with different 5-year projections of cash flows. The evaluation done to the two corporations (A and B) is based on the Net Present Value (NPV) and the Internal Rate of Return (IRR). The net present value represents the value the project or investment adds to the investor wealth. The NPV method of capital budgeting suggests that all projects that have positive NPV should be accepted because they would add value to the investment. On the other hand‚ the internal rate of return is defined as the discount
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Prosper’s servant. One other Character is Miranda‚ the contentious daughter of both Prosper and Prospero‚ who seeks to ratify her love to a young man who is brought to their desolate island. Last‚ but not least‚ there is Ariel who is a spirit in the play‚ and a man in the movie‚ Ariel is a valiant young servant of Prosper/Prospero. There are also several similarities in the plot of the play‚ and the movie. To start‚ Prosper(o)’s wanton brother supplants himself in Prosper(o)’s position and home;
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who becomes enslaved‚ but many other island inhabitants are alienated because of Prospero (Angel). Ariel also has to deal with some isolation when Caliban’s mother‚ Sycorax‚ traps him in a tree (Shakespearean Criticism). Race was also seen as a big theme in the play. Prospero is both European and Christian‚ which right away makes him the island’s natural ruler‚ even though people like Caliban and Ariel are already there. Prospero’s taking of the island shows that he believes Caliban is below him because
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because it payback period is less than the 4 year maximum payback period 3.65years < 4 years ---------------------------------------- PART B: NPV &IRR LATHE A NPV & IRR years 0 1 2 3 4 5 cash flow (660‚000) 128‚000 182‚000 166‚000 168‚000 450‚000 cash flows (360‚000) 88‚000 120‚000 96‚000 86‚000 207‚000 LATHE B NPV & IRR PV Factor @13% 1 0.885 0.783 0.693 0.613 0.543 PV Factor @13% 1 0.885 0.783 0.693 0.613 0.543 PV (660‚000) 113‚274 142
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CAPITAL BUDGETING Cost of Capital Evaluating Cash Flows Payback‚ discounted payback NPV IRR‚ MIRR The Cost of Capital • Cost of Capital Components – Debt – Common Equity • WACC Should we focus on historical (embedded) costs or new (marginal) costs? The cost of capital is used primarily to make decisions which involve raising and investing new capital. So‚ we should focus on marginal costs. What types of long-term capital do organizations use? nLong-term debt nEquity Weighted
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Chapter 13 Real Options and Other Topics in Capital Budgeting Learning Objectives After reading this chapter‚ the student should be able to: Explain why conventional NPV analysis may not capture a project’s impact on the firm’s opportunities. Identify five different types of real options. Explain what an abandonment/shutdown option is‚ give an example of a project that includes this type of option‚ and explain what an option value is. Explain what a decision tree is and provide an example of
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his island‚ where he raises a storm over the sea and wrecks the far off ship. The sixth hour has come along for the spirit servant‚ Ariel‚ who has been waiting patiently for his freedom‚ and Prospero is still in agreement with the terms. Prospero asks him about the prisoners‚ which are being held in a secluded grove‚ and requests to have them brought to him. As Ariel is on his was to release the prisoners‚ Prospero delivers a soliloquy‚ saying that after one final act of magic he would be giving up
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I. Introduction | Philippine peso is another peso denominated currency that serves as the national currency of the Republic of Philippines as the name suggests. Peso is the currency unit that was founded in Spain for the first time and got spread and popular with the country extending its reign by establishing new colonies all over the world during colonization era. The currency unit is still in circulation as it forms the national currencies of a few other countries‚ most important among
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In William Shakespeare’s the Tempest‚ many are left to wonder what the ideal mode of rule is‚ and which character has the ideal concept of how to rule properly. Often‚ the characters’ convictions are based on their view of the nature of men and the essence of the material world‚ and they behave in accordance with their convictions. Prospero believes that it is necessary for him to control nature‚ and redirect the vices of the people around him‚ while Gonzalo believes that nature should rule‚ and
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Love Throughout the Storm In the Tempest‚ by Shakespeare we see the love of family‚ love of country‚ and personal love dominate The Tempest and inform nearly every significant action. Caliban loves the island‚ Ariel loves natural freedom‚ Prospero loves his daughter‚ Alonso his son‚ and so on. But the traitors Antonio and Sebastian are also defined by love‚ or really the lack thereof. They are in love with power‚ or the potential for it. In this play‚ each player is on a quest for some kind of
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