Capital Budgeting Research Paper Example | Topics and Well Written Essays - 1750 words

Capital Budgeting - Research Paper Example Firstly, capital expenditures require large expenditures of funds. Secondly, firms must find out the best approach to repay and raise these funds. Third, majority of the decisions of capital budgeting include a long-term assurance. Finally, the timing of the capital budgeting decisions is significant. When the firms raise large amount of funds, they need to consider the financial markets more attentively because the cost of capital is directly related to the current interest rate. In short, capital budgeting is the means of conducting cost-benefit analysis (Scribd, 2011). The requirement for important information and analysis of the alternatives of capital budgeting have inspired the development of a sequence of models to help firms in making the "best" allocation of resources. The extent to which the capital budgeting plays a significant role within the firm is determined by the following factors: The capital budgeting process must take into consideration the nature of investment proposals, for example, mutually exclusive or independent proposals. Individual proposals are those which are calculated individually and more than one proposal can be accepted or rejected. There are a number of capital budgeting techniques that firms can employ. These techniques do not always lead to the same accept-reject decision, thus it is essential to make a decision of what a good capital budgeting technique looks like. A perfect Capital Budget technique should be: There are two types of capital budgeting techniques namely sophisticated techniques and unsophisticated techniques. Although both the techniques use cash flows as their initial point to get to the result from which the ultimate decision can be taken, the main difference between the two is that sophisticated techniques take time value of money into account whereas the same is not in case of unsophisticated techniques. Sophisticated techniques include

Effects of the Second World War on Asia and Africa Essay

Effects of the Second World War on Asia and Africa - Essay Example omists for this reason argue that decolonisation occurred due to economic reasons as colonial powers came to enjoy all the benefits of colonies without bearing heavy costs of ruling over them1. There were also movements of independence springing is different parts of Africa. Asian decolonisation may be due to economic reasons but this allowed other colonies to struggle for their freedom too. After the Second World War the hold of colonial powers started to slip as countries started to demand rights. It was also no longer feasible to control so many geographical regions both economically and politically. The feeling of being ‘used’ as a tool in the Second World War also played a role in springing independence movements. All in all decolonisation was the most significant after effect of the Second World War. Without the war it would have been difficult for Asian and African colonies to gain independence. Now we will discuss how decolonisation affected Asia and Africa. Effe cts on Asia People of Asia were involved in directly in the Second World War. British India participated in the war by lending soldiers as well as raw materials to the British Empire. Initially it was difficult for the British Empire to get the support of the Indian people but with the promise of independence Indian people were taken on board for the Second World War. Netherland, Spain, Portugal, and France also had colonies in Asia but due to their weak economic situation they had to draw out of their colonies. The first country to decolonise after Second World War was Indonesia which was under Dutch control. Spain too drew out of territories they controlled. This was all because of the effects of Second World War. The war weakened all the countries to great extent and therefore they had to pull... This essay seeks to examine effects of the Second World War on Africa and Asia. It is discussed how the end of Second World War paved the way for independence of the colonised countries in Africa and Asia. It also talks about the after-effects of decolonisation on Asian and African continents. The Second World War ended in a disaster. Japan was facing severe problems due to atomic bomb. Europe was completely destroyed as millions were affected from the war. Great Britain, France, Netherland, Spain, United States, and Soviet Union all had colonies all over the world at the time. It can be said that there was no ‘third world’ in pre Second World War scene and most of the world was controlled by the above mentioned colonisers. The effect of the damages of Second World War was great. Economically almost all the countries were suffering including the colonies themselves. The situation of the natives of colonies was not economically healthy since The Great Depression as prices of raw materials were falling constantly. The paper concludes that the long term effects of Second World War were great on Africa and Asia as new countries came into existence and new forms of nationalism were founded. New countries played an active role in international politics as well as in trade. Today Asian countries are growing at a great pace and the once ‘third world’ is now powering up to gain economic supremacy over western countries. All this began with the end of Second World War and decolonisation.