Capital Asset Management and techniques of its evaluation Essay

Capital Asset Management and techniques of its evaluation - Essay Example Although the calculation is easy to understand and simple, it still has its limitations. It ignores the benefits, or the lack of, that occur after the payback period and more importantly, the method ignores the time value of money. On the contrary The Net Present Value is an indicator of how much value an investment or project adds to the firm. The Net Present Value is a more reliable method of calculating the returns expected from investments as the method considers the time value of money. The Net Present Value compares the value of a dollar today to the value of that same dollar in the future, taking both inflation and returns into account. The technique uses discounted cash flow approach in assessing the performance of an investment. A positive Net Present Value generated from a prospective project is a good sign and should be accepted On the contrary, a negative Net Present Value resulting from projects should be rejected because the cash flows will also be negative. As such, this technique seems more reasonable in determining the returns of investments. The Internal Rate of Return is the discount rate that delivers a Net Present Value of zero for a series of future cash flows. As with the Net Present Value, this technique uses the discounted cash flow approach and is as widely used as the Net Present Value method. ... It shows the discount rate below, which an investment results in a positive Net Present Value and above which an investment results in a negative Net Present Value. It's the break-even discount rate, the rate at which the value of cash outflows equals the value of cash inflows. Moreover, the Internal Rate of Return can be found without having to estimate the cost of capital. Modified Internal Rate of Return is a similar concept to the conventional Internal Rate of Return. However, it is easier to calculate and does not produce multiple results, from irregular cash flows expected from a project, as compared with the latter. Of course the drawback of using Modified Internal Rate of Return is that it does not expect the generation of cash flows from its projects as predicted and its Net Present Value seems overstated. This is contrary to the use of Internal Rate of Return technique, since it assumes that cash flows generated from a project are reinvested within the project at the same rates of return, although they are often reinvested elsewhere within the business. The Modified Internal Rate of Return can be calculated with the use of spreadsheet package or the use of a conventional calculator. Both methods give the same results, however, the latter is more tedious and is used mainly for academic purposes. This technique uses the Present Value of investments, followed by the compounded terminal cash flow of the return phase. This is possible for more complex investments, with investment phase that stretches over several periods. The results generated by this technique are lower than the conventional Internal Rate of Return method but also presents a more realistic approach in assessing projects. Moreover, the technique uses the

Development in the Democratic Republic of Congo Essay

Development in the Democratic Republic of Congo - Essay Example The major areas pointed out the country’s administration to be requiring major attention include health, creation of jobs, infrastructure, education as well as electricity and water problem. The government has not been able to do much in the listed areas largely due to the intermittent sliding back to armed conflicts and the wanting insecurity levels witnessed in the many provinces in the Eastern region. Religion, ritual, and violence have served an appreciable role, both depressingly and positively, in the development progression of the Democratic Republic of Congo, in both the social scenario aspect, political and economic development aspects. In crisis, religion has served as an intermediary for ensuring emergency relief and safety for the victims of violence in the DRC. It has also played a significant role in being instrumental in the peacemaking process, encouraging the warring factors to embrace dialogue in resolving their misunderstanding. This intermediary role of pla yer par excellence has been articulated both informally and officially. Religion has also stood out as the key engine of the institutional building, democratization process, and popular participation. One of the important pillars for the realization of democracy is conceived in the DRC through the many outreach programs initiated by the various faiths such as the Catholic Church (Herderschee, Han, Kai-Alexander and Samba, 78). The competence of the religious bodies reaching out to the farthest communities in every remote corner of DRC has been applied in the continued mobilization of the famous participation in the continuing process of democratization. Such a case was witnessed in the Catholic Church strong influential contribution in the process of electoral. Religion continues to play a considerable function in the encouragement of reverence for the rule of law, promotion of respect for the rights of human, as well as the promotion of the values and principles democracy, carried out through such initiatives as civic education programs. In the consolidation of the present peace milestone achieved through the process of reconciliation, religion has been an important factor in this role, playing it more efficiently and effectively than any other body. Through the impact of religion, the present arrangement politically in the DRC has allowed for a consensus on the control of power, in spite of not being able to address the deep lying causes of the violent conflicts that are connected to concerns related to historical prejudices and the unhealed traumas that result in the negative ethnicity (Kouvouama). Women and children have been the severely affected by the corollary violence, leaving deep psychological wounds in the major populace of the DRC (Moffet). The communal tensions as well as the ethnic fears are still vivid in some areas in spite of the government’s machinery presence. There is still engagement of religion in the psychosocial processes such a s coming up with reconciliatory programs initiated especially from the community level whereby the deep seated hatred between the diverse ethnic communities is addressed and also through joining victims through the listening centers. Religion, through the various bodies, articulates for the increased capacity and awareness among the people in the peace building process through using extensive training centers and institutions. Religious bodies have become better equipped at handling, analyzing and comprehending the underlying dynamics and causes of conflict. Religion therefore, has built the