One justification for such hard and fast rules is that the longer the investment takes to 'pay back' given the expected firm profits, the more likely the capital expended upon the investment could have been better used on something else, including more innovative and potentially less expensive technology and other market opportunities that could have 'paid back' more quickly. And "the payback period relies on the assessment of a company's earnings potential. It is harder to predict such potential further into the future, and subsequently there is a greater risk that those returns will not occur" (PEG payback, 2010, Answers.com). Thus short-term return investment predictions are more likely to be accurate. Few economists, for example, predicted the extent of the recent credit crisis and market meltdown. Payback duration can also be evaluated in terms of the collective body of investments made by a firm. A large amount of investments that can only 'pay back' over the long-term could threaten a firm's financial health, if market conditions rapidly change. This level of risk is especially true for a small, young organization that has a statistically higher probability of failure during its first years. However, payback has additional disadvantages in terms of its potentially pessimistic outlook for long-term investments: it does not, for example, calculate the future profitability of a firm. The cautious view of the future encouraged by a simple payback-driven perspective can result in focusing on short-term rather than long-term prospects. "It is a reality that some companies (or project sponsors) choose the less-profitable investment if they get their money back faster. The most common reasons for this decision would be if a private company...
Public companies can also be faced with this situation, if they find that market valuations are predominantly driven by cash flow instead of profitability. A bootstrapped start-up company may also be forced to make short-term investment decisions based upon cash flow" (Sehlhorst 2006). Not only is this bad for the start-up's individual stability and future growth, but in the overall market environment a profit-driven payoff focus discourages all companies from making investments in projects that could pay off in the very long-term and bring financial health to shareholders and real value to consumers. The focus shifts to making money 'on paper.'
For a country such as Uganda to possess sufficient health care is tremendously important to the people of the republic of Uganda. Even triumphant medical treatment for malaria can involve pain through injections of drugs and in the entire period of recuperating after the administration of the drugs. Furthermore, nervousness may crop up, threat and unavoidably a lot of money. The final thing a parent of a sick child suffering
evaluators play an important role in planning phases of any project in order to develop key objectives, identify functions, scope of work, and methods on ongoing assessment throughout the life of a project. This aids the project manager to uphold accountability and form the foundation of an information center to avoid flaws or errors as well as identify key stakeholders in addition to their roles within the project. This
Credit Ratings The company which is responsible for assigning the issuers of particular kind of debt obligations and debt instruments the credit ratings is known as a credit rating agency (CRA). There are a few cases in which the ratings are given to the underlying debt servicers. It is the special purpose entities, non-profit organizations, companies, national governments and the state and local governments who, in majority of the cases get
Ratio Analysis a) The price-earnings ratio reflects two things -- the company's earnings and the market price. By no means is there a law that says one firm's P/E ratio should be in line with either the market or the competitors. First, an explanation of the earnings. The earnings component of the P/E is past-looking. The profit margin for HRG is fairly low -- 1.7% - reflecting that its earnings are
CEFC and the Future of Environmental Finance The Clean Energy Finance Corporation (CEFC) represents the most aggressive environmental finance initiative sponsored by the Australian Government to date. The CEFC is an independent entity established as part of the Clean Energy Future Policy by the Australian government. As of March 2012, funding for the program totaled AUS $10 billion in government backed investments for the commercialization and deployment of clean energy technologies.
Training and Development in Small Businesses Effective training and development strategy Training and development in business are paramount and particularly very essential in small businesses. Employees who have experience and competence contribute to both productivity and profitability of the business. For a medium-sized business to remain competitive, it requires ensuring the workforces gets maximum training and updating on ever changing skills and knowledge in the current global economy. According to Atwood (2008),
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