Social Discount Rates Essay Example | Topics and Well Written Essays - 1500 words

Social Discount Rates - Essay Example The discount rate which is used in financial calculations is usually chosen to be equal to the cost of capital. Some adjustment may be made to the discount rate to take account of risks associated with uncertain cashflows, with other developments. Evaluating an investment project can require the use of approaches designed to integrate the consideration of the flexibility and uncertainties associated with the investment opportunity under study (Robert Wilson, 1982). Regardless of the approach adopted, a project evaluation, based on deterministic hypotheses, is nonetheless inevitable at some given moment. The problem that arises is the choice of the 'conventional' method which helps to determine the project value with due integration of the financing related aspects. As Brealey and Myers (Robert Wilson, 1982) show it, various methods can be used, including standard WACC, Arditti-Levy, equity residual and adjusted present value. Historically, with certain assumptions, the consistency of these methods has been demonstrated by comparing them in pairs by Robert Wilson, 1982. However, this consistency could also suggest the existence of a single approach underlying these different methods, and from which they could all derive. The NPV is greatly affected by the discount rate, so selecting the proper rate - sometimes called the hurdle rate - is critical to making the right decision. The hurdle rate is the minimum acceptable return on an investment. It should reflect the riskiness of the investment, typically measured by the volatility of cash flows, and must take into account the financing mix (Ross,1976). Managers may use models such as the CAPM or the APT to estimate a discount rate appropriate for each particular project, and use the weighted average cost of capital (WACC) to reflect the financing mix selected. A common practice in choosing a discount rate for a project is to apply a WACC that applies to the entire firm. Some believe that a higher discount rate is more appropriate when a project's risk is different from the risk of the firm as a whole(Ross,1976). In capital budgeting the correct risk adjusted discount rate for future cash flows is independent of whether the flow is a cost or a revenue. Contrary to a widely disseminated view in some popular textbooks and elsewhere, costs are not especially safe (nor risky), and accordingly costs should not be discounted at especially low risk adjusted discount rates (Robert, 1998). Three Methods for Determining Discount Rates 1. The historical approach: One approach to find discount rates is to assume that the average rate which has been observed in the past will continue into the future. Typically, those who use this approach rely on the real interest rates which have been reported over a decade. What analysis of these rates indicates is that real rates were fairly stable over the period 1950-1970, at approximately 3 percent. During the oil crisis, of the early 1970s, real interest rat

Effects of indiginsation policy on Entreprenuership in Zimbabwe Essay

Effects of indiginsation policy on Entreprenuership in Zimbabwe - Essay Example At the onset definition and common dynamics of indiginsation policy affecting entrepreneurial trends is presented. This presentation mainly includes the meaning of indiginsation from the economic perspective and the primary features of indiginsation policy influencing the entrepreneurial trends. This information will aid in understanding the fundamentals of indiginsation policy necessary for structuring the subsequent sections of this study. Next the discussion regarding the entrepreneurial trends in Zimbabwe has been outlined. This will facilitate in comprehending the prevailing the entrepreneurial trends in Zimbabwe as well as opportunities and challenges faced by the Zimbabwean entrepreneurial (Moore & et. al, 2013). Again, the discussion regarding the impacts of indiginsation policy on entrepreneurs in Zimbabwe has been conducted with the aim of exploring the pros and cons of this policy on the entrepreneurs. In addition, the discussion regarding the practical illustrations has b een presented. This information will help in acquiring coherent understanding regarding the impact of indiginsation policy on the economic growth and development of Zimbabwe. Lastly, the summary of the findings which include the summarized information of the contents discussed in the preceding sections. This section highlights the most relevant facts and information regarding the entrepreneurial trends in Zimbabwe and the impact of indiginsation policy on entrepreneurships. This will help to comprehend the most relevant facts in a precise manner. According to Kovacic & Shapiro (2000), the governments across the world have undertaken numerous policies and measures to promote economic growth and welfare of its citizens. These policies have profound impact on the various national and international aspects (Kovacic & Shapiro, 2000). In this regard, Wilson III (1990) noted that indiginsation is a strategy of a nation to extort greater domestic

The Fall of Rome Essay Example for Free

The Fall of Rome Essay The fall of the Roman Empire was caused by many things. There were political, social, and economic issues all involved in the fall of Rome. Some issues were bigger than others, but I believe there are some major factors that led to the fall of Rome. I believe that the major factors that led to the fall of Rome were that barbarians knew how to attack the Roman Empire, the economy was going very bad, and Christianity was changing the way people were thinking. The first reason for the fall of Rome was that the barbarians knew how to attack the Roman Empire. Since Rome was running short on men to serve in the army, they needed to pay barbarians to fight in wars. It says on http://www.roman-colosseum.info/roman-empire/causes-for-the-fall-of-the-roman-empire that â€Å"One of the main causes for the Fall of the Roman Empire was the Barbarian Knowledge of Roman Military Tactics. The knowledge that the Barbarians gained of Roman style of warfare and military tactics by serving in the Roman army were eventually turned against the Empire and led to the sack of Rome by the Visigoths led by an ex-army soldier, Alaric.† This tells me that since the barbarians were in the Roman army for a while, they got to understand the way they fought and all their strategies. So when the barbarians attacked Rome, they already knew what Rome was going to do. The reason why they had to hire barbarians for the army was that people didn’t want to fight for their home. They would only do it for the money. The second reason why the Roman Empire fell was that the economy was going very bad. Document 3 says â€Å"First the economic factor†¦ While the empire was expanding, its prosperity was fed by plundered wealth and by new markets in the semi-barbaric provinces. When the empire ceased to expand, however, economic progress soon ceased.† What this tells me is that Rome would always conquer different places all the time. When they would do that, they plundered the cities they conquered and the Empire’s wealth source was made up of all the plunder. So when there was no more land to conquer, then there would be no more plundering. If there was no more plundering, then Rome’s economy would go down and they would have to find another source to get that money they always got from plundering. Unfortunately, they couldn’t find another source of money like that which led to the fall of Rome. The last reason why the Roman Empire fell was because of Christianity. Christianity had to do with the way people saw things in Rome. Christianity affected the people’s outlook on the Empire. According to Document 2, it says â€Å"The introduction . . . of Christianity had some influence on the decline and fall of the Roman empire. The clergy successfully preached the doctrine of patience; the active virtues of society were discouraged; and the last remains of military spirit were buried in the cloister; a large portion of public and private wealth was consecrated to the . . . demands of charity and devotion.† What this tells me is that Christianity helped people not follow the way of society of Rome. This made people not want to fight for their home and resulting of hiring barbarians. Also instead of people putting money toward Rome, they put money for charities and devotions. The Christian way was against the way Rome was heading for which really made a difference. So in conclusion, the reason why the Roman Empire fell was because the barbarians knew how to attack the Roman Empire because they fought in the Roman army, the economy was going down because they couldn’t find a way to make up the money they were getting from plundering cities, and Christianity changed the way people thought of the Roman Empire making them go against the Roman way.

Caring About Our Environment Essay examples -- Environment Ecology Nat

Caring About Our Environment Improving and maintaining the earth’s environment is becoming a more important task every day of our lives. Due to ignorance and frequent carelessness, this important task is quickly becoming a critical one. For this reason, I took it upon myself to construct a strategic plan to enlighten my peers to the problems of our environment. I did this in hopes that it would encourage everyone to act responsibly towards improving and maintaining the environment. With ongoing threats to the earth’s water supply, atmosphere, and surface, I found it necessary to devise a method of environmental enlightenment. I plan to apply this method at my place of academic study, The University. If supported by the faculty and staff and approached with confidence and determination by the student body, I am convinced that our environment on campus would undergo a drastic improvement. As a nation, we are facing many different problems with our environment. Two of the most important focuses are conserving our water supply and protecting the ozone layer. These two ...

America and the challenges of religious diversity Essay

Religion and Theory Introduction   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The world today is dynamic such that there is need to recognize the diversity of the people that live in it. People across the world are different in terms of culture, religion and race. However, there are few people that have consistently failed to accommodate diverse beliefs and opinions. One of the diversity factor that has come under sharp focus is religion. All over the world, there are people with special religious sensitivities and thus the need to accommodate diverse opinions when it comes to religion. Such people should be allowed to promote and practice their religious beliefs and practices with little or no interference. However, this freedom should be limited to the fact that the said religious beliefs and practices do not infringe on the rights of other people in the society.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The practice of religious persecutions started man7y years ago when certain religious beliefs and practices were discouraged. The consequences of practicing the discouraged religious practices included harassment and illegal persecution. Today, it is very difficult to identify individuals with special sensitivities and sensibilities from the street. However, there are certain factors that are common with certain religious following. Different religious groups have different code of dressing. This might make it easier to identify an individual with religious sensitivity.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   According to Wuthnow, (2011), religious groups such as the Islamic faith require that women dress modestly. Inn more conservative Muslims, women are required to wear veils covering most of their body. This is to reinforce their religious beliefs regarding chastity and behaviour. Muslim men also wear long flowing gowns which also would make them easy to identify. Almost every ethno-religious subcultures ranging from mainstream religious following such as the Hindu to smaller ethno-religious subcultures such as the Amish have a specific dress code. However, the dressing code is not the only way that one can identify people with religious sensitivities. The important thing for every individual in the society is to learn and respect the divergent opinion of the general populous when it comes to religion. References Wuthnow, R. (2011). America and the challenges of religious diversity. Princeton University Press. Source document

What Is Basalt

Basalt is the dark, heavy volcanic rock that makes up most of the worlds oceanic crust. Some of it erupts on land, too, but to a first approximation, basalt is an oceanic rock. Compared to the familiar granite of the continents, basalt (ba-SALT) is darker, denser and finer grained. Its dark and dense because its richer in the dark, heavy minerals bearing magnesium and iron (that is, more mafic) and poorer in silicon- and aluminum-bearing minerals. Its finer grained because it cools quickly, near or on the Earths surface, and contains only very small crystals. Most of the worlds basalt erupts quietly in the deep sea, along the mid-ocean ridges—the spreading zones of plate tectonics. Lesser amounts erupt on volcanic ocean islands, above subduction zones, and in occasional large outbursts elsewhere. Midocean-Ridge Basalts Basalt is a type of lava that the rocks of the mantle make when they start to melt. If you think of basalt as mantle juice, the way we talk about extracting oil from olives, then basalt is the first pressing of mantle material. The big difference is that whereas olives yield oil when put under pressure, midocean ridge basalt forms when pressure on the mantle is released. The upper part of the mantle consists of the rock peridotite, which is even more mafic than basalt, so much more so that its called ultramafic. Where the Earths plates are pulled apart, at the mid-ocean ridges, the release of pressure on the peridotite makes it start to melt—the exact composition of the melt depends on many details, but in general it cools and separates into the minerals clinopyroxene and plagioclase, with smaller amounts of olivine, orthopyroxene, and magnetite. Crucially, whatever water and carbon dioxide are in the source rock move into the melt too, helping keep it molten even at lower temperatures. The depleted peridotite left behind is dry and higher in olivine and orthopyroxene. Like nearly all substances, melted rock is less dense than solid rock. Once formed in the deep crust, basalt magma wants to rise, and at the center of the mid-ocean ridge, it oozes onto the seafloor, where it rapidly solidifies in the ice-cold water in the form of lava pillows. Farther down, basalt that doesnt erupt hardens in dikes, stacked vertically like cards in a deck. These sheeted dike complexes make up the middle part of the oceanic crust, and at the bottom are larger magma pools that slowly crystallize into the plutonic rock gabbro. Midocean-ridge basalt is so important a part of Earths geochemistry that specialists just call it MORB. However, the oceanic crust is constantly recycled into the mantle by plate tectonics. Therefore MORB is rarely seen, even though it is the majority of the worlds basalt. To study it we have to go down to the ocean floor with cameras, samplers, and submersibles. Volcanic Basalts The basalt were all familiar with comes not from the steady volcanism of the midocean ridges, but from more vigorous eruptive activity elsewhere that builds. These places fall into three classes: the subduction zones, the ocean islands, and the large igneous provinces, huge lava fields that are called oceanic plateaus in the sea and continental flood basalts on land. Theorists are in two camps about the cause of ocean island basalts (OIBs) and large igneous provinces (LIPs), one camp favoring rising plumes of material from deep in the mantle, the other favoring dynamic factors related to the plates. For now, its simplest just to say that both OIBs and LIPs have mantle source rocks that are more fertile than the typical MORB and leave things there. Subduction brings MORB and water back into the mantle. These materials then rise, as melt or as fluids, into the depleted mantle above the subduction zone and fertilize it, activating fresh magmas that include basalt. If the basalts erupt in a spreading seafloor area (a back-arc basin), they create pillow lavas and other MORB-like features. These bodies of crustal rocks may later be preserved on land as ophiolites. If the basalts rise beneath a continent, they most often mix with less mafic (that is, more felsic) continental rocks and yield different sorts of lavas ranging from andesite to rhyolite. But under favorable circumstances, basalts can coexist with these felsic melts and erupt among them, for instance in the Great Basin of the western United States. Where to See Basalt The best places to see OIBs are Hawaii and Iceland, but almost any volcanic island will also do. The best places to see LIPs are the Columbia Plateau of the northwestern United States, the Deccan region of western India and the Karoo of South Africa. Dissected remnants of a very large LIP occur along both sides of the Atlantic Ocean, too, if you know where to look. ï » ¿Ophiolites are found throughout the worlds great mountain chains, but particularly well-known ones are in Oman, Cyprus, and California. Small basalt volcanoes occur within volcanic provinces worldwide.

What Really Matters For Success - 1090 Words

According to psychologist Dr Daniel Goleman, â€Å"what really matters for success, character, happiness and life long achievements is a definite set of emotional skills† (Goleman). Observations indicate that organizations seek the same set of competencies; emotional intelligence, good judgement, integrity, global mindset, resilience and learning agility (Chamorro-Premuzic, 2015). These competencies, are an intrinsic aspect with regard to workplace performance and success in business. Having an in-depth understanding of my skills is important for effective workplace performance. In this portfolio, I examine the strengths and weaknesses of my intrapersonal effectiveness as learnt in this unit (BSB124). Throughout the unit, I have assessed†¦show more content†¦Emotional intelligence describes the ability of how one perceives, uses, understands and manages emotions in oneself and others (Mayer, Salovey, Caruso, 2000). A commonly used method to measure emotional intelligence is Schutte’s (1998) Emotional Intelligence Scale (SEIS). The SEIS assesses perception, understanding, expression, regulating and harnessing of emotion in the self and others (Jonker Vosloo, 2008). Furthermore, individuals who have a good level of EI are desirable as it is becoming a valued trait when recruiting managers and employees. Workers who have a high level of EI are able to function well in teams, adjust to change and be flexible (Deleon, 2015). 2.2 Analysis of test results My results (25.8), as determined from Schutte’s Emotional Intelligence Scale, indicate that I have a medium level of emotional intelligence. People with medium level of EI are generally good at interpreting, understanding and responding to emotions (Scholten, 2015). They are comfortable with conflict, emotional satiations and expressing emotions (Scholten, 2015). I agree that I have a medium level of emotional intelligence with this result being reflective of my current job performance. Working in customer service, social interactions with employees and customers are vital for