Finacial management Essay Example | Topics and Well Written Essays - 3000 words

Finacial management - Essay Example Therefore, as a matter of investment objectives, the study turns to somewhat outrule the relevance of Payback Period, Internal rate of return (IRR) and Overall rate of return (ORR) investment appraisal techniques and invites to focus on Life-Cycle/Whole life Cost Analysis (LCCA/WLCA), NPV, Net Benefits (NB) and Net Savings (NS), Benefit-to-cost ratio (BCR) and Savings-to-investment ratio (SIR) appraisal techniques. Term 'somewhat' in this case refers to the existence of profit-bearing or cash inflow-bearing opportunities connected with letting office space to another governmental institution (department (A)) for a rent paid yearly. There are many methods available to calculate specific economic performance measures. Used appropriately, these methods allow the investor to analyze the economic consequences of particular decisions and fairly evaluate alternative approaches. The various economic analysis methods include: Net Benefits (NB) and Net Savings (NS) are analytical methods used to describe time-adjusted economic benefits or savings between competing alternatives. NB is used to examine how costs of competing alternatives impact investment opportunities (e.g. ... NB is used to examine how costs of competing alternatives impact investment opportunities (e.g. real estate income or factory output) measured in positive outcomes relative to a base case. The NS method is the NB method recast to fit the situation where there are no important benefits in terms of revenue, but there are reductions in future costs (savings). Benefit-to-cost ratio (BCR) and Savings-to-investment ratio (SIR) are numerical ratios whose size indicates the economic performance of an investment. For example, a BCR of 1.5 means that one can expect to realize $1.50 for every $1.00 invested in the project over and above the required (baseline) rate of return. A primary application of BCR and SIR is to set funding priorities among competing projects when there is a limited overall program budget. Internal rate of return (IRR) is a measure of the annual percentage yield on investment. The IRR is compared against the investor's minimum acceptable rate of return to determine the economic attractiveness of the investment. This often misunderstood method is primarily used in Pro forma analysis in industrial and financial circles. Overall rate of return (ORR) is the annual yield from a project over the study period, taking into account reinvestment of interim receipts. Project earnings and earnings from reinvestment are accumulated to the end of the study period and set equal to the present value of cost to compute the ORR. This method offers another means of analyzing and ranking the economic performance expectations of competing alternatives. Discounted payback (DPB) and Simple payback (SPB) measure the time required to recover investment costs. If one ignores the time value of money (assume a zero discount rate), the method is called

Comparing and contrasting Essay Example | Topics and Well Written Essays - 1000 words - 3

Comparing and contrasting - Essay Example The appellant was not accountable to his clients within a reasonable time in that he did not make the necessary payments to his clients and other practitioners within a reasonable time. There was also failure to reflect all financial transactions in the books of accounts and delay with the payments of trust money to clients after due demand without any lawful reason. The orders of the court in this case were that the striking the appellants name off the role of attorney was substituted and instead the appellant was suspended from practicing for one year. He was also not found guilty of unprofessional, dishonorable or unworthy conduct by the court. In the Davey case, the Law society brought against Meumann White a number of complaints before the court that include; touting for work and are thereby engaging in conduct which is likely to attract business unfairly. By securing work through conferring benefits upon estate agents in order to induce them to channel work for Meumann White they were guilty of conduct which impairs their independence by creating conflicts of interest which is explicitly prohibited by the Prevention and Combating of Corrupt Activities Act. MW’s extensive expenditure is directed at securing instructions for the firm this is the premeditated and disguised scheme to â€Å"buy work† in order to derived significant direct financial benefit as a result. The court gave its judgment ad concluded that in all the circumstances of the case brought by the law society that MW has not been guilty of any wrongdoing. The court laid down a test for permissible advertising which is of the nature that is calculated to attract business unfairly and this is the only restraint placed on the entitlement of an attorney to advertise. They are both applications by the society concerned for the attorneys to be struck off the roll of attorneys or they be suspended from practice by the