Fundamental of Finance Essay Example | Topics and Well Written Essays - 1250 words

Fundamental of Finance - Essay Example In our case, proposal A takes 4 years to recover the investment and proposal B takes only 3 years for the recovery of such investment. Accordingly the proposal B is ranked above the proposal A. The limitation in this method is that it does not consider time value of money. Net present value is a discounted cash flow approach to capital budgeting. â€Å"If the present value of future cash flow is greater than the initial cost, the project is worth undertaking. On the other hand, if the present value is less than the initial cost, a project should be rejected because investor would lose money if the project were accepted.†(Angelico A. Groppelli and Ehsan Nikbakhat, page 159)ii Assessing from this point of view, both proposal have a positive net present value. But as the net present value of proposal A is more than that of proposal B. Accordingly NPV method ranks proposal A ahead of proposal B. There are various shortcomings in methods of evaluation of capital projects that do not consider time value of money. It is generally felt that discounted cash flow methods provide a more objective basis for evaluating and selecting investment projects. These methods take account of both the magnitude and the timings of expected cash flows in each period of project’s life. Internal rate of return, like net present value method, is such a method that uses the discounted cash flow criteria to evaluate different capital projects. â€Å"The IRR for an investment is the discount (interest) rate that will make the present (or discounted) value of the cash flows from the operation equal to the initial outlay of the investment. An IRR above the minimum rate of return specified by management (called hurdle rate) is considered acceptable. When mutually exclusive projects are being compared, the project with highest IRR will be preferred.† (Ralph S.

Jehovah witness in St. Louis Mo Essay Example | Topics and Well Written Essays - 2000 words

Jehovah witness in St. Louis Mo - Essay Example They are well-known for their pervasive preaching and circulating activities. The highly eminent religious magazines like The Watchtower and Awake are the results of their publications. The Watchtower which mainly deals with the issues discussed in the Bible is published twice a month and Awake which covers the general topics of day-to-day life is published monthly. Any kind of idol worship or religious symbols are banned by the Jehovah’s Witnesses. They reject blood donations and their research and development of bloodless surgery techniques have resulted in various bloodless treatment options. Inspired by the Bible the Jehovah’s Witnesses encourage singleness. Nationalism and social ceremonies and rituals are not entertained by the witnesses. However, they are allowed to pay taxes to the government. Their motive is to spread the good news of Jehovah’s Kingdom to the people through door-to-door preaching. The Jehovah’s Witnesses lay considerable emphasis on reading of the Bible and regular prayers to God. The religion claims of God’s earthly paradise with the promise of eternal life when the lost ones will be resurrected. The followers believe that they have been chosen by Jehovah to spread the good news to all as the period of â€Å"last days† are going on. Like most of the religions the Jehovahâ€⠄¢s Witnesses consider premarital sex and abortion to be sinful. Any witness who is found guilty of indulging in any such heinous act is excommunicated or â€Å"disfellowshipped† by the congregation. The Jehovah Witnesses call their place of worship as the â€Å"Kingdom Hall†. It is the meeting place for members of the religion predominantly utilized for directions of Bible and devotion to God. This place of worship is purely functional in character. Scheduled meetings generally thrice a week including Sundays are held in each Kingdom Hall where the local groups assemble to offer their prayers to â€Å"Jehovah†. The members address