Capital Asset Pricing Model and Cost free essay sample

What is the WACC and why is it important to estimate a firm’s cost of capital? Do you agree with Joanna Cohen’s WACC calculation? Why or why not? Answer: The cost of capital refers to the maximum rate of return a firm must earn on its investment so that the market value of companys equity shares will not drop. This is a consonance with the overall firms objective of wealth maximization. WACC is a calculation of a firms cost of capital in which each category of capital is proportionately weighted. All capital sources common stock, preferred stock, bonds and any other long-term debt are included in a WACC calculation. All else equal, the WACC of a firm increases as the beta and rate of return on equity increases, as an increase in WACC notes a decrease in valuation and a higher risk. The WACC of a firm is a very important both to the stock market for stock valuation purposes and to the companys management for capital budgeting purposes. We will write a custom essay sample on Capital Asset Pricing Model and Cost or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page In an analysis of a potential investment by the company, investment projects that have an expected return that is greater than the companys WACC will generate additional free cash flow and will create positive net present value for stock owners. Thus, since the WACC is the minimum rate of return required by capital providers, the managers in the company should invest in the projects which generate returns in excess of WACC. We do not agree with Joanna Cohen’s calculation regarding the WACC from 3 aspects: 1) When Joanna Cohen computed the weights or proportions of debt and equity, she used the book value rather than the market value. The book values are historical data, not current ones; on the contrary, the market recalculates the values of each type of capital on a continuous basis, therefore, market values are more appropriate. The cost of debt should not be calculated by â€Å"taking total interest expense for the year 2001 and dividing it by the company’s average debt balance. These historical data would not reflect Nike’s current or future cost of debt. 3) She mistakenly used the average Beta from year 1996 to 2001. The average Beta could not represent the future systemic risk, and we should find the most recent Beta as Beta estimate in this situation. 2. If you do not agree with Cohen’s analysis, calculate your own WACC for Nike and be prepared to justify your assumptions. Answer: 1)Weights of equity and debt: Systematic risk can’t be diversified away, while unsystematic risk can be diversified away by maintaining a diversified portfolio. -CAPM proves to be a better model than others such as the Dividend Discount Model, because the valuation behind CAPM is based on risk and rates of return while the Dividend Discount Model relies heavily on dividends and a growth rate. Disadvantages: -When using CAPM, it can be difficult determining the estimate of Beta. Different investments may involve different risks and the Beta used in calculating CAPM should reflect the appropriate amount of risk relating to the specific investment. The risk free rates used in calculating CAPM are continually changing as with the values of the investments in the market which make up the market risk premium. The constant changes in the market can have negative impacts on the valuation of CAPM. -Another disadvantage in using the CAPM in investment appraisal is that investment appraisal is premised on a long-term time horizon, whereas CAPM assumes a single-period time horizon, i. e. a holding period of one year. While CAPM variables can be assumed constant in successive future periods, market reality often shows that this is not the case. Cost of Equity using the Dividend Discount Model: Growth (g) = 5. 5% Dividend (D0) = $. 48 Share Price (P0) = $42. 09 Cost of Equity using Dividend Discount Model = Re = (D0 x (1+g)/P0) +g Re = 6. 7% = (. 48 x (1+5. 5%)/42. 09+5. 5% Advantages: -Using the Dividend Discount Model is very easy to calculate because the formula is not complicated. There are no real technical or difficult calculations involved with using this method. -The inputs that are used in the calculations of this model are market information and can be easily obtained. -The Dividend discount model attempts to put a valuation on shares, based on forecasts of the sums to be paid out to investors. This should, in theory, provide a very solid basis to determine the share’s true value in present terms. Disadvantages: -The Dividend Discount Model relies heavily on the growth rate to calculate the rate of return. If growth slows or becomes temporarily negative, it can result in calculations which may not truly represent future expected returns. -This model is calculated using dividends and can’t be used in instances where a company is not paying dividends. This is also a disadvantage for any investment without a reasonably constant growing dividend stream. -The Dividend Discount Model is very sensitive to minor changes in input figures. If the growth rate changes by 1 % the cost of equity will also change by that rate. -The Dividend Discount Model does not explicitly consider the risks which the company faces. 4. What should Kimi Ford recommend regarding an investment in Nike? Answer: In order for Kimi Ford to make a decision regarding an investment in Nike, she must compare an accurately calculated WACC to the sensitivity of equity value to discount rate chart shown in Exhibit #2. The sensitivity chart in Exhibit #2 states that at a discount rate of 11. 17%, Nike’s current share price is fairly valued at $42. 09. If a discount rate were to be calculated below 11. 17% then the Nike shares would be under-valued in the current market, but if their discount rate were higher than the 11. 17% Nike share price would be considered over-valued when compared to the current share price. When we calculated Nike’s discount rate, we determined that their appropriate WACC should be 9. 26%. Since this WACC of 9. 26% is below 11. 17%, we believe that Nike’s shares are currently under-valued in the market. We believe that Nike’s equity value based on the WACC of 9. 26% should fall somewhere between $55. 68 and $61. 25. Kiki Ford should recommend adding Nike shares to the NorthPoint Large-Cap Fund based on our analysis. 03/03/2011 CASE OVERVIEW Kimi Ford is a portfolio manager at a large mutual-fund management firm called, NorthPoint Group. Ford is considering the addition of Nike Inc. to the Large-Cap Fund at NorthPoint Group. Nike’s share price has notably declined since the beginning of the year. Her decision whether or not to add Nike to the portfolio should be made by looking at the 2001 fiscal year end 10-K report. In 1997 Nike’s revenues plateaued around $9 billion while net income had fallen from around $800 million to $580 million. Also, from 1997-2000 Nike’s market share in U. S. athletic shoes fell from 48% to 42%. Supply-chain issues and the adverse effect of a strong dollar had negatively affected revenue in recent years. At the June 28, 2001 analyst meeting Nike planned to add both top-line growth and operating performance. One goal was to develop more mispriced ($70-$90) athletic shoes and the other to push its apparel line. At this meeting a target long-term revenue growth rate between 8%-10% was given and an earnings-growth target above 15%. After reviewing all the analysts’ reports about the June 28th meeting Ford still did not have a clear picture of how to value Nike. Ford then performed her own sensitivity analysis which revealed Nike was undervalued at discount rates below 11. 17%. WHAT IS THE WACC? A firm derives its assets by either raising debt or equity or both. There are costs associated with raising capital and WACC is an average figure used to indicate the cost of financing a company’s asset base. More formally, the weighted average cost of capital (WACC) is the rate that a company is expected to pay to debt holders and shareholders to finance its assets. Companies raise money from a number of sources so the WACC is the minimum return that a company must earn on existing asset base to satisfy its creditors, owners, and other providers of capital. WACC is calculated taking into account the relative weights of each component of the capital structure which means it is the proportional average of each category of capital inside a firm. This rate, also called the discount rate, is used in evaluating whether a project is feasible or not in the net present value (NPV) analysis, or in assessing the value of an asset. WACC = [Wdebt * Kdebt * (1-t)] + [Wequity * Kequity] + [Wpreferred * Kpreferred] K = component cost of capital W = weight of each component as percent of total capital t = marginal corporate tax rate WHY IS IT IMPORTANT TO ESTIMATE A FIRM’S COST OF CAPITAL? The cost of capital is an important issue from the perspective of management while taking a financial decision. We can list some basic issues related to the importance of WACC and its interpretation by firms: * The importance of the WACC is in its relation to the evaluation of projects. For a project to be feasible, not just profitable, it must generate a return higher than the cost of raising debt (Kd) and the cost of raising equity (Ke). WACC is affected not only by Re and Rd, but it also varies with capital structure. Since Rd is usually lower than Re, then the higher the debt level, the lower the WACC. This partly explains why firms usually prefer issuing debt first before they raise more equity. As part of their risk management processes, some companies add a risk factor to the WACC in order to include a risk cushion in their project evaluation. * The cost of capital is also important for the management while taking a decision about capital budgeting. Naturally, the project which gives a higher (satisfactory) return on investment compared to the cost of capital incurred for its financing would be chosen by the management. Cost of capital is the key factor in deciding which project to undertake out of different opportunities. * The cost of capital is significant in designing the firms capital structure. It will direct the management about adopting the most appropriate and economical capital structure for the firm which means the management may try to substitute the various methods of finance to minimize the cost of capital so as to increase the market price and the earning per share. * The cost of capital is also an important factor for taking a decision about the soundest method of financing for the company whenever the company requires additional finance. The management may try to catch the source of finance which bears the minimum cost of capital. The cost of capital can be used to evaluate the financial performance of the top management by comparing actual profitability’s of the projects and the projected overall cost of capital and an appraisal of the actual cost incurred in raising the required funds. DO WE AGREE WITH JOANNA COHEN’S WACC CALCULATION? WHY OR WHY NOT? We do not completely agree with Joanna Cohen’s calculation of WACC. There are several problems in her calculation; * In Cohen’s calculation, she used the book value for the weights of each capital structure component (debt and equity). Book value of equity should not be used when calculating cost of capital. Instead she should have calculated the market value of equity. Also, she should have discounted the value of long-term debt that appears on the balance sheet to find the market value of debt (even if the book value of debt is accepted as an estimate of market value). * Also, she should have considered the preferred stock while calculating the weights of the components of capital structure (the redeemable preferred stock is relatively small in Nike’s capital structure so it doesn’t affect the weights). * Another problem with her calculation is about the cost of debt. Cohen used a cost of debt which is even lower than treasury yield. In common sense, a company, even it might be a large AAA firm, should be risky than US government. Cost of debt should be calculated by finding the yield to maturity on 20-year Nike Inc. debt with current coupon rate paid semi-annually instead of by taking total interest expense for 2001 and dividing it by the company’s average debt balance. USING SINGLE OR MULTIPLE COSTS OF CAPITAL IS APPROPRIATE FOR NIKE INC.? Even Nike Inc. has multiple business segments such as footwear, apparel, sports equipment and some non-Nike-branded products (which accounts for relatively small fraction of revenues), we assumed Nike Inc. To have a single cost of capital since its multiple business segments are not very different and would experience similar risks and betas. WHICH EQUITY RISK PREMIUM SHOULD BE USED TO DETERMINE THE COST OF CAPITAL? For the cost of capital, the geometric mean is a better alternative to the arithmetic mean. Furthermore, the geometric mean is a more conservative measure to use compared to the arithmetic mean. The average market risk premium has fluctuated by large amounts in short time periods from 1926-1999. 1926-1929 saw high market risk premiums; however, the 1930s and 1970s saw very low market risk premiums. Capital Asset Pricing Model (CAPM) Under CAPM we can find the cost of equity as; Ke = Rf + Betai * Equity Risk Premium The first issue is to find an appropriate risk-free rate. We think the 20-year yields on treasures would be the one because NIKE is assumed to be operated for such long time, according to the revitalizing strategy proposed by the management and the long-term debt issued. Next is to determine the beta. The historic betas has been generally decreasing, and we assume it is the market condition and management`s purpose that make NIKE to be a defensive company. Furthermore, we find that the competitors such as K-Swiss and Lacrosse also have beta less than one. So rather than the average, we use the YTD beta into calculation. On the other hand, since the beta has been found to be on average closer to the mean value of 1, which is the beta of an average-systematic-risk security, we calculate the adjusted beta, giving two-third weight to the YTD beta and one-third weight to 1. Regarding the risk premium, we use the geometric mean since it is a better measurement compared to arithmetic mean when the measured period is longer and contains more fluctuations.

A Study of the Themes of Friendship Duncan MacInnes Essays

A Study of the Themes of Friendship Duncan MacInnes Essays A Study of the Themes of Friendship Duncan MacInnes Essay A Study of the Themes of Friendship Duncan MacInnes Essay In this essay I will analyse the themes of friendship and betrayal in the book, explaining the ways they change the readers perceptions of the characters. I will also look at how they influence the decisions made by the main characters. When I follow the theme of friendship, I will do it through the relationships between the three main characters, Cameron, Andy and McDunn. I will show the themes are present in the various ways and times that these characters double cross each other. Complicity is a story about an amoral journalist, Cameron, who is on the tail of a huge story. He has a mole who is informing him about his article. At the same time the police are investigating a series of murders for which Cameron has no alibi, but a possible link to the crimes. Because of this he was accused of the killings. He sets about finding out the identity of the real killer. Who turns out to be his trusted childhood friend, Andy. A chase ensues and Andy captures Cameron and their friendship decided the outcome. When left with an ultimatum of hand me over or turn me loose Cameron could not betray his friend. The structure of the book is very important to the understanding of the various themes and the author has an interesting way of breaking up the story. The murder scenes are described in a way that is realistic due to the coarse nature of the language, for example, the use of gratuitous expletives in the dialogue. You fucking little cunt!. This language could be heard on the streets of Edinburgh whereas if the book was written in the Queens English, it would be almost surreal because people do not naturally talk like that. The book is graphic in its description: scenes and locations are described using words which are colloquial, this shows the authors Scottish heritage. Onomatopoeic adjectives, such as. You raise the log, bringing it down again and again. Are used to provide s clearer image in the readers mind. This style startles the reader at first, but is gripping once one has adjusted to it. Another interesting structural abnormality is that the murder scenes are all described i n the second person. You raise the log, bringing it down again and again. Iain Banks did this so that it is very hard to identify the killer, Andy or Cameron. This second person description made me think who is you and confused me. This contributes to the general paranoia throughout the book. The author creates this paranoia as it emphasises the idea of complicity, being an accomplice, and shows that Cameron doesnt really understand how or why he is involved. Scenes from Camerons childhood are re-played intermittently, in flashback form. This again shows the confused nature of the book. The reflecting that Cameron does shows he is lost and bewildered in the events surrounding him. This is used to contrast the theme of friendship at the early stages in his life and later on. He has a great friend in the flashbacks but in the present day he has something closer to an enemy. The theme of betrayal is rife from start to finish. This is shown in the examples I will focus upon. Starting with the flashbacks to when Cameron was very young. He and Andy went, despite parental warnings, onto a local frozen loch. With all the tomfoolery Andy cracked the ice and fell through. When Andy could not lever himself out and was calling for his assistance. Cameron didnt want to risk his own life. He then risked Andys by running the half-mile to the village to fetch help. This was early in their friendship and the betrayal was too great to forgive: Andy on occasion reminisced bitterly later on in the book. Cameron also thinks back on his cowardice and it is quite obvious that this experience changed both of their outlooks on life. This relates to my point because it was the incidents like this that exposed the frailties in Cameron and Andys relationship. There is Cameron letting Andy down when he needed help most but adversely, Andy, by never forgiving Cameron is not being a true friend. There is always an element of failure about the relationship, neither can rely absolutely upon the other. A second time during childhood, also shown in flashback by the author, the boys found themselves in trouble. When playing on land owned by Andys parents they were discussing sex and out of curiosity on Camerons part and a bit of misleading on Andys they ended up having their first homosexual experience: Andy tricked Cameron into fondling him. This incident which goes beyond friendship led me to consider their innocence how easily the boys got the boundaries confused and the naivity with which they entered into these actions. This shows Andys betrayal of Cameron by manipulating him in a sexual manner. This affects their friendship, but it seems to bring them closer together. An example of their innocence was shown when, just before the groping incident Cameron asks Have you got hair on yours then? talking about Andys genitalia. Then afterwards when they are going home the boys meet a man. This man then hits and rapes Andy. Cameron starts to run in fear for his own safety. Whilst running away he realises that he could never forgive himself for betraying his friend twice. He turns back and picking up a branch hits the man, who dies. The boys decided that no-one needed to know about any of that days goings on. This shows the strength of their early friendship as they could keep a secret, contrasting with how it later falls apart. This secret was kept as a symbol of their friendship until Cameron was arrested. When he realised it was Andy who had set him up he told the police: breaking the ultimate bond of their friendship. Perhaps this act of treachery would buy my freedom from the burden of buried horror that bound me to Andy for 20 years This shows the disintegration of their friendship, because of the betrayal by telling the police. I think that this was a very important part in the novel. It made me think, now one of the ties that made their friendship unique is broken, their relationship becomes so much more volatile. Andy has a problem forgiving people. He never forgives Cameron for leaving him on the loch, despite the fact that he was young and didnt know any better. He becomes very angry when his sister dies, he swears revenge upon those who harmed her. When he uses Cameron sexually that is okay, but when he is raped by the man, he shows no remorse in killing him. Throughout the book Andy was killing people and leaving his best friend, Cameron with little evidence to prove his innocence. When Cameron asked Andy if he thought the informant was a hoaxer, he was re-assured. All the time Andy was the informant and had a grand plan to have Cameron blamed. This shows a role reversal since childhood. When they were younger Cameron betrayed Andy, now it is Andy who betrays Cameron, pretending to be his friend whilst framing him for murder. This shows the theme of betrayal because Andy is not forgiving him for actions long in the past. This shows he is not being a good friend, they would forgive and for get, not let guilt hang over someone they cared about like the Sword of Damocles. When Andy talked about the affluent men he killed he did so with venom. They treated people like shit it was like theyd forgotten their humanity. He felt they had betrayed those who were less fortunate than themselves. His technique often involves betraying his victims. When killing the dealer of snuff films (videos of real people being brutally killed) he masquerades as a fellow producer to gain entrance into his home. He is betraying the trust of his victims, they presume his intentions are good. He is betraying society, killing these people is making the world unsafe and uncivilised by letting crime override the law. In effect he is making society an easier place for criminal activities to flourish. When being questioned by the police about the murders Cameron develops a friendship with one of the policemen Inspector McDunn. This friendship is ironic because McDunn is interrogating Cameron about the murders and its his job to prove Cameron guilty. Originally McDunn thought Cameron was guilty but as the story unfurls he has his doubts. The problem is that there is no evidence against anyone else. Eventually Cameron suspects Andy. Cameron allies himself with the police to find the now psychotic and dangerous Andy. The betrayal theme is ironic because Cameron is now trying to prove Andy guilty to save his own neck. In normal circumstances one would expect that Cameron and Andy would rally round to provide an alibi so that the enemy McDunn could hurt neither. Here the friends are McDunn and Cameron. McDunn shows the characteristics of a good friend towards Cameron providing support for him when he breaks down, giving him cigarettes and trusting him when no-one else will give him the time of day. It is difficult though to tell if McDunn did this because he genuinely felt for Cameron or because he thought it would speed up the process of finding the guilty party and was betraying Camerons trust. I look at McDunn, The one friendly face in here. This shows that McDunn likes and trusts him. Cameron needs this support to prove his innocence. This relates back to the title of the essay because it shows an interesting twist in the development of the themes of friendship and betrayal. It also shows that the friendship McDunn offers Cameron could be false. He could be pretending so that he may gain information for his case. This when considered by the reader forces them to come to a conclusion as to whether McDunn has good intentions or not. When Iain Banks created the story and characters I think he did it to make a point about the modern world He shows by the actions of the characters that he despises the idea of the ostentatious Thactcherite eighties. Their avaricious actions make the reader dislike them and so make Banks point. The book is a well crafted story but is also used as a vessel for Iain Banks political statements and it is because of this that it is immensely enjoyable.

Experiment Proposal Essay Example | Topics and Well Written Essays - 750 words

Experiment Proposal - Essay Example According to Barnes, V (2004 P. 23), many times AD begins towards the age of 60 and the risk goes up as you get older. No treatment can stop the disease. However, Richmond (2006) says that, some drugs may help keep symptoms from getting worse for a limited time. This experiment will be a well-controlled study of Alzheimer patients and will take 18 months. Basically, the experiment will be aimed at studying the efficacy, effectiveness and efficiency of an experimental drug called Physostigmine in treating Alzheimers disease. The drug appears to enhance acetylcholine levels in the brain by cutting back on the effects of an enzyme known as destroy ACh. It is expected that use of Physostigmine will, in the long run, help slow the progress of the disease. The age and the ability to speak fluent English will be the independent variables while the cognitive and behavioral change will be the dependent variables. A sample of 100 will be selected from a population of Alzheimers patients who have been diagnosed and found to be having it. Care will be taken to make sure that all those that are selected to take part in this study well represent the whole population. Further, the gender of the participant will be of importance as males may be preferred as it has been happening in most cases. Probably, a sample of 50 males and 50 females will be used. All the participants will have their cognitive and behavioral characteristics tested to be aware of their level before the study after which they will undergo three steps each approximated to take six months. The drug, Physostigmine, will be administered to each patient as per prescriptions. After this, the level recogtion and behaviour change will be recorded. This will be compared to the initial results to see whether there is any tangible change. This procedure will be repeated for the second time using a different prescription and the same tests as well as comparisons carried out. The last stage will follow.

No End in Sight Essay Example | Topics and Well Written Essays - 500 words

No End in Sight - Essay Example Bodine’s view of the reconstruction was to reach out to the Iraqis and identify government technocrats, as well as civil leaders who can effectively run the state (Shaikh 1). For a short period of time, she achieved a lot. What fascinated me about her was that, in such a demanding atmosphere, she managed to identify the best steps to be taken and how they would go about evaluating the steps. Richard Lee Armitage was an ex-deputy secretary of State Department. According to Armitage, the Iraq reconstruction was all about promoting world peace. He considered Iraq to be a threat to world peace (Shaikh 1). Armitage was also quite congenial during the interview, and that is fascinated me about him. The film covered the Iraq occupation mainly through interviews. The interviewees were mainly significant figures who were charged with managing the restriction. It dwelled on the mistakes that the Bush Administration during its occupation of Iraq (Shaikh 1). What shocked me was that the lack of security, rise of insurgency, lack of basic services and also, at one instance, the risk of a civil war, was caused by the mistakes made by Americans. If an outside power occupied my country and allowed widespread looting to take place and did not protect my country’s historical monuments, then I would consider them as taking us for granted. I would also think that their purpose for occupying our nation was for their own benefit. This will make me think of ways to remove them from my country. I will also make me despise the outside power. As depicted in the film, the daily lives of Iraqis were looting, fighting each other, killing each other and widespread demonstrations. Homes were burnt down, so people became homeless. Also, the country came to a standstill (Shaikh 1). In fact, during this period, Iraq could not be considered a country because even its leaders had exiled the nation and some killed. If I was in

Language Acquisition Essay Example | Topics and Well Written Essays - 500 words

Language Acquisition - Essay Example From the essay it is clear that infants have an innate capacity to learn the grammar of a specific language as all intelligible languages are based on grammatical rules that are common and corresponds to the ability of the human brain. The stages of acquisition of the native language are measured by originality and increasing complexity of children utterance. At first, infants overgeneralize grammatical rules. For example, they may say â€Å"goed† trying to mean went, a form infants are unlikely to have perceived, suggesting that they have deduced or intuited complex grammatical rules and failed to apprehend exceptions that cannot be anticipated from a grammatical knowledge. According to the study findings an applied linguist studies acquisition of foreign or second language. Learning a second or foreign language involves passing through some stages. These include the overgeneralization stage similar to infants learning their mother language. According to researcher Haynes, learning the second language involves passing through some stages such as early production, preproduction, speech emergence, advanced fluency and intermediate fluency. About preproduction stage, learners are yet to converse with their second language. In the second stage, learners speak in short phrases. In the emergence speech stage, learners increase their vocabulary and can converse with simple phrases or questions.

El estudio de proyectos

El estudio de proyectos 1 EL ESTUDIO DE PROYECTOS 1.1 Preparacià ³n y evaluacià ³n de proyectos Un proyecto es la bà ºsqueda de una solucià ³n inteligente al planteamiento de un problema tendiente a resolver, entre tantos, una necesidad humana. El proyecto surge como respuesta a una idea que busca la solucià ³n de un problema o la manera de aprovechar una oportunidad de negocios. Al preparar y evaluar un proyecto se pretende encontrar la mejor solucià ³n al â€Å"problema econà ³mico† que se ha planteado, y asà ­ conseguir que se disponga de antecedentes y la informacià ³n necesaria para asignar racionalmente los recursos escasos a la alternativa de solucià ³n mà ¡s eficiente y viable frente a una necesidad humana percibida. La Pre-inversià ³n consta de dos etapas. La primera etapa es la Preparacià ³n del proyecto, es decir, se determina magnitud de la inversià ³n, los costos y beneficios. La segunda etapa es la Evaluacià ³n del proyecto, en otras palabras, se mide la rentabilidad de la inversià ³n. Las causas del fracaso o del à ©xito pueden ser: * Cambios tecnolà ³gicos * Cambios en el contexto polà ­tico: cambios de gobierno o variaciones econà ³micas. * Cambios en las relaciones comerciales internacionales * Inestabilidad de la naturaleza * Entorno institucional * Normativa legal 1.2 La toma de decisiones asociadas con un proyecto No existe una concepcià ³n rà ­gida definida en tà ©rminos de establecer mecanismos precisos en la toma de decisiones asociadas con un proyecto. No obstante, resulta obvio seà ±alar que la adopcià ³n de decisiones exige disponer de un sinnà ºmero de antecedentes que permitan que esta se efectà ºe inteligentemente. Lo fundamental en la toma de decisiones es que à ©stas se encuentran cimentadas en antecedentes bà ¡sicos concretos que hagan que se adopten concienzudamente y con el mà ¡s pleno conocimiento de las distintas variables que entran en juego. Evaluacià ³n de proyectos consisten entonces, en un conjunto de antecedentes justificatorios, mediante los cuales se establecen las ventajas y desventajas que tiene la asignacià ³n de recursos para una idea o un objetivo determinado. 1.3 Tipologà ­a de los proyectos: Uno de los primeros problemas que se observan al evaluar un proyecto es la gran diversidad de tipos de proyectos que se pueden encontrar, dependiendo tanto del objetivo de estudio, como de la finalidad de la inversià ³n. Segà ºn el objetivo o finalidad del estudio, de acuerdo con lo que se espera medir con la evaluacià ³n, es posible identificar 3 tipos de proyectos que obligan a conocer 3 formas de obtener los flujos de caja para lograr el resultado deseado: 1. Estudios para medir la rentabilidad del proyecto, es decir, del total de la inversià ³n, independientemente de dà ³nde provengan los fondos. 2. Estudios para medir la rentabilidad de los recursos propios invertidos en el proyecto. 3. Estudios para medir la capacidad del propio proyecto para enfrentar los compromisos de pago asumidos en un eventual endeudamiento para su realizacià ³n. Para el evaluador de proyectos es necesario y fundamental diferenciar entre la rentabilidad del proyecto y la rentabilidad del inversionista. La rentabilidad del proyecto es la que busca medir la rentabilidad del negocio independientemente de quien lo haga, mientras que la rentabilidad del inversionista es la que busca medir la rentabilidad de los recursos propios del inversionista en la eventualidad de que se lleve a cabo el proyecto. Segà ºn la finalidad o el objeto de la inversià ³n, es decir, del objetivo de la asignacià ³n de recursos es posible distinguir entre: a) Proyectos que buscan crear nuevos negocios: en este caso, la evaluacià ³n se concentrarà ¡ en determinar todos los costos y beneficios asociados directamente con la inversià ³n. b) Proyectos que buscan evaluar un cambio, mejora o modernizacià ³n de empresas ya existentes: solo considerarà ¡ aquellos que son relevantes para la decisià ³n que se deberà ¡ tomar. a. Un proyecto de modernizacià ³n puede incluir: i. Externalidad ii. Internalizacià ³n iii. Reemplazo iv. Ampliacià ³n v. Abandono 1.4 La evaluacià ³n de proyectos Si se encarga la evaluacià ³n de un mismo proyecto a dos especialistas diferentes, seguramente ambos resultados serà ¡n distintos por el hecho de que la evaluacià ³n se basa en estimaciones de lo que se espera sean en el futuro los beneficios y costos que se asocian a un proyecto. La evaluacià ³n de proyectos pretende medir objetivamente ciertas magnitudes cuantitativas resultantes del estudio del proyecto, y dan origen a operaciones matemà ¡ticas que permiten diferentes coeficientes de evaluacià ³n. Lo realmente decisivo es poder plantear premisas y supuestos và ¡lidos que hayan sido sometidos a convalidacià ³n a travà ©s de distintos mecanismos y tà ©cnicas de comprobacià ³n. Por otra parte la clara definicià ³n de cuà ¡l es el objetivo que se persigue con la evaluacià ³n constituye un elemento clave para tener en cuenta en la correcta seleccià ³n del criterio evaluativo. Un proyecto puede tener diferentes apreciaciones desde el punto de vista privado y el social. Cualquiera que sea el marco en el que el proyecto està © inserto, siempre serà ¡ posible medir los costos de las distintas alternativas de asignacià ³n de recursos a travà ©s de un criterio econà ³mico que permita, en definitiva, conocer las ventajas y desventajas cualitativas y cuantitativas que implica la asignacià ³n de los recursos escasos a un determinado proyecto de inversià ³n. 2 EL PROCESO DE PREPARACIÓN Y EVALUACIÓN DE PROYECTOS El Estudio del proyecto pretende contestar el interrogante de si es o no conveniente realizar una determinada inversià ³n. El estudio de viabilidad debe simular con el mà ¡ximo de precisià ³n lo que sucederà ­a con el proyecto si este fuera implementado. 2.1 Alcances del estudio de proyectos En tà ©rminos generales, son varios los estudios particulares que deben realizarse para evaluar un proyecto: los de viabilidad comercial, tà ©cnica, legal, organizacional, de impacto ambiental y financiera. Por lo regular, el estudio de una inversià ³n se centra en la viabilidad econà ³mica o financiera, y toma el resto de las variables à ºnicamente como referencia. Estudio de viabilidad comercial: indicara si el mercado es sensible o no al bien producido u ofrecido por el proyecto y la aceptabilidad que tendrà ­a en su consumo o uso, permitiendo determinar la postergacià ³n o rechazo de un proyecto sin tener que asumir los costos que implica un estudio econà ³mico completo. Estudio de viabilidad tà ©cnica: analiza las posibilidades materiales, fà ­sicas o quà ­micas de producir el bien o servicio que desea generarse con el proyecto. Estudio de viabilidad legal: asegurar la existencia o ausencia de restricciones de carà ¡cter legal que impedirà ­an el funcionamiento del proyecto. Estudio de viabilidad organizacional: su objetivo es definir si existen condiciones mà ­nimas necesarias para garantizar la viabilidad de la implementacià ³n, tanto estructural como lo funcional. Estudio de viabilidad financiera: determina su aprobacià ³n o rechazo, mire la rentabilidad que retorna la inversià ³n, medido con base monetaria. Estudio de viabilidad del impacto ambiental: encontrar las normas impuestas en materia de regulacià ³n ambiental para impedir futuros impactos negativos derivados de una eventual compensacià ³n del daà ±o causado por una inversià ³n. 2.2 El estudio de proyecto como proceso cà ­clico El proceso de un proyecto reconoce 4 grandes etapas: idea, preinversià ³n, inversià ³n y operacià ³n. Idea: puede enfrentarse sistemà ¡ticamente bajo una modalidad de gerencia de beneficios, es decir, donde la organizacià ³n està ¡ estructurada operacionalmente bajo un esquema de bà ºsqueda permanente de nuevas ideas de proyectos. Preinversià ³n: se realizan los 3 estudios de viabilidad Perfil: se elabora a partir tanto de la informacià ³n existente, como del juicio comà ºn y de la opinià ³n que da la experiencia. En el estudio del perfil se busca determinar si existe alguna razà ³n que justifique el abandono de una idea antes de que se destinen recursos. Prefactibilidad: profundiza en la investigacià ³n, y se basa en informacià ³n de fuentes secundarias para definir las variables principales referidas al mercado, a las alternativas tà ©cnicas de produccià ³n y a la capacidad financiera de los inversionistas, entre otros. Se caracteriza fundamentalmente por descartar soluciones con mayores elementos de juicio. Como resultado de este estudio, sufre la recomendacià ³n de aprobacià ³n, abandono o postergacià ³n. Factibilidad: se elabora sobre la base de antecedentes precisos obtenidos mayoritariamente a travà ©s de fuentes de informacià ³n primarias. Este estudio constituye el paso final de la etapa de preinversià ³n. El estudio de proyectos, cualquiera que sea la profundidad con que se realice, distingue dos grandes etapas: la de formulacià ³n y preparacià ³n, y la de evaluacià ³n. La primera tiene dos objetivos: definir todas las caracterà ­sticas que tengan algà ºn grado de efecto en el flujo de ingresos y egresos monetarios del proyecto y calcular su magnitud. La segunda etapa, busca determinar la rentabilidad de la inversià ³n en el proyecto. En la etapa de evaluacià ³n, es posible distinguir tres sub-etapas: 1. Medicià ³n de la rentabilidad del proyecto 2. Anà ¡lisis de las variables cualitativas 3. Sensibilizacià ³n del proyecto El anà ¡lisis completo de un proyecto requiere de por lo menos la realizacià ³n de cuatro estudios complementarios: de mercado, tà ©cnico, organizacional-administrativo-legal y financiero. 2.3 Estudio tà ©cnico del proyecto Tiene como objeto proveer informacià ³n para cuantificar el monto de las inversiones y de los costos de operacià ³n pertinentes a esta à ¡rea. Una de sus conclusiones de este estudio es que se deberà ¡ definir la funcià ³n de produccià ³n que optimice el empleo de los recursos disponibles en la produccià ³n del bien o servicio del proyecto. Con este estudio se determinaran los requerimientos de equipos de fà ¡brica para la operacià ³n y el monto de la inversià ³n correspondiente. La descripcià ³n del proceso productivo posibilitarà ¡ conocer las materias primas y los insumos restantes que este demandarà ¡. La definicià ³n del tamaà ±o del proyecto es fundamental para la determinacià ³n de las inversiones y los costos que se derivan del estudio tà ©cnico. Las interrelaciones entre decisiones de carà ¡cter tà ©cnico se complican al tener que combinarse con decisiones derivadas de los restantes estudios particulares del proyecto. 2.4 El estudio de mercado Muchos costos de operacià ³n pueden preverse simulando la situacià ³n futura y especificando las polà ­ticas y los procedimientos que se utilizaran como estrategia comercial. Decisiones como el precio de introduccià ³n, las inversiones para fortalecer una imagen, el acondicionamiento de los locales de venta en funcià ³n de los requerimientos observados en el estudio de los clientes potenciales y las polà ­ticas de crà ©dito recomendadas por el mismo estudio, pueden constituirse en variables pertinentes para el resultado de la evaluacià ³n. Metodolà ³gicamente se deben estudiar 4 aspectos: a) El consumidor y las demandas del mercado y del proyecto, actuales y proyectadas. El anà ¡lisis del consumidor tiene por objeto caracterizar a los consumidores actuales y potenciales, identificando sus preferencias, hà ¡bitos de consumo, motivaciones, etc., para obtener un perfil sobre el cual pueda basarse la estrategia comercial. El anà ¡lisis de la demanda cuantifica el volumen de bienes o servicios que el consumidor podrà ­a adquirir de la produccià ³n del proyecto. b) La competencia y las ofertas del mercado y del proyecto, actuales y proyectadas. El estudio de la competencia es fundamental ya que la estrategia que se defina para el proyecto puede ser indiferente a esta. Es preciso conocer las estrategias que sigue la competencia para aprovechar sus ventajas y evitar sus desventajas. c) La comercializacià ³n del producto o servicio generado por el proyecto Deben tomarse decisiones sobre polà ­ticas de ventas y de crà ©dito, intereses, precio, canales de distribucià ³n, marca, estrategia publicitaria, inversiones en creacià ³n de la imagen, etc. d) Proveedores y la disponibilidad y el precio de los insumos, actuales y proyectados. Se debe determinar la disponibilidad de insumos y el precio que debe pagarse para su abastecimiento. 2.5 El estudio organizacional-administrativo-legal Para cada proyecto es posible definir la estructura organizativa que mà ¡s se adapte a los requerimientos de su posterior operacià ³n. Conocer esta estructura es fundamental para definir las necesidades de personal calificado para la gestià ³n y por tanto, estimar con mayor precisià ³n los costos indirectos de la mano de obra ejecutiva. La decisià ³n de desarrollar internamente actividades que pudieran subcontratarse influye directamente en los costos por la mayor cantidad de personal que pudiera necesitarse, la mayor inversià ³n en oficinas y equipamiento y el mayor costo en materiales y otros insumos. Los aspectos legales pueden restringir la localizacià ³n y obligar a mayores costos de transporte, o bien pueden otorgar franquicias para incentivar el desarrollo de determinadas zonas geogrà ¡ficas donde el beneficio que obtendrà ­a el proyecto superarà ­a los mayores costos de transporte. Uno de los efectos mà ¡s directos de los factores legales y reglamentarios se refiere a los aspectos tributarios. 2.6 El estudio financiero Sus objetivos son: ordenar y sistematizar la informacià ³n de carà ¡cter monetario que proporcionan las etapas anteriores, elaborar los cuadros analà ­ticos y datos adicionales para la evaluacià ³n del proyecto y evaluar los antecedentes para determinar la rentabilidad. La sistematizacià ³n de la informacià ³n financiera consiste en identificar y ordenar todos los à ­tems de inversiones, costos e ingresos que puedan deducirse de los estudios previos. Los ingresos de operacià ³n se deducen de la informacià ³n de precios y demanda proyectada, calculados en el estudio de mercado, de las condiciones de venta, de las estimaciones de venta de residuos y del cà ¡lculo de ingresos por venta de equipos cuyo reemplazo esta previsto durante el periodo de evaluacià ³n del proyecto, segà ºn antecedentes que pudieran derivarse de los estudios tà ©cnicos, organizacional y de mercado. Los costos de operacià ³n se calculan con la informacià ³n de prà ¡cticamente todos los estudios anteriores. La evaluacià ³n del proyecto se realiza sobre la estimacià ³n del flujo de caja de los costos y beneficios. El resultado de la evolucià ³n se mide por medio de distintos criterios que, mà ¡s que operativos, son complementarios entre sà ­. 2.7 El estudio del impacto ambiental Se sugiere introducir en la evaluacià ³n de proyectos las normas ISO 14,000 las cuales consisten en una serie de procedimientos asociados con dar a los consumidores una mejora ambiental continua de los productos y servicios que proporcionara la inversià ³n, asociada con los menores costos futuro de una eventual reparacià ³n de los daà ±os causados sobre el medio ambiente. La gestià ³n del impacto ambiental se tiende a la bà ºsqueda de un proceso continuo de mejoramiento ambiental de toda la cadena de produccià ³n. El estudio de impacto ambiental como parte de la evaluacià ³n econà ³mica de un proyecto no ha sido lo suficientemente tratado, aunque se observan avances sustanciales en el à ºltimo tiempo. Una tipologà ­a de estudios de impacto ambiental permite identificar tres tipos: 1. Cualitativos: identifica, analizan y explican los impactos positivos y negativos que podrà ­a causar al ambiente la implementacià ³n del proyecto. 2. Cualitativo numà ©ricos: relaciona factores de ponderacià ³n en escala de valores numà ©ricos a las variables ambientales. 3. Cuantitativos: determinan tanto los costos asociados con las medidas de mitigacià ³n total o parcial como los daà ±os evitados, incluyendo ambos efectos dentro de los flujos de caja proyectados. Existen distintos mà ©todos que permiten incorporar el factor monetario al efecto ambiental: a) Mà ©todo de valoracià ³n contingente: busca determinar la disposicià ³n a pagar de las personas por los beneficios que se espera produzca el proyecto. b) Mà ©todo del costo evitado: considera que el costo asociado con una externalidad debe ser asumido por el proyecto que la ocasiona, para lo cual incorpora dentro de los costos el gasto de subsanar el daà ±o causado o, dentro de los beneficios, el costo que la inversià ³n evitarà ­a al resto de la comunidad. c) Mà ©todo de los precios hedà ³nicos: busca determinar todos los atributos de un bien que podrà ­a explicar el precio que las personas està ¡n dispuestas a pagar por el. Alcance del estudio: El estudio deberà ­a incluir todos los peligros, riesgos e impactos asociados con las personas, el medio ambiente, la comunidad del entorno y los bienes fà ­sicos donde se inserta el proyecto. 3 ESTRUCTURA ECONÓMICA DEL MERCADO El mercado està ¡ conformado por la totalidad de los compradores y vendedores potenciales del producto o servicio que se vaya a elaborar segà ºn el proyecto. La investigacià ³n de mercado entrega informacià ³n histà ³rica y actual tanto del comportamiento de los consumidores, proveedores, competidores, como de los canales de distribucià ³n para la comercializacià ³n del producto del proyecto. 3.1 Estructura de mercado El ambiente competitivo en que se desenvolverà ¡ el proyecto puede adquirir una de las siguientes formas generales: 1. Competencia perfecta: se caracteriza porque en el mercado de un determinado producto existen muchos compradores y vendedores que no pueden influir en el precio; el producto es idà ©ntico y homogà ©neo; existe movilidad perfecta de los recursos; no hay barreras de entrada o salida y los agentes econà ³micos està ¡n perfectamente informados de las condiciones del mercado. 2. Monopolio: un solo proveedor vende un producto para el que no hay sustitutos perfectos, y las dificultades para ingresar a esa industria son grandes. 3. Competencia monopà ³lica: existen numerosos vendedores de un producto diferenciado y, en el largo plazo, no hay dificultades para entrar o salid de la industria. 4. Oligopolio: hay pocos vendedores de un producto homogà ©neo o diferenciado y el ingreso o salida de la industria es posible pero con dificultades. 4 EL ESTUDIO DE MERCADO El concepto de estudio de mercado se identifica con la definicià ³n del precio al que los consumidores està ¡n dispuestos a comprar, como a la demanda. Los objetivos particulares del estudio de mercado serà ¡n ratificar la posibilidad real de colocar el producto o servicio que elaborarà ­a el proyecto en el mercado, conocer los canales de comercializacià ³n que usan o podrà ­an usarse en la comercializacià ³n de ellos, determinar la magnitud de la demanda que podrà ­a esperarse y conocer la composicià ³n, las caracterà ­sticas y la ubicacià ³n de los potenciales consumidores. 4.1 El mercado del proyecto Al estudiar el mercado de u proyecto es preciso reconocer los agentes que, con su actuacià ³n, tendrà ¡n algà ºn grado de influencia sobre las decisiones que se tomarà ¡n al definir su estrategia comercial. En este sentido son cinco los submercados que se reconocerà ¡n al realizar un estudio de factibilidad: proveedor, competidor, distribuidor, consumidor y externo. Mercado Proveedor: Deberà ¡n estudiarse todas las alternativas de obtencià ³n de materias primas, asà ­ como sus costos, condiciones de compra, sustitutos, durabilidad, necesidad de infraestructura especial para bodegaje, oportunidad y demoras en la recepcià ³n, disponibilidad, seguridad en recepcià ³n, etc. Es necesario conocer las proyecciones a futuro. Mercado Competidor: Se debe tener en cuenta que cuando la materia prima es escasa o los medios de transporte son escasos la competencia por ellos serà ¡ prioritaria. El mercado competidor directo son las empresas que elaboran y venden productos similares a los del proyecto. Es imprescindible conocer la estrategia comercial que à ©stas desarrollen para enfrentar la mejor manera su competencia en el mercado consumidor. El mercado distribuidor: es el que requiere un menor nà ºmero de variables pero no es menos importante. La disponibilidad de un sistema que garantice la entrega oportuna de los productos al consumidor es sumamente importante. Uno de los factores mà ¡s importantes son los costos de distribucià ³n y son los que determinan el precio al que llegarà ¡ el producto al consumidor y por lo tanto la demanda que deberà ¡ enfrentar el proyecto. El mercado consumidor: es probablemente el que mà ¡s tiempo requiere para su estudio. La complejidad del consumidor hace que se tornen imprescindibles varios estudios especà ­ficos sobre à ©l, ya que asà ­ podrà ¡n definirse diversos efectos sobre la composicià ³n del flujo de caja del proyecto. Se deben definir los hà ¡bitos y motivaciones de compra para definir tanto al consumidor real como al potencial. Mercado externo: recurrir a fuentes externas de abastecimiento de materias primas obliga a consideraciones y estudios especiales que se diferencian del abastecimiento en el mercado local. Ninguno de estos mercados puede analizarse exclusivamente sobre la base de lo ya existente. Siempre podrà ¡ haber proveedores que la competencia directa no haya tenido en cuenta o competidores potenciales que hoy no lo son, o nuevos sistemas de distribucià ³n no utilizados, e incluso mercados consumidores no cubiertos hasta el momento. 4.2 Objetivos del estudio de mercado Para fines de la preparacià ³n del proyecto, el estudio de cada una de las variables que se seà ±alaron en el apartado anterior, va dirigido principalmente a la recopilacià ³n de informacià ³n de carà ¡cter econà ³mico que repercuta en la composicià ³n del flujo de cada del proyecto. El objetivo del estudio del mercado como la reunià ³n de antecedentes para determinar su influencia en el flujo de caja, cada actividad del mismo deberà ¡ justificarse por proveer informacià ³n para calcular algà ºn à ­tem de inversià ³n, de costos de operacià ³n o de ingreso. Al existir opciones entre las cuales elegir, el estudio de mercado tambià ©n deberà ¡ analizar el entorno en el cual se mueve cada uno de los mercados para definir la estrategia comercial mà ¡s adecuada a la realidad en donde deberà ¡ situarse el proyecto una vez implementado. 4.3 Etapas del estudio de mercado Se definen 3 etapas: 1. Anà ¡lisis Histà ³rico: pretende lograr dos objetivos especà ­ficos: reunir informacià ³n de carà ¡cter estadà ­stico que pueda servir y evaluar el resultado de algunas decisiones tomadas por otros agentes del mercado, para identificar los efectos positivos o negativos que se lograron. 2. Anà ¡lisis de la situacià ³n vigente: es importante, porque es la base de cualquier prediccià ³n. Sin embargo, su importancia relativa es baja, ya que difà ­cilmente permitirà ¡ usar la informacià ³n para algo mà ¡s que eso. Esto se debe a que, por ser permanente la evolucià ³n del mercado puede tener cambios situacionales cuando el proyecto se està © implementando. 3. Anà ¡lisis de la situacià ³n proyectada: este es el que realmente tiene interà ©s el preparador y evaluador del proyecto. Los otros dos anà ¡lisis permiten proyectar una situacià ³n suponiendo el mantenimiento de un orden de cosas que con la sola implementacià ³n del proyecto se deberà ¡ modificar. Esto obliga a que en la situacià ³n proyectada se diferencie la situacià ³n futura sin el proyector y luego con la participacià ³n de à ©l, para concluir con la nueva definicià ³n del mercado. 6 ESTIMACIÓN DE COSTOS La estimacià ³n de los costos futuros constituye uno de los principales aspectos centrales del trabajo del evaluador, tanto por la importancia de ellos en la determinacià ³n de la rentabilidad del proyecto, como por la variedad de elementos sujetos a valorizacià ³n como desembolsos del proyecto. 6.6 Elementos relevantes de costos Aunque es posible, en tà ©rminos genà ©ricos, clasificar ciertos à ­tems de costos como relevantes, solo el examen exhaustivo de aquellos que influyen en el proyecto posibilitarà ¡ catalogarlos correctamente. Para identificar las diferencias inherentes a las alternativas, es recomendable que previamente se establezcan las funciones de costos de cada una de ellas. De su comparacià ³n resultarà ¡ la eliminacià ³n para efectos del estudio, de los costos inaplicables. Si hubiera que dirigir el estudio de las diferencias de costos, los siguientes deberà ­an considerarse como prioritarios: * Variaciones en los està ¡ndares de materia prima * Tasa de salario y requerimientos de personal para la operacià ³n directa * Necesidades de supervisià ³n e inspeccià ³n * Combustible y energà ­a * Volumen de produccià ³n y precio de venta * Desperdicio o mermas * Valor de adquisicià ³n * Valor residual del equipo en cada aà ±o de su vida à ºtil restante * Impuestos y seguros * Mantenimiento y reparaciones Es necesario insistir sobre el costo de oportunidad externo a las alternativas que pudiera repercutir de manera diferente en cada una de ellas. Todos los costos deben considerarse en tà ©rminos reales para lo cual debe incorporarse el factor tiempo. 6.11 Costos Contables Aunque en la preparacià ³n del proyecto deben considerase los costos efectivos y no los contables, estos à ºltimos son importantes para determinar la magnitud de los impuestos a las utilidades. Como el fisco no puede ir revisando el grado de deterioro de cada activo del paà ­s, define una pà ©rdida de valor promedio anual para activos similares, que denomina depreciacià ³n. La depreciacià ³n no constituye un egreso de caja pero es posible restarlo de los ingresos para reducir la utilidad y con ellos los impuestos. El preparador del proyecto debe velar por recoger en detalle la normativa legar que condicionarà ¡ la estimacià ³n de los tributos. El termino depreciacià ³n se utiliza para referirse a la pà ©rdida contable de valor de activos fijos. El mismo concepto referido a un activo intangible o nominal se denomina amortizacià ³n del activo intangible. La utilidad negativa, en el anà ¡lisis incremental, no significa necesariamente pà ©rdida, sino reduccià ³n de utilidad. Por eso, en el anà ¡lisis incremental, en vez de asociar cero impuestos a una utilidad negativa, se considerarà ¡ un ahorro de costo equivalente a ese porcentaje. Un proyecto de mejora que reduzca los costos de la empresa deberà ¡ considerar que el aumento, menos que proporcional, en las utilidades està ¡ asociado con un aumento en el impuesto que debe pagar. El costo de una deuda tambià ©n es deducible de impuestos y tiene un impacto tributario positivo que debe incluirse en el flujo de caja cuando se busca medir la rentabilidad de los recursos propios invertidos en un proyecto. Para calcular el impacto tributario de una deuda, se debe descomponer el monto total del servicio de la deuda en dos partes: Amortizacià ³n: corresponde a una devolucià ³n del prà ©stamo, y por tanto, no constituye un costo, ni està ¡ afecta a impuestos. Intereses: es un gasto financiero de similar comportamiento al arrendamiento de cualquier activo y està ¡ afecta a impuestos. 7 ANTECEDENTES ECONÓMICOS DEL ESTUDIO TÉCNICO Las diferencias de cada proyecto en su ingenierà ­a hacen muy complejo generalizar un procedimiento de anà ¡lisis que sea à ºtil a todos ellos. Sin embargo, es posible desarrollar un sistema de ordenacià ³n, clasificacià ³n y presentacià ³n de la informacià ³n econà ³mica derivada del estudio tà ©cnico. 7.1 Alcances del estudio de Ingenierà ­a El estudio de ingenierà ­a del proyecto debe llegar a determinar la funcià ³n de produccià ³n à ³ptima para la utilizacià ³n eficiente y eficaz de los recursos disponibles para la produccià ³n del bien o servicio deseado. De la seleccià ³n del proceso productivo à ³ptimo se derivarà ¡n las necesidades de equipo y maquinaria; de la determinacià ³n de su disposicià ³n en planta (layout) y del estudio de los requerimientos del personal que los operen, asà ­ como de su movilidad, podrà ­an definirse las necesidades de espacio y obras fà ­sicas. El cà ¡lculo de los costos de operacià ³n de mano de obra, insumos diversos, reparaciones, mantenimiento y otros se obtendrà ¡ directamente del estudio del proceso productivo seleccionado. 7.2 Proceso de Produccià ³n El proceso de produccià ³n se define como la forma en que una serie de insumos se transforman en productos mediante la participacià ³n de una determinada tecnologà ­a. Los distintos tipos de procesos productivos pueden clasificarse en funcià ³n de su flujo productivo: a) En serie: cuando ciertos productos, cuyo diseà ±o bà ¡sico es relativamente estable en el tiempo, y que està ¡n destinados a un gran mercado, permiten su produccià ³n para existencias. b) Por pedido: la produccià ³n sigue secuencias diferentes, que hacen necesaria su flexibilizacià ³n, a travà ©s de mano de obra y equipos suficientemente maleables para adaptarse a las caracterà ­sticas del pedido. c) Por proyecto: corresponde a un producto complejo de carà ¡cter à ºnico que, con tareas bien definidas en tà ©rminos de recursos y plazos, da origen, normalmente, a un estudio de factibilidad completo. 7.3 Efectos econà ³micos de la ingenierà ­a Las necesidades de inversià ³n en obra fà ­sica se determinan principalmente en funcià ³n de la distribucià ³n de los equipos productivos en el espacio fà ­sico (layout). Serà ¡ preciso considerar posibles ampliaciones futuras. La distribucià ³n en planta debe evitar los flujos innecesarios de materiales, productos en proceso o terminados, personal, etc. Los cà ¡lculos de requerimientos de obra fà ­sica para la planta, mas los estudios de và ­as de acceso, circulacià ³n, bodegas, estacionamientos, à ¡reas verdes, ampliaciones proyectadas y otros, serà ¡n algunos de los factores determinantes en la definicià ³n del tamaà ±o y las caracterà ­sticas del terreno. La relacià ³n entre costos de operacià ³n e inversià ³n serà ¡ mayor cuanto menos intensiva en capital sea la tecnologà ­a. En muchos casos, el estudio tà ©cnico debe proporcionar informacià ³n financiera relativa a ingresos de operacià ³n; es el caso de los equipos y las maquinarias que se deben reemplazar y que al ser dados de baja permiten su venta. En otros casos, los ingresos se generan por la renta de subproductos, como el desecho derivado de la elaboracià ³n de envases de hojalata, que se vende como chatarra. 7.4 Economà ­as de escala Para medir la capacidad para competir debe estimarse el costo fabril de los distintos niveles de capacidad de produccià ³n. Para ello, se debe definir los componentes mà ¡s relevantes del costo: consumo de materias primas y materiales, utilizacià ³n de mano de obra, mantenimiento y gastos fabriles en general. El costo fabril ya definido debe compararse con la capacidad de produccià ³n y el monto de la inversià ³n, a esta relacià ³n se le denomina â€Å"masa crà ­tica tà ©cnica†. Al relacionar el costo unitario de operacià ³n (P) con la capacidad de la planta (C), dado un nà ºmero de unidades de producto pro unidad de tiempo, resulta una expresià ³n de la siguiente forma: P2P1=C2C1-a Donde a es el factor de volumen. Costo unitario de operacià ³n frente a la capacidad Al relacional el costo en equipos por unidad de capacidad (Q), tenemos Q2Q1=C2C1-b Costo distribuido de los equipos por unidad de capacidad Al relacionar la capacidad (C) con la inversià ³n total (I) tenemos: I2I1=C2C1f Donde f es el factor de volumen Costo de adquisicià ³n asoc

Homer’s Iliad †Searching for Meaning in Tragedy Essay -- Iliad essays

Homer’s Iliad – Searching for Meaning in Tragedy The past does not inevitably exist in the present. The creative processes of remembering and telling stories allow our histories to remain with us. Memory and story negate the possibility of existing independently of the past by connecting humans across time to the actions and value systems of their predecessors. Humans are forced to live amidst and confront a complex and multi-dimensional reality in which their every action affects people and events outside of their immediate context. By burdening humans with the consequences of their histories, story and memory comprise a foundation of moral responsibility. Since memory and story are subjective, our past, a seemingly immutable reality, is subject to their creative hands. These hands define as malleable entities the past, the future, and that which exists or has its basis outside of the present. The â€Å"real† is only immutable in a present entirely disconnected from all other time. Yet while the profound power of memory and story does deny an objective, singular reality, it simultaneously allows humans the capacity to transform the world to their liking. Even death, the most immutable of realities, can be manipulated through the creative processes of remembering and storytelling. Death, then, is the point from which we will begin to understand Homer’s exploration of memory and story. Death is a great wave whose shadow falls upon the lives of all beings below Olympus. Amidst this shadow and its immediacy in war, humans must struggle to combat and metaphysically transcend their transitory natures. If they fail to forge a sense of meaning for themselves and their people in what often seems an inexorably barren world, they are lef... ...e of our own iniquity or cowardice, drives us to courageous and moral action in the present. Thus, story and memory remove humans from the horrible brevity of mortal life by bringing existence into a realm outside of time. Humans die, but through story their fellow humans can make them immortal. Even amidst life’s tragedies, stories allow us to transform what seems an unbearable reality into something deeply beautiful. And yet their power is not merely retrospective since stories impose moral responsibility on our every action. Forgetting, therefore, is among the worst evils; not only because of the â€Å"moral perversity† it permits, but also because of the meaning it denies. NOTES 1 Homer, Iliad, trans. Richmond Lattimore (Chicago: The University of Chicago Press, 1951). 2 Milan Kundera, The Unbearable Lightness of Being (New York: Harper Perennial, 1984). Homer’s Iliad – Searching for Meaning in Tragedy Essay -- Iliad essays Homer’s Iliad – Searching for Meaning in Tragedy The past does not inevitably exist in the present. The creative processes of remembering and telling stories allow our histories to remain with us. Memory and story negate the possibility of existing independently of the past by connecting humans across time to the actions and value systems of their predecessors. Humans are forced to live amidst and confront a complex and multi-dimensional reality in which their every action affects people and events outside of their immediate context. By burdening humans with the consequences of their histories, story and memory comprise a foundation of moral responsibility. Since memory and story are subjective, our past, a seemingly immutable reality, is subject to their creative hands. These hands define as malleable entities the past, the future, and that which exists or has its basis outside of the present. The â€Å"real† is only immutable in a present entirely disconnected from all other time. Yet while the profound power of memory and story does deny an objective, singular reality, it simultaneously allows humans the capacity to transform the world to their liking. Even death, the most immutable of realities, can be manipulated through the creative processes of remembering and storytelling. Death, then, is the point from which we will begin to understand Homer’s exploration of memory and story. Death is a great wave whose shadow falls upon the lives of all beings below Olympus. Amidst this shadow and its immediacy in war, humans must struggle to combat and metaphysically transcend their transitory natures. If they fail to forge a sense of meaning for themselves and their people in what often seems an inexorably barren world, they are lef... ...e of our own iniquity or cowardice, drives us to courageous and moral action in the present. Thus, story and memory remove humans from the horrible brevity of mortal life by bringing existence into a realm outside of time. Humans die, but through story their fellow humans can make them immortal. Even amidst life’s tragedies, stories allow us to transform what seems an unbearable reality into something deeply beautiful. And yet their power is not merely retrospective since stories impose moral responsibility on our every action. Forgetting, therefore, is among the worst evils; not only because of the â€Å"moral perversity† it permits, but also because of the meaning it denies. NOTES 1 Homer, Iliad, trans. Richmond Lattimore (Chicago: The University of Chicago Press, 1951). 2 Milan Kundera, The Unbearable Lightness of Being (New York: Harper Perennial, 1984).

Carol Ann Duffy Study Notes

1. ‘LITTLE RED CAP’ ‘LRC’ is a poem written by Carol Ann Duffy, and is the first poem in the anthology ‘The World’s Wife’, published in 1999. By interpreting the fairytale of Little Red Riding Hood in her poem, Duffy recounts her ten years of marriage to Adrian Henri, who was twenty-three years old her senior. She places herself as the character of Little Red Cap and Henri as the wolf. Duffy also alludes to fairytales such as ‘Sleeping Beauty’ in ‘Queen Herod’ or more traditional stories like ‘The Hunchback of Notre Dame’ in ‘Mrs. Quasimodo’.In ‘LRC’, however, Duffy uses the fairytale staple of the woods, symbolically a rite of passage, to represent her change from a naive teenager to a woman who gains sexual maturity and independence, as a woman and a poet. a. Form and structure: POV of Little Red Cap? by extension, this is the POV of Duffy when she was younger? access true st thoughts of the character ? also allows the reader to see how she progresses from a naive young teenager who is struck by the wolf’s (and by extension Henri’s) sophistication and, more importantly, physical features to someone who has seen past this illusion and is more mature . Key features: Duffy’s use of the fairytale? seeing through illusions to find truth, leading to transformation? the illusion that Little Red Cap has to see through ? also may contain a moral, as fairytales do. While LRRH may have focused on never trusting strangers, this one may be about learning to trust and know yourself before anything else (girl gains independence at the end- ‘I took an axe’, etc. )? links to self-discovery? Duffy also subverts the original tale by removing the passive female protagonist who gets saved by a man, into someone who asserts her independence by taking ‘an axe to the wolf’ herselfSetting? contributes to the theme of self-discove ry and awakening ? we begin ‘at childhood’s end’, where ‘the house petered out’ ? there is a sense of safety and innocence lost, as she is on her own ? the listing in the first stanza presents a world that encapsulates childhood (‘playing fields’), work (‘factory’) and retirement (‘allotments’) ? she has left the microcosmic reality of childhood, inside her house, and is surrounded by this vast expanse of life? sense of being overwhelmed? but before she can join them she must go through the woods? ymbol of a rite of passage? somewhere unknown, fearful that LRC must traverse through in order to come out the other side with her ‘flowers, singing all alone’ Characterization of LRC? throughout the poem, the dynamic of the relationship between LRC and the wolf, as well as the states of each character change ? represents Duffy’s changing and growing dissatisfaction in her marriage to Henri? charact er represents Duffy at age sixteen (young)? described as ‘sweet sixteen†¦waif’, emphasizing her innocence and naivety ? casual tone (‘You might ask why. ), again highlights her juvenility, which attracts her to the more mature wolf? attraction causes whirlwind romance (‘I clung till dawn to his trashing fur’/ ‘my stockings ripped to shreds’) ? emphasized through violent verbs, and her need to seek justification (‘what little girl doesn’t dearly love a wolf? ’)? suggests she doesn’t really know what she is doing? so, it takes ‘ten years in the woods’ to come out the other side? she undergoes her rite of passage? represents the disillusionment caused during the final years of Duffy’s marriage? fterwards, she gains independence (repetition of ‘I’), and by doing so she finds her own voice within her femininity in the final lines of the poem (‘I come with my flowers, singin g, all alone’) Characterization of the wolf? represents the older Adrian Henri ? character progresses in the opposite way of LRC ? he starts off at a higher status, but falls from grace at the 6th stanza’s turning point ? introduced in stanza 2? Duffy emphasizes his masculine, physical qualities (‘What teeth! ’), emphasized by allusions to the original tale, as well as the regular rhyme scheme (focuses on ‘hairy paw’, ‘bearded jaw’)? lso creates a juvenile tone, emphasizing LRC’s schoolgirl attraction to him, and how he has the upper hand status-wise ? portrayed as mysterious, sophisticated and confident (contrasts with juvenility of LRC)- ‘red wine staining his bearded jaw’- it is red wine, not blood? also has connotations of illusion? however, in the 6th stanza she sees through the illusion ? realizes the ‘greying wolf howls the same old song at the moon’? implies that she was only taken by the i nitial lust for him, but that she has become bored and dissatisfied over time? caesura and parallel structures (‘year in, year out’) emphasize this? o she emasculates him (‘one chop, scrotum to throat’), relinquishing him of his power, becoming independent In conclusion, Duffy manages to explore the themes of self-discovery and independence as she takes a look back at her 10-year marriage to Adrian Henri. She cleverly places herself and Henri as the characters Little Red Cap and the wolf, subverting the traditional fairytale of Little Red Riding Hood and by doing this, uses the fairytale staple of seeing through illusions. Finally, Little Red Cap emerges out of the woods, completing her rite of passage.

Financial Statement Review Essay

What is the net income for the current fiscal year? Is it up or down from the prior year? Why would this information be important to investors? The total consolidated net income for Fiscal Year 2015 is $17,099 million dollars. This is amount is up from the previous Fiscal Year (2014) which had a consolidated net income of $16,695 million dollars. This information can be found on page 38 of the Walmart 2015 Annual Report. This information would be of importance to investors because it indicates whether the company is prospering financially and generating revenue. What is the ending balance in stockholders’ equity? Why would a labor union potentially be interested in this information? The ending balance in stockholders’ equity is $323 million dollars. This information can be found on page 40 of the Annual Report. This information would be of potential interest to a labor union because it provides information that could be used in determining labor rates, work salaries, and employee benefits. What is the total value of assets? Why would this information be important to a potential creditor? The total values of assets is $101,381 million dollars which can be found on page 60 of the Annual Report. This information would be of importance to a potential creditor because it provides an indication of whether the company would be able to repay any accumulated debt. It also provides a picture of how liquid those assets might be. What is the total cash flow from operation? The total cash flow from operations is $17,099 million dollars which can be found on page 41 of the Annual Report. What financial statement user would find this information most important?

Jurisprudence Essay †Ethics and Philosophy Paper

Jurisprudence Essay – Ethics and Philosophy Paper Free Online Research Papers Jurisprudence Essay Ethics and Philosophy Paper â€Å"Does utilitarianism provide an appropriate ethical basis for determining the existence and content of any duties we owe towards poor people living in developing countries and/or towards animals?† Introduction It is important in any argument to have boundaries, structure and guidelines. There is no one definition of utilitarianism. Provided below are particular extracts that endeavour to define the foundations of utilitarianism. Macquarie Dictionary ‘Concerning practical or material things.’1 Will Kymlicka ‘†¦ claims that the morally right act or policy is that which produces the greatest happiness for the members of society.’2 Kymlicka’s extract refers to society; this term can be related to any perceived injustice throughout the world. Utilitarianism is demonstrated by many modern day philosophers as the building block for animal rights fundamentalist and the ever expanding concept of globalisation. The obvious problem with a utilitarianism argument is that it is based on personal moral and ethical opinions and perceptions. Ethics is seen to be a ‘system of moral principles, by which human actions and proposals may be judged good or bad or right or wrong.’3 Ann Atkinson (Ed), Macquaire Dictionary (1991) 509. Will Kymlicka, ‘Utilitarianism’ in Contemporary Political Philosophy An Intro (2nd Ed, 2002) 10. Atkinson, above n 1, 164. Therefore, utilitarian theory does provide an ethical basis for determining the existence and content in any particular moral issues in modern society. The moral issues that will be expanded on throughout this essay are in relation to the duties that modern day societies owe to the poor people living in developing countries and towards man’s best friend, animals. Developing Countries The United Nations has defined all countries and nation-states as either developed or developing. There are many factors and considerations that contribute to the classification of a developing country. The most commonly highlighted characteristics of a developing country are as follows: high poverty and malnutrition, medical access and standard of medical care limited, high infant mortality rate, poor housing, low literacy levels, access to clean water limited, poor infrastructure, exploitation of natural resources, lack of military and police forces, and political/racial or religion based fighting. Countries that fall into the developing section seek foreign aid to help improve their lives from developed countries. Foreign aid does not only come from donations of money from either government or non-government organisations, aid can come in other shapes and disguises. Medical staff, teachers, and engineers are renowned for their participation in developing countries throughout the world. People who give up there own time or money to help those in need support the view that it is morally correct to assist those in a less fortunate position then oneself. These people see it as their personal duty on this Earth to help those who cannot help themselves due to location and situation. Is it ethically correct to help poor people in developing countries? It should be the opinion of all personnel that poor people in developing countries (or those less fortunate) do require help from those that are in a position to provide the appropriate aid, ‘†¦most of us unquestioningly support declarations proclaiming that all humans have certain rights, and that all human life is of equal worth.’4 To what extent and scope does this aid entail is the moral and ethical argument. A brick in the foreign aid building is the concept of globalisation. Some people are of the opinion that they must aid their family, friends, neighbours and countrymen before helping those from a different background or country. Singer states, ‘†¦citizens give their primary, and near exclusive, loyalty to their own nation-state rather than to the larger global community, and such a system has not led to a great enough will to meet the pressing needs of those living in extreme poverty.’5 Singer is of the belief that we should ‘consider ourselves as members of an imagined community of the world.’6 Globalisation is gaining momentum throughout many industries. Some examples of the expanding globalisation trends are evident in daily society, these are multi-national companies, international laws and treaties, global environmental issues, joint military objectives, the stock exchange and joint currency (Euro). Peter Singer, One World: the Ethics of Globalisation (2002) 168. Ibid 188. Ibid 187. Utilitarian foundations are made on the assumption that the globe needs to be a happy and more fulfilling place. The ethical basis of providing aid to developing countries is to assist the poor people to have a better quality of life, happiness and thus producing a better outcome for all mankind. Hence, society acknowledges that duties do exist for richer people to provide to those who are poor. These duties are not only based on personal ethics, but also can be forced. An example of forced aid is personnel income tax. The more one earns the more tax they pay. These tax dollars contribute to governments helping those less fortunate in national and global arenas. It is thus established that duties do exist for developed countries and their kinsmen to aid developing countries. To what content does this aid evolve? There are no written rules about how much a government or a single person must contribute to foreign aid. In the opinion of a utilitarian theorist, the more aid donated to a developing country, the better. Singer makes the point that a person should give all they can spare, ‘†¦advocate that everyone with income to spare, after meeting their family’s needs, should contribute a minimum of 0.4 per cent of their income to organisations working to help the world’s poorest people.’7 This continues with Soros calling the proposed US government foreign aid contributions, ‘a token gesture instead of something that could successfully impact most of the poor countries.’8 Singer and Soro are appalled at governments and everyday people for not carrying out the socially required content of their duty to the developing countries. Ibid 211. Ibid 213. The content becomes complicated when developed nations are paying for the mistakes and inabilities of another country to sort out their own problems. Global inequality is a natural occurrence, so why are we determined as a global concept to redistribute the wealth evenly. Some nations throughout the world, like Australia, have been blessed with a large proportion of the world’s natural resources. Natural resources are a naturally significant inequality between nations. Natural resources generally provide a viable and reasonably steady export income for the government. Rawls makes a pertinent argument that, ‘†¦ it unacceptable for a person who has worked hard and achieved wealth to be taxed in order to support someone who has led a more relaxed life and so is now, in terms of resources held, among the worst-off members of society?.’9 On reflection of Australia’s recent colonial history, one might avoid accepting such strong opinions against the duties t owards developing countries. As Australia once was a developing country only 150 years ago, without the help of her colonial parent the ‘United Kingdom’, Australia would still be developing today. The United Kingdom originally saw Australia only for exploitation, not for it to become a real society within itself. Does every developing country require a parent to look after it and help it to become more developed? Singer describes certain governments only providing foreign aid where it will benefit their nation, by advancing their own strategic and cultural interests.10 This type of aid is how Australia become developed. The aid by these governments is not donated without ulterior motives, though it is still benefiting the global community. Ibid 195. Ibid 209. The theory of utilitarianism provides an ethical basis for outlining the global duties in the context of developing countries. The theory defines the basis of duties that must exist in a stable, happy and equal global community. The ethical debate over the content of duties required by developed countries towards developing countries will be harder to resolve, as all individuals share a different opinion on the amount of aid appropriate to be given from one’s own wealth. Animal Rights The issue of animal rights stems from the precedence that all living things on Earth have a right to live be happy and not exploited for human gratification. ‘Men and women are similar beings and should have similar rights, while humans and nonhumans are different and should not have equal rights’.11 Singer uses utilitarianism as an ethical basis for comparing the arguments of animal rights (speciesism) with women’s rights (feminism), though the phrase ‘rights’ should be changed to ‘equal consideration’. ‘Equal consideration for different beings may lead to different treatment and different rights.’12 Singer suggests that all living organisms on Earth should be given equal consideration when making decisions that may affect that organism. He also continues to explain that, ‘the interests of every being affected by an action are to be taken into account and given the same weight as the like interests of any other being.à ¢â‚¬â„¢13 The reason why this argument exists in society today is due to the present exploitation of many animals on Earth i.e. animals for human consumption (livestock, seafood); animals for human entertainment and recreation Peter Singer, Animal Liberation (2nd Ed, 1991) 2. Ibid. Ibid 5. (caged animals, domestic pets); laboratory test subjects; animals for clothing and animals for the production of other household products. This list does not include the animals dislodged from their ecosystems due to logging, tourism and housing developments. Therefore, ‘the taking into account of the interests of the being, whatever those interests may be – must, according to the principle of equality, be extended to all beings, black or white, masculine or feminine, human or nonhuman.’14 Singer’s argument is that all organisms on Earth should be given equal consideration when assessing a future action. Due to numerous animals each year suffering due to humans, there exists a moral need to grasp the duties expected of humans towards other organisms on Earth. ‘If possessing a higher degree of intelligence does not entitle one human to use another for his or her own ends, how can it entitle humans to exploit nonhumans for the same purpose.’15 Humans do not use each other for food, clothing, laboratory test subjects or household products so why should we not give equal consideration to animals. The content of the duties required by humans towards animals is hard to define, as humans do need to exploit animals in some context. Society’s current acceptable exploitation of animals includes but is not limited to: organic and natural farming of livestock (cattle, sheep, chickens, fish, and crustaceans) for food; clothing and household items; limited laboratory test animals for essential experiments16; and domestic pets. Animals are a great source of food and natural fibre for clothing and materials; it would be near impossible to completely substitute all products they can Ibid. Ibid 6. Peter Singer, ‘Tools for Research’, in Writings on an Ethical Life (2000) 54. provide with synthetic alternatives. There is a need for some animals to be exploited by humans, though all animals, especially those living in their natural ecosystems are to be given equal consideration when taking action that could affect the area and its inhabitants. Kymlicka’s explanation of utilitarianism17 suggests animals belong to their own society. They have an inherit right to be happy and be given equal consideration as appropriate, in comparison to other societies within the world. Conclusion If a person has morals which reflect equality for all organisms on earth, utilitarianism can be the basis of any ethical debate. This was proven within this essay by utilitarian theory being relevant and adaptive to both contrasting ethical debates. If there are society accepted morals involved in any debate, the theory of utilitarian could be used to mould a possible resolution or response. Utilitarianism proves that there is a distinct ethical requirement for developed countries to conduct duties towards developing countries. The extent of these duties is a matter of opinion. This opinion will evidently change as the phenomenon of globalisation increases. Eventually, developing countries could become developed countries, if enough aid was given by the current wealthy countries. 17. Kymlicka, above n 2, 10. The duty towards animals is to make sure as humans we give all organisms due and equal consideration. Hence, complete happiness for every animal will be quite unachievable in present society. This is due to humans need to exploit animals for consumption. It is unlikely that a substitute will replace this need for consumption. In summary, there are limitations to utilitarianism for both debates: a person of reasonable wealth should not be expected to part with their money when they have worked for it; and most humans consume meat as part of their daily diet, therefore, some exploitation of animals needs to continue. BIBLIOGRAPHY Ann Atkinson (Ed), Macquarie Dictionary (1991). Ronald Dworkin, Taking Rights Seriously (1977). Will Kymlicka, ‘Utilitarianism’ in Contemporary Political Philosophy An Intro (2nd Ed, 2002). Peter Singer, Animal Liberation (2nd Ed, 1991). Peter Singer, One World: the Ethics of Globalisation (2002). Peter Singer, ‘Tools of Research’ in Writings on an Ethical Life (2000). Research Papers on Jurisprudence Essay - Ethics and Philosophy PaperMoral and Ethical Issues in Hiring New EmployeesRelationship between Media Coverage and Social andPETSTEL analysis of IndiaInfluences of Socio-Economic Status of Married MalesDefinition of Export QuotasPersonal Experience with Teen PregnancyBringing Democracy to AfricaGenetic EngineeringAssess the importance of Nationalism 1815-1850 EuropeComparison: Letter from Birmingham and Crito

Employment Law Case Study Example | Topics and Well Written Essays - 1000 words - 2

Employment Law - Case Study Example Starting with the application of the contract law, it is apparent that the employment of Jami Jensen was done in contravention of the laid down employment contract laws, where the employer is supposed to grant the employee a written contract of engagement, the moment the employee is hired by the employer. In Jami Jensen’s case, she was hired but a written contract was not offered by the employer. This situation makes her case complex, considering that it becomes difficult to establish the basis of her engagement with the employer, and the terms and conditions of the engagement, especially regarding the issues of salary increment, promotion and demotion. As a result of lack of a written contract of engagement, the organization just demotes Jami Jensen arbitrarily and reduces her salary from $80,000 to $40,000, while she is also relinquished of her position, and demoted to that of a supervisor. Another issue that arises in the Jami Jensen’s case, which falls under the contract law, is the issue of leave. Considering that she was not granted a written contract of engagement with the employer, Jami Jensen is not aware of the terms and conditions that are applicable in requesting for a leave, which should be clearly and precisely stipulated in the written contract of engagement. Thus, when she seeks for leave, she is told she has to offer a two week request in advance, and she does not have a basis of disputing the same, since she does not have a written contract to that effect. Sexual harassment law is applicable in this case, since Jami Jensen has been discriminated against, in matters pertaining to employee benefits such as leave, due to the fact that she has refused to yield to the sexual advances made to her by Mr. Clark, who is the vice president of the company. However, for the law of sexual harassment to apply, there are certain thresholds that must be met, which

Estate Management Essay Example | Topics and Well Written Essays - 1500 words

Estate Management - Essay Example Short-Term (1-5 years) Action Plans 2. CHA must include the target of achieving 100 % tenant profile within the year in order to allow for a more thorough assessment of the organization’s performance in terms of providing Equality of Opportunities to all tenants, by the next reporting period. 3. Based on the available 81 % of Tenant Profile, there is a need to produce a set of questionnaires that will enable the Staff to gather feedback from each of the categories. The feedback ought to be about how well CHA performed the expected and prescribed services for customers. This will then result in a summary according to each category. 4. Within the first round of releasing, following up, and collecting, summarizing, the management should publish informative materials that every tenant should know so that all tenants will be aware of the opportunities made available to them by the government and CHA. This will at least give the Staff a chance to answer YES to the Self-Assessment Qu estionnaire that inquires if the organization has â€Å"published documents that clearly and specifically set out our commitment and approach to equalities issues† as found in the website of the SHR. However, the publication should be very careful not to communicate any hint of discrimination to any category of tenants. 5. In order to meet its moral obligation to every tenant under each category, another set of Survey Materials that are relevant to each category should be developed for the purpose of clarifying the perception or tenants. It will enlighten the management when it is able to find any discrepancy against the perception of the management concerning the way a category of tenants can be satisfied with products and services. 6. To expedite the gathering of survey results, providing restricted, online questionnaires would be a workable recommendation. Tenants should be emailed their Username and Password to access the survey questionnaires. This will prevent just anyb ody from being able access the private questionnaires. 7. But even before the formulation of questionnaires, the Staff should know under what category each tenant will fall under. There should be a more specific set of questions meant for each category. For example, if a tenant is gainfully employed, questions related to Equality of Opportunity may be phrased based on the assumption that the tenant can afford to spend for a higher end design, and will have options to choose loans to access. Those available financing facilities should be communicated to the gainfully employed tenant. If the tenant is unemployed, CHA can offer grants made available by the government. And the options for these people would be the more affordable designs. Equal opportunity should be defined as the relative chance to have a home that complies with the Decent Home Standards with the available means that tenants can afford to utilize. It should not be made to mean that everybody will be offered grants, sin ce grants are limited. If the people who are employed are the tenants notified about grants and they avail of it, what can be utilized for the unemployed to refurbish their homes in order to comply with the Decent H