What’s your real cost of capital? By James J. McNulty‚ Tony D. Yeh‚ William s. Schulze‚ and Michael H. Lubatkin Harvard Business Review‚ October 2002 Issue of the article: valuing investment projects Number of pages: 12 Daniel Miravet Campos Part 1. Executive summary This article is fundamentally based on the exposition of a new method to calculate the cost of capital for a company (MCPM)‚ to meet the inefficiencies of the current one (CAPM). In valuing any investment project or
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PRINCIPLES OF COST CONTROL 1.1 Introduction Cost is important to all industry. Costs can be divided into two general classes; absolute costs and relative costs. Absolute cost measures the loss in value of assets. Relative cost involves a comparison between the chosen course of action and the course of action that was rejected. This cost of the alternative action - the action not taken - is often called the "opportunity cost". The accountant is primarily concerned with the absolute cost. However‚
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My Brother Sam is Dead The book I chose to do for my historical fiction project was “My Brother Same is Dead” by James Lincoln Collier and Christopher Collier. In this book‚ the historical event associated with it was the American Revolution. I chose this book because I have always had a great fondness and fascination with the American Revolution and wanted to learn more about it. The historical event associated with my book was the American Revolution. This war was fought between the Patriots
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Grimwald Glenshaw‚ CFO Pumpjack Petrol‚ Ltd. 18111 Nordhoff Street Northridge‚ CA 91340 Dear Mr. Glenshaw: Upon your request‚ I have researched the codifications on how to account for the future dismantling cost of the oil platform and for downward adjustments to the expected cost. The asset retirement obligation (ARO) of $2‚158‚925 for the platform must be recognized on its acquisition date in 2014 and discounted to its fair value of $999‚999. However‚ if there is a downward adjustment of
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Generally‚ the term cost of production refers to the ‘money expenses’ incurred in the production of a commodity. But money expenses are not the only expenses incurred on the production of a commodity. There are number of services and inputs such as entrepreneurship‚ land‚ capital etc.‚ which are offered by an entrepreneur without changing any price or receiving any payment for them. While computing the total cost of production‚ allowance should be made for such expenses. It is therefore essential
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When the English were colonizing North America‚ they brought with them their laws. Being from the British Common Law system‚ the settlers understood how that system worked‚ so they modeled their own government using Common Law. In the 18th century‚ when the Union was formed and the colonies became states‚ they kept their Common Law governments. However‚ the Articles of Confederation set forth to establish one supreme court‚ being the federal court. Article III of the U.S. Constitution states: ’The
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Content 1 Introduction 1 1.Task one 2 The models and concepts affecting the pricing decisions taken by organisations‚ critically reflecting upon their usefulness 2 2‚ Task two 6 The role of standard costing and variance analysis in management accounting and a critically discussion of the value and limitations of variance analysis as a means of identifying key areas which have contributed to the overall profit figure. 6 3‚ The advantages and disadvantages of introducing an Activity Based Costing
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believe. You may think that this is something that just happens at this day in age‚ but this occurs everywhere and has occurred over time. This is called historical bias. This paper will investigate ways to avoid historical bias‚ how historical bias may affect how we think about our past‚ and other examples of historical bias. First‚ avoiding historical bias may be hard but it is not impossible. There are many things one can do to make an accurate decision or even a compromise of all the stories and
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TABLE OF CONTENT Acknowledgments Abstract Dedication CHAPTER ONE: INTRODUCTION 1.1 Introduction The history of sports probably extends as far back as the existence of people as purposive sportive and active beings. Sport has been a useful way for people to increase their mastery of nature and the environment. The history of sport can teach us a great deal about social changes and about the nature of sport itself. Sport seems to involve basic human skills being developed and exercised for
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in life expectancy and decreases in mortality rates‚ many old People live their later lives with chronic illnesses and disabilities. As a result‚ long-term care is becoming an important part of service to the elderly population. The US General Accounting Office (1994) reports that more than 12 million Americans need long-term care and 55% of them are people aged 65 or older (Binstock‚ Cluff‚ & Mering‚ 1996). Accordingly‚ the government spends substantial amounts of money to provide care through
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