1. The table below gives the initial investment and expected cash flows over the next five years for two different projects. Assume that the industry you are in expects a return of 10%, which you use as the discount rate in net present value (NPV) calculations and as the required rate of return for purposes of deciding on projects. Also, assume that management only wants to invest in projects that pay off within four years. For each project, compute the payback period, NPV, and internal rate of return (IRR). Then explain whether each project should be accepted based on these three criteria. Project A Project B Initial Investment $40,000 $28,000 Year Cash Flows 1 $10,000 $10,000 2 $10,000 $13,000 3 $10,000 $5,000 4 $10,000 $5,000 5 $10,000 $6,000 2. Suppose you are planning on becoming a vendor at the arena where your favorite sports team plays. You are trying to decide between opening up a souvenir stand selling T-shirts, caps, etc., with your sports team’s logo or opening up a hot dog and beer stand. It is more expensive to open up the hot dog and beer stand because you need to purchase a license to serve alcohol and you need to spend money to comply with health department regulations. Revenue from the souvenir stand is likely to be unpredictable because fans of your favorite team tend to want to purchase hats and T-shirts only when the team is winning. Revenue from hot dogs and beer seem to be a little more steady since fans want to eat and drink regardless of whether the team is winning.
Below is a table with the initial investment cost of each type of stand and the annual payments you expect over the next five years. The annual payments will be different depending on how well your team does. Therefore, you will estimate how much cash flow you will get depending on whether your team does better than expected (optimistic), the same as the past few years (most likely), and worse than expected (pessimistic). Use a discount rate of 8%. Based on the table below, answer the following items: A. Calculate the net present value (NPV) for each type of stand under each of the three scenarios. Calculate the range of possible NPV values for each type of stand. B. Based on your answer to A) above and your own guesses about how well you think your favorite team will do over the next five years, which type of stand would you rather invest in? Souvenir Stand Hot Dog and Beer Stand Initial Investment $100,000 $150,000 Annual Cash Inflows (5 Years) Outcome Pessimistic $30,000 $50,000 Most likely $50,000 $60,000 Optimistic $70,000 $70,000
3. Suppose you are a corn farmer in your home state. You have to decide between two projects. One project is to purchase new equipment for your farm that will help boost your profits for the next 10 years. You also find out that you can purchase a large banana farm in Brazil for the same price as the equipment, and at the current market price for bananas you will make a lot more profit than you would from purchasing new corn farming equipment.
After asking around, you find out that the standard discount rate for evaluating the NPV of the farming project is 6%. Most farmers in your home state seem to use this rate successfully. However, you don’t know any other banana farmers and you don’t know too much about farming in Brazil, so you have to make a guess on an appropriate discount rate for the Brazilian banana farm. Based on the concepts from the background readings, would you say the Brazilian banana farm will need a lower or higher discount rate? A lot larger or smaller, or only a little? 4. Calculate the following: A. The cost of equity if the risk-free rate is 2%, the market risk premium is 8%, and the beta for the company is 1.3. B. The cost of equity if the company paid a dividend of $2 last year and is expected to grow at a constant rate of 7%. The stock price is currently $40. C. The weighted average cost of capital (WACC) if the company has a total value of $1 million with a market value of its debt at $600,000 and a market value of its equity at $400,000. Its cost of debt is 6% and its cost of equity is 15%. The tax rate it pays is 25%. 5. Suppose you own a chain of dry cleaners and the WACC you’ve been using to make decisions on new purchases of dry cleaning equipment is a steady 9%. Recently, gambling has been made legal in your home town so you decide to expand and open up a casino. Should you use the same WACC to evaluate purchases of casino equipment? Why or why not? What are some alternatives to using the same WACC to make decisions on casino equipment?
Speculations of Cultural Criminology Distributed: 23rd March, 2015 Last Edited: fifteenth August, 2018 Disclaimer: This article has been presented by an understudy. This isn't a case of the work composed by our expert article essayists. You can see tests of our expert work here. Any assessments, discoveries, conclusions or proposals communicated in this material are those of the writers and don't really mirror the perspectives of UK Essays. Contemporary Issues in Criminology: Cultural Criminology Basically talk about its hypothetical underpinnings and assess whether this hypothetical approach fills in as a valuable clarification of criminal conduct in present day Britain. Social criminology is the way to deal with the examination of wrongdoing that its culpability and its control are situated with regards to culture. This implies, foundations of wrongdoing control, and wrongdoing by it self are viewed as results of culture. Social criminology's examination is drawn nearer with speculations, techniques, and political investigation. There are two key components that associate, and social criminology needs to give careful consideration on this collaboration which is between: the climbing and plunging of the association of developments. It generally centers upon the bordering age of importance around this communication, for example, making and defying of the guidelines of law, advancement and encroachment in governmental issues. (www.culturalcriminology.org) Especially, social criminology is a perception performed by Ferrell and Sanders (1995), and executed by Redhead (1995) and others and connected particular scholastic strings to find the gathering of social and criminal techniques in current social life. (Kane 1998) In current society the wrongdoing practice and wrongdoing control, with social progression, are associated and social criminology finds the different manners by which they interface. At the end of the day, what social criminology underpins, is the possibility that the centrality of significance and portrayal in the structure of wrongdoing as a brief reality. Starting here of view, the customary thoughts of wrongdoing and wrongdoing attention to include pictures of unlawful conduct and representative appearances of law fortification, celebrated culture structures of wrongdoing and criminal conduct. Researchers are permitted from this enormous intrigue and fixation on culture, and individuals have better comprehension of wrongdoing, as astounding movement, and furthermore understands the legislative issues that challenge for criminal control. (www.culturalcriminology.org) Social criminology joins at an abnormal state, the unmistakable sight of sociological criminology with the introductions toward picture and outline, which is given by the social investigations region. Social criminology has showed up from a considerably more blended co-procedure of criminology, human science and obviously social investigation and this is a result of the wide commitment of criminology and culture joined. This appearance was the fundamental track for the knowledgeable individuals who worked in relationship with the Birmingham School of Cultural examinations, the National Deviancy Conference, and in Great Britain with the 'new criminology' in the 1970s. (www.culturalcriminology.org) In the wake of looking into the sort of present day control, the scholastics contemplated the augmentations of social level that needed to do with culture and belief system. Prohibited subcultures yet additionally agreeable nations (that have another significance of life), have been seen by those scholastics. After the perception, they analyzed what came in the middle of these two distinct belief systems who manage legitimate control and social assessment. (www.culturalcriminology.org) Any control that is living and wealthy is a theme to conventional procedures of recovery and refreshment. Criminology is the alike. It has had its humanist Marxist, women's activist, and realist, between different returns and is by and by being enchanted to one more 'change in perspective' in the state of a so called 'social criminology'. A present one of a kind issue is Theoretical Criminology (2004), which was devoted to the appearance and forecasts of this new child on the levelheaded square. As indicated by Hayward and Young's (2004:259) opening article of the specific point, social criminology is: 'the putting of wrongdoing and its control out of sight of culture; that is, watching both wrongdoing and the association of control as social items – as roused manifestations. (O'Brien 2005, p. 599) The fundamental territory that new criminology inspects most, is the manner by which performing artists determine meaning, and furthermore looks on the best way to utilize the investigation of the examination they are concentrating on, to discover what prompts breaking the law as consistently normal. (in the same place.: 260, 266). Understanding its psychological legacy in 1960s radicalism and by seeing and watching the peculiar and not outstanding subcultures upon that radicalism as a greater amount of criminological work, the contention focuses on its accommodating accreditations and oppositional political movements. "Without a doubt, social criminology portrays it self as, and savors the experience of, working 'at the edges of 'standard' criminology, for two reasons, first, since 'it is here, in these overlooked spaces that the narrative of wrongdoing so frequently unfurls, and also on the grounds that standard criminology is overwhelmed by 'authoritative defense and factual multifaceted nature". (O'Brien 2005, Ferrell 1999 p. 599) Regardless of whether another psychological attempt does not really remains for what social criminology truly is, rather than a consistent procedure of past work on various subcultures is still being referred to, and it is justified, despite all the trouble if is a classification it self and given a reasonable verifiable reflection. (O'Brien 2005, p. 599) Generally, criminal conduct implies sub social conduct. People and exercises which are known as lawbreakers are formally created by the cutoff points of various and criminal subcultures. Criminologists have licensed this from the interactionist criminology of the Chicago School and Edwin Sutherland to the sub social speculations of Cohen, Cloward and Ohlin. (Ferrell, 1995 p.26) Either in the event that it is completed by a gathering of individuals, or just by one individual, particular criminal acts are normally set up inside instigated by sub social. Despite the fact that the limits may in any case have an incorrect definition, and the participation may increment in numbers and additionally the level of responsibility, these subcultures incorporate last human connections for the individuals who partake in them. "Biker, hawker, Blood and Crip, all name sub social systems as much as individual personalities."(Ferrell, 1995 p.26) As Sutherland and the Chicago School knew from fifty years back , and keeping in mind that unfathomable contextual investigations have been confirmed, criminal subcultures combine not just vicinities of individual relationship. To have the capacity to examine about criminal subculture, the capacity to authorize a gathering of individuals and a bracket of images, which means and instruction is required. Individuals from criminal subcultures dependably adjust and talk about 'thought processes, drives, legitimizations, and demeanors', they play out an alternate sort of dialect, look/style, identity and they partake at a bigger or littler level, in a subculture, a lifestyle which they chose.(Ferrell, 1995 p.26) The sub social importance generally activity, identity, and status is sorted out around the style which the subculture's part choose to have. Luxuries of picked style, characterizes what wrongdoing means, and contrast for sub social individuals, specialists of lawful control, buyers of intervene wrongdoing pictures and other individuals. We should be sufficiently shrewd to comprehend the criminal demonstrations and picked style they have for their selves. (Ferrell, 1995 p.26-27) "Katz's exploration, for instance, has connected criminal acts and feel by inspecting the styles and emblematic implications which rise inside the regular flow of criminal occasions and criminal subcultures. By focusing on dim shades and white undershirts, to exact styles of strolling, talking, and generally displaying one's criminal personality, Katz has outlined the "elective freak culture," the "reasonable degenerate 'a'esthetic" in which renegades, cholos, punks, youth pack individuals, and others take part. In these cases, as in different types of wrongdoing on and off the road, the importance of culpability is tied down in the style of its aggregate practice. The biker's ceremonially recreated cruiser, the group part's games apparel and tattoos, the spray painting author's puzzling road pictures, and the skinhead's brutally provocative music constitute the fundamental social and sub social materials out of which criminal tasks and criminal personalities are built and shown. By and by, interest in a criminal subculture, or in the "way of life of wrongdoing," implies support in the imagery and style, the aggregate tasteful condition, of culpability." (Ferrell, 1995 p.27) An ongoing report by the British social examinations custom to Katz and other new criminologists has reasoned that style and imagery not just tie with the wide social and legal relations in which these subcultures are gotten. Criminal subcultures and their styles quicken out of school, age, ethnicity, sexual orientation and lawful imbalances rehash and oppose these social wrong lines. This collaboration of sub social style, disparity and power thusly, helps to remember Becker's great criminological negligent that we need to explore, criminal subcultures and furthermore lawful and political forces who fabricated these subcultures as criminal. After we do the examination, we see that these forces (experts) both contradicting to sub social styles, and themselves, putting emblematic and smart methodologies of their own against them. The criminalization endeavors of lawful and political supporters indicate again the control of social powers. In criminalizing social and sub social activities, and exhibiting for open help, moral industrialists and legitimate specialists impact lawful and political structures, however potentially more, so structures of mama>GET ANSWER