Business Analysis Essay Example | Topics and Well Written Essays - 1000 words

Business Analysis - Essay Example The cash flow for a particular period reflects the flow of cash in future for that period. But due to a loss in the time value of money, the present value of the cash flow is actually less than the actual value. To have a realistic view of the cash flows the actual values need to be converted into what are called as the Present Values. The factor by which the actual value is multiplied to calculate the present value is called the Discount Factor. Discount factor lies between 0 and 1. It is determined by the rate of return on capital during a given period and can be calculated using compounding (Johnson, Derek). Using the net present value approach, it can be found out that the net cash flows are positive in all quarters and the initial investment is also recovered within a quarter. The Net present value is hence positive and comes out as  £5,030,687. The NPV (Net Present value) calculations can be done using an excel spread sheet. An extract of the same is shown in Figure 2.1. Thus, it can be concluded from this that, the boutique must go with the development plan. There are several key factors that can affect the cash flows. One of them is the Build-up factor. If the build-up factor becomes negative i.e. there is a decrease in income in the following quarters due to some reason, the NPV decreases. The NPV turns negative at -57% build-up factor for each quarter as shown in Figure 3.1. This is where the decision gets reversed. This could happen in case of adverse external circumstances. The second factor which can affect cash flow is Cost of Sales. If due to an increase in raw material costs or due to some other factors, Cost of Sales rise as much as 89% of the sales, the NPV becomes negative and the decision has to be reversed. This is shown in Figure 3.2. Thirdly, the increase in rent can have an impact on net cash flows especially in wake of continuously rising real estate prices. If the rent increases to  £1427 per sq. m.,

Ready to Die Essay Example | Topics and Well Written Essays - 500 words

Ready to Die - Essay Example I believe it is crucial for the living to use part of their health time and energy in preparing for death. There are various ways to prepare for death as exemplified by Nicholson and Freeman in the movie ‘Bucket List’ (Knox, 2007). One of the ways to prepare for oneself death is thinking about it. We should have brief moments possibly in a day and reflect on what can happen if death occurs. I do not mean we dwell on death but to appreciate the reality about it and live fully while knowing it will happen. People can embrace life after realizing they have limited time in the world. Nicholson and Freeman opted to enjoy life after accepting that the death is a reality. They believed that it was awaiting them, and as a result, stopped staying in the hospital beds with agony. I also think we should make a ‘bucket list’ as one way of preparing for our death. ‘Bucket list’ involves having a list of things we want to do, life experiences we want to achieve, and places we want to go. Nicholson and Freeman realized this very late; they had a long ‘bucket list’ despite having much wealth and less time (Knox, 2007). As evidenced by Nicholas and Freeman, we do not carry with us material possession and hence we should utilize the resources we have in meeting our objectives. We should not allow death to scare and bar us from enjoying life, instead, we are supposed to use it as a wake-up call to maximize our limited time in the world. In addition, people should write their last statement and will instead of fearing to think about death that may result from our cultural beliefs. The last statement and will are used to designate what will happen to our properties and guardianship of our children. Many properties get lost when one dies without leaving a documented will. Lack of a documented will may also lead to occurrence of conflicts among the left relatives. For