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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Death Of A Salesman Essay Research Paper Example For Students

Death Of A Salesman Essay Research Paper Arthur Millers Death of a Salesman is a play best summed up in its title, it is just that, the death of a salesman. This death is not necessarily the physical end to a human life, but the crumbling end to the dreams of Willie Loman, the plays main character. The three main parts to Willies world are his job, his family, and his image as seen by the rest of the world. Although these parts are interwoven and interrelated, they are best divided and given separate analysis. The first part of Willies world is his job. Willie is a salesman for a large company in New York. Willies self-image and much of his self-worth are based in his job. In his own mind he is still as he used to be, well known and well respected among the clientele in the New England area. Things have changed though and the people Willie once knew in the business are no longer there and he no longer has the connections he once had. His inability to cope with and adapt to this changing business has caused, among other things, a loss in pay. Willie has lost his competitive edge, and with it his feeling of self worth and identity. The second part of Willies world is his family, more specifically his son, Biff. Biff is the firstborn and favorite son of Willie. Willie has high expectations of, and transfers his dreams, as so many fathers do, onto Biff. Biff can not live up to the expectations of his father and has dreams of his own which cause Willie to see him as a loafer, a shiftless bum with no desire to succeed. Although Willies dreams are not realized in Biff, his sons respect is still important. This respect is lost when Biff catches his father in an affair with a young lady. Even though this is not talked about (Biff never told anyone, not even his mother) it still creates tension and causes Biff to lose the respect he once held for Willie. Willies main philosophy in life is Be liked and you will never want and this is the cause of the problems in the third part of Willies life, his image. Image is everything to Willie. In his past he was a well liked, well known, respected man who turned his image into his success, but his image has changed. He is no longer well known and so he makes less sales and less money. His loss in pay has caused him to borrow money just to support his family. The constant borrowing of money is a source of great tension for Willie, he is no longer self-sufficient and feels he is nothing. The compounding of Willies problems, the loss of his self-respect, and the loss of respect from others cause Willie to go mad. He sinks into a manic/depressive state and loses touch with reality. He has no dream and no will to live causing him to entertain thoughts of suicide. In the end it is the love for his son and the belief that his insurance money will make Biff magnificent that give him the needed excuse and cause him to end his life. A mans life is his world and this world is expressed through his dreams and desires. Death of a Salesman is the loss and destruction of one mans dreams. The effects of this loss and destruction are utter madness that eventually lead to suicide. This dramatic work has a moral that should not soon be forgotten: When a man loses his dreams he loses everything and a life without dreams is a dull and empty void.

Good Research Proposal Methods

Question: Discuss about the Good Research Proposal Methods. Answer: Introduction: The description of a good research proposal that you have provided is appropriate. However, you have to emphasize on the research method in order to explain a good research proposal. In a research proposal, it is highly important to make the study cost effective and time-efficient (Maxwell, 2012). Therefore, explaining the best methods for the study is important in order to provide a good research proposal (Heath Tynan, 2010). The description of research proposal that you have provided is satisfying. However, it would be better to break down the sections in order to clear the viewpoint. The use of references is good, which has made the response critical. A good research proposal should clearly state the procedures that would help to conduct the study within low budget and short time span (Pickard, 2012). In order to make a proposal good, it is highly important to identify the gap in the existing literature (O'Leary, 2013). References Pickard, A. (2012).Research methods in information. Facet publishing O'Leary, Z. (2013).The essential guide to doing your research project. Sage Maxwell, J. A. (2012).Qualitative research design: An interactive approach: An interactive approach. Sage Heath, M., Tynan, C. (2010). Crafting a research proposal.The Marketing Review,10(2), 147-16.