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Opportunity to live Essay During the antiquated occasions before detainment, there were executions and executions just which were somewhat finished by stoning. There were comprised of a few reasons regarding why the death penalty was required. The United States acquired its utilization of the death penalty from the European pilgrims in the seventeenth century yet in the eighteenth century, German logician Immanuel Kant advanced that execution was the â€Å"fairest discipline for murder†. He introduced that it is the most reasonable discipline for the individuals who have submitted murder and that an individual who has fouled up ought to languish over it. Contending that executioners ought to â€Å"die so as to pick up discharge from their suffering†, including that the wrongdoing must fit the discipline. Contentions against capital punishment uncover the death penalty for what some accept is a sensible discipline, while others see it as vengeance camouflaged as equity however generally, is consistently an issue that would not be similarly examined and canceled around the world. Contradictions about capital punishment for the most part turn on issues of decency, profound quality and viability. There comprises of unlimited reasons regarding why capital punishment is to be abrogated. One of many is that executions cost more than life in jail. As indicated by Statistic Brain, it costs almost 2 million for each individual to be executed, all which comprises of most extreme security, counsel for guard and others. Another well known point is that the guiltless might be wrongly executed. This is a high hazard since proof, DNA, and witness articulations are not 100% dependable. A somewhat applicable case was an erroneously executed man named Cameron Todd Willingham. He was executed in Texas, known to be the main state with the most noteworthy pace of executions. He was blamed for supposedly setting his home ablaze that executed his three youthful girls. He over and over asserted his blamelessness and the pyromania examiner was addressed just before Willinghamâ€℠¢s’ execution. After his execution, an analytical report found the fire was a mishap. A few reasons incorporate that capital punishment discipline does notâ necessarily diminish the crime percentage, that life in jail likewise ensures no future wrongdoings, a few religions deny capital punishment, executing isn't right even through a discipline, that it damages universal human rights laws and that it advances slaughtering as an acceptable answer for a troublesome issue. A typical factor concerning why individuals contradict capital punishment is a direct result of the mercilessness of the demonstration itself, for example, the regular contemporary strategies for execution, for example, by shooting, hanging, utilizing gas, electric shock and deadly infusion. Concurring Amnesty International who are solid non-backers of capital punishment, the death penalty is the definitive dismissal of human rights. It is the â€Å"premeditated and merciless murdering of a person by the state†. A large portion of the measures of US States have prohibited capital punishment for instance New York, thinking that its illegal. In Just Revenge by Mark Costanzo, he expresses that most Americans are steady of capital punishment in the theoretical by basically needing the administration to deal with it, â€Å"cleanly and proficiently, in a far off prison†. He addresses that â€Å"is it ethically adequate to expose killers to mental torment before we murder them?†. While others guarantee it is a cruel, barbaric and undignified discipline done â€Å"in the name of justice†, remembering that delivering discipline for miscreants demoralizes others from wrong doing. Some may state that capital punishment is an approach to lash back at the individuals who have hurt us, yet helpfully we should be more sensible and others conscious than the individuals who submit the demonstration themselves. The individuals who favor capital punishment contend that if there were no capital punishment to hold over the head of detainees, the individuals who have been condemned to existence without the chance for further appeal would be allowed to carry out whatever wrongdoings they picked unafraid of expanded discipline. Capital punishment supporters regularly press two cases of executing killers. The first is that it is shamefulness to the survivors of homicide on the off chance that we don't execute their killings. The subsequent case is that capital punishment is expected to alarm possible killers. Dread of the execution chamber will limit likely killings, realizing they could confront the killer and that the individuals who in any case murder will stop and guiltless lives would be spared. Another factor with respect to why capital punishment is legitimized is it offering conclusion to victims’ families who have experienced hugely the loss of their adored one. And furthermore a detainee can get away from jail and allow them to execute. Capital punishment is supposed to be expected to shield society from the individuals who might slaughter once more. A considerable lot of these elements which relate back to vindicate. Now and again, the death penalty is a â€Å"risk taker†. There are sure cases in which murdering a criminal can prompt addressing with regards to whether the individual was liable of the wrongdoing. Capital punishment neglects to adequately develop a general public that is liberated from wrongdoing. Moreover, it doesn't alleviate the agony and loss of the people in question or their families. States have made numerous recommendations regarding why the death penalty isn't right. As residents, capital punishment doesn't mitigate the dread of savage wrongdoing or better safe-watch the individuals and isn't forced with reasonableness. Pope John Paul II made an understood point in an announcement he made about capital punishment. He expressed â€Å"the capital punishment doesn't permit the open door for the otherworldly and human compromise with the victim† and furthermore that â€Å"we can't instruct that murdering isn't right by killing†. This statement is a generally excellent guide to supporting annulling capital punishment that we can't instruct that killing an individual isn't right by murdering a crook. Contingent upon the nation, there are various perspectives with regards to whether capital punishment ought to be nullified or not. The components on the two sides of the contention have prompted the cancelation of capital punishment in Eastern Europe. For instance, Ukraine has put a respite to its discipline of capital punishment, just as South Africa, whose parliament casted a ballot to officially abrogate capital punishment, which had prior been proclaimed unlawful by the sacred court. Their established court accepts that passing is the most extraordinary type of discipline. They accept each individual has the privilege to life, nobility, popular assessment. In addition to the fact that this is an issue in the United States, yet very well far and wide. In India, the Indian Penal Code approves the burden of capital punishment as a punishment of homicide. In spite of the fact that it is almost unimaginable for the abolishment of capital punishment to be evened out and comprehended by the two sides of the contentions, the thoughts and feelings will never blur. With a few states not having capital punishment, the genuine inquiry is whether we need capital punishment. The death penalty isn't the center of our criminal framework; its just a single part of it. Just a little level of killers are condemned to death, and just a little level of that are executed. The genuine inquiry is whether we demand keeping capital punishment despite the fact that we don’t need it. WORK CITED End Capital Punishment. Annul the Death Penalty. Absolution International USA, 2013. Web. 23 Apr. 2013. Costanzo, Mark. Simply Revenge: Costs and Consequences of the Death Penalty. New York: St. Martins, 1997. Print. Agency of Justice Statistics. Capital punishment Statistics. Measurement Brain RSS. Measurement Brain Research Institute, 6 Aug. 2012. Web. 23 Apr. 2013. Kronenwetter, Michael. The death penalty: A Reference Handbook. Santa Clause Barbara, CA: ABC-CLIO, 2001. Print.

Marx and Durkheim agreed about the nature of the problems of industrial capitalist society but disagreed about their cause and solution Essay Example

Marx and Durkheim concurred about the idea of the issues of modern industrialist society however differ about their motivation and arrangement Essay Example Marx and Durkheim concurred about the idea of the issues of mechanical entrepreneur society however differ about their motivation and arrangement Paper Marx and Durkheim concurred about the idea of the issues of modern entrepreneur society however differ about their motivation and arrangement Paper Paper Topic: Humanism Emile Durkheim (1858-1917) was a French, seemingly quintessential, humanist with his statements that society sui generis is the topic of human science. Treat social realities as things is an acclaimed decree of Durkheim by which he implies social wonders is a goal domain, outer to people. Social realities are methods of acting, thinking or feeling that are outer to people, having their own existence outside the discernments and lives of people (Giddens, 2001, p9). These social realities practice a coercive control over people. Durkheim thought about humanism as another science. By analyzing customary philosophical inquiries observationally, humanism could be utilized to clarify these inquiries. Durkheim was seriously worried about the social pathology of contemporary modern culture (Anderson et al, 1987, p47). Durkheim was likewise especially intrigued by social and good solidarity thus examined what holds society together and what shields society from plummeting into turmoil. Durkheim moved toward advancement and the modern transformation through the investigation of the division of work (LaCapra, 1972, p82). In 1893 Durkheim composed his first significant works, The Division of Labor in Society wherein he differentiated mechanical and natural solidarity and related them to the development of qualifications between various occupations the division of work. Durkheim contended that crude social orders were described by a mechanical solidarity with a constrained division of work. Social solidarity depended on shared qualities, all people performed comparative assignments and were bound together by a typical aggregate still, small voice. After a continuous move towards a natural society with a propelled division of work, people had diverse word related jobs and social solidarity depended on moral independence and social pluralism. Social reconciliation depended on the division of work. In spite of the fact that Durkheim dismissed thoughts of both Comte and Saint-Simon, Durkheim believed that the natural division of work could give the premise to singular opportunity and social co-activity if the obsessive highlights of contemporary society were dispensed with (Anderson et al, 1987, p47). Durkheim acquainted the idea of anomie with human science, which truly implies without standards. Anomie exists when society neglects to give a restricting structure of accepted practices, bringing about despondency and social issue. Durkheim intended to build up human science as a science and to set up the prerequisites to keep up social request in present day social orders. In the wake of seeing the development of mechanical creation and the imbalances that came about because of this development, Karl Marx (1818-1883) tried to clarify the progressions that were happening in the public arena during the Industrial Revolution time. Marx saw the new and old social orders, free enterprise and feudalism, as a conspicuous difference. Feudalism depended on the agrarian, country society, something contrary to mechanical industrialist society. Mechanical private enterprise is overwhelmed by the market. In the creation of products for the market their natural worth has little impact; the value of any ware is its trade esteem. Everything in the public eye is ruled by the money nexus, including work which turns into another item to be purchased and sold (Anderson et al, 1987, p5). Marx contended that the entrepreneur land owners structure a decision class, whom Marx called the bourgeoisie, managers of pay work, the property-less common laborers, whom Marx marked the low class. As industrialisation grew, enormous quantities of laborers moved to growing urban communities thus supported the development of a urban-based mechanical common laborers. The white collar class of dealers and makers (or business people) were middle class, as recognized from the remainder of the medieval class, from the working class of modern workers, and from the lower class (Smelser et al, 1976, p54). Marx contended that Capitalism is intrinsically a class framework in which class relations are described by strife (Giddens, 2001, p12). In Marxs see, the bourgeoisie had the option to create benefit by misusing the low class through abusive debasement of talented work and its experience. Eventually, for Marx, this prompted estrangement the corruption of the laborers to turn into a most hopeless kind of ware whose wretchedness is in reverse extent to the force and size of his creation (Marx, 1848, p77). This product would turn into the social class, called the low class by Marx. Work was composed exclusively as to proficiency and the quest for benefit. These elements prompted disparities of the average workers which expanded significantly the hole between the business people and the regular workers, just as the riches and ways of life of land owners. Retailers, autonomous specialists, etc were subverted as entrepreneur creation built up a serious hunger. Marx guaranteed that it isn't rapacious and serious people who produce industrialist society. It is industrialist society that produces serious and rapacious people (Hughes et al, 1995). Marx and Durkheim regularly had clashing thoughts. Nonetheless, they shared comparative perspectives about some sociological thoughts. Both accepted that logically based information on society could be utilized to improve the states of humankind. Both accepted their errand was to find the laws that represented the association of the social request and attract matches with the ways which the characteristic sciences had uncovered the laws of nature. When taking a gander at the idea of the issues of mechanical industrialist society, Marx and Durkheim share the contention that the individual and aggregate were contrary to each other. The two of them accepted that the individual is a normally self-intrigued being which thrived just when excluded from any sort of control by society was an appearance of current society and, without a doubt, of the most obsessive highlights of that society (Anderson et al, 1987, p132). Marx and Durkheim both saw the person as a being with a requirement for society. Be that as it may, Marx proposed that Man has a nature that will in the long run affirm and satisfy itself and will do as such to the detriment of a wanton social request (Smelser et al, 1976, p123). Durkheim guaranteed that Mans requirement for society is met less by considerable standards of equity and more by social ties and regulating limits (Smelser et al, 1976, p123). Marx and Durkheim contended that we live in social orders, called natural by Durkheim and industrialist by Marx, in which individuals are progressively, separately, ready to would what they like to do however less and less piece of social gatherings. The possibility that individuals ought to be liberated from outside limitation was restricted by neither Durkheim nor Marx yet both accept that in present day social orders, outrageous opportunity can be a terrible thing for the person. Marx and Durkheim attempted to reveal the idea of opportunity of the person in western social orders of the nineteenth century as a hallucination. The opportunity of the individual was, Marx contended, just clear, a shallow sort of opportunity (Anderson et al, 1987, p132). In spite of the fact that Marx and Durkheim indicated understanding about the issues of mechanical entrepreneur society they differ about the causes, as we have seen, and arrangements, of this general public. Durkheim showed a specific shirking of a lot of Marxs work. Durkheim did moderately little to expand upon the combination with crafted by Marx. The Marx whom Durkheim especially detested was the Marx who upheld class strife and brutal upset in present day society (LaCapra, 1972, p23). Durkheim accepted that the origination of current society continued through an obsessive condition of fast progress, forming into typicality. Durkheim was hopeful that advanced society had the capacity to determine the extreme issues delivered by mechanical industrialist society. Like the political and social scholar Rousseau, Marx wanted a way to vanquish the imbalances and divisions of the general public of his time and to comprise a genuine network. Instead of the old middle class society, with its classes and class threats, we will have a relationship, wherein the free advancement of each is the condition for the free improvement of all (Marx, 1848, p31). Marx, likewise like Rousseau, pinpointed the impediment to accomplishment in the interestingly evolved divisions among individuals, especially the division of work. Marx contended that social change is basically incited by financial impacts. Class clashes give the drive to verifiable turn of events and change. Marx considered this thought the realist origination of history. The historical backdrop of all up to this point existing society is the historical backdrop of class battles (Marx, 1848, p222). As per his perspective on history, Marx contended that simply like the middle class had joined to annul the primitive society, so too would the average be expelled and another general public introduced. Marx accepted that the working class would build up the limit and the will additional time to revolt, bringing about the ruin of the entrepreneur framework. This would empower another general public to advance where there would be no classes thus no immense divisions among rich and poor. Marx accepted that imbalances would no longer contain the split of the mass of the populace that were misused by the decision class who, in their little minority, cornered the practical and political force. The upset that would oust free enterprise would prompt socialism. This political belief system, got from communism, intended to

Lean VS Six Sigma W3 OM Essay Example | Topics and Well Written Essays - 250 words

Lean VS Six Sigma W3 OM - Essay Example Lean is a methodology that centers around speed. In the light of this, the accentuation of most makers utilizing the lean procedure is to decrease the quantum of time spent between various exercises inside the creation cycle (Deisell, 2011). The thought is that there must be shorter process durations so that however many cycles as could be allowed can be finished inside a given time period. On account of the accentuation on speed, different types of burn through are centered around time related waste and bottlenecks including pausing, overproduction, adjust, movement, over handling, stock, insight and superfluous shipping (Bollen, 2009). Six sigma philosophy then again centers around flawlessness in the creation procedure by lessening the quantity of blunders that the creation records (Deisell, 2011). To accomplish the objective of this strategy, norms are set as information inputs. Varieties in the information contributions as a major aspect of the creation in this way advise the degree to which there has been blunders and the size of the mistakes (Calantone, Cavusgil and Zhao, 2002). Underlying driver examination is one of the significant systems that most makers have used to recognize mistakes as a component of the six

The Salem Witch Hysteria Essay Research Paper free essay sample

The Salem Witch Hysteria Essay, Research Paper The Salem Witch Hysteria Explicit aim: To advise my crowd about the Salem sorcerer tests Proposal Statement: The Salem magician tests were a progression of occasions that lead up to the hanging of 19 grown-up male and grown-up females in Salem Mass. I. Presentation A. # 8211 ; The twelvemonth, 1692. The topographic point, Salem Mass. Envision yourself a grown-up female at place cookery supper for your family. You peer out the window and happen your hubby finishing up his yearss work in the field while your children skip about as the Sun sets behind them. Or on the other hand think about yourself a grown-up male. Cleaning the sweat from your temple as you quickly complete up a long yearss work with hope of supper with the family. Presently your at the supper even cluster, opposite your hubby or wedded lady. You talk about the conditions, how the twenty-four hours went, and the Reverend # 8217 ; s latest Sunday talk. Out of nowhere, there # 8217 ; s a thump on your entryway. It # 8217 ; s the town judge with a warrant for your misgiving. You are accused of the offense of witchery, analyzed, so saw as liable. In the event that you admit, you invest a real existence energy in jail. In the event that you keep up your guilelessness, you # 8217 ; rhenium hung. This is like a typical situation of what occurred at the Salem sorcerer tests. B-The Salem magician tests were a progression of occasions that at long last lead to the hanging of 19 work powers and grown-up females. They took topographic point in Salem Mass. in the twelvemonth 1692. C-Who were the informers? Who where the individuals being charged? What were the out happens to the tests and why? Let # 8217 ; s start with how everything started. II How did everything get down? A # 8211 ; Rev. Samuel Parriss # 8217 ; young lady Elizabeth, age 9, and niece Abigail Williams, age 11, had a slave that thought about them: TITUBA B # 8211 ; Tituba tells account from local land C # 8211 ; Girls love stories and get down playing with it. Joined by different misss around. D-On Jan. 16, 1692, began to hold fits, ictuss, and charm # 8211 ; like scenes. Not long after that the rest of the misss did too much. E-Rev. Parriss acquired Dr. William Griggs who could name no clinical ground for misss conduct. Closed misss under impact of Satan. F-Pray administrations and network fasting held by Rev. in trusted of # 8221 ; handing-off the shrewd powers that tormented them # 8221 ; . In endeavors to uncover the enchantresss John Indian heated a magician bar with rye repast and the stricken misss piss. G-Pressured to put the enchantresss, misss named 3 grown-up female. Tituba, Sarah Goode, and Sarah Osborne. H-Goode and Osborne kept up their naiveté while Tituba admitted to seeing the Satan. Furthermore, vouched for a conjurer alliance in Salem. I-Judges John Hawthorne and Jonathan Corwin analyzed the 3 grown-up females. When again simply Tituba admitted to rehearsing witchery. J-Over the accompanying barely any hebdomads, an ever increasing number of individuals came frontward with accusals III # 8211 ; Who were these new informers? A # 8211 ; Most of the new informers identifies with the Putman family unit B # 8211 ; Ann Putnam Jr. # 8211 ; one of the # 8221 ; tormented children # 8221 ; Age 12, blamed a whole for 62 individuals of being enchantresss. C # 8211 ; Thomas Putnam # 8211 ; Chief filer of sicknesses in the Town of Salem. Helped Anne Jr. In her accusals by taking her to council. D # 8211 ; Her female parent Anne Putnam SR in council room each piece much as young lady with accusals. Incidentally in court room, would go stricken. E # 8211 ; Mercy Lewis-Servant to Putnam # 8217 ; s 17 mature ages old. Other than on of the # 8221 ; beset # 8221 ; misss F # 8211 ; Mary Walcot-Ann jr. Closest companion. Beset miss. G # 8211 ; All 5 misss, Ann Jr. , Mercy, Mary, Abigail, and Elizabeth were engaged with Tituba # 8217 ; s story connection, juju rehearsing, and karma connection IV Wh Operating system were the individuals being charged? A # 8211 ; The first individuals blamed for witchery were Tituba, Sarah Goode and Sarah Osborne. When again, Tituba admitted, while Sarah Goode Osborne despite everything kept up there simpleness. B # 8211 ; Sarah Goode-a chief delineation of what caused a clump of the accusals. She was seen as socially undesirable. Sarah # 8217 ; s activities and demeanor caused conflict among other network individuals and it was no profound respect she was blamed. C # 8211 ; The accompanying to be indicted was Martha Corey and Rebecca Nurse. Both were upstanding individuals from the network. Continuously devoted church departers. In any case, they turned out to be somewhat cautious of the test procedures and straightforwardly stood up against the informers. Not long after they were charged. D # 8211 ; Martha # 8217 ; s hubby, Giles Corey, made a testimony against her. When he understood what he had done, he withdrew his announcement. A warrant for his fear was so given. He would not arrive in a petition. He was squashed to expire under a board and shakes for non being agreeable. F # 8211 ; Next to be reproved a conjurer was Elizabeth Proctor. At the point when her hubby, John Proctor attempted to help her, he was denounced and detained. He was sentenced and hung in this manner. His wedded lady by the by, b/c with kid was non. G # 8211 ; The rundown goes on of such a large number of comparative stories. In whole 13 grown-up females and 6 work powers were hung for being enchantresss. Names # 8211 ; females-Bridgett Bishop, Martha carrier, Martha Corey, Mary Easty, Sarah Goode, Elizabeth Howe, Susannah Martin, Rebecca Nurse, Alice Parker, Mary Parker, Ann Pudeator, Margaret Scott, Sarah Wildes. Guys George burroughs, George Jacobs, SR, John Proctor, Wilmott Redd, Samuel Wardwell, and John Willard. H # 8211 ; The ground they were hung was on the grounds that they would non screech. In the event that they confessed, they would hold went to gaol and non kicked the bucket. For what reason were these individuals denounced and sentenced? A # 8211 ; A typical similitude found among all the individuals who were hung, was that they all had past discord, or set down proclamation with some on in the town. Frequently one of the informers. B-For delineation, George Burroughs was a Minister yet fought about his compensation and left. During the test, the stricken misss alluded to him as the # 8221 ; dark Minister # 8221 ; . What's more, Claimed he was pioneer of the Salem Coven C-John Proctor was known for being vocal and hot tempered. He was a rich land owner and possessed a bar. What's more, he was seriously contradicted to the witchery tests and straightforwardly stood in opposition to them. The individuals who denounced John screen were the individuals he revolted against. D # 8211 ; Giles Corey had a condemnable record and a hot - temper. He would constantly reason and imperil neighbors. E # 8211 ; So you see, the individuals charged were individuals who frequently caused battle among influential individuals around. VI # 8211 ; Conclusion- A # 8211 ; The Salem Witch tests finished on Nov. 25th 1692, 2 months after the last 8 individuals were hung. Thomas Brattle composed a note thumping the tests. The letter affected Governor Phips, who disintegrated the court of Oyer and Terminer. The courts in Salem looking for the cases. B # 8211 ; The general councils of the settlement made the better court than look for the staying examples. This clasp no 1 was indicted. C # 8211 ; The Salem conjurer furor was a catastrophe that made families hinder up, and guiltless individuals there lives. D-Was there really a # 8221 ; Witch Hysteria # 8221 ; ? Or on the other hand was it just lively misss who got in over yonder caput? Did the informers genuinely accept the individuals they were impugning were really enchantresss? Or then again was it a simple way to free the town of # 8221 ; Socially undesirable # 8221 ; and the battle causers? The solitary 19 individuals who might ever genuinely cognize, were hung.

How to Self-Educate with Reading the Right Books

The most effective method to Self-Educate with Reading the Right Books The most effective method to Read Useful Books that Don't Interest You Imprint Zuckerberg, Bill Gates, and Warren Buffet read about 50 books every year. Intrigued? These individuals have made goliath progress and got celebrated all through the world. It is safe to say that they are the most extravagant, the best, or the most wise ones? This can be gained from the things they like to peruse and what rouses them in their lives. Indeed, you should concur that Bill Gates would not discover books energizing in his regular daily existence yet would lean toward books that create and show fascinating things. The critical point is that while picking true to life books, you need to prevail with the substance and find just great data so as not to burn through your time. In any case, frequently it happens that individuals stay discontent with their decision †typically, true to life books are not exactly discernible and are ineffectively seen by the peruser. They don’t focus on anything and, thus, lose enthusiasm for self-advancement. The inquiry is: â€Å"How to pick the correct books and how to peruse them viably and wisely?† What’s Wrong with Non-Fiction Books? In the event that you go to any book shop in your city, you will most likely go over a huge amount of fiction books. Fiction books are uniquely structured and written to catch the eye of the purchaser and make him buy a book. On the off chance that you don't focus on the spread, at that point subsequent to glimpsing inside and checking a couple of pages, you despite everything need to get it. What is the explanation? Fiction books are written in such a finesse approach to consistently energize the peruser and make him read each word mindfully not to miss a solitary detail and read ‘till the end. The emphasis is on the story: if the book has a fascinating plot, since people are interested, we are probably going to peruse the entire composed piece. Has it at any point happened to you that you discovered a true to life book as much energizing as a novel? At that point you are simply fortunate and hit the correct substance. Informal books consistently cause more enthusiasm than logical ones, in spite of the fact that there is less importance in them. In logical books, much of the time, there is no plot, however they are made to address a significant inquiry, show a few things, depict certain procedures, etc. Obviously, fiction books can likewise be valuable, they increment jargon, add to the improvement of inventiveness and unique reasoning and furthermore help locate a typical enthusiasm with individuals here and there. Be that as it may, on the off chance that you have an objective of self-instructing and improving potential abilities, you should offer inclination to personal development books. How to Choose the Right Self-Improvement Book? Frequently we hear such an announcement valuable books are not continually fascinating, is it worth understanding them?. The appropriate response is straightforward: obviously, they justified, despite all the trouble. Yet, you have to do this cautiously, by adhering to specific principles that assist you with keeping up enthusiasm for perusing helpful books. Initially, you have to comprehend why you need a specific personal development book. Pick the investigation region or part of information and get the correct setting. Furthermore, dissect your present life circumstance and ponder what you need. On the off chance that you are searching for approaches to bring in cash, at that point read books about business showcasing. On the off chance that you need to dispose of any limitations throughout your life and discover harmony - discover a book about brain science. It is significant here to unmistakably comprehend what you need, at that point you will consistently have the enthusiasm to peruse and furthermore your present needs will get fulfilled. A couple of little yet helpful hints for the individuals who need to begin perusing personal development books: 1. Break down yourself and your present life circumstance. As referenced before, you ought to have an away from of what's going on in your life right now. By examining yourself and your life circumstance, you will have the option to understand your fundamental issues and pick the most intriguing and significant inquiries for you. 2. Think of the inexact answer. After thoughtfulness and distinguishing proof of the primary issue, imagine the answer for this issue or locate an inexact response to the inquiry you need. From that point forward, drive in the quest for the name of your primary issue and search for the ideal choice. 3. Assess a book before getting it. What's more, the last guidance for now - when looking for a book you requirement for self-advancement, be cautious and cautiously review the book. In the event that you are looking through on the web, read the constructive and contrary criticism from individuals, and furthermore download the initial piece of the book. On the off chance that you choose to purchase a book in a customary store, see its spread, read about the writer, and figure whether this book can support you.

A Mental Exercise to Help You Find Meaning in Your Life

A Mental Exercise to Help You Find Meaning in Your Life More in BPD Living With BPD Diagnosis Treatment Related Conditions Do you need help finding meaning in your life? Many people with borderline personality disorder (BPD) struggle with feelings of emptiness, identity problems, and depressed mood. Together, the symptoms of BPD can leave you searching for meaning in your life. This is one exercise that is designed to help you identify whats meaningful to you. Of course, finding meaning is not an easy process, and no one exercise will get you there. Finding meaning takes work and is best accomplished with the help of a good therapist. In fact, this may be an exercise that you want to work on with your therapist. Finding Whats Meaningful to You The first step toward finding meaning in your life is to determine what aspects of your life are meaningful to you. This exercise, which is adapted from an exercise from acceptance and commitment therapy (a type of cognitive behavioral therapy that is related to dialectical behavior therapy for BPD,) can help you assess what is most meaningful to you. To begin this exercise, take out a notebook or a sheet of paper. Down the left side of the page, write these domains of your life: Intimate relationshipsParentingFamilyFriendships/socializingEducation/personal  growthCareerRecreationSpirituality/religionPhysical healthHelping others Now that you have the list, next to each item write a number between 1 and 5 that corresponds with how important you personally find each area to be in your life, with 5 extremely important and 1 not at all important. If youre not sure, just write a question mark. Remember that there are no right answers, and no one will ever have to see this list. Just write down what you feel is important to you, not what anyone else says should be important to you. Define What Would Bring You Meaning Now that youve rated each domain on the list in terms of importance to you, pick the two domains that you rated as most important. If you rated every domain as exactly as important as any other, go back and think about whether there are actually one or two domains that stand out as more important than the others, even if its only by a little bit. For the one or two domains that you picked out as most important, write one or two sentences about how you would like to behave in each domain. This is importantâ€"this is not about how you would like to feel or think (e.g., I would like to be confident and self-assured.)  Instead, focus on your behavior or how you would like to act in that domain. Heres an example of the “intimate relationships” domain: I would like to be a kind and caring partner. I would like to say supportive things to my partner when they are feeling down, and I would like to do things for them that will help make their life a little easier. I would also like to act as if I am worthwhile in relationships by asking for the things I need.” Putting It Together Nowâ€"in  the one or two domains that you chose as most important to youâ€"look at what you have written about how you would like to behave. Hopefully, you have written one or two sentences that describe behaviors or actions that you would like to take in those domains. These are the types of actions that can help you find meaning in your life, the ways that you would like to be in the areas of your life that are most important to you. Don’t be surprised if reading the statements you have written makes you sad. Perhaps youre not acting the way you would like in these areas of your life, or perhaps you feel nowhere near where you would like to be in these areas. For example, maybe youre not in an intimate relationship despite the fact that its very important to you. Take Your Time If youre struggling with this exercise and are having a hard time finishing it, put it down and come back to it another time. This can be a very difficult exercise, and sometimes it requires some time to think about everything, so let it sit for a while and try again when youre ready. You can also try talking it over with a friend or your therapist to get more input. Living the Life You Want to Live If youve completed this exercise, youve taken a very important step toward living a more meaningful life. Youve determined what areas of your life are most important to you, and you have specified a few actions you could take that would move you toward having more meaning in your life. The exercise doesnt take long to complete, but if you work toward achieving the actions you want to take in specific domains, it can have long-lasting effects in helping you to live the life you truly wish to live.

Master An Awesome Press Release Writing With Our Tips

September 28, 2019 Developing a news channel requires a lot of effort. Any step can lead to its rise or doom. Especially when it goes about a press release. It is the thing that creates your viewer’s first impression and surely indicates your news channel professionalism. You can make it standard, like thousands of others. Or rely on creativity, during the selection of the words, headlines and opening phrases. And, of course, while writing a press release. It is the popular student assignment on Journalists and other courses. Lets see what is it and how it can help your news channel. Press release definition You will not write a good press release without knowing its definition. Basically, it is a short news story, that serves as an official voice of your channel. Your target audience is not your viewers, and it is essential to keep that in mind. The people you should focus on are journalists and professionals. So, you need to write in the third-person voice and keep in mind other important rules we’re going to describe in this article. The main purpose of the press release is to provide journalists with the all necessary information to create an interesting text. We’ll give you a sample to improve your regarding and to help you while writing a top-notch press release. Tips on how to write a press release If you are a beginner at writing press releases, let us provide you with some effective tips: Make an outstanding headline. Your essential task is to grab attention. And the headline might come in handy for this purpose. You can rely on 5W rules – start with What, Why, Where, When and Who to get your audience involved. Add How to for sure. Straight to the point. The content of your press release should be informative, waterless. If you consider some data to be useless, get rid of it. Also, never provide journalists with too much information in case you want to grab their attention. Make your press release neat and crisp, avoid confusion. Reread the text several times if needed. Use catchphrases. Remember that it’s important not only to attract readers but also to create so-called brand awareness. People should remember your news and share them with others. Catchy phrases will help you in this way. Grammatically perfect. Hire a good corrector, or re-read the release a million times before submitting it. Poor language and grammar is a way to get read of your readers. Besides, remember that a lot of people read the news to improve their English. Be a good example for them. One random mistake may go unnoticed, but the trend will be death for your reputation. Brevity is the soul of wit. You don’t need 5 pages to share your news. 1 or maximum 2 pages would be enough. Think about your readers, they will be definitely bored with such a volume of information. Consider the rule â€Å"Less is more† while writing and get rid of everything that is useless.   Prefer active, not passive voice. One of your main goals is to persuade your readers to take action. And the use of a passive voice will rather hurt than help. It is less attractive and more bureaucratic. Using an active voice, you will make your audience feel more connected and involved.   10 steps to write an awesome press release Make it as good as possible. It doesn’t matter are you writing for a front-page or for the last one, leverage all knowledge to make your press release the best. Imagine you’re an author of the biggest media in your city and create a masterpiece. Check data, facts, figures.  Use only the proven information, as your press release shouldn’t be vague. Providing your readers with accurate data, you’ll build a strong ground for your news. Write down a list of possible questions and answer them.  You have to think one step ahead. Imagine what questions your readers may have and provide them with answers. It is the best way to catch your audience with ease. Don’t rush with the headline.  Creating it at the beginning of your write-up will be just a waste of time. You don’t know how far inspiration will take you and the headline can lead you astray. Write your press release, reread it twice and you’ll come up with an awesome headline. Don’t forget about the conclusions.  It would be nice and useful to provide your readers with conclusions, some findings. People are used to receiving a final verdict in a book, paper, article, etc. Leave contact details. This information isn’t always considered to be crucial, but it is. Even if you’ve prepared an informative press release with all the needed data provided, journalists might have some additional questions. So, make sure you’ve left all the contact data. The best place for it is the top of your article. Add relevant quotes.  That will help you to make your press release more attractive for readers or listeners. You can speak with the sponsors or ask the CEO to provide any additional information. But make sure your press release is creative, without bureaucratic clerical phrases. They are such a turn off for modern readers. Use the third-person voice.  Remember that you’re not targeting your audience directly, that’s why you should write your text in such voice. Instead â€Å"Our company made significant progress last quarter† use â€Å"ABC company concluded a $10 million dollars cooperation agreement with XYZ company†. Use the inverted pyramid structure.  If you are wondering on how to make your press release readers-friendly, take a look at a pyramid. Start with the most common information, simple facts, and then go deeper and narrower, adding more data. Remember about your target audience. While education, you will face different assignments, such as writing a blog post, an article, a post for social media, etc. Then you will appeal to readers directly, considering their interests and tastes. But for now, your task is to write a good press release for journalists, editors, and broadcaster. Distinguish these groups to succeed. Using press release format Although the press release should be interesting and creative, its format is clearly defined. You should make it as crisp and correct as possible. We understand that this task isn’t the easiest one, that’s why we have decided to provide you with a step-by-step guide for a format. So take a look and leverage it to your advantage! First things first – Company logo.  It is an essential point of your press release that will make your brand awareness much stronger. Include this picture at the center of the page and consider its quality. Contact information. As mentioned above, contact data matters. You should put it on the right margin to provide the readers with an opportunity to connect with you. Some companies prefer putting it after the body paragraph. Whatever you choose, make sure your contact information looks like this: Contact: John Doe Phone (111) 234 567 8-9 Email: johndoe@yourcompany.com Release date.  This point isn’t mandatory but sometimes it can be useful. You should include it if you want it to be done earlier. Add the release date below your brand logo on the left margin. You can write something like â€Å"Release on 5th of May on 16-45† or â€Å"For immediate release†. Headline.  The bright and suitable headline is what makes your readers get interested. There are some requirements to issue the headline appropriately. You should center it, write in bold letters, using the 14-font size. Make sure it is strong and unique. The deck or subheadings.  This point is needed if you want to write your press release more substantively, to provide your reader with interesting insights. But it is essential to make sure that the desk doesn’t repeat the data you’ve already provided. Dateline.  Writing the body paragraph, start with a dateline basically. Separate it from the content by a dash. Use capitals to write the location, e.g. WASHINGTON CITY, USA, May 5 – (main content). Consider your first body paragraph.  Remember about 5 W rule and use the answers to these questions in the first paragraph. Don’t focus on hyping your product up at this moment, it is better to rely on stating the facts, for now. Remember the format. For the body paragraph, it is non-bold, font size is 12. Main content.  In these body paragraphs, you need to sum up the headline and all the story introduced. Leverage your journalist’s knowledge if you want the media to use your press release as it is. To enhance the content, consider different quotes, media, hyperlinks, etc. Such media files as images, audios, video clips will make you press release more fascinating. It will help you to grab your readers’ or listeners’ attention. And while using quotations to your text, you will provide your audience with another person’s perspective. It is always useful to show a second opinion. Boilerplate:  Don’t forget to include factual data of your brand; tell about your company, it’s activity. You can write it once and use repeatedly for different articles and releases. Final note:  This point is essential for publication companies, as it provides them with an extra opportunity for contacting you. Just write: If you are interested in more information, don’t hesitate to contact John Doe, (111) 234 567 8-9,  johndoe@yourcompany.com. Some useful examples It would be a nice idea to get inspired by press release examples so that you will write your own paper appropriately. Just take a look: Read the press release by CNN. Its idea is clear and understandable. The heading and the first body paragraph provide enough information about the main subject. And the last paragraph sums up the entire text. So, you can quickly understand if you’re going to read this press release, is it useful for you or not. Another good example is BBC press release on the first female Doctor Who ever. Its quite concise and the whole idea is given on the plate right in the title. A short intro to the beginning of the season in the main body intrigues the readers and makes them look forward to the upcoming event with genuine desire. Giving the rough cost of the event in focus is a nice way to inform the reader of the details crucial for them not only as the fans of the TV show, but also as consumers who pay money to get the product. And the positive reviews of the respected third parties so to say make the event seem even worthier of the readers attention. To sum up, here is the common structure. In your press release you need to answer such questions: What? For example, Company X will organize a conference for all partners. Where? When? Indicate the place and time. How? Describe the conference, organization details. Who? Contact information. If you still don’t feel confident about your writing or you don’t have enough time to prepare an interesting and informative press release, you can order a paper. Professional writers are always here to help you to achieve your goals and targets.

Animal Rights and Pressure Groups Free Essay Example, 1500 words

The U. S government openly supports the laboratory testing on Chimpanzees. However, UK prohibits it. Also Belgium, Germany, Holland and Austria have banned cosmetic testing on animals. In EU, as of 2013, the organization prohibited the use of animal testing in cosmetic testing pursuant to EU regulations. Use of animals in testing for cosmetics safety began in the United States around 1933 after an eye-lash darkening treatment known as Lash lure blinded a lady (Willet, 17). The incident caused a huge outcry, thus prompted Eleanor Roosevelt to campaign for stricter regulation of cosmetic products. Animal tests have been conducted to investigate; skin and eye itching, where chemicals are rubbed on bare skin or dripped into the eyes of animals. Repeated force-feeding research, it usually last for weeks to find out if any side effects, signs of general illness appear. In 1938, the Food and Drug Administration (FDA) passed the FDA act to provide safeguards against harmful effects of cosm etic use. The U. S now required the use of animal test to ensure safety of cosmetics before human use. In 1966, the coalition for Consumer Information on Cosmetics (CCIC), a group of citizens including the Humane Society of the United States, developed the Corporate Standard of Compassion for Animals in an effort to create an international non-animal testing standard code (Willet, 16). We will write a custom essay sample on Animal Rights and Pressure Groups or any topic specifically for you Only $17.96 $11.86/pageorder now In 2002, the United Kingdom, the Netherlands and Belgium banned use of animal testing for cosmetic safety. In 2009, the EU also banned the use of animals in cosmetic testing. L’Oreal, the global leader in cosmetic industry lodged a legal protest, however, other beauty and cosmetic products manufacturers supported the cruelty-free products. According to the U. S National Academy of Sciences, animals are used in testing cosmetic safety because they provide vital data for evaluating the hazardous potential of the cosmetic products used by humans. Advocates of animal testing argue that conducting the tests on humans is far much dangerous as it risks the safety of human subjects, thus endangering their lives. Animal testing is so as to protect the health and safety of human consumers. The concern in animal testing is about the ethical treatment of animals and reliability of the tests when evaluating its safety on human use. Studies have shown th at animal tests are not that accurate due to the differences in animal and human tissue, especially the distribution of the blood vessels and skin reactions. Also, the toxicity levels administered to the animals differs from what the human user applies or administers.

Marsupials - Marsupialia - The Animal Encyclopedia

Marsupials (Marsupialia) are a group of mammals that like most other groups of mammals bear live young when the embryos are in an early stage of development. In some species such as the bandicoot, the gestation period is as short as 12 days. The young crawl up the mothers body and into the her marsupium—a pouch located on the mothers abdomen. Once inside the marsupium, the baby attaches to a nipple and nurses on milk until it is large enough to leave the pouch and better fend for itself in the outside world. Larger marsupials tend to give birth to a single offspring at a time, while smaller sized marsupials give birth to larger litters. Marsupials were common in many areas of North America during the Mesozoic and outnumbered placental mammals. Today, the only living marsupial in North America is the opossum. Marsupials first appear in the fossil record from South America during the Late Paleocene. They later appear in the fossil record from Australia during the Oligocene, where they underwent diversification during the Early Miocene. It was during the Pliocene that the first of the larger marsupials appeared. Today, marsupials remain one of the dominant land mammals in South America and Australia. In Australia, a lack of competition has meant that marsupials were able to diversify and specialize. Today there are insectivorous marsupials, carnivorous marsupials, and herbivorous marsupials in Australia. Most South American marsupials are small and arboreal animals. The reproductive tract of female marsupials differs from placental mammals. In female marsupials there are two vaginas and two uteruses whereas placental mammals have a single uterus and vagina. Male marsupials also differ from their placental mammal counterparts. They have forked penis. The brains of marsupial are also unique, it is smaller than that of placental mammals and lacks a corpus callosum, the nerve tract that connects the two cerebral hemispheres. Marsupials are quite varied in their appearance. Many species have long back legs and feet and an elongated face. The smallest marsupial is the long-tailed planigale and the largest is the red kangaroo. There are 292 species of marsupials alive today. Classification Marsupials are classified within the following taxonomic hierarchy: Animals Chordates Vertebrates Tetrapods Amniotes Mammals Marsupials Marsupials are divided into the following taxonomic groups: American marsupials (Ameridelphia) - There are about 100 species of American marsupials alive today. Members of the group include opossums and shrew opossums. American marsupials are the older of the two lineages of modern marsupials, which means it was members of this group that later migrated to Australia and diversified.Australian marsupials (Australidelphia) - There are about 200 species of Australian marsupials alive today. Members of this group include the Tasmanian devil, numbats, bandicoots, wombats, marsupial moles, pygmy possums, koalas, kangaroos, wallabies and many others. Australian marsupials are further divided into five groups.

How The Holocaust Was A Long Term Plan - 1461 Words

Assess the View That the Holocaust Was Mainly the Result of a Long Term Plan by Hitler to Eliminate the Jews Of the four historians, it is Kershaw, Goldhagen, and Peukert who propose the idea that the holocaust was a long-term plan and Berghahn who argues that it was a reaction to the circumstances brought about by expansion during world war two. All of the historians agree to a certain degree that the extermination of the Jewish people from Germany was a long term idea of Hitler’s, but it is at the point where ‘idea’ becomes ‘plan’ that they differ. The efforts the Nazi party expended on carrying out their ‘final solution to the Jewish question in Europe’ involved changing the structure of a whole country’s economic, social, and military sectors; a mobilisation completed by many various competing and collating departments and agencies, all of which were expected by their superiors to show initiative in their operations. This mode of command lends plausibility to the theory that the ‘final solution’ of the holocaust was not necessarily a result of a direct command by the Fà ¼hrer (No records of any such order exist) but rather the culmination of the departments of the Nazi state vying for approval from their superiors by following the ideology to its ‘logical conclusion’ with Hitler’s approval. This could be seen to support Berghahn, as it was the confusion and rush to meet growing needs that drove the party to extermination over deportation. It also supports Kershaw, whoShow MoreRelatedWhat Was Hitler’s Role in the Holocaust?1458 Words   |  6 PagesWhat was Hitler’s role in the Holocaust? Studies of the Holocaust have provoked passionate debates. Increasingly, they have become a central topic of concern for historians particularly since the early 1970s, as the Holocaust studies were generally limited. However, one of the most intense debates surrounding the role played by Hitler in the ’Final Solution’. That is, whether and when Hitler took a decision to initiate the extermination process. Of course, this issue has caused incredible controversyRead MoreI Had The Privilege Of Attending An Event Put On By The Hillel / Jewish Student Organization1415 Words   |  6 PagesHolocaust Event I had the privilege of attending an event put on by the Hillel/Jewish Student Organization. The event took place on the campus of Central Michigan University January 27th, 2016, in Pearce Hall. The official name of this event was: â€Å"Holocaust Survivor Martin Lowenberg at Central Michigan University†, and it featured Mr. Martin Lowenberg himself as the presenter. Martin Lowenberg is 87 years old and is from Schenklengsfeld, Germany. He lived in Schenklengsfeld until his 8th birthdayRead MoreWhy Is The Killing Of A Million A Lesser Crime?1440 Words   |  6 Pages The Holocaust, the Armenian genocide, Darfur, and the Rwanda genocide were all terrible events in history, but why did they occur? The form of genocide had existed since the perception of superiority and inferiority was known. As a superior group gains more and more power, they make an image of their perfect society in their head and strive towards it. They would decimate those who opposed them and anyone they saw as inferior, which is an example of how a genocide can start. Hitler was the leaderRead MoreI Had The Privilege Of Attending An Event Put On By The Hillel / Jewish Student Organization1415 Words   |  6 PagesUniversity January 27th, 2016, in Pearce Hall. The official name of this event was: â€Å"Holocaust Survivor Martin Lowenberg at Central Michigan Universityâ € , and it featured Mr. Martin Lowenberg himself as the presenter. Martin Lowenberg is 87 years old and is from Schenklengsfeld, Germany. He lived in Schenklengsfeld until his 8th birthday, when he was accused of sticking his tongue out at a picture of Adolf Hitler and was forced to sit on a board of nails as a punishment. After this incident, MartinRead MoreThe Wannsee Conference Essay1117 Words   |  5 PagesThe Wannsee Conference Have you ever had a business meeting, a conference? Could you imagine a meeting to draw an outline to exterminate a population, 11 million Jews? The Wannsee Conference was a â€Å"meeting† to discuss how they would kill all the Jews. The Wannsee Conference put the Final Solution in motion; the World had lost their opportunity to save 6 million Jews and others. The Beginning Hitler came to power in Germany in 1933, after World War 1 when tensions were high because the Treaty ofRead MoreTwo Similar but Different Genocides: The Holocaust and Cambodian Genocide1092 Words   |  5 Pagesthat people would support and act upon plans to kill millions of innocent human beings. The Holocaust and Cambodian genocide were two of the most horrific genocides in the history of civilization. The Holocaust and Cambodian genocide has not only similarities but also differences. How they treated their victims, USA involvement, and that they both killed millions of people are some things they share. Differences they include are the people they targeted, how the two leaders took office and lastlyRead MoreHistory: The Holocaust a Human Error Essay864 Words   |  4 Pagesthe negative events, we learn what went wrong and how to prevent similar tragedies from happening. From the positive, we gather knowledge and comprehension of the basis of our modern society. We are a self- repairing race, analyzing every flaw and figuring out what caused it. Its an ancient practice, trial and error is human nature. However, one of these errors hold a specific purpose in history classes. Similar, yet different. The Holocaust was so intesely horrific, so widespread, and such a strongRead MoreThe Holocaust And The Nazi Regime During World War 21480 Words   |  6 PagesThe Holocaust refers to the systematic genocide of over a million Jews perpetrated by the Nazi Regime during World War 2. Since the day it ended, historians over the world have attempted to uncover the true reasons behind the Holocaust, leading to the prominent debate over the exact date the Holocaust initially began. However due to a lack of considerable evidence, many opposing interpretations of the evidence has surfaced with the creation of several schools of thought: the Intentionalist, FunctionalistRead MoreThe Holocaust : Its Causes And How It Was Carried Out1497 Words   |  6 PagesDestiny Corbitt Shawn Underell The Holocaust 21 February 2016 The Holocaust The holocaust is one of the memorable events in history and it is important to know some of its causes and how it was carried out. The Holocaust is a controlled torture that killed roughly six million Jews by the Nazi government, led by Adolf Hitler. Apart from the Jews, other groups considered inferior or anti-establishment such as Poles, Romans and gypsies were also killed. There were several reasons for these grisly murdersRead MoreThe Aftermath Of The Holocaust1048 Words   |  5 Pages27 October 2015 The Aftermath of the Holocaust Introduction With the end of World War II, came the end of the Holocaust. The aftermath of the Holocaust has had a profound affect on non-Jewish and Jewish survivors who tried to rebuild their lives in society such as the country of Israel gaining statehood. It has changed the way people set up society and the way government functions in certain countries such as Germany following the Holocaust. The Holocaust didn t effect just the world from the

The Media s Influence On Media Coverage - 1777 Words

Introduction According to Wikipedia website state a media circus is a news event where the media coverage is perceived to be out of proportion to even being to be covered. Examples of media circuses include the Sandy Hook School Shooting, Casey Anthony Trial, and Kitty Genovese Murder. However, one of the media circus that the media has been focusing on is Miley Cyrus. Miley Cyrus is seen as one of the outrageous celebrities who caused the media to symbolize her as a promiscuous in the media and is therefore seen as a norm violator. Background Destiny Hope Cyrus, also known as â€Å"Miley Cyrus,† was born on November 23, 1992, and is presently a singer and actress. In 2006, she started her career as a pop star at the age of 15, when she was†¦show more content†¦For example, Miley Cyrus is a person who violates the norms of a society. Norm Violation #1 Over the years, Miley Cyrus has made insolent, racist comments during her interviews and television appearances. Throughout American history, America has always been a nation of immigrants. Much less at a young age, one learns to treat others the way one wants to be treated with respect, regardless of skin color, so forth. The media have portrayed this norm violation towards Miley Cyrus, which has received negative backlash. If people look at Miley Cyrus’ Don t Stop video, she has received several negative comments about how she does not understand cultural appropriation. According to Splicetoday, during an interview with Professor Akil Houston, Wilbert L. Cooper identified what Miley Cyrus did in her â€Å"Don’t Stop† music video as a hand gesture that indicates â€Å"eating the other† in black culture. Furthermore, in the 2015 MTV Video Music Awards, Miley Cyrus has used the word mammy in a skit, which has caused the media, audience, an d even celebrities to give criticisms about Miley Cyrus using the term â€Å"mammy.† For example, Chance the Rapper, a musician tweeted: â€Å"I think shorty said my real mammy. Additionally, on social media had issues with Miley using the term â€Å"mammy.† Such as one viewer tweeted: The most uncomfortable, racist, confusing, POS award show I have ever seen.

Fundamentals of Capital Budgeting Free Essays

Chapter 7 Fundamentals of Capital Budgeting 7-1. Pisa Pizza, a seller of frozen pizza, is considering introducing a healthier version of its pizza that will be low in cholesterol and contain no trans fats. The firm expects that sales of the new pizza will be $20 million per year. We will write a custom essay sample on Fundamentals of Capital Budgeting or any similar topic only for you Order Now While many of these sales will be to new customers, Pisa Pizza estimates that 40% will come from customers who switch to the new, healthier pizza instead of buying the original version. a. b. Assume customers will spend the same amount on either version. What level of incremental sales is associated with introducing the new pizza? Suppose that 50% of the customers who will switch from Pisa Pizza’s original pizza to its healthier pizza will switch to another brand if Pisa Pizza does not introduce a healthier pizza. What level of incremental sales is associated with introducing the new pizza in this case? Sales of new pizza – lost sales of original = 20 – 0. 40(20) = $12 million Sales of new pizza – lost sales of original pizza from customers who would not have switched brands = 20 – 0. 50(0. 40)(20) = $16 million a. b. 7-2. Kokomochi is considering the launch of an advertising campaign for its latest dessert product, the Mini Mochi Munch. Kokomochi plans to spend $5 million on TV, radio, and print advertising this year for the campaign. The ads are expected to boost sales of the Mini Mochi Munch by $9 million this year and by $7 million next year. In addition, the company expects that new consumers who try the Mini Mochi Munch will be more likely to try Kokomochi’s other products. As a result, sales of other products are expected to rise by $2 million each year. Kokomochi’s gross profit margin for the Mini Mochi Munch is 35%, and its gross profit margin averages 25% for all other products. The company’s marginal corporate tax rate is 35% both this year and next year. What are the incremental earnings associated with the advertising campaign? A B C 1 Year 2 Incremental Earnings Forecast ($000s) 3 1 Sales of Mini Mochi Munch 4 2 Other Sales 5 3 Cost of Goods Sold 6 4 Gross Profit 7 5 Selling, General Admin. 8 6 Depreciation 9 7 EBIT 10 8 Income tax at 35% 11 9 Unlevered Net Income D 1 9,000 2,000 (7,350) 3,650 (5,000) (1,350) 473 (878) $300 E 2 7,000 2,000 (6,050) 2,950 2,950 (1,033) 1,918 $250  ©2011 Pearson Education, Inc. Publishing as Prentice Hall $200 70 80 90 100 110 120 130 140 150 90 Berk/DeMarzo Corporate Finance, Second Edition 7-3. Home Builder Supply, a retailer in the home improvement industry, currently operates seven retail outlets in Georgia and South Carolina. Management is contemplating building an eighth retail store across town from its most successful retail outlet. The company already owns the land for this store, which currently has an abandoned warehouse located on it. Last month, the marketing department spent $10,000 on market research to determine the extent of customer demand for the new store. Now Home Builder Supply must decide whether to build and open the new store. Which of the following should be included as part of the incremental earnings for the proposed new retail store? a. b. c. d. e. f. g. a. b. c. d. e. f. The cost of the land where the store will be located. The cost of demolishing the abandoned warehouse and clearing the lot. The loss of sales in the existing retail outlet, if customers who previously drove across town to shop at the existing outlet become customers of the new store instead. The $10,000 in market research spent to evaluate customer demand. Construction costs for the new store. The value of the land if sold. Interest expense on the debt borrowed to pay the construction costs. No, this is a sunk cost and will not be included directly. (But see (f) below. ) Yes, this is a cost of opening the new store. Yes, this loss of sales at the existing store should be deducted from the sales at the new store to determine the incremental increase in sales that opening the new store will generate for HBS. No, this is a sunk cost. This is a capital expenditure associated with opening the new store. These costs will, therefore, increase HBS’s depreciation expenses. Yes, this is an opportunity cost of opening the new store. (By opening the new store, HBS forgoes the after-tax proceeds it could have earned by selling the property. This loss is equal to the sale price less the taxes owed on the capital gain from the sale, which is the difference between the sale price and the book value of the property. The book value equals the initial cost of the property less accumulated depreciation. ) While these financing costs will affect HBS’s actual earnings, for capital budgeting purposes we calculate the incremental earnings without including financing costs to determine the project’s unlevered net income. g. 7-4. Hyperion, Inc. currently sells its latest high-speed color printer, the Hyper 500, for $350. It plans to lower the price to $300 next year. Its cost of goods sold for the Hyper 500 is $200 per unit, and this year’s sales are expected to be 20,000 units. a. Suppose that if Hyperion drops the price to $300 immediately, it can increase this year’s sales by 25% to 25,000 units. What would be the incremental impact on this year’s EBIT of such a price drop? Suppose that for each printer sold, Hyperion expects additional sales of $75 per year on ink cartridges for the next three years, and Hyperion has a gross profit margin of 70% on ink cartridges. What is the incremental impact on EBIT for the next three years of a price drop this year? b.  ©2011 Pearson Education, Inc. Publishing as Prentice Hall Berk/DeMarzo †¢ Corporate Finance, Second Edition Change in EBIT = Gross profit with price drop – Gross profit without price drop = 25,000 ? (300 – 200) – 20,000 ? (350 – 200) = – $500,000 b. Change in EBIT from Ink Cartridge sales = 25,000 ? $75 ? 0. 70 – 20,000 ? $75 ? 0. 70 = $262,500 Therefore, incremental change in EBIT for the next 3 years is Year 1: Year 2: Year 3: 7-5. $262,500 – 500,000 = -$237,500 $262,500 $262,500 91 a. After looking at the projections of the HomeNet project, you decide that they are not realistic. It is unlikely that sales will be constant over the four-year life of the project. Furthermore, other companies are likely to offer competing products, so the assumption that the sales price will remain constant is also likely to be optimistic. Finally, as production ramps up, you anticipate lower per unit production costs resulting from economies of scale. Therefore,you decide to redo the projections under the following assumptions: Sales of 50,000 units in year 1 increasing by 50,000 units per year over the life of the project, a year 1 sales price of $260/unit, decreasing by 10% annually and a year 1 cost of $120/unit decreasing by 20% annually. In addition, new tax laws allow you to depreciate the equipment over three rather than five years using straightline depreciation. a. Keeping the other assumptions that underlie Table 7. 1 the same, recalculate unlevered net income (that is, reproduce Table 7. 1 under the new assumptions, and note that we are ignoring cannibalization and lost rent). Recalculate unlevered net income assuming, in addition, that each year 20% of sales comes from customers who would have purchased an existing Linksys router for $100/unit and that this router costs $60/unit to manufacture. (15,000) (15,000) 6,000 (9,000) 1 13,000 (6,000) 7,000 (2,800) (2,500) 1,700 (680) 1,020 2 23,400 (9,600) 13,800 (2,800) (2,500) 8,500 (3,400) 5,100 3 31,590 (11,520) 20,070 (2,800) (2,500) 14,770 (5,908) 8,862 4 37,908 (12,288) 25,620 (2,800) 22,820 (9,128) 13,692 5 – b. a. Year Incremental Earnings Forecast ($000s) 1 Sales 2 Cost of Goods Sold 3 Gross Profit 4 Selling, General Admin. 5 Research Development 6 Depreciation 7 EBIT 8 Income tax at 40% 9 Unlevered Net Income  ©2011 Pearson Education, Inc. Publishing as Prentice Hall 92 Berk/DeMarzo †¢ Corporate Finance, Second Edition b. Year Incremental Earnings Forecast ($000s) 1 Sales 2 Cost of Goods Sold 3 Gross Profit 4 Selling, General Admin. 5 Research Development 6 Depreciation 7 EBIT 8 Income tax at 40% 9 Unlevered Net Income 7-6. 0 (15,000) (15,000) 6,000 (9,000) 1 12,000 (5,400) 6,600 (2,800) (2,500) 1,300 (520) 780 2 21,400 (8,400) 13,000 (2,800) (2,500) 7,700 (3,080) 4,620 3 28,590 (9,720) 18,870 (2,800) (2,500) 13,570 (5,428) 8,142 4 33,908 (9,888) 24,020 (2,800) 21,220 (8,488) 12,732 5 – Cellular Access, Inc. is a cellular telephone service provider that reported net income of $250 million for the most recent fiscal year. The firm had depreciation expenses of $100 million, capital expenditures of $200 million, and no interest expenses. Working capital increased by $10 million. Calculate the free cash flow for Cellular Access for the most recent fiscal year. FCF = Unlevered Net Income + Depreciation – CapEx – Increase in NWC= 250 + 100 – 200 – 10 = $140 million. 7-7. Castle View Games would like to invest in a division to develop software for video games. To evaluate this decision, the firm first attempts to project the working capital needs for this operation. Its chief financial officer has developed the following estimates (in millions of dollars): Assuming that Castle View currently does not have any working capital invested in this division, calculate the cash flows associated with changes in working capital for the first five years of this investment. Year0 1 2 3 4 5 6 Cash Accounts Receivable Inventory Accounts Payable Net working capital (1+2+3-4) Increase in NWC Year1 6 21 5 18 14 14 Year2 12 22 7 22 19 5 Year3 15 24 10 24 25 6 Year4 15 24 12 25 26 1 Year5 15 24 13 30 22 -4 0 2011 Pearson Education, Inc. Publishing as Prentice Hall Berk/DeMarzo †¢ Corporate Finance, Second Edition 93 7-8. Mersey Chemicals manufactures polypropylene that it ships to its customers via tank car. Currently, it plans to add two additional tank cars to its fleet four years from now. However, a proposed plant expansion will require Mersey’s transport division to add these two additional tank cars in two years’ time rather than in four y ears. The current cost of a tank car is $2 million, and this cost is expected to remain constant. Also, while tank cars will last indefinitely, they will be depreciated straight-line over a five-year life for tax purposes. Suppose Mersey’s tax rate is 40%. When evaluating the proposed expansion, what incremental free cash flows should be included to account for the need to accelerate the purchase of the tank cars? initial tank car cost inflation rate depreciable life Year: with expansion CapEx Depreciation Tax Shield FCF without expansion CapEx Depreciation Tax Shield FCF Incremental FCF (with-without) 0 1 4 0% 5 2 -4 0 0 -4 0. 32 0. 32 0. 32 0. 32 0. 2 0. 32 0. 32 0. 32 0. 32 0. 32 0 0 0 3 replace date without expansion replace date with expansion tax rate 4 5 6 7 4 2 40% 8 9 10 -4 0 0 0 0 0 -4 0 0. 32 -4 4. 32 0. 32 0. 32 0 0. 32 0. 32 0 0. 32 0. 32 0 0. 32 0. 32 -0. 32 0. 32 0. 32 -0. 32 0 0 7-9. Elmdale Enterprises is deciding whether to expand its production facilities. Although long-term cash flows are difficult to estimate, management has projected the following cas h flows for the first two years (in millions of dollars): a. b. a. What are the incremental earnings for this project for years 1 and 2? What are the free cash flows for this project for the first two years? Year Incremental Earnings Forecast ($000s) 1 Sales 2 Costs of good sold and operating expenses other than depreciation 3 Depreciation 4 EBIT 5 Income tax at 35% 6 Unlevered Net Income 1 125. 0 (40. 0) (25. 0) 60. 0 (21. 0) 39. 0 2 160. 0 (60. 0) (36. 0) 64. 0 (22. 4) 41. 6 b. Free Cash Flow ($000s) 7 Plus: Depreciation 8 Less: Capital Expenditures 9 Less: Increases in NWC 10 Free Cash Flow 1 25. 0 (30. 0) (5. 0) 29. 0 2 36. 0 (40. 0) (8. 0) 29. 6  ©2011 Pearson Education, Inc. Publishing as Prentice Hall 94 Berk/DeMarzo Corporate Finance, Second Edition 7-10. You are a manager at Percolated Fiber, which is considering expanding its operations in synthetic fiber manufacturing. Your boss comes into your office, drops a consultant’s report on your desk, and complains, â€Å"We owe these consultants $1 million for this report, and I am not sure their analysis makes sense. Before we spend the $25 million on new equipment needed for this project, look it over and give me your opinion. † You open the report and find the following estimates (in thousands of dollars): All of the estimates in the report seem correct. You note that the consultants used straight-line depreciation for the new equipment that will be purchased today (year 0), which is what the accounting department recommended. The report concludes that because the project will increase earnings by $4. 875 million per year for 10 years, the project is worth $48. 75 million. You think back to your halcyon days in finance class and realize there is more work to be done! First, you note that the consultants have not factored in the fact that the project will require $10 million in working capital upfront (year 0), which will be fully recovered in year 10. Next, you see they have attributed $2 million of selling, general and administrative expenses to the project, but you know that $1 million of this amount is overhead that will be incurred even if the project is not accepted. Finally, you know that accounting earnings are not the right thing to focus on! a. b. a. Given the available information, what are the free cash flows in years 0 through 10 that should be used to evaluate the proposed project? If the cost of capital for this project is 14%, what is your estimate of the value of the new project? Free Cash Flows are: 0 = Net income + Overhead (after tax at 35%) + Depreciation – Capex – Inc. n NWC FCF b. 1 4,875 650 2,500 2 4,875 650 2,500 †¦ 9 4,875 650 2,500 10 4,875 650 2,500 –10000 18,025 25,000 10,000 –35,000 8,025 8,025 †¦ 8,025 NPV ? ?35 ? 8. 025 ? 1 ? 1 ? 18. 025 ? 9. 56 ? 1 ? .14 ? 1. 149 ? 1. 1410  ©2011 Pearson Education, Inc. Publishing as Prentice Hall Berk/DeMarzo Corporate Finance, Second Edition 95 7-11. Using the assumptions in part a of Problem 5 (assuming there is no cannibalization), a. b. a. Calculate HomeNet’s net working capital requirements (that is, reproduce Table 7. 4 under the assumptions in Problem 5(a)). Calculate HomeNet’s FCF (that is, reproduce Table 7. under the same assumptions as in (a)). 0 1 13,000 (6,000) 7,000 (2,800) (2,500) 1,700 (680) 1,020 2,500 (1,050) 2,470 1 1,950 (900) 1,050 2 23,400 (9,600) 13,800 (2,800) (2,500) 8,500 (3,400) 5,100 2,500 (1,020) 6,580 2 3,510 (1,440) 2,070 3 31,590 (11,520 ) 20,070 (2,800) (2,500) 14,770 (5,908) 8,862 2,500 (941) 10,421 3 4,739 (1,728) 3,011 4 37,908 (12,288 ) 25,620 (2,800) 22,820 (9,128) 13,692 (833) 12,860 4 5,686 (1,843) 3,843 5 3,843 3,843 5 – Year Net Working Capital Forecast ($000s) 1 Cash requirements 2 Inventory 3 Receivables (15% of Sales) 4 Payables (15% of COGS) 5 Net Working Capital b. Year 0 Incremental Earnings Forecast ($000s) 1 Sales 2 3 4 5 6 7 8 9 Cost of Goods Sold Gross Profit Selling, General Admin. Research Development Depreciation EBIT Incometaxat40% Unlevered Net Income (15,000) (15,000) 6,000 (9,000) (7,500) (16,500) Free Cash Flow ($000s) 10 Plus: Depreciation Less: Capital 11 Expenditures 12 Less: Increases in NWC 13 Free Cash Flow 7-12. A bicycle manufacturer currently produces 300,000 units a year and expects output levels to remain steady in the future. It buys chains from an outside supplier at a price of $2 a chain. The plant manager believes that it would be cheaper to make these chains rather than buy them. Direct in-house production costs are estimated to be only $1. 50 per chain. The necessary machinery would cost $250,000 and would be obsolete after 10 years. This investment could be depreciated to zero for tax purposes using a 10-year straight-line depreciation schedule. The plant manager estimates that the operation would require additional working capital of $50,000 but argues that this sum can be ignored since it is recoverable at the end of the 10 years. Expected proceeds from scrapping the machinery after 10 years are $20,000. If the company pays tax at a rate of 35% and the opportunity cost of capital is 15%, what is the net present value of the decision to produce the chains in-house instead of purchasing them from the supplier? Solution: FCF=EBIT (1-t) + depreciation – CAPX – ? NWC FCF from outside supplier = -$2Ãâ€"300,000 x (1 – . 35) = -$390k per year.  ©2011 Pearson Education, Inc. Publishing as Prentice Hall 96 Berk/DeMarzo Corporate Finance, Second Edition NPV(outside) ? ?$390, 000 1 ? 1 ? ?1 ? ? 0. 15 ? 1. 1510 ? ? ? $1. 9573M FCF in house: in year 0: – 250 CAPX – 50 NWC= – 300K FCF in years 1-9: ?$1. 50 x 300,000 ? 25,000 -$475,000 cost ? depreciation = incremental EBIT ? tax = (1-t) x EBIT + depreciation = FCF ?$166, 250 -$308,750 +$25,000 -$283,750 FCF in year 10: –$283,750 + (1 – 0. 35) x $20,000 + $50,000 = –$220,750 FCF Note that the book value of the machinery is zero; hence, its scrap proceeds ($20,000) are fully taxed. The NWC ($50,000) is recovered at book value and hence not taxed. NPV (in house): –$300k + annuity of –$283,750 for 9 years + ?$220, 750 1. 1510 $283, 750 ? 1 ? 1 ? 0. 15 ? 1. 159 ? ?$1. 7085M ? ?$300k ? ? $220, 750 1. 1510 ? Thus, in-house is cheaper, with a cost savings of ($1. 573M – $1. 7085M) = $248. 8K in present value terms. 7-13. One year ago, your company purchased a machine used in manufacturing for $110, 000. You have learned that a new machine is available that offers many advantages; you can purchase it for $150,000 today. It will be depreciated on a straight-line basis over 10 years, after which it has no salvage value. You expect that the new machine will produce EBITDA (earning before interest, taxes, depreciation, and amortization) of $40,000 per year for the next 10 years. The current machine is expected to produce EBITDA of $20,000 per year. The current machine is being depreciated on a straight-line basis over a useful life of 11 years, after which it will have no salvage value, so depreciation expense for the current machine is $10,000 per year. All other expenses of the two machines are identical. The market value today of the current machine is $50,000. Your company’s tax rate is 45%, and the opportunity cost of capital for this type of equipment is 10%. Is it profitable to replace the year-old machine? Replacing the machine increases EBITDA by 40,000 – 20,000 = 20,000. Depreciation expenses rises by $15,000 – $10,000 = $5,000. Therefore, FCF will increase by (20,000) ? (1-0. 45) + (0. 45)(5,000) = $13,250 in years 1 through 10. In year 0, the initial cost of the machine is $150,000. Because the current machine has a book value of $110,000 – 10,000 (one year of depreciation) = $100,000, selling it for $50,000 generates a capital  ©2011 Pearson Education, Inc. Publishing as Prentice Hall Berk/DeMarzo †¢ Corporate Finance, Second Edition 97 gain of 50,000 – 100,000 = –50,000. This loss produces tax savings of 0. 45 ? 50,000 = $22,500, so that the after-tax proceeds from the sales including this tax savings is $72,500. Thus, the FCF in year 0 from replacement is –150,000 + 72,500 = –$77,500. NPV of replacement = –77,500 + 13,250 ? (1 / . 10)(1 – 1 / 1. 1010) = $3916. There is a small profit from replacing the machine. 7-14. Beryl’s Iced Tea currently rents a bottling machine for $50,000 per year, including all maintenance expenses. It is considering purchasing a machine instead, and is comparing two options: a. b. Purchase the machine it is currently renting for $150,000. This machine will require $20,000 per year in ongoing maintenance expenses. Purchase a new, more advanced machine for $250,000. This machine will require $15,000 per year in ongoing maintenance expenses and will lower bottling costs by $10,000 per year. Also, $35,000 will be spent upfront in training the new operators of the machine. Suppose the appropriate discount rate is 8% per year and the machine is purchased today. Maintenance and bottling costs are paid at the end of each year, as is the rental of the machine. Assume also that the machines will be depreciated via the straight-line method over seven years and that they have a 10-year life with a negligible salvage value. The marginal corporate tax rate is 35%. Should Beryl’s Iced Tea continue to rent, purchase its current machine, or purchase the advanced machine? We can use Eq. 7. 5 to evaluate the free cash flows associated with each alternative. Note that we only need to include the components of free cash flows that vary across each alternative. For example, since NWC is the same for each alternative, we can ignore it. The spreadsheet below computes the relevant FCF from each alternative. Note that each alternative has a negative NPV—this represents the PV of the costs of each alternative. We should choose the one with the highest NPV (lowest cost), which in this case is purchasing the existing machine. a. b. See spreadsheet See spreadsheet D 0 A B C 5 6 Rent Machine 7 1 Rent 8 2 FCF(rent) 9 3 NPV at 8% 10 Purchase Current Machine 11 4 Maintenance 12 5 Depreciation 13 6 Capital Expenditures 14 7 FCF(purchase current) 15 8 NPV at 8% 16 Purchase Advanced Machine 17 9 Maintenance 18 10 Other Costs 19 11 Depreciation 20 12 Capital Expenditures 21 13 FCF(purchase advanced) 22 14 NPV at 8% E 1 (50,000) (32,500) F 2 (50,000) (32,500) G 3 (50,000) (32,500) H 4 (50,000) (32,500) I 5 (50,000) (32,500) J 6 (50,000) (32,500) K 7 (50,000) (32,500) L 8 (50,000) (32,500) M 9 (50,000) (32,500) N 10 (50,000) (32,500) (218,078) (20,000) 21,429 (150,000) (150,000) (198,183) (5,500) (20,000) 21,429 (5,500) (20,000) 21,429 (5,500) (20,000) 21,429 (5,500) (20,000) 21,429 (5,500) (20,000) 21,429 (5,500) (20,000) 21,429 (5,500) (20,000) (13,000) (20,000) (13,000) (20,000) (13,000) (35,000) (250,000) (272,750) (229,478) (15,000) 10,000 35,714 9,250 (15,000) 10,000 35,714 9,250 (15,000) 10,000 35,714 9,250 (15,000) 10,000 35,714 9,250 (15,000) 10,000 35,714 9,250 15,000) 10,000 35,714 9,250 (15,000) 10,000 35,714 9,250 (15,000) 10,000 (3,250) (15,000) 10,000 (3,250) (15,000) 10,000 (3,250) 7-15. Markov Manufacturing recently spent $15 million to purchase some equipment used in the manufacture of disk drives. The firm expects that this equipment will have a useful life of five years, and its marginal corporate tax rate is 35%. The company plans to use straight-line depreciati on. a. b. What is the annual depreciation expense associated with this equipment? What is the annual depreciation tax shield?  ©2011 Pearson Education, Inc. Publishing as Prentice Hall 98 Berk/DeMarzo Corporate Finance, Second Edition c. Rather than straight-line depreciation, suppose Markov will use the MACRS depreciation method for five-year property. Calculate the depreciation tax shield each year for this equipment under this accelerated depreciation schedule. If Markov has a choice between straight-line and MACRS depreciation schedules, and its marginal corporate tax rate is expected to remain constant, which should it choose? Why? How might your answer to part (d) change if Markov anticipates that its marginal corporate tax rate will increase substantially over the next five years? 15 million / 5 years = $3 million per year $3 million ? 35% = $1. 05 million per year Year MACRS Depreciation Equipment Cost MACRS Depreciation Rate Depreciation Expense Depreciation Tax Shield (at 35% tax rate) 0 15,000 20. 00% 3,000 1,050 1 2 3 4 5 d. e. a. b. c. 32. 00% 4,800 1,680 19. 20% 2,880 1,008 11. 52% 1,728 605 11. 52% 1,728 605 5. 76% 864 302 d. In both cases, its total depreciation ta x shield is the same. But with MACRS, it receives the depreciation tax shields sooner—thus, MACRS depreciation leads to a higher NPV of Markov’s FCF. If the tax rate will increase substantially, than Markov may be better off claiming higher depreciation expenses in later years, since the tax benefit at that time will be greater. e. 7-16. Your firm is considering a project that would require purchasing $7. 5 million worth of new equipment. Determine the present value of the depreciation tax shield associated with this equipment if the firm’s tax rate is 40%, the appropriate cost of capital is 8%, and the equipment can be depreciated a. b. c. d. Straight-line over a 10-year period, with the first deduction starting in one year. Straight-line over a five-year period, with the first deduction starting in one year. Using MACRS depreciation with a five-year recovery period and starting immediately. Fully as an immediate deduction. Equipment Cost Tax Rate Cost of capital 7. 5 40. 00% 8. 00% Year 2 0. 3 0. 6 19. 20% 0. 576 Depreciation Tax Shield (Tc*Dep) Year 3 Year 4 Year 5 Year 6 0. 3 0. 3 0. 3 0. 3 0. 6 0. 6 0. 6 11. 52% 11. 52% 5. 76% 0. 3456 0. 3456 0. 1728 Year 7 0. 3 Year 8 0. 3 Year 9 0. 3 Year 10 0. 3 PV(DTS) a 2. 013 b 2. 396 MACRS table c 2. 629 d 3. 000 Year 0 20% 0. 6 3 Year 1 0. 0. 6 32% 0. 96 7-17. Arnold Inc. is considering a proposal to manufacture high-end protein bars used as food supplements by body builders. The project requires use of an existing warehouse, which the firm acquired three years ago for $1m and which it currently rents out for $120,000. Rental rates are not expected to change going forward. In addition to using the warehouse, the project requires an up-front investment into ma chines and other equipment of $1. 4m. This investment can be fully depreciated straight-line over the next 10 years for tax purposes. However, Arnold Inc. expects to terminate the project at the end of eight years and to sell the machines and equipment for $500,000. Finally, the project requires an initial investment into net working capital equal to  ©2011 Pearson Education, Inc. Publishing as Prentice Hall Berk/DeMarzo †¢ Corporate Finance, Second Edition 99 10% of predicted first-year sales. Subsequently, net working capital is 10% of the predicted sales over the following year. Sales of protein bars are expected to be $4. 8m in the first year and to stay constant for eight years. Total manufacturing costs and operating expenses (excluding depreciation) are 80% of sales, and profits are taxed at 30%. a. b. a. What are the free cash flows of the project? If the cost of capital is 15%, what is the NPV of the project? Assumptions: (1) The warehouse can be rented out again for $120,000 after 8 years. (2) The NWC is fully recovered at book value after 8 years. FCF = EBIT (1 – t) + Depreciation – CAPX – Change in NWC FCF in year 0: – 1. 4m CAPX – 0. 48m Change in NWC = –1. 88m FCF in years 1-7: $4. 8m –$3. 84m $0. 96m –$0. 12m –$0. 14m $0. 70m –$0. 21m $0. 49m $0. 14m $0. 63m Sales –Cost (80%) =Gross Profit –Lost Rent –Depreciation =EBIT –Tax (30%) = (1 – t) x EBIT +Depreciation = FCF Note that there is no more CAPX nor investment into NWC in years 1–7. FCF in year 8: $0. 63m + [$0. 5m – 0. 30 x ($0. 5m – $0. 28m)] + $0. 48m = $1. 544m Note that the book value of the machinery is still $0. 28m when sold, and only the difference between the sale price ($0. 5m) and the book value is taxed. The NWC ($0. 48m) is recovered at book value and hence its sale is not taxed at all. b. The NPV is the present value of the FCFs in years 0 to 8: NPV= -$1. 88m + an annuity of $0. 63m for 7 years + 1. 544m 1. 158 ? ? $1. 88m ? ? $1. 2458m $0. 63m ? 1 ? $1. 544m ? 1 ? 0. 15 ? 1. 157 ? 1. 158  ©2011 Pearson Education, Inc. Publishing as Prentice Hall 100 Berk/DeMarzo   Corporate Finance, Second Edition 7-18. Bay Properties is considering starting a commercial real estate division. It has prepared the following four-year forecast of free cash flows for this division: Assume cash flows after year 4 will grow at 3% per year, forever. If the cost of capital for this division is 14%, what is the continuation value in year 4 for cash flows after year 4? What is the value today of this division? The expected cash flow in year 5 is 240,000 ? 1. 03 = 247,200. We can value the cash flows in year 5 and beyond as a growing perpetuity: Continuation Value in Year 4 = 247,200/(0. 14 – 0. 03) = $2,247,273 We can then compute the value of the division by discounting the FCF in years 1 through 4, together with the continuation value: NPV ? 7-19. ?185, 000 ? 12, 000 99, 000 240, 000 ? 2, 247, 273 ? ? ? ? $1,367,973 1. 14 1. 142 1. 143 1. 144 Your firm would like to evaluate a proposed new operating division. You have forecasted cash flows for this division for the next five years, and have estimated that the cost of capital is 12%. You would like to estimate a continuation value. You have made the following forecasts for the last year of your five-year forecasting horizon (in millions of dollars): a. b. You forecast that future free cash flows after year 5 will grow at 2% per year, forever. Estimate the continuation value in year 5, using the perpetuity with growth formula. You have identified several firms in the same industry as your operating division. The average P/E ratio for these firms is 30. Estimate the continuation value assuming the P/E ratio for your division in year 5 will be the same as the average P/E ratio for the comparable firms today. The average market/book ratio for the comparable firms is 4. 0. Estimate the continuation value using the market/book ratio. FCF in year 6 = 110 ? 1. 02 = 112. 2 Continuation Value in year 5 = 112. 2 / (12% – 2%) = $1,122. c. a. b. We can estimate the continuation value as follows: Continuation Value in year 5 = (Earnings in year 5) ? (P/E ratio in year 5) = $50 ? 30 = $1500. c. We can estimate the continuation value as follows: Continuation Value in year 5 = (Book value in year 5) ? (M/B ratio in year 5) = $400 ? 4 = $1600.  ©2011 Pearson Education, Inc. Publishing as Prentice Hall Berk/DeMarzo Corporate Finance, Second Edition 01 7-20. In September 2008, the IRS changed tax laws to allow banks to utilize the tax loss carryforwards of banks they acquire to shield their future income from taxes (prior law restricted the ability of acquirers to use these credits). Suppose Fargo Bank acquires Covia Bank and with it acquires $74 billion in tax loss carryforwards. If Fargo Bank is expected to generate taxable income of 10 billion per year in the future, and its tax rate is 30%, what is the present value of these acquired tax loss carryforwards given a cost of capital of 8%? We can shield $10 billion per year for the next 7 years, and $4 billion in year 8. Given a tax rate of 30%, this represents of tax savings of $3 billion in years 1–7, and $1. 2 billion in year 8. PV = 3 ? 1 ? 1 ? 1. 2 ? $16. 27 B ? 1 ? .08 ? 1. 087 ? 1. 088 7-21. Using the FCF projections in part b of Problem 11, calculate the NPV of the HomeNet project assuming a cost of capital of a. b. c. 10%. 12%. 14%. What is the IRR of the project in this case? a. Year Net Present Value ($000s) 1 2 3 Free Cash Flow Project Cost of Capital Discount Factor (16,500) 10% 1. 000 Year 1 2 3 PV of Free Cash Flow NPV IRR 0 (16,500) 10,182 28. 8% 0. 909 1 2,245 0. 826 2 5,438 0. 751 3 7,830 0. 683 4 8,783 0. 21 5 2,386 2,470 6,580 10,421 12,860 3,843 0 1 2 3 4 5 b. Year Net Present Value ($000s) 1 2 3 Free Cash Flow Project Cost of Capital Discount Factor (16,500) 12% 1. 000 Year 1 2 3 PV of Free Cash Flow NPV IRR 0 (16,500) 8,722 28. 8% 0. 893 1 2,205 0. 797 2 5,246 0. 712 3 7,418 0. 636 4 8,172 0. 567 5 2,181 2,470 6,580 10,421 12,860 3,843 0 1 2 3 4 5  ©2011 Pearson Educa tion, Inc. Publishing as Prentice Hall 102 Berk/DeMarzo †¢ Corporate Finance, Second Edition c. Year Net Present Value ($000s) 1 2 3 Free Cash Flow Project Cost of Capital Discount Factor (16,500) 14% 1. 000 Year 1 2 3 7-22. PV of Free Cash Flow NPV IRR 0 (16,500) 7,374 28. % 0. 877 1 2,167 0. 769 2 5,063 0. 675 3 7,034 0. 592 4 7,614 0. 519 5 1,996 2,470 6,580 10,421 12,860 3,843 0 1 2 3 4 5 For the assumptions in part (a) of Problem 5, assuming a cost of capital of 12%, calculate the following: a. b. a. b. The break-even annual sales price decline. The break-even annual unit sales increase. 28. 5% 25350 7-24. Billingham Packaging is considering expanding its production capacity by purchasing a new machine, the XC-750. The cost of the XC-750 is $2. 75 million. Unfortunately, installing this machine will take several months and will partially disrupt production. The firm has just completed a $50,000 feasibility study to analyze the decision to buy the XC-750, resulting in the following estimates:  ¦ Marketing: Once the XC-750 is operating next year, the extra capacity is expected to generate $10 million per year in additional sales, which will continue for the 10-year life of the machine. Operations: The disruption caused by the installation will decrease sales by $5 million this year. Once the machine is operating next year, the cost of goods for the products produced by the XC-750 is expected to be 70% of their sale price. The increased production will require additional inventory on hand of $1 million to be added in year 0 and depleted in year 10. Human Resources: The expansion will require additional sales and administrative personnel at a cost of $2 million per year. Accounting: The XC-750 will be depreciated via the straight-line method over the 10-year life of the machine. The firm expects receivables from the new sales to be 15% of revenues and payables to be 10% of the cost of goods sold. Billingham’s marginal corporate tax rate is 35%. Determine the incremental earnings from the purchase of the XC-750. Determine the free cash flow from the purchase of the XC-750. If the appropriate cost of capital for the expansion is 10%, compute the NPV of the purchase. While the expected new sales will be $10 million per year from the expansion, estimates range from $8 million to $12 million. What is the NPV in the worst case? In the best case? What is the break-even level of new sales from the expansion? What is the break-even level for the cost of goods sold?  ¦  ¦  ¦ a. b. c. d. e.  ©2011 Pearson Education, Inc. Publishing as Prentice Hall Berk/DeMarzo †¢ Corporate Finance, Second Edition 103 f. Billingham could instead purchase the XC-900, which offers even greater capacity. The cost of the XC-900 is $4 million. The extra capacity would not be useful in the first two years of operation, but would allow for additional sales in years 3–10. What level of additional sales (above the $10 million expected for the XC-750) per year in those years would justify purchasing the larger machine? See spreadsheet on next page. See spreadsheet on next page. See spreadsheet on next page. See data tables in spreadsheet on next page. See data tables in spreadsheet on next page. See spreadsheet on next page—need additional sales of $11. 84 million in years 3–10 for larger machine to have a higher NPV than XC-750. 0 -5,000 3,500 1 10,000 -7,000 -2,000 -275 725 -254 471 275 -1,200 -454 2 10,000 -7,000 -2,000 -275 725 -254 471 275 0 746 3 10,000 -7,000 -2,000 -275 725 -254 471 275 0 746 4 10,000 -7,000 -2,000 -275 725 -254 471 275 0 746 5 10,000 -7,000 -2,000 -275 725 -254 47 1 275 0 746 6 10,000 -7,000 -2,000 -275 725 -254 471 275 0 746 7 10,000 -7,000 -2,000 -275 725 -254 471 275 0 746 8 10,000 -7,000 -2,000 -275 725 -254 471 275 0 746 9 10,000 -7,000 -2,000 -275 725 -254 471 275 0 746 10 10,000 -7,000 -2,000 -275 725 -254 471 275 1,000 1,746 . b. c. d. e. f. Incremental Effects (with vs. without XC-750) Year Sales Revenues Cost of Goods Sold S, G A Expenses Depreciation EBIT Taxes at 35% Unlevered Net Income Depreciation Capital Expenditures Add. To Net Work. Cap. FCF Cost of Capital PV(FCF) NPV Net Working Capital Calculation Year Receivables at 15% Payables at 10% Inventory NWC -1,500 525 -975 -2,750 -600 -4,325 10. 00% -4,325 -164. 6 -413 617 561 510 463 421 383 348 316 673 0 -750 350 1000 600 1 1500 -700 1000 1800 2 1500 -700 1000 1800 3 1500 -700 1000 1800 4 1500 -700 1000 1800 5 1500 -700 1000 1800 6 1500 -700 1000 1800 1500 -700 1000 1800 8 1500 -700 1000 1800 9 1500 -700 1000 1800 10 1500 -700 0 800 New Sales (000s) NPV 8 -2472 Sensitivity An alysis: New Sales 9 10 10. 143 -1318 -165 0 11 989 12 2142 COGS 67% Sensitivity Analysis: Cost of Goods Sold 68% 69. 545% 69% 70% 71%  ©2011 Pearson Education, Inc. Publishing as Prentice Hall 104 Berk/DeMarzo Corporate Finance, Second Edition Incremental Effects (with vs. without XC-900) Year Sales Revenues Cost of Goods Sold S, G A Expenses Depreciation EBIT Taxes at 35% Unlevered Net Income Depreciation Capital Expenditures Add. To Net Work. Cap. FCF Cost of Capital PV(FCF) NPV Net Working Capital Calculation Year Receivables at 15% Payables at 10% Inventory NWC 0 -5,000 3,500 1 10,000 -7,000 -2,000 -400 600 -210 390 400 -1,200 -410 2 10,000 -7,000 -2,000 -400 600 -210 390 400 0 790 3 11,384 -7,969 -2,000 -400 1,015 -355 660 400 -111 949 4 11,384 -7,969 -2,000 -400 1,015 -355 660 400 0 1,060 5 11,384 -7,969 -2,000 -400 1,015 -355 660 400 0 1,060 6 11,384 -7,969 -2,000 -400 1,015 -355 660 400 0 1,060 7 11,384 -7,969 -2,000 -400 1,015 -355 660 400 0 1,060 8 11,384 -7,969 -2,000 -400 1,015 -355 660 400 0 1,060 9 11,384 -7,969 -2,000 -400 1,015 -355 660 400 0 1,060 10 11,384 -7,969 -2,000 -400 1,015 -355 660 400 1,000 2,060 -1,500 525 -975 -4,000 -600 -5,575 10. 00% -5,575 0. 0 -373 653 713 724 658 598 544 494 450 794 0 -750 350 1000 600 1 1500 -700 1000 1800 2 1500 -700 1000 1800 3 1708 -797 1000 1911 4 1708 -797 1000 1911 5 1708 -797 1000 1911 6 1708 -797 1000 1911 7 1708 -797 1000 1911 8 1708 -797 1000 1911 9 1708 -797 1000 19 11 10 1708 -797 0 911 s  ©2011 Pearson Education, Inc. 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