical effectiveness of medicines. It is recently had its stock downgraded by a well-known pharmaceutical analyst and a number of other analysts were also scrutinizing the company. The outcome was not favorable‚ as Biovail ’s acquisition methods were labeled as unethical and their accounting practices were questioned
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THE CENDANT CORPORATION ACCOUNTING SCANDAL BCOM21 TABLE OF CONTENTS ACKNOWLEDGEMENT ………………………………………………………… 2 INTRODUCTION …………………………………………………………………. 3 SUMMARY ……………………………………………………………………….. 4-7 COMPANY PROFILE …………………………………………………………… 8 THE OFFICERS INVOLVE …………………………………………………….. 9-15 DISCUSSION ……………………………………………………………………. 16-20 THE SETTLEMENT The settlement with Cendant ………………………………………… 21-22 The settlement with Ernst & Young ……………………………….. 23 THE BREAKUP ………………………………………………………………… 24 CONCLUSION
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CAPITAL BUDGETING DECISION Clark Paints To look into possible ways to trim total poduction costs. Make or purchase paint cans? Cost of new equipment Disposal value Life production - number of cans Annual production or purchase needs - number of cans Project life $ $ 200‚000 40‚000 5‚500‚000 1‚100‚000 5 years Number of workers needed Annual work-hours per employee Earnings per hour for employees Other annual benefits per employee - % of wages Annual health benefits per
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Does The End Justify The Means? by Mortimer J. Adler‚ Ph.D. Does the end justify the means? Can it sometimes be right to use a bad means to achieve a good end? Don’t the conditions of human life require some shadiness and deceit to achieve security and success? First‚ let’s try to understand the sense in which the word "justifies" is used in the familiar statement that "the end justifies the means." After that we can consider the problem you raise about whether it is all right to employ
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troublemaker. “How much spending money do you need?” “Well‚ now‚ let me think about it for a minute‚ I want to be reasonable. With all the money‚ you make at the drug store. You could afford $800 a month to start. Remember‚ I know how much you make‚” Nancy said and snickered. “What do you mean to start?” He asked‚ knowing what she meant. “From time to time‚ I’ll need a raise. The drug store gives you a raise. I should have one.” “Why don’t we do this‚ it won’t be a problem giving you spending money each month
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