Investment Appraisal Techniques Essay Example | Topics and Well Written Essays - 1250 words

Investment Appraisal Techniques - Essay Example Some of the investment appraisal techniques used range from Net Present Value (NPV), Accounting Rate of Return (ARR), Internal Rate of Return (ARR) and Payback Period. Net Present Value (NPV) As one of the investment appraisal techniques, net present value (NPV) method ensures that the value of all the expected future cash flows is calculated into the present values (Droms, & Wright, 2010). More significantly, the net present value (NPV) method takes into consideration the difference that arises between the present value of the expected cash inflows of a project and the present value of the expected cash outflows that the project will yield in the future (Crosson & Needles, 2011). This is essential in the determination of whether or not the project is viable in the present condition if the projected will yield the projected cash flow in the future (Moyer, McGuigan & Kretlow, 2008). Calculations are done using the discount rate of the cost of capital that is determined depending on co nsiderations of the future projected risk of the project (Hastings, 2009). More so, the use of the net present value (NPV) method in capital budgeting is necessary because it analyzes the profitability level of the intended project (Mowen, Hansen & Heitger, 2012). Above all, use of net present value (NPV) method in capital budgeting analysis is critical because it is more sensitive as compared to other method because it relies on the future cash inflows that the project is expected to yield (Duenas, 2006). Net Present Value (NPV) method YEAR 0 1 2 3 4 TOTAL Initial Outlay (0) (300,000) (300,000) Sales revenue - - 350,000 390,000 410,000 1,150,000 Materials and components - (50,000) (65,000) (65,000) (50,000) (230,000) Salaries and Wages - (70,000) (80,000) (85,000) (85,000) (320,000) Depreciation - (45,000) (45,000) (45,000) (45,000) (180,000) Advertising - (25,000) (25,000) (25,000) (25,000) (100,000) Equipment disposal 120,000 120,000 Net cash flow (0) (490,000) 145,000 170,000 32 5,000 150,000 Discounted factor (15%) 1.0 0.8696 0.7561 0.6575 0.5718 Discounted cash flows (0) (426104) 109,634.50 111,775 185,835 (18,859.5) Overheads are not taken into account as expenses because it is not directly related with the project. More so, the overheads costs are related with the companies head office function. Accounting Rate of Return (ARR) Another investment appraisal technique that is used to estimate the expected rate of return of anticipated investment project is the accounting rate of return (ARR). More significantly, the use of the accounting rate of return (ARR) gives a more rapid way of estimating the expected net profits as a basis for comparing several different expected projects to be undertaken by a company (Siegel, Shim, & Hartman, 1998).   In addition, the accounting rate of return (ARR), takes an estimate of the returns that the expected project will yield during its entire useful life. As compared to the payback period method, the accounting rate of return (ARR) is rational as it considers the distribution of profits and not only the period the project is expected to take to get back the original amount of investment in the project (Brigham & Houston, 2009). One weakness of the accounting

Psychology Laboratory Report Essay Example | Topics and Well Written Essays - 1500 words

Psychology Laboratory Report - Essay Example Perceptions of body image are of research concern for psychopathologies such as anorexia nervosa and bulimia, amongst both women and men (Fallon & Rozin, 2985). Body-image can be defined as a person's self-concept of their physical appearance (Strickland, 2004). Investigation of the sociocultural differences between genders in body image perception is increasing (Fallon & Rozin, 2985). Fallon and Rozin (1985) report that women tend to weigh themselves more often, are more likely to consider themselves as fat, are more likely to be on a diet, and tend to seek medical assistance with weight issues more frequently, as compared to men. These results, state Fallon and Rozin, may be related to women on average being less satisfied with their appearance than men. Further, studies appear to indicate body image perception in general for women and men is focused on issues of weight (Fallon & Rozin, 1985). Fallon and Rozin cite a study by Gray in 1977 that found women were more likely to consid er themselves overweight as compared to objective measurements, whereas men were likely to perceive themselves as underweight. Gray concluded that across the genders participants misperceived their weight when compared to their own gender, and make judgments about their weight based on standards that do not incorporate the health model (Fallon & Rozin, 1985). An example of such a standard is the perceptions of the ideal body image as judged by the opposite gender (Fallon & Rozin, 1985).Later research supports conclusions that many people experience a discrepancy between their perceptions of an ideal body image and their actual body image (Byrne & Hills, 1996). Sociocultural influences on perceptions of body image may be attributed to media portrayals of the ideal body within a western industrial nation (Fallon & Rozin, 1985). Traditionally targeted at the female form, media portrayals of a body ideal now extend to both women and men (Yang, Gray & Pope, 2005). Fallon and Rozin (1985) found that on average men tended to rate their current, ideal and attractive body-image as very similar. Whereas, women's ideal image tended to weigh less, than both current and attractive ratings. Fallon and Rozin highlighted in their results that perceptions of what the opposite sex consider an ideal body-image are usually wrong. They found that women considered men to desire a slimmer female form as compared to what men reported they liked, and men perceived women to be attracted to a heavier male form than what women reported.Studies have investigated methods to quantify the difference between an individual's perception of ideal and actual body image as a measure of body-image disturbance (Byrne & Hill, 1996). Importantly, it is necessary that such instruments be standardized for the populations they are used for, for example females and males, or differences in age or ethnicity (Byrne & hill, 1996). The Stunkard Body Shape Figure Scale (Stunkard et al., 1980 as cited in Strick land, 2004) is one such scale. The patterns of ranking perceived ideal and actual body image have provided insight into how females or males as a group differ amongst themselves, as well as in