Sociology Applied 4 (Social Class and Stratification) Essay

Sociology Applied 4 (Social Class and Stratification) - Essay Example In the game rules, the lower class also received the least amount of salary. This reflects upon real life where those who fall under the lower class are victims of poor or minimal pay (Walter, 108). During the game, I experienced minimal mobility as a result of playing under the lower class. My social stratum in the game ensured that I remained fixed to the bottom and mostly experience downward mobility. My game experience reflects the real life experience of people who belong to the lower class. People in the lower class have minimal chance of making it in life due to the minimal chances they get presented with in life. For example, in the game, the lower class only gets one chance to throw the die when trying to get out of jail compared to the other classes that to throw two dice or more. This gives a parallel experience by those in lower class in real life who get minimal chance to get out of hardships. Belonging to different classes impacted on the economic and social interactions during the game. The first interaction occurs when taking turns to play the game. The lower class is the last to make a move after the working class. The only interaction between those in the upper class and lower class was economic (Water 96). This took place as the upper class controlled the bank and its functions. The upper class controlled the bank and thus forcing the other classes to rely on him to provide economic services during the game. The conflict/ social conflict theory best explains the overall perspective of the game. The division of the game into classes provides unfair advantages to various participants. The conflict theory distinguishes the society into various classes, which compete for the scarce resources (Walter, 132). This reflects in the game as the participants get classified according to social classes. This theory also states on how the elite control the poor and weak in the society. In the game, the upper class had more ability ad responsibility

Financial management (final exam) Essay Example | Topics and Well Written Essays - 1000 words

Financial management (final exam) - Essay Example Therefore, the results of both techniques will be different because of the differences between the assumptions of both techniques. Question 2 Part A a) Project A Years 0 1 2 3 4 Initial Investment (20,000,000) Cash Flows 3,000,000 7,000,000 9,000,000 15,000,000 Discount Factor (8%) 1.0000 0.9259 0.8573 0.7938 0.7350 Discounted Cash Flows (20,000,000) 2,777,778 6,001,372 7,144,490 11,025,448 Net Present Value 6,949,087 Project B Years 0 1 2 3 4 Initial Investment (20,000,000) Cash Flows 10,000,000 8,000,000 5,000,000 5,000,000 Discount Factor (8%) 1.0000 0.9259 0.8573 0.7938 0.7350 Discounted Cash Flows (20,000,000) 9,259,259 6,858,711 3,969,161 3,675,149 Net Present Value 3,762,280 Based on the above results it can be clearly observed that Project A has generated higher NPV therefore, it should be accepted. b) Project A Profitability Index = PV of Future Cash Flows    Initial Investment    = 26949087/20000000    = 1.35 Project B Profitability Index = PV of Future Cash Flows    Initial Investment    = 14503021/20000000    = 0.73 Since the Profitability Index of Project A is greater than 1, therefore this project should be accepted. c) IRR based on Trial & Error Method Years 0 1 2 3 4 Initial Investment (20,000,000) Cash Flows 3,000,000 7,000,000 9,000,000 15,000,000 Discount Factor (17.5%) 1.0000 0.8511 0.7243 0.6164 0.5246 Discounted Cash Flows (20,000,000) 2,553,191 5,070,167 5,547,904 7,869,367 Net Present Value 1,040,630       Years 0 1 2 3 4 Initial Investment (20,000,000) Cash Flows 3,000,000 7,000,000 9,000,000 15,000,000 Discount Factor (18.5%) 1.0000 0.8439 0.7121 0.6010 0.5071 Discounted Cash Flows (20,000,000) 2,531,646 4,984,956 5,408,632 7,607,078 Net Present Value 532,312       Years 0 1 2 3 4 Initial Investment (20,000,000) Cash Flows 3,000,000 7,000,000 9,000,000 15,000,000 Discount Factor (19.5%) 1.0000 0.8368 0.7003 0.5860 0.4904 Discounted Cash Flows (20,000,000) 2,510,460 4,901,875 5,273,984 7,355,626 Net Present Value 41, 945       Years 0 1 2 3 4 Initial Investment (20,000,000) Cash Flows 3,000,000 7,000,000 9,000,000 15,000,000 Discount Factor (19.58%) 1.0000 0.8362 0.6992 0.5847 0.4889 Discounted Cash Flows (20,000,000) 2,508,629 4,894,727 5,262,453 7,334,191 Net Present Value 0 d) Since the IRR of is 19.58% therefore it should be accepted because it is earning more than the double of the cost of capital of the company. e) Advantages of NPV NPV provides the total benefit in the form of currency amount. NPV is easy to calculate and understand. NPV is an absolute measure and provides the results of the project in isolation. Advantages of IRR IRR provides the answer in percentage form. IRR provides the net excess percentage over cost of capital. IRR is relative measure, which makes it comparable to other projects. Part B Steps in Capital Budgeting Typical steps in the process of capital budgeting are: 1. Brainstorming: the most important step in capital budgeting process is to generate good ideas for investments, which comes from brainstorming. 2. Capital Budget Planning: In this step, the company