...kCHAPTER 6 Cost-Benefit Analysis and Government Investments TRUE/FALSE QUESTIONS 1. A cost-effective program mix is one that accomplishes a given mission at minimum cost. 2. Cost-benefit analysis is a technique for determining the net benefits of alternative government projects. F 3. An increase in the profits of gasoline dealers on an improved road is a benefit of the road project. F 4. If increases in agricultural land values are viewed as a benefit of an irrigation project, then the market value of projected increased crops should also be included as a benefit of the project. 5. The social rate of discount must equal the opportunity cost of funds used to finance a project. F 6. If a project has a B/C ratio of 0.9, its approval will result in net benefits to citizens of the nation. F 7. The benefits of widening a road consist only of the cost savings to existing users of the road. 8. If the benefits of a new bridge exceed the costs, then there will be a net social gain from building the bridge. F 9. If the marginal social cost of a new road exceeds its marginal social benefit, then building the road will result in a net social gain. F 10. The higher the social rate of discount, the more government projects for which benefits will exceed costs. T 11. A lower discount rate favors more capital-intensive investments that yield net benefits further into the future. 12. The present value of a stream of net benefits for 20 years will be less than the sum of those benefits unless...
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...Polytechnic University of the Philippines College of Computer and Information Sciences Sta. Mesa, Manila Pawnshop Management System Prepared by: Abaya, Russel Jan Acula, John Lester Gabelo, Jerry Paming, Krissel Silvela, Mariz Chapter I: Abstract/Overview A. Project Definition/Introduction A pawnshop is a business entity that lends money to pledgers based on the value of a collateral item. The item’s value will increase due to interest and the pledger will be given a due date. If the pledger haven’t successfully returned the money within the period of time that was agreed upon during pawning, the collateral item will be unredeemed and will be available for sale. Most pawnshop companies make use of manual forms during the pawning process, which leads to bulky paper works and poor organization of records. The clerk or pawn broker is also forced to deal with manual, time-consuming computations for item assessment, contract details, sales, and reports. The manual process often causes inaccuracy in terms of interest and payment in which computations adapt to different company policies. The proposed project will address the following problems encountered by such companies that practice the manual pawnshop system: * Inaccurate assessment of pawned item * Miscalculation of interest, due date and periodic payment for pawn transactions * Difficulty in monitoring payments * Time-consuming searching of records * Facilitates too much...
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...Women and Gender Studies: Process Paper on Collaboration Project Daquille Barzey-Ferguson Mary Ellen Schmider Introduction to Women's Studies: Process Paper on Collaboration Project 12/01/2014 I want to start off by saying that WMST 200 was a very great course and I enjoyed every minute of it. It was a very beneficial learning experience and I have taken away so much from it. Our professor Mary Ellen Schmider was extremely helpful and her assignments were always knowledgeable and rewarding. They really opened my mind to seeing the world through a woman’s perspective. This course educated me on the aspects of the modern day woman and some of the struggles they still face. I would highly recommend this to course to people that I know. One thing in particular that challenged and was kind of new to me was the Collaboration project. It promoted classmate interaction and teamwork, which are great factors to have. This assignment was a great way to interact with our fellow classmates. Reflecting back on this courses collaborative project it was quite rewarding. At first I was a little worried about working with people I do not really know through the computer. How we are supposed come together and complete this assignment, but it turned out for the better. At first there was a little confusion as to what were our particular roles of the assignment but through outstanding teamwork we prevailed. It was a good learning experience. Our group consisted of five outstanding counterparts...
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...Part A: BUDGETING PROCESS 1. Definition [1] * A budget is the financial blueprint or action plan for an organization. It translates strategic plans into measurable expenditures and anticipated returns over a certain period of time * Budgeting is the process of creating and preparing an organization for the future. 2. Objectives[2] * The budget provides a yardstick for future results can be compared; * It allows management to plan and forecast in the areas of capital adequacy in work and or other types of scarce resources available; * Budget may direct cost of capital towards the most beneficial; * Budget support planning and control income and expenditure for maximum profit can be achieved; * It acts as a guide for management decisions when unforeseen conditions affect the budget; * It support for decentralization of responsibilities for each of the managers involved. With the establishment of the budget, the relevant managers will better understand what the company expected from them. So there is a congruence of objectives between the company and employees. 3. Classification of budgets [3] A series of budgets are linked together in a Master Budget. The major parts of Master Budget are Income Statement budgets and Balance Sheets budgets as follow: 4.1 Income statement budgets: * Sales budget: indicates for each product the quantity of estimated sales and (2) the expected unit selling price * Production budget: ...
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...Farah Allen Risk Paper #2 2/24/13 This case study evaluates the approach used in the evaluation of tender submissions. The application is used successfully for large high technology procurements. It is basically a two part process or two phase system. In Phase I, the goal is to establish a risk baseline that individual tender responses can be compared to. Phase 2 builds on Phase 1 where the goal is to compare the individual tender’s approach to the potential effects of risk on the project. The two phase process is a systematic process which helps to ensure the greatest attention and effort is focused on the high risk areas for the project. 1. Which case study does a better job at identifying risks? Explain why. Phase 1 and Phase II use the same process for identifying risk; therefore there is an equal level of performance. Determining which case study does a better job of identifying risks is made much easier by applying the definition. “Risk identification determines what might happen that could affect the objectives of the project, and how those things might happen.” The process should be comprehensive to ensure all key elements have been identified. The preferred method for risk identification is brainstorming. In Phase I and II the project team uses a risk WBS as noted in figure13.2 for Phase I and figure 13.11 in the text. The risk WBS was developed using brainstorming as discussed in Chapter 2, and each risk WBS item is reviewed. Any required clarification is...
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...Project Management Section A Part One: 1. Liquidation value of the firm’s assets could be considered as … a. The minimum wealth of shareholders 2. If ‘P’ be the initial investment, ‘I’ be the interest rate and ‘T’ be the time period for which funds are invested then interest earned will be … d. P*I*T 3. Following the above given conditions, compound interest is given by … b. P*(1+I)T 4. Firms resorting to “Proactive Growth” a. do constant strategic planning 5. SPACE stands for Strategic Position and Action Evaluation 6. Increasing market expenditure heading to an increased market share is known as … c. market expansion 7. If profit after tax is ‘A’, depreciation be ‘B’ and interest be ‘I’, then Interest cover ratio is given by 8. E-V rule is also called … 9. In case of internally generated funds the opportunity cost to the firm is … b. the lending rate 10. ‘PERT’ stands for Program Evaluation and Review Technique. Part Two: 1. Write a note on ‘Sinking Fund Payment’. Answer: A sinking fund is a means of repaying funds that were borrowed through a bond issue. The issuer makes periodic payments to a trustee who retires part of the issue by purchasing the bonds in the open market. Rather than the issuer repaying the entire principal of a bond issue on the maturity date, another company buys back a portion of the issue annually and usually at a fixed par value or at the...
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...Accounting 102 Clarke November 28 2012 Project #2 Capital Rationing Capital rationing is a technique of selecting the projects that maximizes the firm’s value when the capital infusion is restricted. It can be defined as a process of distributing available capital among the various investment proposals in such a manner that the firm achieves maximum increase in its value. The calculation and method prescribes arranging projects in descending order of their profitability based on their average rate of return, the cash payback period, the net present value, the internal rate of return, and selecting the optimal combination. There are six steps in the Capital Rationing process. First is to identify the potential capital investment projects. Second is to establish a minimum average rate of return or payback period to screen out the projects that aren’t worth exploring. The third step in the process is to evaluate the projects that are left over from the screening process in step two using the net present value or the internal rate of return methods. The fourth step is to consider the qualitative benefits from each project. Fifth is to rank the projects based on the results of steps three and four. The last step in the capital rationing process is to allocate the available funds beginning with the top-ranked project. In capital rationing it may also be more desirable to accept several small investment proposals than a few large investment proposals so that there may be...
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...greater complexity - and therefore present greater management challenge. The important ingredient in high-technology job production isproject management, or project control. The essential features of good project control for a job are: - Clear definitions of objectives - how should the job progress (milestones, dates, stages) - Decision-making process - how are decisions taking about the needs of each process in the job, labour and other resources Examples of high technology / complex jobs: film production; large construction projects (e.g. the Millennium Dome) Batch Method As businesses grow and production volumes increase, it is not unusual to see the production process organised so that "Batch methods" can be used. Batch methods require that the work for any task is divided into parts or operations. Each operation is completed through the whole batch before the next operation is performed. By using the batch method, it is possible to achieve specialisation of labour. Capital expenditure can also be kept lower although careful planning is required to ensure that production equipment is not idle. The main aims of the batch method are, therefore, to: - Concentrate skills (specialisation) - Achieve high equipment utilisation This technique is probably the most commonly used method for organising manufacture. A good example is the production of electronic...
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...the entire process canIntroduction: A software development process is a structure imposed on the development of a software product. Synonyms include software life cycle and software process. There are several models for such processes, each describing approaches to a variety of tasks or activities that take place during the process. Software Development Life Cycle The Software Development Life Cycle is a step-by-step process involved in the development of a software product. It is also denoted as Software Development process in certain parts of the world. The whole process is generally classified into a set of steps and a specific operation will be carried out in each of the steps. Classification The basic classification of the whole process is as follows • Planning • Analysis • Design • Development and Implementation • Testing • Deployment • Maintenance Each of the steps of the process has its own importance and plays a significant part in the product development. The description of each of the steps can give a better understanding. Planning This is the first and foremost stage in the development and one of the most important stages. The basic motive is to plan the total project and to estimate the merits and demerits of the project. The Planning phase includes the definition of the intended system, development of the project plan, and Parallel management of the plan throughout the proceedings of the development. A good and matured...
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...rates for the store and the credit cards (9% and 4%, respectively)? What process would you use to estimate these discount rates to see if they are reasonable? Target uses different hurdle rate for the store and the credit cards because they want to make as much revenue as possible. With the low credit card rate Target is able to get a lot of people to sign up for the credit card because the interest rates are extremely low. Since Target has such a low credit card rate they raise the store interest rate to make up for the difference. I would use the IRR, NPV, or the discount payback method to estimate these rates. 2. What is Target’s capital-budgeting process? Is it consistent with the company’s business and financial objectives? The Capital Expenditure Committee (CEC) stated that the capital-budgeting process of target was to add one hundred stores a year while maintaining a positive brand image. This capital budgeting method goes hand to hand with the company’s business and financial objectives. 3. Which of the five CPRs did you accept? Which project attributes did you consider as part of your decision? I first accepted the Whalen Court CPR. I chose this CPR because this location had the highest percentage of college educated people than any other project after examining exhibit 7. Since Target wants the college educated mother with children as the ideal customer, the Whalen Court project would be good. Whalen court also is the only store around that area which would make...
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...The DMAIC Improvement Process DMAIC refers to a data-driven improvement cycle used for improving, optimising and stabilising business processes and designs. The DMAIC improvement cycle is the core process used to drive Six Sigma projects. DMAIC is not exclusive to Six Sigma and can be used as the framework for other improvement applications. DMAIC is an abbreviation of the five improvement steps: Define, Measure, Analyze, Improve and Control. All of the DMAIC process steps are required and always proceed in this order: Define : Project charter Write down what you currently know. Seek to clarify facts, set objectives and form the project team. Define the following: * A problem statement * The customer(s) * Critical to Quality (CTQs) — what are the critical process outputs? * The target process and other related business processes * Project targets * Project boundaries * A project charter is often created and agreed during the Define step. Measure This is the data collection step. The team decides on what should be measured and how to measure it. This forms a data collection plan. It is usual for teams to invest a lot of effort into assessing the suitability of the proposed measurement systems. Good data is at the heart of the DMAIC process: * Define the process critical Xs (inputs) and Ys (outputs). * Define the measurement plan. * Test the measurement system. * Collect the data. * A Measurement System Analysis (gauge study) is performed at this...
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...sustainability all while accelerating into the global market. A methodology that Johnson Controls, Inc could use to help in evaluating capital budget investments is the discounted payback method. This method could be very useful for this company especially with all its different business aspects. The discounted payback method is considered to be the “period required to recover the initial cash investment in a project to equal the discounted value of expected cash inflows” (Bhandari, 1986, p. 18). This is the approach where the present values of cash inflows are cumulated until they equal the initial investment.” (http://www.answers.com/topic/discounted-payback-period) You see the discounted payback period takes into account the time value of money and the discounting of future cash flows which is similar to NPV method before it obtains the value for the payback period. Since Johnson Controls is a growing leader in Energy Savings Performance Contracting, it would be very sensible for management to use the discounted payback period, mainly because of the projects with the “wind (turbine), photovoltaic solar, solar hot water...
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...Capital Budgeting: Capital budgeting is the process of determining whether or not an investment is worthwhile. Often companies will have several opportunities and must measure each one's potential in order to make a comparison and choose just one or a few. It is the process in which a business determines whether projects such as building a new plant or investing in a long-term venture are worth pursuing. Oftentimes, a prospective project's lifetime cash inflows and outflows are assessed in order to determine whether the returns generated meet a sufficient target benchmark. Ideally, businesses should pursue all projects and opportunities that enhance shareholder value. However, because the amount of capital available at any given time for new projects is limited, management needs to use capital budgeting techniques to determine which projects will yield the most return over an applicable period of time. On the other hand capital budgeting is the planning process used to determine whether an organization's long term investments such as new machinery, replacement machinery, new plants, new products, and research development projects are worth the funding of cash through the firm's capitalization structure (debt, equity or retained earnings). It is the process of allocating resources for major capital, or investment, expenditures. One of the primary goals of capital budgeting investments is to increase the value of the firm to the shareholders. Capital budgeting involves allocating...
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...Working with Leading People Name: Chima Henry Adebowale Lecturer:Alfred Mbeteh Date of Submission: 28th November 2013 Word count: 3000 Content Page Introduction .................................................................................................p Task 1 ............................................................................................................p 1.1 job description to help with the recruitment and selection......................p 1.2 legislations around equal opportunities..................................................p 1.3 selection process design an interview......................................................p Task 2.............................................................................................................p 2.1 skills and attributes for leadership.............................................................p 2.2 difference between leadership and management..........................................p 2.3 scenarios’ and compare leadership styles...................................................p Task 3.............................................................................................................p 3.1 benefits of team working for an organization..............................................p 3.2 work towards a specific goal ......................................................................p 3.3 effectiveness of the team in achieving the goals............................
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...Detailed Scheduling and Planning Terminology Action message | An output of a system that identifies the need for, and the type of action to be taken to correct, a current or potential problem. Examples of action message in an MRP system include release order, reschedule in, reschedule out, and cancel. Syn: exception message, action report. | Activation | Putting a resource to work | Aggregate planning | A process to develop tactical plans to support the organization’s business plan. Aggregate planning usually includes the development, analysis, and maintenance of plans for total sales, total production, targeted inventory, and targeted customer backlog for families of products. The production plan is the result of the aggregate planning process. Two approaches to aggregate planning exist:1) production planning and 2) sales and operations planning, sales plan. | Advanced planning and scheduling (APS) | Techniques that deal with analysis and planning of logistics and manufacturing during short, intermediate, and long-term time periods. APS describes any computer program that uses advanced mathematical algorithms or logic to perform optimization or simulation on finite capacity scheduling, sourcing, capital planning, resource planning, forecasting, demand management, and others. These techniques simultaneously consider a range of constraints and business rules to provide real-time planning and scheduling, decision support, available-to-promise, and capable-to-promise capabilities...
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