LMS Synthesis Essay Samples Why Should You Avoid Using MLA Format

LMS Synthesis Essay Samples: Why Should You Avoid Using MLA FormatYour next exposition may contain a blend of data, from fluctuated areas, and you may need to locate the best LMS union article tests that will assist with supporting your point. There are such huge numbers of these out there, so which ones are really dependable and legitimate, and which ones should you avoid?First of all, the MLA or 'significant watchwords' configuration won't have the option to be utilized by and large for LMS amalgamation expositions. This is on the grounds that the MLA doesn't take into account any sort of in exactly the same words replacement in your source material. In the event that you can utilize this organization, the LMS program will distinguish it and be not able to create your exposition correctly.The second motivation behind why you ought to abstain from utilizing the MLA group for your LMS article is on the grounds that the LMS program has an alternate language from the MLA. In the event that you do endeavor to utilize the MLA position in your paper, almost certainly, the sentence structure won't be right. Indeed, even the best school level composing projects can miss the point, yet LMS union projects, which must work with such an alternate language, are significantly more prone to do so.Many authors pick moderators guarantee that their papers do exclude any in exactly the same words replacement. Shockingly, this isn't a possibility for LMS programs. Huge numbers of the best LMS programs really use in exactly the same words replacement, yet then permit you to alter it to make it precise. You can set up the format and change the replacement of words on the off chance that you can alter the piece the manner in which you need it to be written.Because of this, you ought to abstain from 'connecting' your source material from another source. In the event that you should, do so cautiously and thoroughly.It is conceivable to compose your exposition rapidly utilizing LMS pro grams. Nonetheless, you ought to be mindful so as to utilize your various apparatuses properly.Not all the choices will give you indistinguishable outcomes from one another on a specific substance. Some of them may prompt your article not being satisfactory.Writing a paper isn't a simple errand, and you are just comparable to your degree of training. You ought to guarantee that your composing capacities are comparable to the degree of the course at which you are taking. Recognizing what to search for is an incredible assistance to shield your work from being unacceptable.

The Best Ways to Make Money With Pearl Essay Topics

The Best Ways to Make Money With Pearl Essay TopicsThe Pearl paper points dislike some other exposition themes that you have found in a school or college previously. Be that as it may, it is simpler to compose these subjects than you might suspect. It very well may be finished by anyone paying little heed to your sex or age. This is on the grounds that the articles are a discussion among you and your partner.You may not realize that there are several discussions that are going on inside your body when you compose your own composed words. This occurs for a similar explanation that you can feel a discussion in your stomach. This is actually what's going on when you are composing an essay.The pearl article themes are anything but difficult to compose. You should simply focus on what you will record in your brain. You don't have to utilize paper, pencils, or even the computer.Pearl papers occur in your brain and not in the body of the individual you are composing it for. On the off chanc e that you compose the article effectively, the sentences will stream into one another normally as though they were composed by you, your accomplice, or an apparition writer.Your accomplice should peruse your paper and reveal to you how you ought to improve it. You can examine your accomplice's remarks and how it will fit with the fundamental thought. When you have completed your pearl exposition, offer it to your accomplice and request that they offer it to another person so you can distribute it online.You can likewise advance your pearl paper points on the web. To do this, you just need to enroll on a site that can post and make your articles for you. With such huge numbers of organizations out there, you make certain to discover one that can assist you with doing this.Remember that the most ideal approach to bring in cash with your pearl article subjects is to present them on a few distinct locales. Doing this will guarantee that you get the most traffic possible.Many individual s don't comprehend the pearl exposition themes that you post on the web. Be that as it may, when you understand how much cash you can make, you will begin searching for different approaches to make it.

College Essay Samples Why Do I Need High Quality College Essay Sample Templates

School Essay Samples: Why Do I Need High Quality College Essay Sample Templates?College exposition tests are useful for understudies. Composing articles is troublesome and only one out of every odd understudy is removed to do it. Most understudies possibly do the most essential exposition composing and afterward on the off chance that they become effective enough, they will figure out how to be an expert. School papers are no different.Students need to ace the whole idea of composing an article. This incorporates the entirety of the aspects of the task. There are numerous approaches to get great article tests and a ton of universities have paper survey courses.Many specialized curriculum instructors in the English division are the ones who can assist understudies with composing a decent exposition. They will have information on the best possible language, sentence structure, and structure that are required for understudies to be successful.One of the most well-known approaches to get amazing school exposition tests is by becoming more acquainted with the teacher in the division. On the off chance that you are experiencing difficulty with your composing aptitudes, a teacher may have the option to assist you with building up a technique for your paper. Thusly, you don't need to depend on common cases to make sense of how to be effective with the essay.There are a few different approaches to get school article tests in the event that you don't know anybody in the division. You can begin by approaching your educator for help or a teacher in the English office for help. Understudies regularly gripe about the way that they are so effectively influenced by the primary educator they request help from.The most ideal approach to get school paper tests is by using an asset that is accessible on the web. The web has everything accessible to anybody searching for anything. School article tests are accessible, in bounty, on the web for anybody to use.College paper tests PDF is one approach to get school exposition tests on the web. There are a few hints to ensure that you are utilizing the great format and get the best quality. There are a few assets on the web that you can use.Another extraordinary asset for getting excellent school paper tests is by experiencing school sites. This implies on the off chance that you need to visit a school site, all things considered, you will show signs of improvement paper tests on the off chance that you go on the web. Utilizing school sites allows you to survey different expositions and even various educators.

What Are the IELTS Writing Task 2 Advantages and Disadvantages Essay Samples

What Are the IELTS Writing Task 2 Advantages and Disadvantages Essay Samples?IELTS composing task 2 preferences and drawbacks paper tests will assist you with comparing the importance of an English piece to its equivalent words. In the event that your task is to figure out what the planned implications are, you won't be the one in particular who should make a solid effort to comprehend these composed examples. This is on the grounds that IELTS composing task 2 favorable circumstances and drawbacks exposition tests will be an important manual for the interpreter's job.Every IELTS composing task isn't just about breaking down and deciphering one's English composing tests. Truth be told, it's anything but a straightforward undertaking for the vast majority. There are additionally numerous others who will likewise think that its hard to concoct their own definition. Obviously, in all actuality an individual who just uses IELTS composing task 2 points of interest and weaknesses article te sts won't be in a situation to give an exact interpretation or interpretation.However, there are a few reasons why IELTS composing task 2 preferences and impediments paper tests may get helpful to you. Most importantly, on the off chance that you are an understudy, at that point it will turn out to be simple for you to recognize your present degree of capability with regards to understanding the considerations and ideas of your English piece. All things considered, as an understudy, your insight and understanding will be what decide your prosperity or disappointment in English structure. Simultaneously, on the off chance that you are as of now an accomplished proficient interpreter, at that point the data in these examples will likewise be of an incentive to you.Finally, on the off chance that you need to recognize how your English composing tests could be deciphered and deciphered by others, at that point it is feasible for you to exploit the advantages of this sort of IELTS compos ing task. The advantage is that you will have the option to get various citations from an IELTS composing undertaking and study them for yourself.When considering them, you will have the option to distinguish the highlights and expressions of various kinds of composed materials. As it were, you will have the option to increase a knowledge into the way of life of a country or area. Simultaneously, this will assist you with developing your own perspective on certain social qualities, especially on the off chance that you need to build up your own preference for outside literature.One of the best models IELTS composing task 2 points of interest and impediments article tests is the preliminary interpretation test that was made accessible to interpreters in the magazine 'Anabasis'. Here, the expression 'on page five' is converted into four diverse versions:The first model that is meant 'In the field where they were contemplating scholastic materials' is meant 'Fields where they considere d scholarly materials'. This implies the organization has an alternate significance relying upon which text is read.The second model that is meant 'On page five' is meant 'On the page where they had considered scholarly substance'. This implies it is a significant and critical idea that is commonly increasingly hard to get a handle on and record in composed English. It is important that this sentence is the first that is meant various adaptations and along these lines it will be simple for a peruser to perceive and to pass judgment on the trouble of the creation dependent on the writings that are spoken in the preliminary interpretations.

Persuasive Essay Examples About Bullying

Convincing Essay Examples About BullyingThere are various powerful paper tests about harassing out there on the web. This can give you a ton of thoughts to begin with, yet there are some significant things to remember when glancing through these various examples and thinking of your own.First of all, it's critical to understand that not all harassing is genuinely unsafe. A few youngsters menace others just on the grounds that they are uncertain or feel compromised. These sorts of harassing might be hard to demonstrate or grasped, yet you can at present utilize enticing paper tests about tormenting to help compose articles that help counter the bullying.Being harassed can be exceptionally disengaging and harming to the certainty of the kid, so you need to urge them to take an interest in extracurricular exercises, particularly in the event that they have positive help from their companions. Kids who realize they are adored will have the option to think of good thoughts for imaginative papers and stand apart as the legend in the essay.It is essential to understand that tormenting doesn't really mean a powerful exposition models about harassing that don't address the current issue. You'll discover a lot of convincing paper tests about tormenting that do address the issue, so you ought to have the option to work with them to make an article that addresses the understudies' fundamental beliefs, while likewise calling attention to how harassing can hurt a kid. You can bring up how the harassing can affect different zones of the understudy's life, for example, their self-esteem.Even however you might be enticed to run with the main powerful article tests about tormenting you go over, it's smarter to take a little effort to consider every thought before you feel free to utilize it. You would prefer not to wind up with an exposition that totally conflicts with your contention, so make sure to be as basic as conceivable when you are investigating the essay.Remember that probably the most influential article tests about tormenting are those that offer a genuine understanding into the survivor of the harassing. These expositions can assist kids with understanding that it isn't unexpected to be frightened or shaky when menaces are included, yet understand that harassing isn't something that is something that can be ignored.It's additionally essential to discover why the kid was tormented in any case, and attempt to get in a more profound comprehension of why this occurred. These kinds of expositions are exceptionally amazing when they are done right.The best activity on the off chance that you end up trapped in a hopeless cycle with a paper about tormenting is to get some information about this point what they did. Odds are, they'll have various techniques for composing an exposition about harassing that will assist you with defeating the obstructions.

Essay Sample About Procter & GambleGreen Market And Gamble & Gann Portfolio

Exposition Sample About Procter and Gamble'Green Market And Gamble and Gann PortfolioYou may have run over the old article tests about Procter and Gamble'green market and Gamble and Gann portfolio. Presently, one of the most acclaimed and demonstrated methods is simply back at the center of attention and it's currently about attempting to scan for the correct composition to sell items online.If you've known about the old composition on the Green Market or what Gamble and Gann was doing during that period, there is one thing you ought to see first. Numerous individuals believe it's something different all together yet don't have the foggiest idea what precisely it is. It's no green items or any green showcasing procedure but instead the item and technique called 'Green Newsletters'.You can peruse the exposition test about Procter and Gamble'green market and Gamble and Gann portfolio from an earlier time and you'll likely ask why the teacher that composed it isn't around any longer. Th at individual is a bookkeeper and an educator who showed understudies how to publicize their items on the web yet now he's gone looking for better things.The paper tests about the Green Market are old and a portion of the individuals who utilize those old articles don't have the foggiest idea how to sell anything on the web. The vast majority simply don't have the right stuff in selling anything. They don't have a clue how to compose an email, they simply don't have the foggiest idea how to associate with the reader.The old composition on the Green Market or the Gamble and Gann portfolio is something that despite everything applies to the business world yet the web business field is a totally extraordinary field. Presently, rather than simply learning the things in this old article tests about Gamble and Gann, you ought to figure out how to make your own.Instead of figuring out how to compose an email, you ought to figure out how to make your own pamphlets. There are numerous method s that you have to learn so as to create top notch bulletins and maybe you are not even mindful of these procedures. That is the reason you ought to likewise know the standards of web marketing.So on the off chance that you're keen on learning these eBook methodologies, at that point investigate the chance of learning it on the web. In the event that you need to get familiar with the methods that you never pondered, at that point gain from the specialists. The most ideal approach to figure out how to elevate is to simply begin getting along it on your own.Find a source and gain proficiency with the procedures of advancing and see what works for you. After you realize what works for you, you will have certainty and you will be sure about advancing your own items on the web.

Essay Topics For Solution - Data Packages and Writing Samples For All AP and IB Exams

Exposition Topics For Solution - Data Packages and Writing Samples For All AP and IB ExamsIf you've been pondering finishing your senior proposal or planning for the AP or IB assessments, you might be thinking about themes for arrangement article. A decent number of understudies are worried about how well their answers will hold up under investigation. This can prompt nervousness and dissatisfaction over less than stellar score results.Of course, the nature of your exposition subject will significantly affect the nature of your last paper. To compose an exposition on a point that isn't applicable to your last task will be an exercise in futility. It is smarter to compose an exposition on a point that is identified with the task. Great points with the end goal of an answer article will relate well to the subject chosen.Coursework at the two schools and colleges differ generally as far as required themes. For instance, at times a composing test is expected of understudies so as to deci de how applicable their article is to the last task. In this way, before presenting any assignments, make a point to incorporate a composing test with each assignment.Typically, most school composing tests will expect understudies to submit one of two configurations. The primary organization requires the understudy to present a layout for the task. In this arrangement, understudies will give a rundown of primary concerns they might want to talk about inside the article. These focuses will be talked about and assessed in the composing sample.The second organization furnishes understudies with a draft of the exposition. In this arrangement, the understudy will utilize a PC program to create the blueprint just as the key focuses for each section. The composing test will at that point be submitted to the educator for evaluation.Depending on the program utilized by the composing program, understudies should follow a particular arrangement so as to effectively finish their relegated expos ition. On the off chance that an understudy is working with a PC created composing test, they will have the option to utilize a product program to redo their article. On the off chance that the composing test is provided to the understudy, they will essentially need to roll out a couple of improvements to the blueprint and syntax to make it stream and work better. By utilizing the PC produced composing test, it should just take a short measure of effort for the understudy to make their own article that is actually what they need it to be.Before endeavoring to finish the expositions, it is imperative to decide if the understudy has enough information on the subject. Undergrads frequently feel that they need more foundation information on the point so as to appropriately compose an exposition. Thusly, it is significant for understudies to increase enough information about the theme to compose the article effectively.Once the composing tests are set up, understudies can start taking a shot at the expositions and last editing ought to be finished ahead of time of presenting the assignments. Understudies ought to likewise hope to present a different information bundle for every single imaginable task that they may get. With some additional arrangement, a task can transform into a masterpiece that has demonstrated valuable for an understudy.

Essay Samples For Legalization Of Drugs

Paper Samples For Legalization Of DrugsEssay tests for authorization of medications are an extraordinary method to infuse some flavor into your composition. They can without much of a stretch be stirred up with some other paper theme and there are a huge number of alternatives you can utilize. Here are a couple of examples:Legalization: As a gesture to the ongoing authorization development, here is a solid contention for it. Clarify how it will influence society and give reasons why you trust it will be a smart thought. Utilize the contentions made by defenders of the proposition and furthermore think about your own encounters with tranquilize use. In what capacity will this sanctioning influence your life?Structure: Analyze sentence structure and pacing. Ensure that the sentences are completely associated with one another and that they stream normally. Focus on whether your composing is running excessively quick or on the off chance that it isn't streaming smoothly.Organization: You might be approaching yourself what exposition tests for sanctioning of medications would incorporate about association. There are numerous ways you can compose your thoughts, yet here are a couple examples:There are such a large number of inquiries and focuses you have to cover, however that is alright in light of the fact that you can sort out everything with a specific goal in mind to carry your principle topic to the bleeding edge. You can sum up your fundamental thought in the presentation, at that point work to develop it in the body of the paper, at that point in the end lastly wrap things up with a conclusion.If you are taking an online seminar on authorization, these examples for legitimization of medications can be an extraordinary device. It gives you a thought of how you ought to approach putting your thoughts down on paper.Still not certain what these article tests for legitimization of medications are? Go to your nearby library and request one. Most curators have bookm arked the subjects they need you to compose about.Even in the event that you decide not to take online courses, your educators will probably have a comprehension of the paper tests for authorization of medications that you need. The most ideal approach to gain some new useful knowledge is by taking part in the conversation of the topic. Get the show on the road and manufacture your insight into the subject.

Financial Analysis For Wonderland Confectionaries Theme Park Finance Essay - Free Essay Example

Wonderland Confectionaries Inc. owns a successful chain of Restaurants and the company is considering diversifying its activities by investing in theme park business by constructing a theme park. This report analyses the Wonderlands investment in the theme park to diversify its current business. Based on the information available from the market research undertaken by Wonderland and the investigation done on the closest theme park competitor, major investment appraisal methods were used to evaluate the above said investment. Recommendations are given based on the findings from the investment appraisal methods. Furthermore, investment appraisal method used in this analysis is compared with other major investment appraisal methods. In addition to that, financial and non-financial issues that management of Wonderland need to be aware of and suggestions on how to manage these issues are discussed. Further, a brief outline of the use of real options in project appraisal is given. INTRODUCTION Wonderland Confectionaries Inc. owns a successful chain of restaurants and the company is contemplating to diversify its business activities by investing in theme park business. In order to undertake this diversification process, the company is considering constructing a theme park, which would have a mixture of family and adventurous activities. This report aims to analyse the Wonderlands investment in the theme park. Based on the information available from the market research undertaken by the company and the investigation done on a closest theme park competitor (Alice Limited), major investment appraisal methods will be used to evaluate the above said investment. Recommendations will be given based on the conclusions drawn from the investment appraisal methods used in this analysis. Furthermore, investment appraisal method used in this analysis will be compared with other major investment appraisal methods. In addition to that, financial and non-financial issues that management of Wonderland need to be aware of and suggestions on how to manage these issues will be discussed. Further, a brief outline of the use of real options in project appraisal will be given. NET PRESENT VALUE In order to calculate Net Present Value (NPV), Weighted Average Cost of Capital (WACC) needs to be calculated by using project specific approach as shown below. Main reason behind this is because WACC of the new project will represent the most accurate measure of cost of capital for the new project, which will be used as discount factor to calculate NPV. Further, Wonderlands funds can be viewed as a pool of resources. Company will withdraw money from this pool of funds to invest in the theme park project and add to the pool as new finance is raised or profits are retained. In this case, it is most appropriate to use an average cost of capital as the discount rate (BPP Learning, 2009, p.334). 3.1 Calculation of Project Specific WACC (Theme Park) In order to calculate project specific WACC, 5 steps will be followed as shown below: Step 1: Identify Pure Play Company; a company in the desired industry is identified to use their beta and relevant information. This is required to allow an insight into the risk of the industry as measured by the pure play companys data. In this case, the pure play company is ALICE LIMITED operating in Theme park industry. Step 2: De-Gear; pure play company identified has a beta, which is an equity beta that is inclusive of debt. They may very well have a different gearing level to the company concerned (pure play company; ALICE LIMITED), and effects of debt (gearing) need to be removed from their equity beta (De-Gearing) in order to obtain a debt free beta known as Asset Beta. Asset Beta = Equity Beta x Equity Equity + Debt (1-tax) Where; Equity Beta of Alice Ltd = 1.50 Equity of Alice = 500,000,000+700,000,000 = 1,200,000,000 Debt of Alice Ltd = 570,000,000 Corporate Tax = 35% Asset Beta = 1.50 x 1,200,000,000 1,200,000,000 + 570,000,000 (1- 0.35) Asset Beta = 1.146 Step 3: Re-Gear; at this stage the new asset beta will be taken to introduce it to see the effects of debt of the diversifying company (re-gearing). This can be done as follows: Equity Beta = Asset Beta x Equity + Debt (1-tax) Equity Where; Asset Beta = 1.146 Equity of Wonderland = gearing is estimated to be 80% of equity = 100,000,000 x 5 x 80% = 400,000,000 Debt of Wonderland = gearing is estimated to be 20% of debt = 100,000,000 x 5 x 80% = 100,000,000 Corporate Tax = 35 Equity Beta = 1.146 x 400,000,000 + 100,000,000 (1 0.35) 400,000,000 Equity Beta = 1.332 Step 4: CAPM; at this step, new cost of equity of Wonderland Confectionary Inc. is calculated based on the new beta, which is reflective of the risk that equity investors will now have to face. This can be seen below: Ke = Rf + B (Rm-Rf) Where; Ke = Cost of Equity Rf = Risk Free Rate (3.5%) B = Beta (1.332) Rm = Expected Market Return (12%) Ke = 0.035 + 1.332 (0.12 0.035) Ke = 0.1483 (14.83%) Step 5: WACC; It is best practice to use the Weighted Average Cost of Capital (WACC) method in appraising any investment. Tabular approach will be used to calculate WACC as shown below in the table 1: Table 1: Calculation of WACC Capital Component Market Value of Capital Component (V) Cost of Capital Component (K) Value multiplied by cost of capital component (VK) Equity 400,000,000 0.148 59,300,860 Debt 100,000,000 0.0521 5,200,000 Total (Sum) 500,000,000    64,500,860 1 Kd BD = i (1 t) = 0.08 (1 0.35) = 0.052 = 5.20% Weighted Average Cost of Capital (WACC) = ÃÆ' ¢Ãƒâ€¹Ã¢â‚¬  Ãƒ ¢Ã¢â€š ¬Ã‹Å" VK ÃÆ' ¢Ãƒâ€¹Ã¢â‚¬  Ãƒ ¢Ã¢â€š ¬Ã‹Å" V WACC = 64,500,860 500,000,000 WACC = 0.1290 (12.90%) Weighted Average Cost of Capital of 12.90% will be used as a discount factor to calculate Net Present Value. 3.2 Calculation of Net Present Value (NPV) The following major assumptions have been made in working out the NPV for the theme park project: This evaluation will ignore the market research cost of 400,000 as it is a sunk cost. Leap years will be ignored in this analysis. Insurance is required at the start of the project. As a result, out of 3,000,000 insurance costs, 2,000,000 per year is due directly to the theme park project. There will be no inflation on advertising costs. Advertising savings will be considered as cash inflows. Monetary analysis of future cash flows will be used because of different inflation rates as follows: (a). Revenue to rise by 6% from current on a compound basis. (b). Insurance costs to increase in line with consumer price, i.e. 6% per annum compounded annually. (c). Labour cost will be increased by 7% each year on compounding basis (d). Operating costs to increase by 5% per year. Theme park will be operated 7 days a week for 365 days a year and will be maintained during the night. Further, the following estimates have been made: (a). Park will attract an average of 20,000 visitors per day (for at least 5 years) and 70% of the visitors are forecast to be children and rest being adults. (b). Price of admission will be taken as 25 per adult and 15 per child. (c). Average visitor will spend 10 on food and drinks. Taking into account all the above major assumptions, total revenue per year is calculated in the following table 2 below: Table 2: Revenue Per Year Description Adults Children Total Number of visitors per day 6,000 14,000 20,000 Number of visitors per year 2,190,000 5,110,000 7,300,000 Admission Fee (@ 25 adults 15 child) 54,750,000 76,650,000 131,400,000 Food Drinks ( 10 per visitor) 21,900,000 51,100,000 73,000,000 Revenue per year (Admission and Food + Drinks) 76,650,000 127,750,000 204,400,000 From the above table it can be seen that theme park project will generate revenue of 204,400,000 per year. However, Wonderland Confectionaries Inc. expect it to rise by 6% from current on a compound bases as shown in the following table 3 below: Table 3: Net Trading Revenue Calculation Description Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Revenue (6% inflation rate) 1 216,664,000 229,663,840 243,443,670 258,050,291 273,533,308 Total Revenue Per Year 216,664,000 229,663,840 243,443,670 258,050,291 273,533,308 Operating Costs Insurance 2 (2,120,000) (2,247,200) (2,382,032) (2,524,954) (2,676,451) Operating Costs 3 (17,000,000) (17,850,000) (18,742,500) (19,679,625) (20,663,606) Labour Costs 4 (37,450,000) (40,071,500) (42,876,505) (45,877,860) (49,089,311) Total Operating Costs Per Year (56,570,000) (60,168,700) (64,001,037) (68,082,439) (72,429,368) NET TRADING REVENUE 160,094,000 169,495,140 179,442,633 189,967,851 201,103,940 1 Revenue (Year 1) = 204,400,000 x (1.06)1 = 216,664,000; 2 Insurance (Year 1) = 2,000,000 x (1.06)1 = ( 2,120,000); 3 Operating Costs (Year 1) = 17,000,000 x (1.05)(1-1) = 17,000,000; 4 Labour Costs (Year 1) = 35,000,000 x (1.07)1 = ( 35,450,000) Tax payable can be calculated from the above net trading revenue for each year at a rate of 35% as shown below in the table 4: Table 4: Tax Payable Calculation Description Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Tax Payable 1 56,032,900 59,323,299 62,804,922 66,488,748 70,386,379 1 Tax Payable (Year 1) = 160,094,000 x 0.35 = 56,032,900 Out of the whole investment, 300 million will attract a capital allowance on straight-line basis as shown in the following table 5: Table 5: Capital Allowance Calculation Description Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Tax Relief 1 21,000,000 21,000,000 21,000,000 21,000,000 21,000,000 1 Tax Relief (Year 1) = 300,000,000 / 5 x 0.35 = 21,000,000 Theme park would cost a total of 500 million and could be constructed working after 1 year of investment. Half of the 500 million would be payable immediately and half in one years time without the effect of inflation due to a signed agreement. This is show in the table 6 below: Table 6: Investment Calculation Description Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Investments (250,000,000) (250,000,000) In addition to the above, working capital of 60 million will be required from the beginning of the project and is expected to increase yearly in line with inflation factor of the revenue which is 6%. This can be seen from the table 7 below: Table 7: Calculation of the Working Capital Re-capture Description Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Working Capital (60,000,000) (3,600,000) (3,816,000) (4,044,960) (4,287,658) (4,544,917) Working Capital Re-capture (80,293,535) Non-current asset has an after tax realisable value between 100 million and 200 million after five years of the project. As a result, an average of 150 million will be taken as residual value as show in the table 8 below: Table 8: Calculation of Residual Value Description Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Residual Value 150,000,000 Due to dual use of existing advertising campaigns by company on its restaurants, theme park will save 3 million per year in advertising expenses as shown below in the table 9: Table 9: Savings on Advertising Expenses Description Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Inflow of Advertising Savings 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 With the help of all the above information, Net Present Value of the project can be calculated as shown below in the table 10: Table 10: Calculation of Net Present Value Description Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Net Trading Revenue 160,094,000 169,495,140 179,442,633 189,967,851 201,103,940 Tax Payable (56,032,900) (59,323,299) (62,804,922) (66,488,748) (70,386,379) Capital Allowance (Tax Relief) 21,000,000 21,000,000 21,000,000 21,000,000 21,000,000 Investments (250,000,000) (250,000,000) Working Capital (60,000,000) (3,600,000) (3,816,000) (4,044,960) (4,287,658) (4,544,917) Working Capital Re-capture 80,293,535 Residual Value 150,000,000 Advertising Savings 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 Cash Flow (310,000,000) (125,538,900) 130,355,841 136,592,752 143,191,446 150,172,644 230,293,535 Discount Factor @ 12.90%1 1.000 0.886 0.785 0.695 0.615 0.545 0.483 Present Value 2 (310,000,000) (111,194,774) 102,268,671 94,917,399 88,133,559 81,869,308 111,203,407 NET PRESENT VALUE 3 57,197,569 1 Discount Factor is taken from the WACC amount calculated above which is 12.90%; DCF (Year 1) = 1.000 / 1.1290 = 0.886 2 Present Value (Year 1) = ( 125,538,900) x 0.866 = ( 111,194,774) 3 Net Present Value is sum of all the present values for 6 years which is 57,197,569 From the above table 10, it can be seen that theme park project has a positive net present value of 57,197,569 and as such Wonderland Confectionaries Inc. should accept the project. Positive NPV means that the project will increase the wealth of the company by the amount of the NPV at the current cost of capital. In other words, positive NPV means, if the theme park project is undertaken by Wonderland, it will offer a higher return than the return required by the company to provide satisfactory return to its sources of finance, which in turn means that the companys value will be increased and the project will contribute to shareholders wealth maximisation (BPP Learning, 2009, p.148). However, it is recommended for Wonderland to have a closer examination of the sales projections done for the project. NPV decision could be further supported by calculating the Internal Rate of Return (IRR) for the project. To calculate IRR, the following technique is used (deriving cost of redeemable debt technique): Columnar Approach. Identify the cash flows. Discount at two rates (Negative NPV = Divide 1st discount rate by 2 and Positive NPV = Multiply 1st discount rate by 2). Use the IRR formula (Entonu, 2010). Table 11: Columnar Approach to Calculate Internal Rate of Return Description Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Cash Flows (310,000,000) (125,538,900) 130,355,841 136,592,752 143,191,446 150,172,644 230,293,535 DCF @ 12.90% 1.000 0.886 0.785 0.695 0.615 0.545 0.483 Present Value (310,000,000) (111,194,774) 102,268,671 94,917,399 88,133,559 81,869,308 111,203,407 Net Present Value                   57,197,569 DCF @ 25.80% 1.000 0.795 0.632 0.502 0.399 0.317 0.252 Present Value (310,000,000) (99,792,448) 82,370,028 68,609,733 57,173,465 47,663,686 58,102,912 Net Present Value (95,872,625) Note: NPV at DCF (Discount Factor) @ 12.90% = 57,197,569; when NPV is positive, that means DCF used to calculate NPV is too low. As a result DCF should be multiplied by 2 (i.e. 12.90 x 2 = 25.80%) to get a negative NPV [NPV @ 25.80% DCF = ( 95,872,625)]. To calculate IRR, the following formula is used: Internal Rate of Return (IRR) = LR + NPV (+) x (HR LR) NPV (+) NPV (-) Where; LR = Lower Discount Rate HR = Higher Discount Rate NPV (+) = NPV at lower discount rate NPV (-) = NPV at lower discount rate IRR = 0.129 + 57,197,569 x (0.258 0.129) (57,197,569+ 95,872,625) IRR = 0.1772 IRR of 0.1772 (17.72%) is greater than the current weighted average cost of capital of Wonderland, which is at 9%, as such IRR agrees with NPV decision to proceed with the project. 3.3 Evaluation of Net Present Value method compared to other major methods used Net Present Value (NPV) is the difference between an investments (theme park) market value and its costs. In other words, NPV is a measure of how much value is created or added today to Wonderland Company by undertaking the theme park investment (Ross et al., 2008, p. 232). NPV appraisal method is the best method for the financial analysis of theme park project is for the following reasons (LSBF, 2009, p.34): (a). Theme park project with a positive NPV increases the wealth of the Wonderland Company and consequently increases the shareholders wealth. (b). Unlike ROCE and payback method, NPV takes into account the time value of money (a dollar today is worth more than a dollar tomorrow) and therefore the opportunity cost of capital. (c). Discount rate can be adjusted to take account of different level of risk inherent in different projects. In other words, higher discount rates can be set for riskier projects. (d). Better than payback and accounting rate of return method because NPV considers the cash flows over the whole life of the project rather than profit. (e). Superior to return on capital employed method because it focuses on relevant future cash flows. (f). Unlike internal rate of return, NPV method does not suffer the problem of multiple rates of return. FINANCIAL AND NON-FINANCIAL ISSUES There are number of financial and non-financial issues that the management of Wonderland needs to be aware as follow: (a). Financial Issues It is essential for Wonderland to include only incremental cash flows during project appraisal, which means cash flows that are dependent on the projects implementation (Arnold, 2005, pp. 82). It is important for Wonderland to include all opportunity costs and incidental effects in their investment appraisal (Arnold, 2005, pp. 83). Wonderland should ignore sunk costs such as market research cost of 400,000, as these are not part of the theme park investment project. Market research cost is already incurred whether or not decision to construct the theme park goes ahead and is there for not incremental (Arnold, 2005, pp. 84). It is fundamental that Wonderland management to include only incremental costs during project appraisal. This becomes an important issues when it comes to overhead costs such as labour, insurance and operating costs, etc, which are not directly related to any one part of the company or one project. To access the viability of the theme park project, only incremental expenses that would be incurred by going ahead with the project should be included as other general overhead costs will be incurred regardless of whether project takes place or not (Arnold, 2005, pp. 84). Even though interest on bank loan to be borrowed by Wonderland to invest in the theme park project does represent a cash outflow, this element should not be included in the cash flow calculations. The main reason is that, it will lead to double counting, as the opportunity cost of capital used to discount the cash flows already incorporates a cost of these funds (Arnold, 2005, pp. 85). Before Wonderland commits to invest in the theme park project, it is vital to ensure funding for the project is available. Further, identifying the right finance option for the particular project is essential from the different varieties of financing options available (Business link, 2010). Wonderland should consider potential risk of the theme park project. This could be done with the help of assessment of all the risks involved in the project such as delays, underlying assumptions not being reliable, sales forecast gone wrong, etc. Further, they could use sensitivity analysis to predict the impact these potential risks will have on the project (Business link, 2010). (b). Non- Financial Issues It is important for Wonderland to see how theme park project fits with the existing business of the company. Further, they should consider how this project could contribute to overall strategic objective of the company (Business link, 2010). Green Issues: It is important for Wonderland to consider the environmental impact that might be cause because of theme park project. It is vital for Wonderland to use most advance technologies to limit the damages caused to the environment because of the huge project. The main reason is that, companies who do not investment in green activities are considered now as irresponsible by the public who will in turn become customers of the theme park project. Motivation of staffs: The effect on the staff is a crucial consideration to be made when investing in new projects. Arnold (2005, p. 76) states that staffs enthusiasm and commitment will be central importance of the success of new projects. It is important for Wonderland to find ways to improve staff morale, making it easier to recruit and retain employees (Business link, 2010). Customer satisfaction: Its important for Wonderland to find ways to satisfy the prospective customers of the theme park project by conducting market surveys, market observation and market experiment, etc (Arnold, 2005, pp. 76). Government regulations: It is vital that Wonderland keep up to date with the government regulations and they should meet the requirements of current and future legislations (Business link, 2010). Competitors: Wonderland should consider actions of their major competitors such as Alice Ltd before making the investment decision (Business link, 2010). Trends: They should consider the future trends before making the investment decision to see the potentials in the theme park project. Further, it is important for Wonderland to anticipate and deal with future threats such as projecting intellectual property rights against potential competitors (Business link, 2010). It should be noted that most of the above non-financial issues could be assessed with the help of post audit techniques where by company checks on the progress of theme park project by conducting post audits shortly after the projects have begun to operate. This will allow Wonderland to indentify problems that need fixing, check the accuracy of forecasts and suggest questions that should have been asked before the project was undertaken (Brealey and Myers, 2003, pp. 313-314). REAL OPTIONS A real option is the right but not the obligation to undertake some business decisions; typically the option to make, abandon, expand, sell a capital investment (Kodukula and Papudesu, 2006, pp. 53-64). If Wonderland decided to investment in the theme park project, it should be noted that there are many options available for them through out the life of the project to make strategic changes as follows: (a). Abandonment: This is option where by Wonderland can cease the project during its life if it is not viable for them to continue the project due to several reasons such as changes to demand, economy, etc. Due to changes in circumstances, Wonderland can decide to abandon the theme park project in order to terminate loss-making projects (Brealey and Myers, 2003, p. 625). (b). Expansion: Depending on the success of the theme park project, Wonderland can decide to expand its theme park project to gain more market share in this industry (Arnold, 2005, p. 562). If there is potential for growth opportunities in the future, the option to expand can provide significant value to the company (Kodukula and Papudesu, 2006, p. 110). (c). Flexibility: During the life of the theme park project, Wonderland will have the option to change inputs and output of the theme park projects for example, changes in suppliers or different pricing methods, discounts, etc in order to generate more profit from that project to the company (Brealey and Myers, 2003, pp. 630-631). (d). Selling: Option where by company decides to sell the whole project for several reasons such as loss making projects or company received an opportunity to sell project at profit if they decides to abandon its theme park project, etc. (e). Timing: Even though theme park project is giving a positive NPV does not mean that Wonderland should go ahead with the project today. Company has the option to wait if they can delay the investment decision where creating a trade of between cash flow today and cash flow in the future. Further, if they decided to wait, they could make a more informed and in the long run more value creating decision (Arnold, 2005, p. 563). 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