Capital budgeting

Capital budgeting is the process by which long-term fixed assets are evaluated and possibly selected or rejected for investment purposes. The purpose of capital budgeting is to evaluate potential projects for possible investment by the firm.

Address all of the following questions in a brief but thorough manner.

What are the various methods for evaluating possible capital projects, in terms of their possible benefits to the firm? Describe the benefits and/or shortcomings of each.
*What is the NPV profile and what are its uses?

Sample Solution

Capital budgeting

Capital budgeting involves choosing projects that add value to a company. The capital budgeting process can involve almost anything including acquiring land or purchasing fixed assets like a new truck or machinery. There are several capital budgeting analysis methods that can be used to determine the economic feasibility of a capital investment. They include the payback period, internal rate of return, net present value, profitability index, accounting rate of return, and modified internal rate of return. The payback period calculates the length of time required to recoup the original investment. For example, if a capital budgeting project requires an initial cash outlay of $1 million, the payback period reveals how many years are required for the cash inflows to equate to the one million dollar outflow. A short payback period is preferred as it indicates that the project would “pay itself” within a smaller time frame.

 

 

 

 

 

Reasons for Lower Back Pain

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circumstances and logical results article sampleTechnological progress has made various activities individuals perform consistently a lot more straightforward. Contrasted with the expectations for everyday comforts of a few centuries prior, physical security is nearly guaranteed these days. This, just as different elements, has caused noteworthy changes in ways of life, in particular diminished physical action. New working and living conditions have likewise caused a measure of far reaching medical issues which, in all likelihood, were new to past ages. One of such issues is steady lower back torment.

One of the common reasons why individuals have torment in their lower back is root nerve torment. It is normally brought about by the nerve root being disturbed or precisely went ahead (Patient.co.uk). This occurs, for instance, on account of a purported prolapsed spine circle, when the delicate inward piece of a spinal plate swells off the outer part, which is more diligently, and pushes on the nerve. In its turn, this condition can be brought about by various components, for example, serious physical exertion, more than once being in an off-base body position, having an inactive way of life, etc.

lumbar strainAnother explanation behind lower back torment is what is normally called lumbar strain. Essentially, this term implies lower back muscles, ligaments, or tendons have experienced an extending injury, causing minuscule tears in these tissues (MedicineNet.com). This illness can happen to individuals of all ages, and shows itself as agony went from gentle to extreme. Regularly, lumbar strain happens to individuals who fell, got hit, or experienced other damaging expressions of love on the lower back zone.

Maybe the most widely recognized and, so to state, common motivation behind why individuals get torment in the lower back is degenerative procedures. The spine (of which the lower back area consistently experiences the most exceptional burdens, such as supporting body weight, lifting masses, etc) comprises of around 30 vertebrae, bones, and a light issue called “spine plates.” As an individual gets more seasoned, and considering the steady loads on the lower back, this elastic issue between vertebrae wears off and turns out to be all the more solid (WebMD). This makes the circles become progressively powerless against injuries. Moreover, such ailments as osteochondrosis and scoliosis likewise cause gentle and extreme agony in various areas of the spine, including the lower back.

Considering the previously mentioned reasons, it is clear lower back torment is regularly identified with the kind of physical burdens the spine gets continually. The three main considerations causing lower back issues are associated with mechanical impacts and degenerative procedures, so it is critical for any person to watch out for what activities the individual in question does and how the individual finishes activities to abstain from damaging the spine or spinal circles.

References

“Vague Lower Back Pain in Adults.” Patient.co.uk. N.p., n.d. Web. 04 Nov. 2014.

“Low Back Pain (Lumbar Back Pain).” MedicineNet. N.p., n.d. Web. 04 Nov. 2014.

“Low Back Pain (Lumbar Back Pain).” MedicineNet. N.p., n.d. Web. 04 Nov. 2014.

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