Investment Decision free essay sample

Tianfu Electronics Ltd is a midsized electronics manufacturer located in Chengdu, China. The company president is Dr. Wang Datong, a graduate from Tsinghua University, who founded the company 20 years ago. The company originally repaired radios and other household appliances. Over the years, the company expanded into manufacturing and is now a reputable manufacturer of various electronic items. Meng Xiaolan, a recent MBA graduate from Fudan University, has been hired by the company’s finance department. One of the major revenue-producing items manufactured by Tianfu is a personal digital assistant (PDA). Tianfu currently has one PDA model on the market, and sales have been excellent. The PDA is a unique item in that it comes in a variety of tropical colors and is preprogrammed to play traditional and modern music. However, as with any electronic item, technology changes rapidly, and the current PDA has limited features in comparison with newer models. Tianfu spent 1,815,000 yuan (RMB) to develop a prototype for a new PDA that has all the features of the existing PDA but adds new features such as cell phone capability. We will write a custom essay sample on Investment Decision or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The company has spent a further 390,000 yuan for a marketing study to determine the expected sales figures for the new PDA. Tianfu can manufacture the new PDA for 150 yuan each in variable costs. Fixed costs for the operation are estimated to run 4. 5 million yuan per year. The estimated sales volume is 70,000, 80,000, 100,000, 85,000, and 75,000 per each year for the next five years, respectively. The unit price of the new PDA will be 340 yuan. The necessary equipment can be purchased for 19. 5 million yuan and will be depreciated on a sevenyear schedule, with the depreciation percentages for the first five years being. It is believed that the market value of the equipment in five years will be 3. 3 million yuan. As previously stated, Tianfu currently manufactures a PDA. Production of the existing model is expected to be terminated in two years. If Tianfu does not introduce the new PDA, sales will be 80,000 unites and 60,000 units for the next two years, respectively. The price of the existing PDA is 280 yuan per unit, with variable costs of 120 yuan each and fixed costs of 1. 8 million yuan per year. If Tianfu does introduce the new PDA, sales of the existing PDA will fall by 15,000 units per year, and the price of the existing units will have to be lowered to 240 yuan each. Net working capital for the PDAs will be 20 percent of sales and will occur with the timing of the cash flows for the year; for example, there is no initial outlay for NWC, but changes in NWC will first occur in year 1 with the first year’s sales. Tianfu has a 25 percent corporate tax rate and a 12 percent required return. a. Wang Datong has asked Meng Xiaolan to prepare a report and determine the IRR and NPV of the project. What should Xiaolan propose for the decision? b. Tianfu has an idle piece of equipment that can be used for the new project, which, if used, can reduce the purchase of necessary new equipment and its salvage value in five years by 20%. The idle equipment currently has a book value of 4. 05 million yuan, and is to be depreciated to zero in four years in the straight-line method. The current market value of the idle equipment is 3. 735 million yuan and will have no salvage value in five years. What are the IRR and NPV if the idle equipment is used? Compare the difference in your results between (a) and (b) and briefly discuss.

What Happens If We Give All Our Attention to One Concern?

What Happens If We Give All Our Attention to One Concern?'The Postman' by David Brin is an essay which asks many questions. The question is how much time should we devote to play, how much time should we spend in paid work and what is it that we should be doing to make a living? Brin shows us what might happen if we give all our attention to one aspect or one career at the expense of other aspects. In a way, he can be said to answer the age old question: 'What will happen if we give up all of our interests?Today, I was reminded of what Brin's essay was talking about when I read about a law firm where employees were allowed to choose what days they would be working, how much they would be paid per hour, which hours they would work and which hours they would not. Apparently, the employees were able to choose which clients they wanted to see and which clients they wanted to avoid. Of course, this didn't work out so well. One of the lawyers quit, complained about the compensation plan an d many of his colleagues left, too.As you might guess, this isn't something that will occur in just about any business but it does happen a lot in article sites and article writing jobs. The short version is that there are two ways to approach freelance writing and when you choose one, the other will have to go away. If you think about it, this is a good thing, because it will force you to be more selective about your assignments.It's true that writers often have their own rules and some of them are different from others. One of the most famous is the golden rule, but there are other things, such as submitting to all the best article sites. You should submit to the best article sites out there but only if they fit your style.An ideal article site for you would be one that provides high quality content and lots of back links to its site. That's not to say that all other article sites are trash, but if you want to get the most out of your writing, you should work on those first. You c an always include content on other sites, but you shouldn't go out of your way to do it.Another thing that you should do is add a lot of paragraphs to your articles. It doesn't matter if you're a writer who is using the golden rule or one who puts lots of words into his articles. There are other writers who don't feel comfortable with the art of writing but it's important to understand that all writing is no good unless you work on your own style.The key is to keep your style simple, but make sure that your message is clear. This doesn't mean that you need to write in an academic language. Some people write to communicate with each other and this can be done through highly complex words, and that's all right.To conclude, it's important to go to the best article sites and make sure that you apply the golden rule, which means writing something that has a point, has clarity of purpose and has high value. You should also avoid going to all the other places that say that they are the bes t. These sites only make it easier for you to go the wrong places because it encourages you to give up on writing.