Finance Analysis of Jones Limited(small, specialist marine engineering Coursework

Finance Analysis of Jones Limited(small, specialist marine engineering company based in Aberdeen) - Coursework Example Payback period for the investment of  £250,000 needed to generate the earnings of  £125,000 Thus, will be 250,000 à · 125,000 = 2 years In another approach, Net Present Values of Profit Streams to be received in next 3 years and 5 years can be calculated to see if they are positive. New investment needed is  £250,000. If the same debt/equity ratio for financing the project i.e 50% each is considered then debt burden will be  £125,000 and that will incur 8% interest charge. The interest charge comes to  £10,000. Since the dividend declared is 16%, weighted average cost of capital employed can be taken as arithmetic mean of debt and equity for both being equal in magnitude. Thus, the cost of capital to the company for this new project is 12% amounting to  £30,000 per year. The cost of capital needs to be deducted from the yearly earnings to arrive at the net cash flow to the company and that amounts to 125,000-30,000=  £95,000 However, the net profit of the operation after interest charge comes to 125,000-10,000=115,000 The depreciation of the plant and equipment is calculated on straight line method considering its useful life of 5 years. That is calculated as  £250,000/5=  £50,000. Thus, net profit to the company after charging interest, and depreciation is  £65,000. Development cost of  £25,000 can be apportioned as per the laws towards its useful life; however, in absence of the details, we right now assume it to apportion in 5 years. Thus, development cost for each year comes to ?5,000 and can be deducted from the net profit of ?65,000. Thus, actual net profit is ?60,000. However, depreciation is not creating any cash outflow though dividend on the equity is an out flow for the company. So net cash generated to the company is ?90,000 only. (Adding depreciation of ?50,000 back to the net profit and deducting dividend of ?20,000 at the rate of 16% on equity of ?125,000) Assuming Demand Will Last for 3 Years The forecast is that the demand will last for only 3 years due to the advancement in technology, which means net cash flow of ?90,000 will be available to company for three years only. It will be appropriate to know the present worth of the cash flow generated based on the discounting factor of 12% (equivalent to the weighted average cost o f capital), and the same can be given as 90,000/1.12+ 90,000 /1.122+ 90,000/1.123 =80,357+71,747+64,060 =?216,164 †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦. (A) Assuming Demand Lasts For Full 5 Years of Equipment Life If the demand lasts for full 5 years to make a full utilization of equipment and machinery installed then the cash flow of ?90,000 will be generated for five years until the useful life of equipment and

Answer the following question after reading Heart of Darkness Why does Essay

Answer the following question after reading Heart of Darkness Why does Marlowe lie to Kuitz's fiancee at the end of the Heart of Darkness - Essay Example The character Mr. Marlow, or to say the narrator, in the beginning of the story is projected as a protector of truth who tells a lie in its ending. Why Marlow decided not to tell Kurtz's fiance about her betrothed's final degradation require much in-depth knowledge about human psychology. The readers may be sympathetic towards Mr. Marlow as he was to rescue a resourceful person, Mr. Kurtz, who was ill in the dark forest of African Congo, but failed in his mission. At the same time arguments will arise about Marlow's hypocritical behavior when confronting Kurtz's fianc. Although, there may exist contradicting views about Marlow's behavior, it will be interesting to analyze the compulsions before him and interpret human nature in the outlook of Conrad. All the fictions are imaginary creations of literary artists, and writers have power to create disbelief and hold the reader into a satisfactory understanding of the plot. Though Heart of Darkness is termed as a travelogue, the element of imagination and literary creativity is also present in it. A good fiction offers the reader an exposure to good and bad characters that may have resemblance of people they know or come across in their own lives. Fiction makes sense when a writer tells a good truthful lie, and it successfully reproduces an event perfectly, which has never occurred to the reader. Once a writer is committed to tell the whole true lie and nothing but a completely true lie through their characters they can shape words to animate and convert into figures of people. For a successful writer readers are puppets in his hands and easily manipulated with their ability and creativity of white lies. Conrad has been successful in creating such elements in Heart of Darkness and it emerges a short but thrilling experience to the reader. The "Heart of Darkness," is considered as a travelogue and true life experience of Conrad, who was himself a navigator for many years. The readers are exposed to tricky situations and are carried away to illuminating mythological situations and dark inhuman activities with the skillful writing of Conrad. The story begins depicting Kurtz as an upstanding European who has been transformed by his time in the jungle-away from his home away from familiar people and food, and away from any community moral support that might have helped prevent him from becoming such a tyrant. Marlow is assigned to rescue this resourceful and knowledgeable person from the clutches of dark Africa. The factors compelling Marlow to decide not to tell Kurtz's fiance about her betrothed's final degradation requires much in-depth knowledge about human psychology. Marlow project himself as a protector of truth and hated world of lies. Marlow makes his feelings about lying explicitly through his words "You know I hate, detest, and can't bear a lie, not because I am straighter than the rest of us, but simply because it appalls me. There is a taint of death, a flavor of morality in lies, -- which is exactly what I have and detest in the world-what I want to forget. It makes me miserable and sick" (p.49-50). These words show that Marlow does not approve telling lies and it makes him miserable. His harsh words "not because I am s