The Yellow Wallpaper, By Charlotte Perkins Gilman - 914 Words

The road to insanity is paved with good intentions â€Å"The Yellow Wallpaper† is the most renown short story of Charlotte Perkins Gilman (1860-1935). It starts as a spine-chilling probably-horror-story that then becomes, even more, terrifying when we realize what extremes human mind can reach when put in inadequate conditions, even without any supernatural elements to interfere. We’ve learned from Charlotte Perkins’ article â€Å"Why I Wrote ‘The Yellow Wallpaper’† that there was a lot of speculation held about the motives behind this short story, so she decided to shed some light on it. Though it may seem that the author described the fall into madness so vividly and in such a detail simply to gain attention and draw in more readers, that’s only a part of the story. From her biography, we discover that after marrying Charles Walter Stetson in 1884 and giving birth to a child the following year, she â€Å"was beset by a crippling depression† (World Authors 1900-1950). It was believed to have started as a postpartum but kept returning throughout her entire life. In her article Perkins acknowledges that for many years she suffered from â€Å"a severe and continuous nervous breakdown tending to melancholia,† (Why I Wrote ‘The Yellow Wallpaper’), and even worse. In hope to get a proper treatment she contacted the most prominent specialist of women’s nervous disorders of the time - Dr. Silas Weir Mitchell. His recommendations were exactly what was to be expected from a man of the nineteenthShow MoreRelatedThe Yellow Wallpaper By Ch arlotte Perkins Gilman885 Words   |  4 Pagesbeen a stigma around mental illness and feminism. â€Å"The Yellow Wallpaper† was written by Charlotte Perkins Gilman in the 1900’s. â€Å"The Yellow Wallpaper† has many hidden truths within the story. The story was an embellished version her own struggle with what was most likely post-partum depression. As the story progresses, one can see that she is not receiving proper treatment for her depression and thus it is getting worse. Gilman uses the wallpaper and what she sees in it to symbolize her desire to escapeRead MoreThe Yellow Wallpaper By Charlotte Perkins Gilman846 Words   |  4 PagesHumans are flawed individuals. Although flaws can be bad, people learn and grow from the mistakes made. Charlotte Perkins Gilman’s short story, â€Å"The Yellow Wallpaper†, gives one a true look at using flaws to help one grow. Gilman gives her reader’s a glimpse into what her life would have consisted of for a period of time in her life. Women were of little importance other than to clean the house and to reproduce. This story intertwines the reality of what the lives of woman who were considered toRead MoreThe Yellow Wallpaper By Charlotte Perkins Gilman1362 Words   |  6 Pagesas freaks. In the short story â€Å"The Yellow Wallpaper† by Charlotte Perkins Gilman, both of these elements are present. Gilman did a wonderful job portraying how women are not taken seriously and how lightly mental illnesses are taken. Gilman had, too, had firsthand experience with the physician in the story. Charlotte Perkins Gilman s believes that there really was no difference in means of way of thinking between men or women is strongly. â€Å"The Yellow Wallpaper† is a short story about a woman whoRead MoreThe Yellow Wallpaper By Charlotte Perkins Gilman1547 Words   |  7 PagesCharlotte Perkins Gilman s career as a leading feminists and social activist translated into her writing a s did her personal life. Gilman s treatment for her severe depression and feelings of confinement in her marriage were paralleled by the narrator in her shorty story, The Yellow Wallpaper. Charlotte Perkins Gilman was born in 1860 in Hartford, Connecticut. Her parents, Mary Fitch Perkins and Fredrick Beecher Perkins, divorced in 1869. Her dad, a distinguished librarian and magazine editorRead MoreThe Yellow Wallpaper By Charlotte Perkins Gilman2032 Words   |  9 Pagesâ€Å"The Yellow Wallpaper† by Charlotte Perkins Gilman is a poem about women facing unequal marriages, and women not being able to express themselves the way they want too. Charlotte Perkins Gilman was born in 1860, and died in 1935. This poem was written in 1892. When writing this poem, women really had no rights, they were like men’s property. So writing â€Å"The Yellow Wallpaper† during this time era, was quite shocking and altered society at the time. (Charlotte Perkins Gilman and the Feminization ofRead MoreThe Yellow Wallpaper By Charlotte Perkins Gilman904 Words   |  4 Pagescom/us/definiton/americaneglish/rest-cure?q=rest+cure). Charlotte Perkins Gilman wrote The Yellow Wallpaper as a reflection of series of events that happened in her own life. Women who fought the urge to be the typical stereotype were seen as having mental instabilities and were considered disobedient. The societal need for women to conform to the standards in the 1800s were very high. They were to cook, clean and teach their daughters how to take care of the men. Gilman grew up without her father and she vowedRead MoreThe Yellow Wallpaper By Charlotte Perkins Gilman999 Words   |  4 Pages â€Å"The Yellow Wallpaper† is a story of a woman s psychological breakdown, which is shown through an imaginative conversation with the wallpaper. The relationship between the female narrator and the wallpaper reveals the inner condition of the narrator and also symbolically shows how women are oppressed in society. The story, read through a feminist lens, reflects a woman s struggle against the patriarchal power structure. In the â€Å"The Yellow Wallpaper†, Charlotte Perkins Gilman uses the wallpaperRead MoreThe Yellow Wallpaper By Charlotte Perkins Gilman Essay1208 Words   |  5 Pagesthat wallpaper as I did?† the woman behind the pattern was an image of herself. She has been the one â€Å"stooping and creeping.† The Yellow Wallpaper was written by Charlotte Perkins Gilman. In the story, three characters are introduced, Jane (the narrator), John, and Jennie. The Yellow Wallpaper is an ironic story that takes us inside the mind and emotions of a woma n suffering a slow mental breakdown. The narrator begins to think that another woman is creeping around the room behind the wallpaper, attemptingRead MoreThe Yellow Wallpaper By Charlotte Perkins Gilman846 Words   |  4 PagesThe dignified journey of the admirable story â€Å"The Yellow Wallpaper† created by Charlotte Perkins Gilman’s, gave the thought whether or not the outcome was influenced by female oppression and feminism. Female oppression and feminist encouraged a series of women to have the freedom to oppose for their equal rights. Signified events in the story â€Å"The Yellow Wallpaper† resulted of inequality justice for women. Charlotte Perkins Gilman gave the reader different literary analysis to join the unjustifiableRead MoreThe Yellow Wallpaper By Charlotte Perkins Gilman1704 Words   |  7 PagesEscaping The Yellow Wallpaper Charlotte Perkins Gilman (1860-1935) whom is most acclaimed for her short story The Yellow Wallpaper (1891) was a women’s author that was relatively revolutionary. Gilman makes an appalling picture of captivity and confinement in the short story, outlining a semi-personal photo of a young lady experiencing the rest cure treatment by her spouse, whom in addition to being her husband was also her therapist. Gilman misused the rest cure in The Yellow Wallpaper to alarm other

A Brief Note On Electrical Discharge Machining ( Edm )

CHAPTER 2 2. LITERATURE SURVEY 2.1 Introduction Literature review is one of the scope studies. It works as guide to run this analysis. From the early stage of the project, various literature studies have been done. Research journals, books, printed or online conference article were the main source in the project guides. Literature review section work as reference, to give information and guide base on journal and other source in the media. We are broadly classified all the paper into five different category, i.e. paper related to Electrical discharge machining (EDM), material related (workpiece or tool), some paper related to the effect of input parameters on (MRR,TWR and SR), dielectric fluid and the effect of flushing. 2.2 Electrical discharge machining (EDM) It is a process that is used to remove metal through the action of an electrical discharge of short duration and high current density between the tool and the workpiece [18-19]. (EDM) is a non-traditional type of precision processing using an electrical spark-erosion process between the electrode and the working piece of electrically conductive immersed in a dielectric fluid [20]. Since it has more special gains, the (EDM) has been widely applied in modern metal industry for producing complex cavities in moulds and dies, which are difficult to manufacture by conventional machining. The use of (EDM) in the production of forming tools to produce plastics mouldings, die castings, forging dies etc., has

No one in Gattaca is who they seem to be and everyone Free Essays

The science fiction thriller film ‘Cattle’, directed and written by Andrew Niccole, set In the â€Å"not too distant future†, It portrays a society In which genetic engineering has created an advanced yet dyspepsia world. In this world, we can clearly see that people have secrets and they are willing to Ill, cheat and even kill to get where they want to be and to be their very best. No one is who they seem to be and everyone has something to hide. We will write a custom essay sample on No one in Gattaca is who they seem to be and everyone or any similar topic only for you Order Now Throughout the film, there are 3 main characters that have something to conceal and these characters are Jerome Eugene Morrow, Vincent Freeman and Doctor Lamar. Jerome Eugene Morrow is a very relentless and arrogant person but on the inside he is caring, Vincent Freeman is an Invalid’ who dreams of flying to Titan and to achieve his dreams, he has to become a towered ladder’ with the help of Eugene, and Doctor Lamar helps Vincent achieve his dreams by concealing Vincent secret. Jerome Eugene Morrow is a valid in Cattle. He Is what is considered as close to perfection that’s possible. After a suicide attempt, It left Eugene a crippled, depressed and an arrogant person. Niccole proves this when he Is calling the policeman a flatfoot†. He places this personality upon himself because he Is too scared to show anyone the real him; sensitive and caring. Throughout the film, we see that he in fact conceals his true personality by helping Vincent. The amount of energy he put into helping Vincent, shows us that on the inside he is actually a caring friend who is willing to sacrifice his life to help others. From this we see that no one is who they seem, and Eugene is even willing to lend his own identity to another person. Only the Valid’ class is told they can truly succeed in the world of ‘Cattle’, so if an ‘invalid’ tries to succeed, they must put their lives around the concealment of their genetic identity. Niccole places Vincent, an ‘invalid’ whose dreams are achievable only in the Valid’ world. In order to enter that world, Vincent becomes a ‘borrowed ladder’ using Eugene Morrow’s Identity. The opening scene of the film shows this dramatically, as we see Vincent hair and skin painfully removed In an extreme close-up. Vincent does this routine every day and It Is courageous. Learn more about this routine In a later, slowly paced sequence that details the processes the system Vincent must go through each day just to reach his goals. Niccole makes us aware that Vincent is not alone in this class of people by showing the label ‘confidentiality guaranteed’ written on the dry cleaning plastic wrap. It is clear that be ing a borrowed ladder is an all interesting Job and for Vincent, a relatively lonely one. Doctor Lamar is the main doctor at Cattle, and although he lies under the radar, he is a crucial part of Vincent Journey to Titan. When Lamar says â€Å"right men don’t hold it with their left†, it suggests to the viewer that he is in fact fully aware of Vincent true identity, and that he has most likely known for a while. At the beginning of the film It seems that Lamar Is convinced, as is everyone else In Cattle, that Vincent Is a true valid. However, near the end, It becomes obvious he has known the truth all along. Lamar Lies and effectively cheats the system by turning a blind eye to Vincent true identity and allowing him to continue on his journey. He possible for his son to make it into the world. Even with this status as a doctor t Cattle, Lamar is willing to lie and risk his own Job in order to let Vincent dreams come true. Niccole portrays Cattle as this developed world that has minimized the level of imperfection, where there is no room for invalids and the genetically engineered people. However, as the story develops, we start to see the ‘perfect’ people also have flaws and we see that even in this ‘perfect’ world, lying and cheating still happens. Everyone has something to conceal, and no matter what their status, they are willing to commit fraud acts, whether it is for their benefit or to benefit there. It seems that although people in Cattle seem perfect and innocent, no one is without flaw, and everyone has a secret. The science fiction thriller film ‘Cattle’, directed and written by Andrew Niccole, set in the â€Å"not too distant future†, it portrays a society in which genetic engineering has people have secrets and they are willing to lie, cheat and even kill to get where they person but on the inside he is caring, Vincent Freeman is an ‘invalid’ who dreams of flying to Titan and to achieve his dreams, he has to become a ‘borrowed ladder’ with unceasing Vincent secret. Jerome Eugene Morrow is a valid in Cattle. He is what is considered as close to perfection that’s possible. After a suicide attempt, it left Eugene a crippled, depressed and an arrogant person. Niccole proves this when he is calling the policeman a â€Å"f**kicking flatfoot†. He places this personality upon himself because he is too scared to show anyone the real him; sensitive and caring. Vincent becomes a ‘borrowed ladder’ using Eugene Morrows identity. The opening removed in an extreme close-up. Vincent does this routine every day and it is courageous. We learn more about this routine in a later, slowly paced sequence that details the processes the system Vincent must go through each day Just to reach his says â€Å"right men don’t hold it with their left†, it suggests to the viewer that he is in fact the beginning of the film it seems that Lamar is convinced, as is everyone else in Cattle, that Vincent is a true valid. However, near the end, it becomes obvious he has known the truth all along. Lamar lies and effectively cheats the system by turning a blind eye to Vincent true identity and allowing him to continue on his Journey. He goes this because his son is also an invalid and if Vincent can make it, it could be Vincent becomes a ‘borrowed ladder’ using Eugene Morrow’s identity. The opening possible for his son to make it into the â€Å"valid† world. Even with this status as a doctor Doctor Lamar is the main doctor at Cattle, and although he lies under the radar, he is a crucial part of Vincent Journey to Titan. When Lamar says â€Å"right men don’t hold it with their left†, it suggests to the viewer that he is in fact fully aware of Vincent true identity, and that he has most likely known for a while. At the beginning of the elm it seems that Lamar is convinced, as is everyone else in Cattle, that Vincent is a true valid. However, near the end, it becomes obvious he has known the truth all along. Lamar lies and effectively cheats the system by turning a blind eye to Vincent true identity and allowing him to continue on his Journey. He does this because his son is also an invalid and if Vincent can make it, it could be possible for his son to make it into the world. Even with this status as a doctor at Cattle, Lamar is willing to lie and risk his own Job in order to let Vincent dreams come true. How to cite No one in Gattaca is who they seem to be and everyone, Papers

The Critical Evaluation of Techniques - Application of Technique and Es

Question: Describe about the Critical Evaluation of Techniques, Application of Technique and Estimating the cost of Capital? Answer: Introduction and Summary Royal Airways is listed on local Stock Exchange. It is considering a proposal known as project GAMMA. This project has to be discussed at the finance meeting. In this project we have done some analysis on certain methods of Capital Budgeting like IRR, NPV, Pay Back Period, etc. we have selected Net Present Value for evaluating our project. We select Net Present Value method to evaluate the project because it considers time value of money. There are certain disadvantages of Net Present Value but the factors present in our project does not lead to any such situation that attracts disadvantages. There are many tools through with which we can analyze the feasibility of any capital budgeting project. At a glance these are as follows Internal Rate of Return Net Present Value Pay Back Period Discounted Payback Period Accounting Rate of Return Critical Evaluation of techniques These are explained in detail as follows 1. Internal Rate of Return Under this method the exact rate at which the present value of all cash inflows will be equal to the present value of all cash outflows. Here the NPV is zero. When we evaluate the project in terms of IRR then we can say that that project will be preferred which has higher IRR as compared to the project which have lower IRR. As the one which has higher will yield the amount invested in less time than the one which has lower IRR as it will return the amount invested in more time. It is also known as ERR (Economic Rate of Return). This rate helps in comparing the earnings of two entities. This is also called as discounted cash flow rate of return. When we look from the view point of loan it is also called as effective interest rate. It is also known as annualized effective compounded return rate. IRR is a measure of efficiency, quality, oryieldof an investment. This is in contrast with the net present value, which is an indicator of the value ormagnitudeof an investment. Every company h as its own Internal Rate of Return which is also known as minimum acceptable rate of return or cost of capital. When we evaluate the project in terms of IRR then we can say that that project will be preferred which has higher IRR as compared to the project which have lower IRR. As the one which has higher will yield the amount invested in less time than the one which has lower IRR as it will return the amount invested in more time. The other use of IRR is comparison of capital projects. The example we can relate to expanding versus extension. The company can either purchase a new plant or it can increase the capacity of the existing plant. For this purpose IRR can be used. In order for a project to get accepted the Internal Rate of Return calculated should be more than the companys cost of capital. In case if more than one project have IRR more than the companys cost of capital than that project will be selected which has a higher Internal Rate of Return. Further IRR is helpful in e valuating whether to buyback or not. If a company allocates a substantial amount to a stock buyback, the analysis must show that the company's own stock is a better investment (has a higher IRR) than any other use of the funds for other capital projects, or than any acquisition candidate at current market prices 2. Net Present Value It is a method where we compare two mutually exclusive projects and find out which of them is better. We prefer that project which has higher Net Present Value. It is the difference between two things The present value of cash inflows discounted at ko i.e. cost of capital The present value of all cash outflows discounted at ko i.e. cost of capital This helps in analyzing the profitability of a project. The best advantage of NPV is that it utilizes time value of money which means that a dollar earned today will not be as worthy as a dollar earned tomorrow or in future. Either its value will increase or decrease depending upon the economic condition of a country to which the currency belongs. The only difficulty with this method is to identify or calculate the discount rate. This calculation is subjective. Many things are required to be considered The rate which is used to discount future cash flows to the present value is a key aspect of this process. The weighted average cost of capital is the one which is most often used. But many researchers believe that it is better to use a discount rate which is much higher as it will be able to adjust the risk, opportunity cost and certain other factors like duration, etc. A variable discount rate with higher rates applied to cash flows occurring further along the time span might be used to reflect theyield curvepremium for long-term debt. The better approach of calculating discount rate is the CAPM model. It is known as Capita Asset Pricing Model. This is a model that shows relationship between two things. One is risk and the other is other is expected return in the mindset of the investors. This model helps in pricing securities. Here the approach is to compensate the investor in two forms. One is the time value of money and the other is the risk they take by investing in the company. The time value of money has a denotation risk free rate. This is the one that compensate the investors. One can say it is an opportunity cost, the cost of next best alternative forgone. This rate is calculated by using a risk factor known as beta. Basically beta helps a company in comparing results with the other firms in the market. It is the expected return that an investor expects from the market. It consists of certain terms such as Rf which is known as risk free rate, Rm which is known as Risk premium and b which is known as Beta. Net Present value indicates the amount of premium an investment adds to the project it means how much one gets over and above his investment. The only disadvantage of this method is that when we compare projects with different lives we cannot come to conclusion using this method. Under this method the focus is only on the difference between the inflow and the outflow. Both are discounted at cost of capital. A project that has a higher duration than the project which has a lesser duration is assumed to be same under this. Here a modified IRR is used. Further we assume that there is no new investment in between the project If... Result Action to be taken NPV 0 The company should go with the project The chances of acceptance of a project increases NPV 0 The company will incur losses by accepting such project No need to accept the project NPV = 0 The company will be indifferent Use other techniques to evaluate the project such as IRR, Payback and Discounted Payback 3. Payback Period This method is used under capital budgeting to evaluate the time period in which the amount invested will be recovered by the entity. One can say it as a breakeven point. Payback period is the time period within which an entity will recover its investment of its cash inflow. But the negative side of payback period is that it does not consider time value of money. For the purpose of decision making those projects are preferred that have a shorter payback period than those that have a higher payback period. The best part of it is that this method is easy to apply than all the other methods. The solution can be arrived quickly. It is very easy to understand irrespective of the field in which one is working. 4. Discounted Pay Back Period The project takes years to implement. In between these years it may happen that the entity starts earnings that might result in cash inflows and these inflows reduce the amount of investment. Discounted Payback Period is the amount of time required to recover the cost of the investment made in the project. Here we add all positive discounted cash flows. The only advantage of Discounted Payback Period over payback period is that Discounted Payback Period considers time value of money whereas payback period does not consider time value of money. All those projects that have negative NPV will never have a Discounted Payback Period. Future cash flows are considered are discounted to time "zero." 5. Accounting Rate of Return This is the amount or rate of return an investor can expect based on his/her investment made on the company. It divides the average profits earned by the company with the initial investments in order to get the rate of return in the project. This helps any investor to make a comparison the profit potential for projects, products and investments. The ARR is a percentage return. Say, if ARR = 7%, then it means that the project is expected to earn seven cents out of each dollar invested (yearly). If the ARR is equal to or greater than the required rate of return, the project is acceptable. If it is less than the desired rate, it should be rejected. When comparing investments, the higher the ARR, the more attractive the investment.Over one-half of large firms calculate ARR when appraising projects. ARR=Average Return during the period/Average Investment Average Investment = Book value at the beginning of the year 1+ book value at the end of the useful life/2 Application of the Technique We select Net Present Value method to evaluate the project because it considers time value of money. There are certain disadvantages of Net Present Value but the factors present in our project does not lead to any such situation that attracts disadvantages. The calculations are done as follows Particulars Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Receipt or Inflow Total No. of Passengers 3300 3300 3300 3300 3300 3300 Fare per passenger RM3,100.00 RM3,100.00 RM3,255.00 RM3,417.75 RM3,588.64 RM3,768.07 Total Receipt RM10,230,000.00 RM10,741,500.00 RM11,278,575.00 RM11,842,503.75 RM12,434,628.94 Outflow or Expenditure Depreciation RM2,000,000.00 RM200,000.00 RM200,000.00 RM200,000.00 RM200,000.00 RM200,000.00 Refreshment Cost RM8,000,000.00 RM8,000,000.00 RM8,400,000.00 RM8,820,000.00 RM9,261,000.00 RM9,724,050.00 Earnings Lost RM90,000.00 RM90,000.00 RM94,500.00 RM99,225.00 RM104,186.25 RM109,395.56 Additional Cost RM450,000.00 RM450,000.00 RM472,500.00 RM496,125.00 RM520,931.25 RM546,977.81 Maintenance Material RM385,000.00 RM385,000.00 RM404,250.00 RM424,462.50 RM445,685.63 RM467,969.91 Cabin Crew Staff RM160,000.00 RM160,000.00 RM168,000.00 RM176,400.00 RM185,220.00 RM194,481.00 Total Cost RM9,285,000.00 RM9,739,250.00 RM10,216,212.50 RM10,717,023.13 RM11,242,874.28 Net Profit RM945,000.00 RM1,002,250.00 RM1,062,362.50 RM1,125,480.63 RM1,191,754.66 Tax Rate 25% 25% 25% 25% 25% Tax RM236,250.00 RM250,562.50 RM265,590.63 RM281,370.16 RM297,938.66 Profit After Tax RM708,750.00 RM751,687.50 RM796,771.88 RM844,110.47 RM893,815.99 Add: Depreciation RM200,000.00 RM200,000.00 RM200,000.00 RM200,000.00 RM200,000.00 Cash profit After Tax RM908,750.00 RM951,687.50 RM996,771.88 RM1,044,110.47 RM1,093,815.99 By using Net Present value we see the following results Year Cash Flow After Tax PVF @ 11.64% Discounted PVF 1 RM908,750.00 RM0.90 RM814,000.36 2 RM951,687.50 RM0.80 RM763,580.29 3 RM996,771.88 RM0.72 RM716,368.19 4 RM1,044,110.47 RM0.64 RM672,151.45 5 RM1,093,815.99 RM0.58 RM630,732.38 Net Present value RM3,596,832.67 Estimation of Cost of Capital Cost of capital It is basically the cost that has to be paid by an entity for financing a business. It mainly depends on the modes of financing used. In case if the whole entity is financed through just equity capital then the cost of capital is the cost of equity. As equity shareholders cannot demand right in the profits. The cost of capital is the dividend that is paid to them every year. It changes every year if the company has profits that are volatile. In case if the entity is financed through debt or loan then the cost of debt is the cost of capital. It is the interest that is paid to the debt holders. But in case if the company has a mixture of equity and debt then we use the term weighted average cost of capital and not cost of capital. It is also known as hurdle rate that the entity must ensure before it can generate value. This is more widely used in capital budgeting process. Cost of capital is a cost of entitys funds. We look to it from the point of view of the investor. The investors expect a minimum return on their investment. This is used for evaluating capital budgeting decisions. In order for an investment to be attractive the expected return on its capital must be greater than the cost of capital of the company. This is the minimum return that is expected by an investor when he/she/it invests in the entity. One can term it as a bench mark that has to be met for any project. Cost of capital consists of two things. 1. Cost of debt: These are loans borrowed from outside institutions and debentures. The company pays interest in the form of cost of debt. The cost of debt is calculated by taking a risk free bond as a base which has duration similar to the debt raised by an entity. A premium is added depending upon the risk class. The rate is than discounted by tax rate as the interest is a tax deductible item. So the entity gets the benefit of tax savings on it. The formula is written as (Risk free rate + credit risk rate)(1-Tax rate). 2. Cost of equity: The dividend that is paid to them every year. The formula is shown as follows Cost of equity = Risk free rate of return + Premium expected for risk Cost of equity = Risk free rate of return + Beta x (market rate of return- risk free rate of return) where Beta= sensitivity to movements in the relevant market Es=Rf+Bs(Rm-Rf) Where Es= The expected return on security Rf= the expected risk free return on the market Bs=the beta or the sensitivity to the market risk Rm= the market return (Rm-Rf)= risk premium The risk free rate is taken from the lowest yielding bonds in the particular market, such asgovernment bonds. The computation of cost of capital for the company is done as follow. We see that the growth rate is 8% and this will continue till perpetuity. Here we will calculate the cost of equity from Capital Asset Pricing Model CAPM This is a model that shows relationship between two things. One is risk and the other is other is expected return in the mindset of the investors. This model helps in pricing securities. Here the approach is to compensate the investor in two forms. One is the time value of money and the other is the risk they take by investing in the company. The time value of money has a denotation risk free rate. This is the one that compensate the investors. One can say it is an opportunity cost, the cost of next best alternative forgone. This rate is calculated by using a risk factor known as beta. Basically beta helps a company in comparing results with the other firms in the market. It is the expected return that an investor expects from the market. It consists of certain terms such as Rf which is known as risk free rate, Rm which is known as Risk premium and b which is known as Beta. The Cash flows are discounted at Weighted Average Cost of Capital i.e. 11.64%. this is calculated as follows Calculation of cost of debt Particulars $ Rate 12% Term of debt 15 years Redemption Value $1,153.72 Face value $1,000.00 Interest $120.00 Tax 25% After tax interest $90.00 Kd 7.40% Calculation of Cost of Preferred Stock Particulars $ Dividend $10.00 Market price $111.10 Kp 9.00% Calculation of Equity Stock Particulars $ Market Price $50.00 Do(Last Dividend) $4.19 Growth Rate 5% Next Dividend $4.40 Ke 13.80% Ke as per CAPM Risk Free Rate 7% Beta 1.2 Risk Premium 6% Ke 14.20% Calculation of Weighted Average Cost of Capital WACC % Weight Weighted Average Ke 14.2 0.6 8.52 Kp 9 0.1 0.9 Kd 7.4 0.3 2.22 WACC 11.64% Notes forming part of calculations 1. There are certain costs which are irrelevant and are ignored in calculations. These are known to be sunk cost. Under Capital Budgeting, those costs which are already incurred are known as sunk cost and are not relevant for the project. An outflow that has already been done and there are no chances that the cost incurred will be. There is a difference between sunk cost and other cost, future costs that a business has to incur. The examples of these are inventory costs or RD expenses. These costs have no relation with future. They are independent cost. Market research cost RM 250000 and the cost of retrenched employee is sunk cost. 2. The remaining costs are relevant cost. One can say all the variable cost that differ from project to project is relevant cost. 3. Depreciation comes into picture when the tax rate is given as the entity can get the benefit of tax savings on depreciation. Conclusion The company can go with NPV method. We see that the NPV is positive. It is RM 3596833. So Royal Airways should go with the project. But while undertaking the project it should consider certain assumptions. These earnings or the net inflow received during the year are not invested in the current project and are set aside. The company should also continue beyond five years. The company should scarp the machine after five years and it should purchase a new one and should continue with the project. The return on this project for all five years is approimately 30% which is relly a handful investment. Further the inflows of all the years should be again invested when earned as it will earn the company more profit. It can invest in fixed deposits also. The project is feasible and viable. References Investing Answer, 2014, Capital Asset Pricing Model, viewed on 23rd January 2015, available at https://www.investinganswers.com/financial-dictionary/stock-valuation/capital-asset-pricing-model-capm-1125 Investing Answer, 2014, Internal Rate of Return, viewed on 23rd January 2015, available at https://www.investinganswers.com/financial-dictionary/investing/internal-rate-return-irr-2130 Business Dictionary, (ND), Net Present Value, viewed on 23rd January 2015, available at https://www.businessdictionary.com/definition/net-present-value-NPV.html Accounting Explained, (ND), Net Present Value, viewed on 23rd January 2015, available at https://accountingexplained.com/managerial/capital-budgeting/npv Accounting Explained, (ND), Accounting Rate of Return, viewed on 23rd January 2015, available at https://accountingexplained.com/managerial/capital-budgeting/arr Accounting tools, 2013, What is Accounting Rate of Return, viewed on 23rd January 2015, available at https://www.accountingtools.com/questions-and-answers/what-is-the-accounting-rate-of-return.html Eugene F. 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