Essays on Capital Investment

Alpha Group

Consolidated financial statement of financial position for the year ended 31st December, 2015. Items £ (000) £ (000) Long-assets 2014 2015 Investment property, fair value 2500 2500 Property, plant, $ equipment 4324 4818 Total long-term assets 6824 7318 Current assets Cash 200 140 Cash equivalent 30 20 Trade receivables 1900 1200 Inventory 1000 1950 Dividends 100 190 Non-controlling interest share 120 150 Inventory, fair value cost to complete and sell 180 150 Total current assets 3530 3800 Total assets 10354 11118 Equity and liabilities Share capital 1500 1250 Retained earnings 1910 1000 Profits for the year 1000 1250 Dividends payables 100 190 ...

About the report

The objective of this report is to assist One-World Investment Consortium, who is planning to invest £150 million in Thomas Cook PLC, a British global travel company listed on the London Stock Exchange under the ticker sign of ‘TCG’. We duly understand the impact of our professional recommendation on Consortium’s final decision making related to investment, and therefore, we intend to be comprehensive in the approach our analysis. As for the structure of this report, it will be a two-part report. In the first section of the report, we will evaluate the past 5 year(2007-2011) financial performance ...

Introduction

The capital market is a wider portfolio market that deals with securities. The investment banking process provides a platform for the securities trading. The investors are provided with an opportunity to choose the appropriate financial instrument to choose. The portfolio management provides key elements that are applied by the investors in understanding the capital investment market. Therefore, the study seeks to explore on capital market investment and investment banking.

Portfolio and investment banking process

Investment banking process involves financial institutions that provide assistance to individuals, corporations, and governments in achieving and raising financial capital. This is through underwriting or taking part as the agent ...

Internal analysis of Enbridge Inc.

Introduction Enbridge Inc. a distribution and transportation of energy company operating in the United States and Canada. The company is divided into five segments to facilitate its operations and achieve its long-term corporate objectives. The sections include Liquids Pipelines; Gas Distribution; Sponsored Investments and Corporate and Gas Pipelines, Processing and Energy Services (Finance.yahoo.com, 2016). The company operates a common carrier through the Liquids Pipelines segment by contrasting natural gas liquids, refined products, and crude oil pipelines as well as terminals. The Gas Distribution Segment is a natural gas utility serving industrial, commercial and residential customers in Quebec, New York, ...

Introduction

Sharp Park, which is named after George Sharp, has a long, rich history. Mr. Sharp owned a more than 400-acre estate that he established with a vision for the San Francisco residents to enjoy recreation in a natural setting. When he died together with his wife, the property was left to the San Francisco City Council under strict instructions that it would only be used for recreational purposes. Sharp Park is in California off Highway 1 along the Pacific Ocean, San Francisco. It has existed since 1917; the golf course was established in 1930s. In 1941-internment camp was established ...

Introduction

Definition of Managerial Accounting Businesses must implement effective decisions at varying phases of growth through management accounting for a chance of a future. According to an article on the Harvard business Review, businesses mainly go through two main phases of growth: the start-up phase or the mature phase. According to Churchill and Lewis, each of these phases demand and rely on differing strategies that fulfill a need and/or takes the business to the next phase. The techniques used or applied to haul business through these phases are referred to as managerial accounting techniques. The parties responsible for reinforcing managerial ...

Implications of Erecting Additional Transmission Lines

Introduction Auckland is one of the regions in New Zealand. Auckland does not have many power generation sites like the other regions in New Zealand. However, the demand characteristics for Auckland are still high and are projected to increase due to population growth and economic development. Given that many of the energy production sites have been developed and the development of the remaining sites faces opposition from environmental groups, the viable options for easing the supply issues in Auckland include the development of renewable energy sources such as wind and solar energy, the optimization of the current transmission network ...

There are a number of theories that support the reason why people choose to enter self-employment, even in a culture where a huge number of companies and organizations offer employment to the mass population. According to the disadvantage theory, minorities who are being excluded from the labor market activity are actually forced into looking for substitute employment. At times when there is less to be expected from the labor economy, people would have to choose between unemployment and having low wages. These are the vulnerable workers who seek self-employment due to increased rate of unemployment and some augmented business ...

Sharp Park named after George Sharp has such a long history. Mr. Sharp had more than 400-acre estate that he established. When he died together with his wife, the property was left to the San Francisco City Council under strict instructions that it would only be used for recreational purposes. Sharp Park is in California off Highway 1 along the Pacific Ocean, San Francisco. It has existed since 1917; the golf course was established in 1930's. In 1941-internment camp was established in the park that provided medical service, food, shelter and employment opportunities to San Francisco residents. When Pearl ...

INTRODUCTION

With the intent to evaluate the financial As an established manufacturer of a line of fully-integrated wireless communication products serving an international market, New Technology Incorporated (NTI) is looking to start a partnership with outside entities for a long-term software security venture. After a competitive technical product evaluation, it has been determined that MicroStrategy, Inc. (MicroStrategy), a Virginia based corporation, represents the best potential candidate for this venture. This analysis will review the income statement trends, balance sheet trends, cash flow trends, and three key financial ratio trends for the years of 2013 – 2015 to determine if this merger ...

Cash Flow Statement

Cash Flow Trends While the income statement and balance sheet of the entity provided useful insights into the financial position of the company, however, since these financial statements are prepared on the accrual basis, we also focused on unearthing the trends in the cash flow statement as the same is prepared on the cash basis and provides a true picture of the company’s financial position. Discussed below are the trends related to the three sections of the cash flow statement of the company: -Cash Flow from Operations(CFO) Analyzing the CFO amount over the past three years, we ...

Business Finance Finals

The situation presented in the situation with client one is the for a business to survive a proper cash flow should be in place. The behavior of the person involve would also be barrier or a good mark on how they handle their financial management. As this is noted in the study of (Almeida, Campellow and Weisbach. 2004) in which they captured that “two important areas of research in corporate finance are the effects of financial constraints on firm behavior and the manner in which firms perform financial management”. In the line of the different of profits and cash ...

The fiscal policy influences aggregate demand, wealth distribution, and the capacity of the economy to produce goods and services by the fiscal policy (Ross). In the short run, changes in taxation or spending can alter the demand pattern for the goods and services. Resources are any productive factors that are needed to accomplish any activity of the business while capital is the financial value of the assets. Therefore, with time, the aggregate demand will influence the allocation of resources, and the production capacity of the economy via its impacts on the returns to production factors, human capital development, capital ...

Financial risk of an enterprise can be defined as the probability of adverse financial consequences in the form of loss of income and capital under uncertainty conditions for its financial activity. Financial risks have a great variety and for the implementation of effective management are classified by several main features that will be considered below. Financial risks arises in the process of enterprise relationships with financial institutions (banks, financial, investment, insurance companies, stock exchanges and others). Causes of the financial risk are inflation factors, the growth of bank interest rates, reduction of the value of securities and others.

Financial risks are roughly divided into two types:

1) ...

Executive Summary

The purpose of this research is to try and examine factors that influence business performance of SMEs. The aim of this study is to give the seeing on how individuals ought to begin their business by taking an evaluation at all the elements affecting business performance. Thus help to lessen the danger of disappointment and expand possibilities of success. The study inspected eight variables that impact the SMEs business achievement. These components are SMEs trademark, administration and expertise, items and administrations. (SMEs) Is acknowledged internationally as an apparatus for enabling the citizenry and economic development. It has been connected ...

Executive Summary

The report discusses various aspects relating to Air New Zealand Limited and The Warehouse Group where the objective is to issue a recommendation to the investors as which stock might offer better return to them. The report begins with a succinct discussion about both the companies which is then followed by assessment of their financial trend using their latest issued annual report and past three year stock price movement.

The next section deals solely with the financial aspects where we unearthed the capital structure of the companies, required rate of return, calculated their free cash flows and ascertained their intrinsic ...

Introduction

Every decision established in the company has a decision that involves the use of funds this is referred to as a financial decision. In the process of making financial decisions, the conventional corporate finance theory assumes that the main objective is to optimize the value of the company, which is referred to as maximizing shareholder wealth. Since the key objective in the corporate finance is to optimize company value, any financial decision that increases this value should be regarded good, while that reduces value is deemed poor. Therefore, the value of the company is determined based on three main financial decisions ...

In capital evaluation a number of financial decision making options are used. The paper shall focus on the following capital investment decision making evaluation criteria Net Present Value, Profitability Index and the Internal Rate of Return. The paper shall discuss the definitions, the advantages and the disadvantages in each of the criterion for capital evaluation.

The Net Present Value (NPV) is the capital investment evaluation method that considers the final outcome after the cash outflows have been deducted from the cash inflows. In other words, in NPV method, all the costs and incomes are considered and the difference calculated. The ...

Executive Summary

The strategic plan of Pepsi aims at establishing a clear vision and defined goals of how to maintain market leadership of Pepsi and how it has been able to be the best employer in the recent past. Pepsi Co majority of the times had a dominant position in the market, however, at the same time, it has also faced intense competition from its rival, Coca- Cola. The one type of change that it has experience in the last five years is its Diversity Inclusion Project which is now being led by CEO, Indra Nooyi, who has also been a major transformation in ...

Abstract

This paper will discuss the importance of measuring performance of balanced scorecard and economic value added. The crucial relation of the two disciplines which is a determinant of an organization’s overall financial performance. Every business organization has their own vision of how the company will be after a specific period of time. This vision is guided with a mission that dictates the decision of the company in the course of their operations. Mission and Vision must go hand in hand to ensure smooth sailing business operations and it entails the success of the organization once the mission and vision was embodied ...

Has the company increased production, made a significant capital investment (i.e. purchased new equipment or implemented new computer systems) in the most recent fiscal cycle? The Cabot Corporate has made a significant capital investment by launching a new product line of carbon black products for use in the rubber applications. The new product line is in line with the changing global markets as well as changes in customer requirements. The company has made this investment in the recent fiscal cycle as it announced news of the new product line in June 2015 (Cabot Corporate, 2015).

Where did you find this information?

The information above on the company ...

Introduction

Technology forms a central part of our day to day lives. Many human and mechanical activities have been taken over and made more efficient and easy to perform. Communication is among the areas significantly impacted by continuous technological advances achieved by the human race. These communication advances have enabled the provision of mobile money transfer and banking services. Mobile banking and money transfer provides a platform for handset owners to transact and bank through their phones . Nano-Tech will a business based in the State of Georgia, USA that provides an independent platform through which users can transact and do business via their ...

About the paper

In the words of eminent economist, A.A. Cournot, ‘’ The term market structure refers to the nature and degree of competition in the market for goods and services’’, and this paper is commissioned to discuss various forms of market structure, Perfectly Competitive, Monopoly, Monopolistic and Oligopoly, and how their varied characteristics affect the life of an average consumer and the society as a whole.

Perfectly Competitive Market

In the words of A. Koutsoyiannis’’ Perfect competition is a market structure characterised by a complete absence of rivalry among the individual firms.”

Below discussed in detail are the multiple characteristics of perfectly competitive market:

i) Number and nature of sellers A perfectly competitive market structure is characterized by large number ...

Management of Working Capital Case Study: George's Trains

Executive Summary Actionable information on the future and current cash flow, working capital, and capital budgeting are what managers in both small and big businesses work hard to obtain in their daily activities. Working capital is can be used to measure up the liquidity of the operations of the business (Sullivan 2010). It is usually the current assets subtracted from the current liabilities. Managers are normally concerned about working capital and would always seek the best practices to achieve a better working capital management. This report tries analyses the case study of George’s train business with an aim ...

Analytical Framework

Section-A There are two different companies which have been taken into consideration for the analysis and the names of the companies are Royal Dutch Shell and Endeavor International Corporation.

Net Present Value Analysis

Net present value (NPV) is a financial tool that is deemed as the difference between current value inflows and outflows. Generally, it is used for calculating budgeting to analyze the probability of an investment on any project that. It is required to analyze the NPV and IRR on the basis of two years like 2012 and 2013. The NPV of Shell Plc. is -250,386 $ while it is, -1, ...

__ March 2014 - Executive Summary Aware of the challenges in the industry and competition scenario in the back drop of economic uncertainty, this business plan provides crucial competition and marketing strategies that will enable the company achieve its objectives. With these business strategies, the company is projecting to grow revenues by an average of 36% per year based on its existing portfolio of clientele and potentially new ones within the business and government sectors. The average return on equity is about 29% while debt-to equity ratio is maintained at an average of 0.47, and current ...

A common belief in business states‘ the structural decision items of an operation's strategy are a reflection of the hardware components of the firm, while the infrastructure decision consequently, represents the firm’s software’. This is an analogy borrowed from computers that reflect on how important structural decisions are to the firm. Hardware is the backbone without which software would have nothing to run. There are heavy investment decisions that cannot be changed without incurring significant losses. They demand deliberate considerations about operations spread in different countries and demographics (Kayne, 2009). They include facilities decisions, process technology, capacity management and ...

Business Finance

Business Finance The payback system is the type of analysis used to calculate cash flow, and it can address some questions like investment taxes, acquisitions and action to pay them. Let us consider the case flow based on the job, which will be get covered for the employment that I currently have.

Consider payback period = Y + (A/B) Y = Number of years before the payback years, Y = 3.0 YEAR A = Total remaining to be paid back of break every year, A = $50 B = Net paid back in every year, B = 300 Payback period = 3+ (50) ...

Valuation Method: FCFF Model

In this section, we will now compute the intrinsic valuation of Air Canada using Discounted Cash Flow Valuation using FCFF method. Referring to the annual report of the company for the latest years, 2011, 2012 and 2013, we found that the company had never paid dividend, hence, it was clear that we cannot go ahead with dividend payments to value the firm. Moreover, FCFF valuation is suitable for firm-wide valuation which is the very essence of our report. Here are some of the rations as why we selected FCFF for valuation of the firm: - As discussed above, ...

Introduction

The Socialist Republic of Vietnam is a country in Southeast Asia with a population of 89.71 million people in 2013. Vietnam is a member of the regional economic organizations, namely ASEAN, APEC, ASEM, and since 2007 it is the member of the WTO. Momentous political event of the year was the adoption on 6 session of the National Assembly of XIII convocation in November 2013 the new Constitution of Vietnam, which fixed the state guarantees in respect of the private sector as an equal participant in the economic market of Vietnam. Among other important events of the political life of Vietnam in ...

Logistics Industry Overview

The manufacturers are eager to reduce the cost of production, and they are prepared to source the materials from any corner of the world if the costs are contained. The international trade agreements and globalized scenarios make exchange of goods between countries smoother. On the other hand, individual customers too do not hesitate to place orders with far off suppliers. Rise on the internet based services and e-commerce has made overseas suppliers search for ways to supply to remote customers. These changes in the international /domestic trade and commerce practices drive the logistics companies to adapt to the situation. ...

Labor force is an important tool in the growth of an economy as it is a factor influencing the growth. The usefulness of the labor force of a country depends on various issues. These issues affect the importance of the labor force to the country. The level of education is an important tool in the definition of the labor force of a country. The level of education creates clear demarcations between skilled and unskilled labor. The higher the skills a particular person has the more useful he is to the growth of the economy. Labor mobility arises due to the increase in the ...

RE: Advice and Analysis on your meetings regarding future of Levendary Café China

Statement of the problem

Levendary Café is a group company name for a chain of cafés. As part of the top management of the company, you are keen to expand its business in other parts of the world. This is because you have realized that Levendary Café’s domestic business in the United States has tapped out. You understand that the business has reached the maturity level of growth and further attempts to improve profitability and growth may not pay off as expected. Therefore, it is increasingly important that you help ...

Introduction

With the national average of women’s salaries currently, 77% of men’s salaries for the same position determine that there is discrimination in gender pay in our society that needs to be addressed. Working in the Education/Corrections system, we often see women overlooked for positions that they are as qualified for or even more qualified for in some cases than their male co-workers. I would like to investigate the evaluation process to determine if there is discrimination that may be a factor in the pay difference of gender. Another research documenting on the gender and double standards through ...

Administrative modification, powered by an extension of information technology, may have underwrote to the erosion of the previously established relationship between company size and the quantitative investment appraisal criteria selected. Seemingly, companies are by means of utilizing more methods composed, while the use of the more urbane discounted cash flow. However, systems are sophisticated, and that use of the less hypothetically sound accounting rate of return technique seems to be reduced, than aforementioned studies would have recommended of businesses . Consequently, accounting modification may result from procedures ascending within an organization in which it is operational, while as of ...

Introduction

Foreign Direct Investment (FDI) refers to a direct investment that is induced into business or production within a given country by a company or an individual in another country, and this can either take the form of buying a company within the country of target or expanding the operations of a business that already exists within that country. Moreover, this foreign direct investment may also include building of new structures, intra-company loans, mergers and acquisition, and reinvestment of foreign earned profits.

Summary from Kalirajan, Prasad & Drysdale (1-20). For two decades ago, China and India have become foreign direct investment destinations for many multinational ...

Project 1 (Table 1 on page 462, n=1-4, r=16%) Yr 1 $144,000 * 0.862069 = $124,138 Yr 2 $147,000 * 0.743163 = $109,245 Yr 3 $160,000 * 0.640658 = $102,505 Yr 4 $178,000 * 0.552291 = $98,308

PV of inflow of cash $434,196

Cost of Investment (400,000) NPV $34,196 Project 2 (Table 1 on page 462, n=1-4, r=16%) Yr 1 $204,000 * 0.862069 = $175,862 Yr 2 $199,000 * 0.743163 = $147,889 Yr 3 $114,000 * 0.640658 = $73,035 Yr 4 $112,000 * 0.552291 = $61,857

PV of inflow of cash $458,643

Cost of Investment (400,000) NPV $ ...

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Abstract

An important aspect of investment management in the form of investment is to identify and improve the economic efficiency of investments. In practice, there are two approaches to the definition and evaluation of real investment - cost and income. If we start from the quantitative estimates, up to recently, the economy was dominated by the cost approach, which was reflected in the manner of determining the economic effectiveness of capital investments and the principles of effective options for selection of investment projects based on the methodology of comparative effectiveness, which was ...

Introduction

This study is going to take place in the American state of California. California comprises of fifty eight counties sprawling along the eastern coastline. Covering such a huge geographical location, California does boast of unparalleled diversity in all fronts. Its topography, geography, and climate are diverse, covering coastal zones, plateaus, mountains, valleys, and deserts. It has temperate temperatures along the coast and increasingly high temperatures inlands. This distinctive ecological setting supports a rich variety animals and birds with a number of them being classified as threatened or endangered species. It also enjoys a vibrant economy owing to its vast resources and its attraction ...

Introduction

This document illustrates in detail an analysis of veterans health administration strategic planning and the evaluation of the organization. This will incorporate issues related to overview and assessment of services, demographic served financial and operational outcomes and identification of stakeholders. Additionally, it will also involve a competitive marketing analysis, current and future direction of the organization of choice and competencies and resources being used. Inclusion of a conclusion will entail what has been analyzed, and hence giver the reader the outcome of the paper (Schwartz and Kenneth, 2009). Additionally, the analysis is meant to show how the veterans’ health administration ...

Introduction: A brief history on the evolution of grid technologies.

The Smart Grid is the backbone of all major innovations, policies and regulations included in the power grid since its creation in the 1880’s. The power grid is an electric network of power sub-stations, transmission lines, transformers, and other equipment and facilities used by power suppliers to deliver electricity from the power generation plant to homes and commercial entities. When power grids started being built for electricity distribution, the demand for devices to measure consumption rose. The need for these devices was to help electricity suppliers in distribution, pricing and monitoring of their services. However, the path ...

Opportunities

Increase Geographic Reach Delek U.S. should consider increasing its geographic reach in order benefit from the global market.

Investment Plan

The company, under its capital expenditure, has plans of spending about $74.3 million in FY2011. Delek U.S. has plans to undertake several plans with high capital investment. The company has made investments aimed at improving the quality of its petroleum products to make them more environmentally friendly. The company’s capital investment plans can help improve its top line growth. With a strong potential for organic growth, Delek U.S. has made other investments to fuel its growth in the downstream segment. In ...

Capital Investment Decisions

Capital investment involves putting funds in a firm which would produce better returns. ( Flyvbjerg, B. & Rothengatter, W. 2003).Generally when making investment decisions, one need to put into consideration the amount of money or rather returns which will be brought in the company. Firstly, the time that will be taken by the investment to bring back the money should be considered. (Tiger, I.1980).This is always known as payback period. It is always very convenient to choose an investment which will take the shortest time possible to bring back the amount of investment incurred. Secondly, one needs to ...

A Case Study on Shouldice Hospital Limited: Practical Marketing Solutions

Critical problems/issues Shouldice Hospital Limited, a Canadian hospital specializing in hernia operations is considering whether and how to expand capacity and reach of its services while maintaining the quality of service delivered.

The hospital also faces the paradox of change given the current manager is 6o years old.

Assumptions Increasing capacity of the facility will increase the profitability of the firm because they will be able to serve many customers.

Increasing capacity will help in reducing waiting lines because currently, there are no operations scheduled during weekends.

Expanding the capacity of by beds by 50 percent would enable the organization schedule the operating rooms more heavily. If not well implemented, increasing capacity could compromise the quality of service offered by the hospital. It is assumed that the hospital is ...

The general principle of accumulating a venture or capital fund applies to any type of start-up or infant business. These businesses are usually associated with higher risks particularly for investors because of the uncertainties that might occur some time after the official launching of the business.

The general principle in acquiring a venture capital states that the larger the venture the capital is the better. This is because it will enable the business owners and administrators to realize or fulfill what’s on the official copy of their business plan. However, the accumulated venture or capital fund should not be too ...

Institutional Affiliations

Question 1: Discuss the role that ethics plays in corporate finance. In addition, discuss if market forces reinforce ethical or unethical behavior. In most corporations, the proper ethics lacks leading to innumerable scandals; Enron’s scandal remaining an all-time favorite quotation (Summer, 2007). Summer continues to argue that ethics has the role of aiding in critical decision-making especially as regards to some conflicting goals. Second, ethics has the role of ensuring objectivity in as far as financial reporting is concerned. Summer posits further that ethics enables equal treatment of shareholders, in addition to, ethical transfer pricing coupled with ...

Introduction

The currency of a nation is used as a medium of exchange and reference in all domestic financial transactions of a country. With globalisation and integration of economies, international business has become a common phenomenon. International business requires buying, selling and exchange of money between two nations. Since, economies across the world have their own currencies and value of each of these currencies vary at any given point in time, relative value of one currency with respect to another becomes an important aspect during international financial transactions. This has concerted international focus on the concept of foreign exchange, which deals with the relative ...

INTRODUCTION

Tantalizers Plc is a leading Fast Food company established in May 1997 with a promise to deliver full value for money to an increasingly discerning target audience. The company pioneered the integration of African menu into fast food operations. In order to evaluate how tantalizers’ plc has improved in its financial performance in terms of profitability, efficiency and stability, its financial statement in 2008 and 2009 would be analyzed and interpreted using some basic financial ratios. Profitability, efficiency and financial risk ratios will be used to evaluate the company’s performance in 2008 and 2009 respectively.

Financial Ratios

Turnover Growth

Net profit ...

Performance measurement is the attempt in business to be able to quantify what management has been doing during a certain period. The principle behind it is that of giving management authority to make certain decisions in their areas of responsibility and later on make then making them accountable for their decisions. In the end, what a superior wants is a performance report from a manager concerning his division. The report would contain what he has been doing and whether targets set have been attained or not. There are three main financial performance measurement techniques; return on investment, residual income and economic value added.

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Abstract:

The article investigates how human capital investment affects distribution of wealth in short as well as well long term in various economies. The article reflect current credit market pattern and individual investment in gaining competencies and knowledge to perform labor which impact wealth distribution. The article further investigates per capita output differences in various countries and also examines differences in various countries economic to adjust variation in earnings distribution and wealth.

Introduction:

The Article “Income Distribution and Microeconomics” by Oded Galor and Joseph Zeira provides a detailed explanation on how distribution of wealth influence economic activities in short term and long ...

Discussion Questions

1. What are the different types of plans that organizations use? What types of plans does your organization use and why does it use these plans?

Any organization uses the following types of plans:

a) Based on Departments/Areas – Plans for Marketing, Finance, & HR Department. b) Based on Time – Such as: i. Long-term plans – Made for 5 years or more. For example, to determine cash flow from capital investment in a project. ii. Short-term plans – Plans formulated for less than a year. c) Based on Organizational Levels – Such as: i. Strategic Plans – Made by the top-level management for the entire organization addressing its vision, mission and planned ...

Liquidity Ratios

These are ratios that help accompany to meet its short term maturity obligations. They are arbitrary measures that are used to verify a company’s capability to settle off short-term debts responsibilities. They basically measure the ability of the company to meet its near-term obligations. Current ratio and acid test ratio are example of liquidity ratio measures.

Current ratio

Current ratio is a liquidity measure that shows the rate at which a company is able to meet its short- term liabilities using its current assets. It indicates the capability of a company to meets its short term liabilities with its current assets. Companies with current ...

This work is about investment analysis. Investment analysis helps an organization’s management in making informed decisions on the activities that add value to the company. Such analysis also show the amount of capital required for any investment, risks, and the cumulative cash flow. This work presents Net Present Value as a method of assessing capital investment options in a business. It involves the before-tax calculations of the Net Present Value and the after-tax calculations of the same. Finally, the management of the given organization -- in this case, the Deer Valley Lodge – is advised on the profitability of the investment.

...

“Lincoln Electric Company has a mission of attaining and preserving international competence as a supplier of superior equipments and products with the highest quality (lincolnelectric).” The origin of the company is in Cleveland, Ohio, where the owner Mr. Lincoln began operations in 1895 making and distributing electrodes and welding equipment (Hastings, 1999). The founder invested a capital of $200 and from that it has managed to grow over the years into being the largest manufacturer of welding machines and electrodes employing over 8000 people. Even though it started operations in an economy that was in a depression and with many competitors, it has ...

The fundamental reason for the prolonged Japanese great recession

There are many contributing factors to the cause of the prolonged Japanese recession. These are the labour input, government expenditure, capital investment and productivity change. An analysis was carried out measuring the changes in the mentioned factors against the changes in GPB over the period of 1985 to 1990s. The analysis showed all the four factors contributed to the depression but at different levels. The government expenditure on the economy during this time actually stimulated the economy rather than depressed it. During this time the government tried several spending projects in a bid to revive the economy. In the years ...