11.2 Non-Conventional Sources of Energy 705 11.2 NON-CONVENTIONAL SOURCES OF ENERGY Introduction The Industrial Revolution of the 19th century ushered in new technologies. The spurt in inventions in that century was unprecedented in many ways. Some of these inventions involved use of natural resources like coal and oil. The thought of exhaustible nature of these resources and the environmental damage from the use of these resources never occurred either to the inventors or the subsequent generations
Premium Wind power Renewable energy World energy resources and consumption
cost from market testing as a cash outflow. The reason is because the cost from market testing was considered as sunk costs. A sunk cost is an outlay that has already occurred‚ hence by decision under consideration would not been affected by the costs. Since sunk costs are not incremental cost they should not be included in the analysis. In this case initial cost for Blast‚ $500‚000 for test marketing‚ which was conducted in the Detroit area and completed in the previous June was consider as a sunk
Premium Net present value Laundry detergent Inventory
wanted to live abroad so she got a job with the United Nations in Geneva. She had never had a holiday as a child and so‚ with the tax-free money she earned in Geneva‚ she decided to spend a year travelling around the world. She visited Polynesia‚ New Caledonia‚ Australia and Africa where her interest in the use of natural ingredients for cosmetic purposes was aroused. In Tahiti she saw local women plastering themselves with cocoa butter. Half the bean was used for chocolate and the other half was used
Premium The Body Shop L'Oréal Franchising
CASE STUDY ON GOODWEEK TIRES‚ INC. 1.0 INTRODUCTION Capital budgeting is the process of identification of opportunities‚ estimation of cash flow to be generated by the project‚ evaluating and selecting from among the alternative courses of actions and implementing the investment project with proper follow-up. Hence‚ Managers must carefully select those projects which promise the greatest future return. How well managers make these capital budgeting decisions
Premium Net present value Internal rate of return
in a food industry in U.S. frozen pizza market. The Company was preparing a capital budgeting proposal to expand the company’s frozen plant in Winnipeg‚ Manitoba. The company has estimated net income of the three year from 1996 to 1998.The initial cash outlay at the start of 1996 is $ 5.2 million which include building‚ new high speed pizza space‚ additional warehouse space‚ and contingency need. As the Laurentian bakeries in the industry from the past 12 years since 1984‚ they take the advantage
Premium Net present value Investment Capital budgeting
budgeting. This holds the relationship between the investment and a proposed project’s payoff. Mathematically the profitability index is given by the following formula: Profitability Index = (Present Value of future cash flows) / (Present Value of Initial investment The profitability index is also sometimes called as value investment ratio or profit investment ratio. Profitability index is used to rank various projects. Net Present value Net present value (NPV) is a widely used tool for capital
Premium Net present value Investment Internal rate of return
Bethesda Mining Company To be able to analyze the project‚ we need to calculate the project’s NPV‚ IRR‚ MIRR‚ Payback Period‚ and Profitability Index. Since net working capital is built up ahead of sales‚ the initial cash flow depends in part on this cash outflow. So‚ we will begin by calculating sales. Each year‚ the company will sell 600‚000 tons under contract‚ and the rest on the spot market. The total sales revenue is the price per ton under contract times 600‚000 tons‚ plus the spot market
Premium Net present value Depreciation Generally Accepted Accounting Principles
Value (NPV) of the four options. Substantiation Due to the nature of the industry and the machinery required‚ it is imperative that we enter into a long term contract with our clients. In valuing these contracts we must factor in the initial investment outlays for machine set-up costs (including the purchasing of new land)‚ as well as all future cash flows of a given project. To do this we use a form of analysis known as Net Present Value (NPV). In calculating the NPV of each investment we made
Premium Net present value
indicate whether an investment increases the firm ’s value. Also‚ it ignores the cash flows beyond the payback period‚ time value of money and the risk of future cash flows. Discounted Payback Period means the length of time required to recover the initial cash outflow from the discounted future cash inflows. This is the approach where the present values of cash inflows are cumulated
Premium Net present value
CHAPTER 6‚ Case #1 BETHESDA MINING To analyze this project‚ we must calculate the incremental cash flows generated by the project. Since net working capital is built up ahead of sales‚ the initial cash flow depends in part on this cash outflow. So‚ we will begin by calculating sales. Each year‚ the company will sell 500‚000 tons under contract‚ and the rest on the spot market. The total sales revenue is the price per ton under contract times 500‚000 tons‚ plus the spot market sales times the
Premium Depreciation Net present value Generally Accepted Accounting Principles