Financal Management Essay Example | Topics and Well Written Essays - 2500 words

Financal Management - Essay Example A project should be accepted if the NPV is positive, otherwise it should be rejected. Internal Rate of Return (IRR) - It is the sum total of cash inflows after discounting, which is equal to the discounted rate of cash out flows. The IRR technique is crucial for taking the capital investment decision. A particular project should accept IRR, only if it is greater than Cut-off rate, otherwise such project should be rejected. In case of Wandering Lights Limited, it is better to adopt NPV method rather than IRR method, because while assessing the financial viability, technical feasibility, and taking the appropriate capital budgeting decision of Wandering Lights Limited, it is suitable to undertake NPV as the capital budgeting decision. Wandering Lights Ltd has decided to launch a new product in the market. The product is garden lights. For the production of the new product the company has to introduce new plant and machinery in the business. The estimated cost of the plant and machinery is â‚ ¤3375000. In order to install the new plant and machinery the company additional fund has to be brought into the company as the capital is not sufficient to install the new facility. Wandering lights have two options before them to finance their project. Either they can issue new share or it can borrow funds. Borrowing is the method in which the company borrows fund from any institutions or banks as loans upon an agreement to pay interest at a fixed rate. Borrowings also may be in the form of different securities issued by the company. The companies have different methods for borrowing money. â€Å"There are two main methods by which a company can borrow money: (1) by issuing fixed-income (debt) securities – like bonds, notes, bills and corporate papers – and (2) by taking out a loan at a bank or lending institution.† (When companies borrow money. 2007). Wandering lights can depend on either of the following methods for financing the new project. Most

People have to solve the smog problem Research Paper

People have to solve the smog problem - Research Paper Example China’s own governmental policies designed to keep the problem of pollution within limits have not been very successful and the national target to keep the concentration of particulate matter within limits was never achieved. The environment belongs to each and every one of us and there exists several ways in which citizens of the country help to reduce the problem and lead a better and safer life. Smog is basically photochemical air pollution. Smog has two major components- suspended particular matter and emissions from factories and vehicles. Smog is basically of two kinds- London type and photochemical type. London type of smog occurs mostly in urban and industrialized areas where coal plants and fossil fuels are consumed in huge quantities. Major components in such types of smog includes particulate matter and oxides of sulfur. Another major form is the photochemical smog which a result of reactions in the atmosphere which are initiated by ultraviolet radiations on emissions. Vehicles are the principal contributors to such emissions. Major components of photochemical air pollution includes oxides of nitrogen, ozone and hydrocarbons (Altshuller, 1978). It is not that that the Chinese Government is least bothered about the environment or problems associated with it. The fact is that the government has greater concern for socioeconomic development and has degraded the environment in the race to become a booming economy. Air pollution monitoring have shown that suspended particulate matter in most regions such as Shanghai and Beijing exceed the limits which can be tolerated by the human body. According to air quality index for Shanghai is 137 and for Beijing is 224, both of which are very unhealthy (Air Quality Index in China, 2015). In fact very recently, the air pollution in Beijing was so high that it became impossible to measure it with the normal air quality methodology. China’s energy demands are