Corporate Finance Assignment Essay Example | Topics and Well Written Essays - 1750 words

Corporate Finance Assignment - Essay Example Sales increase from year 1 to year 2 by 1.5 times, but in the 3rd year it appears that the sales only increase by 1.33 times, which shows a decline as compared to the previous financial year. Variable cost is included as a percentage of the sales for the month, which is 30% of the sales for the year. All the fixed costs are assumed to be directly attributable to the project and thus are included in the cash flows. As mentioned in the project, the useful life of the facility will be three years, thus it will be depreciated on a straight line basis over three years. Depreciation is a non-cash item, but it is included in the cash flow forecasting because of the tax shield, since depreciation is also tax deductible. In first year, the company will have taxable loss, so it is assumed that the company will have taxable profit in the future, against which this taxable loss will be utilized, resulting in tax savings. Depreciation is added back and the net cash flow is discounted through the use of the required rate of return in order to calculate the Net Present Value. 2. The principal risk of the project There are several principal risks that surround the project. Hi-Tech Industries operates in the technology industry, which is subject to rapid changes in many fields such as standard equipment, operating procedures, and laws and regulation. The project under consideration requires a careful estimation of all the relevant costs and revenues; a misjudgment in the forecast will cause an error in the project net present value, which might result in the acceptance of a project which is not financially viable. The initial capital expenditure must be carefully projected. In order to do so, it is of prime importance that the company obtains quotations from several companies in order to project the current market value of component. An artificially higher price will put a declining effect on the net present value of the project, and an artificially lower price will cause the o pposite. Another risk that is present in the financial appraisal of the project is that the company might not have estimated the correct useful life of the equipment. The IT related hardware and equipment are subject to becoming obsolete at a greater pace as compared to the other kinds, so this risk is present. While making an investment appraisal decision, it is imperative to consider the impact of inflation in the future cash flow. The information provided does not include any relevant information about the price inflation over the three year period, which can significantly impact the expected NPV. The director of the company must also consider the sources from which the financing will be obtained for the investment. Financing decision is significant, as the company would have to pay finance charge to the bank or any other financial institution, and the company must have enough cash flow in the future for the payment of these finance charge. In order to commence any investment ven ture, the director must receive the approval of the shareholders.

2.To what extent does Twenty Thousand Leagues Under the Seas fulfil Essay

2.To what extent does Twenty Thousand Leagues Under the Seas fulfil the stated aim of the Voyage extraordinaires series to provide instruction which amuses an - Essay Example It still finds its place in hearts of many people. One of the most famous and iconic characters of this book is Captain Nemo. True to his name Nemo was an enigma to Aronax, the narrator and the professor in the story, Ned land, the Canadian harpooner and Conseil, loyal servant of Arronax. To really look into characteristics of Nemo, let’s briefly sum the concise idea about this classic. While idea of the story is being told we will analyze the character of Captain Nemo. The story is being narrated by Pierre Aronnax, who is a famous marine biologist. It all starts with a theory of narwhal being sighted in various places. Aronnax along with his servant and Ned Land follow the path of seas only to understand that narwhal is a submarine which is led by a certain captain called Captain Nemo. The story then revolves around the expedition of Nemo, Aronnax, Conseil and Ned wherein they travel under sea for sixty thousand kilometers or twenty thousand leagues. The book became a cult success and has achieved the tag of classic not only because the central idea of Verne but also the style, characterization and treatment given to the plot to make it more entertaining and astounding. Captain Nemo is the central character of the story. Nemo in Latin means no one or nobody and that name aptly suits him because of his mystical attitude and mystery behavior in the course of the book. Let’s take the book analysis in more detail to understand the iconic character of this great captain. The name has lot of significance to the character and the outcome of book and we shall unravel the mystery behind it now. The first meeting with Captain itself was the one to remember. When Ned, Conseil and Aronnax were being taken as captives in the submarine ‘Nautilus’, each of them explain their situation in different languages of English, French, German and Latin. Captain Nemo does not reply and walks away. Later when he confronts the group he was attacked by Ned and