Science Neutralizing Lakes Essay Example for Free

Science Neutralizing Lakes Essay Part 1 – Design a strategy for neutralizing Fish Lake What do I know? (What do I remember about the neutralization reaction) Neutralization is when an acid and base are mixed together to me an ionic compound or which are 7 on the pH scale or pure water, it is also when a base and acid are mixed to make it in a neutral state. What am I wondering? (What are your rough ideas to fix an acidified lake?) I will be finding a base that will work the most effective way, also I will find a base that can fix a large amount of acidified lake water with a base that can neutralize it with less then the acidified lake water, I will also look for a base that can make sulfuric acid neutral As a class we got options to what we will conduct this experiment with the base I choose is Sodium hydroxide (NaOH) and for the indicator to show that this will make it neutral is the Universal Indictor I choose that indicator because it has a wide color spectrum when being neutralized. Predictions How much base do you think do you think it will take to neutralize 5mL of acidified lake water? Why? I believe that it will take a little less then 5mL to neutralize it because it will rapidly dissolve and neutralize it. I also know because sodium hydroxide is very responsive once added it will take effect. Balanced Chemical Formula for Sodium hydroxide and Sulfuric Acid (Acidic Lake water) NaOH + H2SO4 - NaHSO4 + H2O How will you know when you have added the correct amount of base and why? I will be using the universal indicator when first added it will first be red, orange, and yellow thus meaning it’s an acid. I will know when it’s fully neutralized when it turns green, blue, and violet. I choose this indicator because it has a wide spectrum of colors, which can help me indicate if I have added the right amount of base. Experimental Set-up and procedure 1. First get all safety equipment needed (safety goggles, and glasses) 2. Receive a test tube 3. Add about 10 drops of acidified lake water to the test tube (10 drops = 5mL) 4. Receive your Indictor (universal indictor) 5. Add about 2 drops of the universal indictor to the acidified lake water 6. Acidified lake water turned orange which meant it was a acid 7. Then I received sodium hydroxide (NaOH) 8. I filled a dropper with NaOH 9. I dropped NaOH into the acidified lake water I seen drastic changes right away with the indictor it started to change right away 10. I added NaOH to the acidified lake water until the indictor turned into a color which was recognized as a base or neutral 11. It took about 9 drops which is less then 5mL to fully neutralize the acid in the water 12. I then recorded all my data to a piece of paper to keep for future references 13. At the end of this experiment I also conducted a next one all the previous steps above were followed but the base was changed to get a comparison 14. To complete my second experiment I used calcium carbonate (CaCo3) 15. I followed previous steps above 16. I added calcium carbonate (CaCo3) to the acidified lake water 17. It took about 15 – 20 drops of (Caco3) to neutralize the acid from the water 18. At the end of these experiments all equipment that I used was cleaned up and stored away to its proper location Record Lake water Acid | Indicator | Base | Observations| What volume of acidic lake water did you neutralize ?I used 10 drops of acidic lake water which is = to 5mL.| What indictor did you choose?Universal indicator I choose that because there is a wide color spectrum so you will see the neutralization when it’s happening.| What base did you choose?I choose sodium hydroxide because it can get the job done and rapidly neutralize acidic water. | How much base was needed to neutralize the acid? What else did you observe?It took about 9 drops of sodium hydroxide (NaOH) which is less then 5mL, I also noticed when adding NaOH the water started to neutralize right away you were able to see the indictor turning purple due to the fact that it was turning into a base.| Reflect Make conclusion by referring to your predictions from step 1. Did your data support these predictions? Why or why not? If not how has your thinking changed? My predictions were correct, my data did support these predictions I say that because when I conducted this experiment I did in fact use less then 5mL I used 9 drops of sodium hydroxide, which is about 4.8 mL. when I conducted this experiment I did have a worry it might be over 5mL because I was not sure my research prior to this lab. I also did know I added the right amount of indicator because when conducting this lab/experiment the indictor turned fully purple thus meaning it was neutralized. When using the universal indicator it has a wide color spectrum, which means it has different colors. When it’s an acid the color will be red, orange, and yellow. When it’s a base it will be green, blue, and violet. MSDS I kept this in mind when using these chemicals in this experiment In large amounts of NaOH is very harmful to human health also other life, I did keep that in mind but I did further research, when I did my research it did state when adding small amounts gradually it will dissolve with out a problem when adding large amounts will cause a problem to wild life and also human life. Small amounts will dissolve over time then add in more once dissolved. Suggest one way in which you could improve your experimental procedure. One way I could of improved in this experimental procedure is to get different bases to get a different observation, which will be a better base. It will be more effective because we have a wider range of bases, which could lead to better solutions.

Ways Of Raising Finance For A Business Finance Essay

Ways Of Raising Finance For A Business Finance Essay There are a number of ways of raising finance for a business. The type of finance chosen depends on the nature of the business. Large organisations are able to use a wider variety of finance sources than are smaller ones. Savings are an obvious way of putting money into a business. A small business can also borrow from families and friends. In contrast, companies raise finance by issuing shares. Large companies often have thousands of different shareholders. Sources of finance  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Uses of finance Shareholders  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Finance to set up and expand a business Bank  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Loans to finance capital projects.   Overdrafts to manage cashflow Creditors  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Short term credit until goods have been sold To gain extra finance, a business can take out a loan from a bank or other or other financial institution. A loan is a sum of money lent for a given period of time. Repayment is made with interest. The lender of money needs to know all the business opportunities and risks involved and will therefore want to see a detailed business plan. The lender may also want some form of security should the business run into financial difficulty, and may therefore prefer to provide a secured loan. Another way of raising short-term finance is through an overdraft facility with a bank. The borrower is given permission to take out more from their account than they have put in. The bank fixes a maximum limit for the overdraft. Interest is charged on the overdraft daily. A further way of raising funds that has become popular is through venture capital. Merchant banks and investment specialists may be willing to provide finance for a promising and fast-growing smaller business. This usually involves a package that is a mix of share and loan capital. Businesses may also qualify for grants. Government (or EU) assistance and funding is sometimes made available to businesses that meet certain conditions. For example, grants and loans may be available to firms setting up in rural areas or where there is high unemployment. Once a business is up and running there are various ways of financing its expenditures. Expensive items of equipment can be leased. Rather than buying the equipment the business hires it from a leasing company. This saves having to lay out sums of money and the business does not have to worry about having to carry out major repairs itself. Motor vehicles, machines and office equipment are often leased. Hire Purchase is an alternative way of purchasing items of equipment. With a leased item you use and pay for the item but never own it. With hire-purchase you put down a deposit on an item and then pay off the rest in instalments. When the last instalment has been paid you become the owner of the item. Another common way in which firms can finance their business in the short term is through trade credit. In business it is common practice to purchase items and pay for them later. The supplier will normally send the purchaser a statement at the end of each month saying how much is owed. The buyer is then given a period of time in which to pay. Advantages and disadvantages of equity finance Equity finance can sometimes be more appropriate than other sources of finance, eg bank loans, but it can place different demands on you and your business. The main advantages of equity finance are: The funding is committed to your business and your intended projects. Investors only realise their investment if the business is doing well, eg through stock market flotation or a sale to new investors. The right business angels and venture capitalists can bring valuable skills, contacts and experience to your business. They can also assist with strategy and key decision making. In common with you, investors have a vested interest in the business success, ie its growth, profitability and increase in value. Investors are often prepared to provide follow-up funding as the business grows. The principal disadvantages of equity finance are: Raising equity finance is demanding, costly and time consuming. Your business may suffer as you devote time to the deal. Potential investors will seek background information on you and your business they will closely scrutinise past results and forecasts and will probe the management team. However, many businesses find this discipline useful regardless of whether or not they actually receive any funding. Depending on the investor, you will lose a certain amount of your power to make management decisions. You will have to invest management time to provide regular information for the investor to monitor. At first you will have a smaller share in the business both as a percentage and in absolute monetary terms. However, your reduced share may become worth a lot more in absolute monetary terms if the investment leads to your business becoming more successful. There can be legal and regulatory issues to comply with when raising finance, eg when promoting investments.   http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1073789573type=RESOURCES TASK (2) a,b c A financial plan consists of sets of financial statements that forecast the resource implications of making business decisions. For example, a company that is deciding to expand e.g. by buying and fitting out a new factory will create a financial plan which considers the resources required and the financial performance that will justify their use. You can see from this statement that the financial plan will need to take into account sources of finance, costs of finance, costs of developing the project, as well as the revenues and likely profits to justify the expansion programme. Planning models may consist of thousands of calculations. Typically these plans will be constructed with the aid of forecasting models and spreadsheets that can calculate and recalculate figures such as profit, cash flows and balance sheets simply by changing the assumptions. For example, the business may want to do one set of calculations for low, medium, and high demand figures for its products. Long and short term plans Financial plans are typically made out for a given time period, e.g. one, three or five years. The length of the time considered depends on the importance of projecting into the future and the reliability of estimates the further we consider the future. Long-term plans are created for major strategic decisions made by a business such as: take over and merger activity expansion of capacity development of new products overseas expansion. In addition financial planning will be carried out for shorter time spans. For example, annual budgets will be created which can be analysed by month and by cost centre. Short term financial plans then provide targets for junior and middle management, and a measure against which actual performance can be monitored and controlled. In addition it is normal practice for a business to prepare a three- or five-year plan in less detail, which is updated annually. A budget is a short term financial plan. It is sometimes referred to as a plan expressed in money but it is more accurately described as a plan involving numbers. A cost centre is defined by CIMA as a production or service location, function, activity or item of equipment whose costs may be attributed to cost units. http://www.thetimes100.co.uk/theory/theoryfinancial-planning300.php The profit and loss account (P  Ã‚  L), called the income statement in the US, shows the profit or loss a company has made over a period of time. The ratios investors look at most often, such as the PE and yield, are calculated using numbers from the P  Ã‚  L Sales Also called revenues. Not always synonymous with turnover. Revenue recognition is not always simple. Cost of sales The direct costs of things sold Gross profit Sales minus cost of sales Other operating expenses Depreciation, admin, marketing etc. Operating profit Gross profit less other expenses Interest costs Interest payable less receivable Pre-tax profit Operating profit less interest Tax Profit after tax Pre tax profit less tax Dividends Retained profit Profit after tax less dividends Earnings per share The most detailed profit and loss account is given in the annual report, but UK listed companies are required to make annual and half year results announcements as well. The full year results announcement is shorter and covers the same period as the annual report, but it is released earlier. Many companies make quarterly announcements, as companies in the US and many other countries are required to. Unsurprisingly, UK listed companies that also have a secondary or dual listing in a country that requires quarterly announcements. As can be seen, the P  Ã‚  L contains several profit numbers. Each of these gives us different, and useful, information. In addition, the P  Ã‚  L (perhaps together with other information) usually gives us enough information to calculate several other profit numbers such as EBITDA and EBITA Many companies will show exceptionals separately. If there were any discontinued business, or plans to dispose of a business within a short period, these are also shown separately. These can give investors a better idea of the underlying business (the justification for doing it). For example, if the company has decided to sell a particular operation and the price has been agreed, shareholders do not really need to worry too much about that operations performance. A group balance sheet will need to be consolidated, which requires extra lines such as those for share or profit in associates and joint ventures, and the deduction of minority interests. As well as the valuation ratios, the P  Ã‚  L provides the numbers for measures of the performance and efficiency of the business, such as margins, ROCE, and some measures of financial stability such as interest cover. The P  Ã‚  L is backward looking and investors will need to consider correcting some items such as amortisation that are not useful for modelling future cash flows. From an investors point of view the P  Ã‚  L is essential, but can be misleading and should not be looked at in isolation. Related pages: Accrual principle | Accruals | Consolidated accounts | Deferred income | Depreciation | Impairment | Minority interests | Post balance sheet events | Prepayments | Pro-forma | Purchase method | Revenue recognition | Cashflow statement | Statement of total recognised gains and losses The balance sheet is one of the most important statements in a companys accounts. It shows what assets and liabilities a company has, and how the business is funded (by shareholders and by debt: the financial structure of the company). Book values are usually historical cost or fair value. The balance sheet provides information that is useful when assessing the financial stability of a company. A number of financial ratios use numbers from the balance sheet including gearing, the current assets ratio and the quick assets ratio. However, ratios based on profits and cash flow are at least as important for assessing financial stability: the most important of these are interest cover and cash interest cover. If any assets or (more commonly) liabilities that belong to the company in their economic effect do not appear on the balance sheet because accounting standards do not require it, they are referred to as off-balance sheet. Image 1 of 50

Shakespeare - Authorship Essay -- essays research papers

In 1564, a man was born by the name of William Shakespeare. He was born to a poor family, was given little education, and had no interaction with sophisticated society. Thirty-eight plays and over 150 sonnets are not attributed to this ignorant man. Those who believe that Shakespeare was the author have no definitive proof but instead point to Hamlet’s declaration: "The play’s the thing(Satchell 71)." The true author, however, lies hidden behind he name of Shakespeare. Edward de Vere the premier Earl of Oxford is not only considered a great poet in history, but he may also be the great playwright who concocted the sonnets and plays which are now attributed to William Shakespeare of Stratford, England. Edward de Vere was the Lord Great Chamberlain and the seventeenth Earl of Oxford. He was raised as a Royal Ward and from a very young age was educated in the sports and arts of nobility. Although disgraceful for a nobleman to waste time writing frivolous plays, Oxford as a young man wrote and staged the entertainment for the court. As an adult, he became engrossed in theatrical performances and frittered away his fortunes in support of several writers and actors (Friedman 13). During this time, De Vere also began writing several poems and plays. Much like Samuel Clemens, who wrote under the name of Mark Twain, Oxford adopted the pseudonym Shakespeare. Soon after plays appeared under the name of "Shakespeare," poems by de Vere ceased (Russell 5). Coincidently, the coat of arms of Lord Bulbeck, a third title of Edward de Vere, is a lion shaking a spear (Ogburn 10). De Vere was also known by the people as the "spear-shaker" because of excellence at the tilts and at j ousting (Russell 5). Many believe this pen name was for protection. Many of the plays said to have been written by Shakespeare explicitly describe the corruption in court politics and contain "thinly veiled satires and parodies of politicians and courtiers." In addition, public theatres such as the Globe were laced with prostitutes, drunkards and criminals and because of the scoundrel audiences, playwrights were held in low esteem. Moreover, many scholars believe de Vere’s reasons for his pseudonym may be linked to the homoerotic threads in many of the Shakespearean sonnets and de Vere’s possible homosexual affair with his son-... ...o one (Huston 162). In Sonnets 25 through 46, de Vere also spelled out in 22 letter patterns W SHAKESPEARE-OXFORD-VERE (Huston 170). The odds of this happening are even greater than that of the aforementioned probability. Using poetic license, de Vere of Oxford utilized codes and ciphers to spell out his name and other such messages. Edward de Vere of Oxford lived from 1550 to 1604. In the duration of that time, he was a young nobleman, a poet, and a lover of the theatre, but was also probably a great playwright who has yet to receive full credit for the plays he composed. De Vere witnessed first hand the inner workings of nobility. He traveled throughout Europe, completed his education at Cambridge University, studied the law at Gray’s Inn, and had abundant knowledge of historical occurrences and literary works (Russell 4). These are not only elements in the works attributed to William Shakespeare, but also are things which William Shakespeare of Stratford England knew nothing of. Who wrote the Shakespearean sonnets and plays? There is only one answer to this pivotal question – Edward de Vere of Oxford England.

Computer Games and Artificial Intelligence :: Video Game AI

Computer Games and Artificial Intelligence Abstract Computer games provide a challenge for mankind. A way to demonstrate his mastery over the concept of intelligence and yet a way to test that mastery. It is through a continual need to improve the artificial intelligence in computer games that man also finds a way to examine his own creativity, to reach beyond what is possible and improve himself. Developments in the artificial intelligence of computer games have shown remarkable improvement as new genres of games have been created with new advances in the technology. Newer more complex and adaptable games demonstrate an increased understanding of intelligence and furnish entertaining benchmarks of our own ability. Introduction The idea of artificial intelligence is a daunting notion. That the very thing that distinguishes humanity from all other living beings, intelligence, is reproducible even improved upon presents a certain challenge to mankind: is artificial intelligence superior to human intelligence? To avoid the philosophical chicken-and-egg argument, man has created an ingenious way to test AI: games. What were once mere entertaining diversions, computer games have become a forum for man to pit his intelligence against an artificially intelligent computer program in an attempt to validate his own self worth. Such challenges provide not only a means of entertainment but also a path to self-improvement. Consider the controversy regarding the recent victory of IBM's Deep Blue over world chess champion Gary Kasparov. Headlines relating the story typically questioned the preeminence of human intelligence in favor of the artificial intelligence represented by Deep Blue. Now more than ever, the challenge presented by computer games and artificial intelligence has created a need. This need can only be met by tests provided by engaging, creative, and intelligent computer games. This has spurred an entire industry, which accounts for billions of dollars every year. The wide-scale development of computer games continues in a variety of formats: simulation games, action/adventure games, interactive 3D games, fighting games, and others. These are all ways for man to test not only his creativity but also his own intelligence and ability to improve himself. Computer Games Early computer games required mere physical reaction and not much intelligence as game programmers struggled to develop more realistic games that would provide an environment for more complex interaction. With this aside, the advent of modern computer games required game designers to develop programs that would simulate human behavior. Simulation, thus, while not representative of original thought, is a necessary place to start in order to examine the development of computer game intelligence.

The Virtual Neighborhood and Its Social Implications :: Argumentative Persuasive Essays

The Virtual Neighborhood and Its Social Implications My own feelings about the "virtual neighborhood" fall somewhere in between those of Jim Dewer and David Noble. I will very briefly make an attempt to sketch out some boundary lines and find myself therein. I distinguish two sides of the issue. One is the concept itself and the other is the proposed list of uses. Admittedly, the two of these are related. The Concept First of all, the "virtual neighborhood" is no real neighborhood and we need to avoid being unduly convinced by a metaphor which is just that, a metaphor, of limited use. A "virtual promise" is no real promise. A "virtual promise" does not hold up in court where contracts have to be demonstrable, e.g., in writing. The word 'virtual' means something idealized by projection and not actualized. Calling the Internet a "virtual neighborhood" is making a claim that we can re-create a familiar experience by projection into an enormous "ideal" electronic experience. Second, let us not forget to check to see whether a metaphor is appropriate. Just because it is a metaphor is no reason to believe it is a useful metaphor --- that is, a "noble falsehood." Does the idea of a virtual neighborhood have some nobility? If we stretch the neighborhood all the way around the world, what features of it can we justifiably expect to carry over into the virtual reality of the metaphor? And what won't stretch? Clearly, actual visualization, moment-by-moment multiple perception, and direction recognition/identification -- essential features of truly human contact -- don't stretch across this medium. We don't get to watch a person's "body language." Is the person uneasy? Confident? Intimacy is something that also belongs to most neighborhoods but doesn't travel well. For one thing, the network is too narrow a channel and it's set up for too much speed. Neighborhoods develop because we watch each other's kids grow up and we borrow each other's lawn mowers. And finally, I do not believe that commitment is something we'll find in the virtual neighborhood. When my virtual neighbor's URL burns down, will I be there with my bucket of fiberoptic? A neighborhood is something complex, something rich. Saying that we can re-create a neighborhood virtually across incredible distances and through a very limited medium has to be, in some real sense, very audacious. This is especially the case, I think, when we claim that intimacy can move without alteration across this medium.

Generally Accepted Accounting Principles Essay

11. a. Year 0 Year 1 Year 2 Year 3 Year 4 Before-tax cash flow $(500,000) $52,500 $47,500 $35,500 $530,500 Tax cost (7,875) (7,125) (5,325) (4,575) After-tax cash flow 44,625 40,375 30,175 525,925 Discount factor (7%) .935 .873 .816 .763 Present value $(500,000) $41,724 $35,247 $24,623 $401,281 NPV $2,875 Investor W should make the investment because NPV is positive. b. Year 0 Year 1 Year 2 Year 3 Year 4 Before-tax cash flow $(500,000) $52,500 $47,500 $35,500 $530,500 Tax cost (10,500) (9,500) (7,100) (6,100) After-tax cash flow 42,000 38,000 28,400 524,400 Discount factor (7%) .935 .873 .816 .763 Present value $(500,000) $39,270 $33,174 $23,174 $400,117 NPV $(4,265) Investor W should not make the investment because NPV is negative. c. Year 0 Year 1 Year 2 Year 3 Year 4 Before-tax cash flow $(500,000) $52,500 $47,500 $35,500 $530,500 Tax cost (5,250) (4,750) (8,875) (7,625) After-tax cash flow 47,250 42,750 26,625 522,875 Discount factor (7%) .935 .873 .816 .763 Present value $(500,000) $44,179 $37,321 $21,726 $398,954 NPV $2,180 Investor W should make the investment because NPV is positive. 16. a. Opportunity 1: Year 0 Year 1 Year 2 Taxable income (loss) $(8,000) $5,000 $20,000 Marginal tax rate .40 .40 .40 Tax $(3,200) $2,000 $8,000 Before-tax cash flow $(8,000) $5,000 $20,000 Tax (cost) or savings 3,200(2,000) (8,000) Net cash flow $(4,800) $3,000 $12,000 Discount factor (12%) .893 .797 Present value $(4,800) $2,679 $9,564 NPV $7,443 Opportunity 2: Year 0 Year 1 Year 2 Taxable income $5,000 $5,000 $5,000 Marginal tax rate .40 .40 .40 Tax $2,000 $2,000 $2,000 Before-tax cash flow $5,000 $5,000 $5,000 Tax (cost) or savings (2,000) (2,000) (2,000) Net cash flow $3,000 $3,000 $3,000 Discount factor (12%) .893 .797 Present value $3,050 $2,679 $2,391 NPV $8,120 Firm E should choose opportunity 2. b. Opportunity 1: Year 0 Year 1 Year 2 Taxable income (loss) $(8,000) $5,000 $20,000 Marginal tax rate .15 .15 .15 Tax $(1,200) $750 $3,000 Before-tax cash flow $(8,000) $5,000 $20,000 Tax (cost) or savings 1,200 (750) (3,000) Net cash flow $(6,800) $4,250 $17,000 Discount factor (12%) .893 .797 Present value $(6,800) $3,795 $13,549 NPV $10,544 Opportunity 2: Year 0 Year 1 Year 2 Taxable income $5,000 $5,000 $5,000 Marginal tax rate .15 .15 .15 Tax $750 $750 $750 Before-tax cash flow $5,000 $5,000 $5,000 Tax (cost) or savings (750) (750) (750) Net cash flow $4,250 $4,250 $4,250 Discount factor (12%) .893 .797 Present value $4,250 $3,795 $3,387 NPV $11,432 Firm E should choose opportunity 2. c. Opportunity 1: Year 0 Year 1 Year 2 Taxable income (loss) $(8,000) $5,000 $20,000 Marginal tax rate .40 .15 .15 Tax $(3,200) $750 $3,000 Before-tax cash flow $(8,000) $5,000 $20,000 Tax (cost) or savings 3,200 (750) (3,000) Net cash flow $(4,800) $4,250 $17,000 Discount factor (12%) .893 .797 Present value $(4,800) $3,795 $13,549 NPV $12,544 Opportunity 2: Year 0 Year 1 Year 2 Taxable income $5,000 $5,000 $5,000 Marginal tax rate .40 .15 .15 Tax $2,000 $750 $750 Before-tax cash flow $5,000 $5,000 $5,000 Tax (cost) or savings (2,000) (750) (750) Net cash flow $3,000 $4,250 $4,250 Discount factor (12%) .893 .797 Present value $3,000 $3,795 $3,387 NPV $10,182 Firm E should choose opportunity 1. 1. a. (1) Year 0 Year 1 Year 2 Before-tax salary/income $80,000 $80,000 $80,000 Marginal tax rate .25 .40 .40 Tax on income $20,000 $32,000 $32,000 After-tax cash flow $60,000 $48,000 $48,000 Discount factor (8%) .926 .857 Present value $60,000 $44,448 $41,136 NPV of salary received by Mrs. X $145,584 (2) Before-tax payment /deduction $80,000 $80,000 $80,000 Marginal tax rate .34 .34 .34 Tax savings from deduction $27,200 $27,200 $27,200 After-tax cost $(52,800) $(52,800) $(52,800) Discount factor (8%) .926 .857 Present value $(52,800) $(48,893) $(45,250) NPV of salary cost to Firm B $(146,943) b. (1) Year 0 Year 1 Year 2 Before-tax salary/income $140,000 $50,000 $50,000 Marginal tax rate .25 .40 .40 Tax on income $35,000 $20,000 $20,000 After-tax cash flow $105,000 $30,000 $30,000 Discount factor (8%) .926 .857 Present value $105,000 $27,780 $25,710 NPV of salary received by Mrs. X $158,490 (2) Before-tax payment /deduction $140,000 $50,000 $50,000 Marginal tax rate .34 .34 .34 Tax savings from deduction $47,600 $17,000 $17,000 After-tax cost $(92,400) $(33,000) $(33,000) Discount factor (8%) .926 .857 Present value $(92,400) $(30,558) $(28,281) NPV of salary cost to Firm B $(151,239) c. Year 0 Year 1 Year 2 Before-tax payment /deduction $140,000 $45,000 $45,000 Marginal tax rate .34 .34 .34 Tax savings from deduction $47,600 $15,300 $15,300 After-tax cost $(92,400) $(29,700) $(29,700) Discount factor (8%) .926 .857 Present value $(92,400) $(27,502) $(25,423) NPV of salary cost to Firm B $(145,325) This proposal is superior (has less cost) to Firm B than its original offer. d. Year 0 Year 1 Year 2 Before-tax salary/income $140,000 $45,000 $45,000 Marginal tax rate .25 .40 .40 Tax on income $35,000 $18,000 $18,000 After-tax cash flow $105,000 $27,000 $27,000 Discount factor (8%) .926 .857 Present value $105,000 $25,002 $23,139 NPV of salary received by Mrs. X $153,141 Mrs. X should accept this counterproposal because it has a greater NPV than Firm B’s original offer.

Project Appraisal

Subject Code: PPA1C Paper: PROJECT APPRAISAL Specific Instructions: ?Answer all the four questions. ?Marks allotted 100. Each Question carries equal marks. ?Word limit is 200 – 300words General Instructions: ?The Student should submit this assignment in the handwritten form (not in the typed format) ? The Student should submit this assignment within the time specified by the exam dept ? Each Question mentioned in this assignment should be answered within the word limit specified ? The student should only use the Rule sheet papers for answering the questions. The student should attach this assignment paper with the answered papers. ?Failure to comply with the above Five instructions would lead to rejection of assignment. _____________________________________________________ Question No 1 A choice is to be made between two competing projects which requires an equal investment of Rs 50,000 and are expected to generate net cash flow as under: Project 1Project 2 End of year 1Rs. 50 ,000Rs. 20,000 End of year 2Rs. 30,000Rs. 24,000 End of year 3Rs. 20,000Rs. 36,000 End of year 4NilRs. 50,000 End of year 5Rs. 24,000Rs. 16,000 End of year 6Rs. 12,000Rs. 8,000 The cost of capital of the company is 10% . The following are the Present Value Factors @ 10% per annum: YearP. V . Factors @10% p. a 10. 909 20. 826 30. 751 40. 683 50. 621 60. 564 Which project proposal should be chosen and why? Evaluate the project proposals as under: †¢Discounted Cash Flow. †¢Pay back period methods, pointing out their relative merits and demerits. †¢Under what circumstances is the pay back period method and the NPV Method used for evaluating projects. Question No 2 (A)What is the rationale for NPV Method? Discuss the feature of NPV Method? (B) Teja international is determining the cash flow for a project involving replacement of an old machine by a new machine. The old machine bought a few years ago has a book value of Rs 800,000 and it can be sold to realize a post tax salvage value of rs 900000. It has a remaining life of 5 years after which its net salvage value is expected to be Rs 200,000. it is being depreciated annually at a rate of 25% under the WDV method . The incremental working capital associated with this machine is 500,000. The new machine cost rupees 300,000 . It is expected to fetch a net salvage value of Rs 1. 500,000 after five years . The depreciation rate applicable to it is 25% under the WDV method . The new machine is expected to bring a saving of Rs 650,000 annually in manufacturing costs(other than depreciation ). The tax rate applicable to the firm is 30% : a)Estimate the cash flow associated with the replacement project. b)What is the NPV of the replacement project if the cost of capital is 14%. Question No 3 a)The management of Parmila Ltd. is considering an investment project costing Rs. ,50,000 and it will have a scrap value of Rs. 10,000 at the end of its 5 years life. Transportation charges and installation charges are expected to be Rs. 5,000 and Rs. 25,000 respectively. If the project is accepted, a spare part inventory of Rs. 10,000 must also be maintained. It is estimated that the spare parts will have an estimated scrap value of 60% of their initial cost after 5 years. Annual revenue from the project is expected to be Rs. 1,70,000; and annual labour, material and maintenance expenses are estimated to be Rs. 15,000, Rs. 0,000 and Rs. 5,000 respectively. The depreciation and taxes for five years will be — YearDepreciationTax (Rs. )(Rs. ) 1 2 3 4 572,000 43,200 32,400 21,600 80011,200 22,720 27,040 31,360 39,680 Calculate the net cash flows for each year and cost of the project. Evaluate the project at 12% rate of interest. b)How gestation period of an on-going project affects Project financing decisions? Question No 4(A) The data concerning a site development project at the end of the 10th week of Implementation is given below: ActivityProgress (%) t the end of 10th weekBudgeted Cost at Completion (BAC)Actual Cost of work performed (ACWP) PlannedActual(Rs. Lakhs)(Rs. Lakhs) A B C D E F G H I J K L100 50 100 100 50 100 70 — — 100 200 2090 40 80 100 20 80 60 — 10 90 90 —5 35 5 10 20 10 15 5 10 15 10 207 15 5 10 5 10 9 — 1 13 9 — Total16084 The Project is scheduled to be completed at the end of the 20th week. Calculate the costs forecast at completion, assuming that the remaining work shall progress . Question No 4 (B): a)S Limited has Rs. 10, 00,000 allocated for capital budgeting purposes. The following proposals and associated Profitability Index have been determined. ProjectAmount (Rs. )Profitability Index 1 2 3 4 5 6300,000 150,000 350,000 450,000 200,000 400,0001. 22 0. 95 1. 20 1. 18 1. 20 1. 05 Which of the above investment should be undertaken? Assume that the Projects are indivisible and there is no alternative use of the money allotted for capital budgeting. b)Project Cost Estimation is a vital factor for starting the business. As a Financial Analyst, you are required to prepare the steps for cost estimation