Capital investment appraisal within an organisation looks at the Essay

Capital investment appraisal within an organisation looks at the acquisition of fixed assets so as to generate wealth for the organisation - Essay Example Capital investment appraisal, which is also called capital budgeting, is the process to use funds to acquire operational assets (Khamees et al. 2010). These investment decisions obtain their guidance and source from the outcomes or results, which are provided by the source of capital investment appraisal. If the outcomes of capital investment appraisal are positive and encouraging, and these outcomes show that a particular investment, if taken, would bring wealth and additional inflows to the organisation, then investment or fund managers do not delay or waste a single minute to give a green signal for the investment project. Additionally, that investment project must ensure that after a certain number of years, the investment project would bring some additional inflows which would be more than the initial cost invested into that investment project. Four investment techniques are the different methods: Payback period, discounted payback period, net present value (NPV) and internal ra te of return (IRR). These four investment techniques are the basic tools used by the investment managers to carry out the process of investment appraisal. Each investment technique is different and is used differently by the fund or investment managers. Payback period is simply takes into account the number of years. Payback period informs that how many years a particular investment project would take to recover the initial cost of investment. The discounted payback period is a bit different to payback period. The discounted payback period uses a firm’s cost of capital for the purpose of evaluating the expected future cash flows from an investment project.... The discounted payback period uses a firm’s cost of capital for the purpose of evaluating the expected future cash flows from an investment project. In the discounted payback period, without using the cost of capital, the application of discounted payback period would not be possible and applicable for the purpose of conducting an investment appraisal. Net present value (NPV) is considered to be a more effective and reliable investment appraisal tool in comparison with other tools of investment appraisal. The main reason for its more recognition and more application among the different fund and investment managers is that net present value heavily relies on the technique of time-value of money concepts. The internal rate of return (IRR) is a discount rate. This discount rate is used by many fund and investment managers for the purpose of evaluating the future cash inflows. The only and most important function of the internal rate of return is to give a figure of cost of capita l; and this figure is used and applied on the different available cash flows to determine their present value. Capital Investment Appraisal For the financial and investment managers, the activity of capital investment appraisal brings a huge amount of responsibility for them. The capital investment appraisal requires purchasing a long term asset with a life of many years. This means, in case that fixed asset is purchased, the company becomes locked in for the duration of the asset’s life. Also, since the purchase of a fixed asset would directly increase the current level of business operations, and the contribution of the fixed asset would also increase in the activities of sales, costs and so on, it becomes necessary for the investment and fund

Bones Essay Example | Topics and Well Written Essays - 250 words

Bones - Essay Example 436–443). Tendons are flexible fibrous connective tissues connecting muscles and bones. Fundamentally, they facilitate the movement of people as they act as intermediaries between muscles and bones, and are vulnerable to tearing caused by prolonged or repetitive movement of muscles, excessive muscle contraction or overstretching (Benjamin et al., 2006). They are located in areas that are characterised by bone intersection such as knees, ankles, shoulders, elbows, and feet. Ligaments are connecting tissues that attach one bone to another or muscles to other structures in the body. Even though both ligaments and tendons can withstand tension, ligaments connect bones to other bones and help in stabilizing the joints around them. They are by long and stringy collagen fibres that create bands of tough fibrous connective tissues mostly found where ends of bones intersect. They can be stretched and lengthened with caution to avoid sprains resulting from direct or indirect trauma that pre-disposition a joint (Benjamin et al., 2006). It may be easy to confuse tendons, ligaments and bursae, but these three structures represent adipose and connective tissues. Therefore, it is important to note that bursae act as an adipose tissue that protects the connective tissues whose differences have been highlighted. Benjamin, M, Toumi, H.,  Ralphs, J.,  Bydder,G., Best, T.,   and   Milz, S. (2006), Where tendons and ligaments meet bone: Attachment sites (‘entheses’) in relation to exercise and/or mechanical load. Journal of Anatomy, 208(4): 471–490. doi:  Ã‚  10.1111/j.1469-7580.2006.00540.x Shaw, M,. Santer, M., Watson, A., and Benjamin, M. (2007). Adipose tissue at entheses: the innervation and cell composition of the retromalleolar fat pad associated with the rat Achilles tendon.  Journal of Anatomy. 211(4): 436–443.