Cost-Benefit Analysis of A Public Infrastructure Project Assignment

Cost-Benefit Analysis of A Public Infrastructure Project - Assignment Example Thus, to come up with a public infrastructure, several factors will be considered to look at both the advantage and causality in order to achieve the optimal benefit that is required. Public infrastructure is considered to be of good interest to the society if its final outcome benefits surpass the cost of implementing the total project. If the cost of implementing the infrastructure is more than the benefit the society is supposed to enjoy after its completion, then, the project is of no much benefit to the society. To realize the cost benefit of a public infrastructure, a cost benefit analyses is carried out to investigate the benefit the society is expected to achieve once the said infrastructure is completed. If the result shows that the project has a positive benefit, then, the infrastructure should be implemented. If the result on the other side reveals that the benefits of the project upon completion reflect negative benefit, then, the project should be dropped (Campbell and B rown, 15). 1.1Project description The public infrastructure that is illustrated under this paper is of power plant construction nature which is located in Middle East and North African region. This region has a high potential of solar and wind energy because it receives a lot of energy from sun in six hours than what a man consumes in one year and is home to top sites of wind potential. This project is expected to generate electricity by use of massive set up of solar and wind farms networks and connect the power to Europe through a Europe- Mediterranean electricity network. A high voltage direct current (HDVC) transmission cables will be used in the transmission of the power. The power plant will involve spreading of concentrating solar power systems, wind parks and photovoltaic systems in desert of North Africa in places like Sahara desert. This means that the power plant will produce energy that is renewable instead of use of fossil fuel that is not renewable. This project will p rovide a substantial demand of electricity in Middle East and Northern Africa region and a 15% of electricity need in Europe. Thus, due to the fact that this project is expected to benefit those three regions, it has being dubbed as EUMENA which means European Union, Middle East and Northern Africa. Investment under this public infrastructure is expected to cost up to 400 billion pounds by 2050. Under this project, Europe is expected to lead in fighting climate change and economies of the Northern African countries and Europe, grow due to green house gas emissions limitation. This project has the potential to satisfy 15 percent of the electricity demand in Europe and much needed electricity in Middle East and North Africa. 240,000 jobs in Germany are likely to be created if this project is implemented and generate electricity worth 2 trillion by 2050. Energy wastage is expected to be reduced under this project because it will enable transfer of energy from areas with surplus to area s it is needed. The grid will help in taking advantage of the large amounts of energy that is likely to be sourced from large scale sources of renewable energy that are remote. The construction of the transmission grid will reduce difference between actual generating capacity and the minimum

The Ethics of Care Essay Example | Topics and Well Written Essays - 1000 words

The Ethics of Care - Essay Example From this research, it is clear that the care ethics regards to the principles that people usually have and follow the way of dealing with every relationship in day to day life. According to â€Å"The ethics of care: Personal, Political, and Global†, written by Virginia Held, the care ethics has not limited to this but now it can be explained involving a vast area as care ethics can be seen in case of medical practice, political life, war, international relationship, organization of a society and law. These things are involved in such a manner that they are now a part of it. According to Sara Ruddick, the pioneer of care ethics, in her article â€Å"Maternal thinking† which explained the experience of mothering and the care she gives to the baby, the care for the relationship around her and also provides a unique approach to the ethics. She also targets on feminist politics which was not of much importance those days. Since there are many forms of ethics like the virtue ethics, which decides about a person by looking at their behavior and to decide be either good or bad to them according to that person. The care ethics can be considered as a form of virtue ethics in some instances but it does not completely rely on principles of virtue ethics. To promote the interest of everyone towards oneself as mentioned in â€Å"what would satisfactory moral theory be like†, which is the principle of Rachel’s utilitarianism will sometimes collide with the aspects of the care ethics. Though it consists of few principles of them, they are separate entity altogether. Features of care ethics: According to Nel Nodding, caring for those who are not related to us but need some attention is the main principle of care ethics. This can be evaluated though an example. When a child fell while playing, the care we show to him when he is our own child should never be different from the one we show to others child. This makes sense as the care might vary from o ne person to another. She also suggests caring for those who are in need for it and stress one to show some responsibility to respond for such people. This might include the aged people who are facing incurable diseases or illness of later life. These people will have the craving for care and giving care to them is worth. The care ethics has good value for emotions according to Virginia Held. Not all the emotions are entertained but some of them are handled with great care. According to this theory, the one who develops this value for emotion will also train themselves to help the one in need, who or else fail to make this happen. This is very important to make a relationship successful one. Importance The care ethics completely rely on the fact to care for everyone. This creates a limitation to act according to the behavior of the other person but it does not stop one from caring. Most of the care ethics refers to a relationship and many authors support this statement. According to Annette Baier, the care ethics depends on many character traits which include sympathy, compassion and gentleness. Sometimes agreeability also plays a major role in balancing a relationship. This not only helps one to be close to another but creates a basic relationship with everyone in turn brings harmony among individuals. Evaluation: Most of the time, the care ethics create controversies. There are many incidents where the ethics are both for and against the topic. Creating an environment where one should care for other is right but sometimes it has to be according to the act and behavior of the other person. Showing a lot of care for those who worth it is of no use. Many times we come across such situation where people don’t bother is someone is hurt or ill but in turn they seek for attention when they are not well. Helping such people might be good but not always. Expecting a bit of the same when one is not well is required is what Carol Gilligan says. Though these aspe cts like valuing emotions are

Do You Believe Blaines Current Capital Structure Finance Essay

Do You Believe Blaines Current Capital Structure Finance Essay Do you believe Blaines current capital structure and payout policies are appropriate? Why or why not? Blaines capital structure and dividend policy are not entirely appropriate from the point of view of a shareholder of the firm. The reasons for that can be summed up as follows: No leverage: The optimum mix of debt and equity in the capital structure will maximize shareholders return. Company should take on debt to acquire new firms and expand its operations. Low ROE : Attributed to Low leverage 2006 ROE data clearly shows up that ROE of all the comparable firms are much higher than that of Blaine. Increasing Dividend payout ratio As calculated in Question no.3, the cost of equity of the firm is close to 9% whereas ROE is 11%. This is a good proposition for shareholders. This can be enhanced by acquiring other companies using cash balance that the company has. Decreasing EPS Even when EPS is constantly decreasing over the last three years, the policy of giving more or less same amount in dividend may cost company in future. Way of financing of new acquisitions Blaine Inc. should rather raise capital in debt rather than issuing new stocks to raise capital. This will ensure EPS constant and will be good for shareholders. Should Dubinski recommend a large share repurchase to Blaines board? What are the primary advantages and disadvantages of such a move? No, Dubinski should not recommend a large share repurchase to the board. The reason for that is although the firm is public listed, still a large percentage of share is owned by family itself. Therefore, buying back the shares is as good as unlisting the company. Secondly, there are growth avenues wherein the company may require cash. The company should, like last two years, go for acquisition. This will bring value to shareholders. Else, during the times of new acquisitions, company would have to raise capital from the market and due to flotation cost; the cost of equity will be much higher. Consider the following share repurchase proposal: Blaine will use $209 million of cash from its balance sheet and $50 million in new debt-bearing interest at the rate of 6.75% to repurchase 14.0 million shares at a price of $18.50 per share. How would such a buyback affect Blaine? Consider the impact on, among other things, BKIs earnings per share and ROE, its interest coverage and debt ratios, the familys ownership interest, and the companys cost of capital. Effect of Share Buyback Particulars Value Remarks Equity Capital_Pre Buyback ($) 488,363,000 2006, Exhibit 2 Equity Capital_Post ($) 279,363,000 No. of Shares outstanding before buyback 59,052,000 No. of shares bought back 14,000,000 Total outstanding Shares 45,052,000 EPS_Old($) 0.91 EPS_New ($) 1.19 Percent change in EPS 31.08% P/E ratio 17.86 Market Price (S) 21.30 Percent change in Share price 19.28% Debt_equity Book Value 17.90% Debt_equity Market Value 5.21% Debt interest rate 6.75% Interest to be paid ($) 3375000 Interest coverage ratio 0.05 ROE 0.11 ROE_new 0.19 Change in ROE 74.52% Cost of Equity 9.01% Cost of Debt 6.25% Effective Tax rate 40.00% Expected future tax rate D/V 4.95% WACC 8.75% WACC_Old 9.01% Change in WACC -2.89% Equity beta Calculation for the Firm Market Cap Equity beta (Net)D/E Net Debt Cash Securities Total Debt D/E (1) (2) (3) (4)=(1)x(3) (5) (6)=(4)+(5) (7)=(6)/(1) Home and Hearth Design 776,427 1.03 45.18% 350,790 21,495 372,285 47.95% AutoTech Appliances 13,978,375 1.24 31.74% 4,436,736 536,099 4,972,835 35.58% XQL Corp. 5,290,145 0.96 17.97% 950,639 21,425 972,064 18.37% Bunkerhill Inc. 3,962,780 0.92 6.01% 238,163 153,680 391,843 9.89% Easyliving Systems 418,749 0.67 -15.47% -64,780 242,102 177,322 42.35% Blaine Kitchenware 959,596 0.56 -24.06% -230,879 230,866 -13 0.00% Average 25,386,072 0.90 10.23% 25.69% Unlevered Beta 0.78 Beta_Blaine 0.80 Ownership Scenario: For last 3 years and post share buyback 2004 2005 2006 2007 Outstanding Shares 41,309,000 48,790,000 59,052,000 45,052,000 Ownership of Founders descendants 62% 52% 43% 57% Assumptions Used Effective Tax rate has been taken equal to 40%, same as for Blaine. As a member of Blaines controlling family, would you be in favor of this proposal? Would you be in favor of it as a non-family shareholder? As a family member of Blaine, the news of buyback has to be evaluated in both the ways. The Pros are: Consolidating Control- This will increase the shareholding close to 57%. Return of Cash Surplus to Shareholders-As of now in April, 2007, there are no any plans of buybacks. Therefore, keeping cash intact leads to opportunity cost of shareholders. This will add value for shareholders. An effective defense against takeover- as the market is consolidating, it will be a wise decision to protect the company from hostile takeovers. The cons are: Effect on expansionary plans- As cash will be used to buy back shares and the company wont be able to raise money from markets in the near future, opportunities of acquisitions will be marred. Even if, company will raise capital from equity market, flotation cost will be high and so cost of equity will be comparatively high. Use of Leverage- the Company has been against the policy of taking debt. Taking debt of $50 million for share buyback will not go in line with the companys policy.

Anorexia Essay -- essays research papers

The Causes and Effects of Anorexia   Ã‚  Ã‚  Ã‚  Ã‚  When I think of anorexia, a few things come to mind. I think of really bad episodes of Beverly Hills 90210 and Baywatch in which females, ususally teenagers, starve themselves and take diet pills. The eating problem is always resolved within the timespan of one 30 minute episode. From the research I've done thus far on anorexia, I now know that this is a very unrealistic representation of what is actually a very serious disease.   Ã‚  Ã‚  Ã‚  Ã‚  The purpose of this study is twofold. First, I have done extensive research on the causes and effects of anorexia. Secondly, I will produce a survey that asks basic questions about anorexia. I will give these to young adults from the ages of 15 to 35. This will serve as my means to find out just how much people of that certain age group know about the potentially deadly disease of anorexia. This research is not only to inform myself about anorexia, but also to inform myself about the knowledge or lack thereof that young people have about the disease.   Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Most people believe that anorexia is mainly a young females' disease. This is not necessarily true. In fact, studies within the past few years show that male anorexia is about as widespread as in females. In actuality, 80 percent of the people diagnosed with anorexia over the age of 45 are males(Heywood, 1996). Other misconceptions are that ...

Your Identity

Elvin Roperto Professor Gallers English 101 February 16, 2012 You’re Identity Back in the day, few wondered about their ancestors. The majority of people thought they knew all about their ancestor’s history. Who they we’re, their nationality, and their native language. But today in society many are shocked to find out that their ancestor history or past isn’t true at all because of DNA genealogy. If you thought that your ancestors we’re Puerto Rican and they actually turned out to be Mexican. Would you freak out? Would you have to change your ways?Would you change your traditions? A genealogical DNA test examines the nucleotides in specific locations on a person's DNA to find out where a person’s ancestor comes from. The test results are not meant to have any medical information and the test results do not determine genetic diseases or disorders. They are only intended to give genealogical information. To take a genealogical DNA test all you have to do is a painless cheek-scrapping at your home and mail the sample to a genetic genealogy laboratory for testing.There are a few types a test you can use, but the most popular tests are the Y chromosome test and the mitochondrial DNA test. These tests can determine where your ancestors originated from. I disagree, just because a test tells you where you came from doesn’t mean you have to change anything about yourself. Your Identity isn’t based on your family tree’s past. It’s based on everything we see, feel, hear, taste, smell, and read. Every person you meet, every conversation you have, every event in your life, and the way you interpret all sights, sounds, tastes, smells, actions, and events, shape up who you are as a human being.And nothing in the world should change that, not even your ancestor’s past. On the other hand, can you define yourself as a person without your nationality? How much of who is you are based on your nationality? Can your nationality be a part of your soul? A person's nationality says much about their culture outlook on life, the way they conduct their lives aspirations, and relationships. The way you act, talk, feel can be a result from your nationality. So maybe it’s possible that you an potentially lose yourself because of believing in something that you are not. In general, I can agree with Harmon. Knowing your nationality can make you understand a bit more about your Identity whether in a positive or negative way Overall, DNA genealogy should not change who you are, even though nationality is a big part of your Identity. If you do find out you’re from a different country, you can try to change some of your traditions and cultural views but you’ll still be you. Work Cited http://en. wikipedia. org/wiki/Genealogical_DNA_test

Dream House Essay

Everyone has their own thoughts about their dream house.  These days homes are more affordable because of the economy and all the foreclosures makes it much easier to afford a really nice house. My dream house is not a fancy house that I could never afford; its a home I could see my wife and I having in the future. I have seen many homes that I thought to myself, this house would be perfect. A few characteristics I want to describe about my dream house are the appearance, location, and decor. I want my house to have a nice large home with coffee stained wood finish on the outside full of crystal clear windows of all different sizes. I imagine as you walk into my home there would be high ceilings and hanging over the entryway would be a big crystal chandelier. When entering the home, there would also be a place for you to hang your coat, rest, and take off your shoes from a long day’s work. I want a house that is not brand new but not too old either because I do not want to have fix the house constantly or hear the creaking floors while walking around. I always thought it would be nice to have solar panels, a windmill, and a garden so I can be self reliant. The grass would be a bright healthy green almost as if it was not real. Around the house would be a large fence to allow for our privacy and to keep the animals in. My dream house will be in a community, but I want it to be in an area that is not to busy for convenience and for the safety of our future children. I always thought it would be nice to have a couple of acres for my dogs to run about and a beautiful lake stocked with fish for the dogs to go into and cool off during the hot summers. Illinois is a beautiful state and would be a nice place to settle down and have this dream house. Another significant thing about the home would be the long cobblestone driveway you would have to travel up leading to our home and front porch. It would also be nice to have a day room attached to the house with windows that easily open and close so my wife could sit out there in the winter to smoke and not be so cold. I want the inside to be tasteful, like I imagine a doctor’s home looking. There would be two floors and a basement. When you first walk in, you see the family room which is very calm and relaxing. You continue to the kitchen and dining room with an open floor plan. The basement would be split in half for both my wife and I. My part of the basement would be man themed, full of energy and excitement. There would be a pool table, arcade style games, a shadow box full of military memorabilia, big televisions, and gaming systems. My wife and I would have the master suite upstairs with a California king Temporpedic bed sitting with a beautiful oak finished baseboard and headboards, an enormous television, big bay windows to allow the cool breezes in during the hot, humid summers, and big dark curtains to keep the sun out during the mornings. I do not have any children currently but hope to have one or two in the future and they would also have bedroom up stairs. I would like their bedrooms to be kid oriented so for example if we have a boy nice blues and clouds or jungle with animals. If its a girl then pinks and pony’s or whatever it is my wife decides. My dream home will have an elegant appearance, be in a convenient location, and be tastefully decorated. I also believe a home like this would be perfect for the holidays or family gathering and would allow me to see my family more. These are all the things that would make my home perfect for my wife and I in addition I look forward to making this dream home a reality.