Discuss the theoretical and practical factors that influence the level Essay

Discuss the theoretical and practical factors that influence the level of gearing and the maturity structure of debt in large qu - Essay Example In this context, borrowing has become a common method of financing for large firms, a fact that has influenced the status of these organizations as investment units. Indeed, large firms with high financial obligations, due to borrowing, are likely to be avoided by potential investors. The latter will examine each firm’s financial characteristics before deciding to invest on a particular firm. Current paper focuses on the examination of two important issues related to the debt in large firms: the factors that influence the level of gearing and the maturity structure of debt in large quoted companies are presented and critically discussed. The literature published in the specific subject is used in order to show the various implications of the above issues. It is revealed that the level of gearing and the maturity structure of debt in large quoted firms are likely to be depended on a series of factors which are not standardized. Rather the type and the power of these factors is depended on the characteristics and the rules of the local market, as influenced by the global economic trends. 2. Theoretical and practical factors that influence the level of gearing in large quoted companies Gearing is a term used in order to reflect ‘the proportion of the firm’s total assets owned by long and short – term creditors’ (Chisholm 2002, p.147). In other words, gearing shows the ability of the firm to repay its creditors, even through its assets in case of lack of cash. In the context of gearing, two are the most important factors that are expected to influence the ability of the firm to pay its creditors: the level of debt and the company’s assets. In modern firms, the level of gearing seems to be differentiated in accordance with the size of the firms. The above phenomenon can be explained as follows: in small firms, borrowing is the most common form of financing – aiming to avoid offering part of the firm’s management in order to be financed. In this context, small firms are expected to have high level of gearing. In large quoted firms, where there is no problem with giving part of the firm’s equity to third persons (the investors) for securing the necessary financing, the level of gearing is low (Walton 2000). There is also the opposite view. More specifically, Atrill et al. (2008, p.231) notes that large quoted firms are expected to have higher gearing compared to the small firms. The above view is based on ‘a report of the Bank of England regarding the financing of small businesses’ (Atrill et al. 2008, p.231). This report reveals that the level of borrowing of small firms is lower compared to that of the large firms, probably because the financing needs of large firms in the particular market cannot be covered by the capital of the shareholders (Atrill et al. 2008). Under these terms, the level of gearing in small and large firms cannot be considered as standardized. Rath er, it would be depended on the conditions and the characteristics of the local market – in the context of which the borrowing schemes available to the large firms may be more attractive compared to those offered to small firms, a fact that would minimize the level of gearing in small firms and maximize the level of gearing in large firms. In accordance with Chisholm (2002), normally, the level of debt of firms is lower from their equity

ACT Writing Prompt Essay Example for Free

ACT Writing Prompt Essay When you were in school have you ever came back from vacation and forgot what you have learned? Most kids when they come back from summer vacation they forgot most of the material they had just learned. Or during school students complain â€Å"I want more time off†. No one gets excited about school but if kids were used to getting no summer break then they wouldn’t have the need to want more time off. The traditional three-summer vacation should not be maintained because over summer students forget what they learned, the holiday breaks will be longer, and the students will be able to learn more. See more: The Issues Concerning Identity Theft Essay The three-month summer vacation should not be maintained. Other opponents may argue that students need the summer break to get away from all of the stress of school and that students need more breaks. However, if the three-month vacation was not maintained there would be less stressful situations because there would be more time to do work. Also students would get longer holiday breaks and more half days. Doesn’t it make more sense to have multiple vacation time then one chunk of it? The three-month summer vacation clearly should not be maintained. For instance, during summer vacation students are not thinking about school, the students are thinking about having fun. For example when the students come back to school they do not remember most of the material they have learned. There are many kids out there that hate coming back to school, so they never want to learn or they do not care. But for every new school year in the first few weeks teachers have to review what material was previously taught so the students well remember. That is a waste of time. If there was no summer vacation then the first two or three weeks wouldn’t be wasted on review. In addition, with no three- month vacation the students would be able to soak in a lot more knowledge and actually remember it for college. The students would be able to be better prepared for the feature, since they would be taught with multiple vacation time. For example in college students need to be prepared because college students do not get as much vacation time as high school students do. Also if the students in high school pay attention then college will be easier for them to understand because the professors do not help as much as public school teachers do. In the future the students will not get as much vacation time in their work career. When students come back from summer vacation the kids do not remember what they have learned. That is why school should be year round with no three-month summer vacation because the students forget the material, the holiday breaks would be longer, and the students would be able to learn more. There would be no more complaining about breaks and no more homework every day.

TV Addiction Children

TV Addiction Children Overcoming TV Addiction â€Å"We may think there is willpower involved, but more likely change is due to want power. Wanting the new addiction more than the old one. Wanting the new me, in preference to the person I am now† (thinkexist, 2006). This quote by George Seehan tells us that in order to overcome an addiction we must want to change ourselves first. It is hard for many people to admit that they have an addiction and need help. Overcoming any addiction can be a difficult process, but if one puts their mind to it, anything is possible. Defining addictions in general can be difficult. When we think of addiction we usually think of drug or alcohol addictions but there are many types of addictions. Nearly any craving or excess fixation can be categorized as an addiction. â€Å"Addiction is a term used to describe a recurring compulsion by an individual to engage is some specific activity, despite harmful consequences to the individuals health, mental state, or social life† (World Book Encyclopedia, 1966). Many types of addictions have been described such as alcohol, drugs, gambling, food, sex, computers, and work. Adding television to the list should not make a difference considering all the time a person spends watching one. The viewing of TV is ok, but be careful to not overdo it. â€Å"Television Addiction becomes a problem when a subject does not want to watch TV, but experiences an uncontrollable compulsion to start or continue watching† (GNU free documentation, 2008). A person should be in control of the TV, not the other way around. â€Å"Television addicts are a relatively new breed, especially since television itself has only been around for about 50 years, nowhere near as long as alcohol, tobacco, and drugs† (Russell, 2008). Even though this may be, television addiction is a big obsession and most people do not even know they are addicted. When a person takes a look at them self and sees how much time and amount of frequency, that they spend on one individual item compared to all activities in a day that is the main focus when figuring out when some type of activity or hobby has become an addiction. It is hard for people to convince themselves that they have a problem and that they should seek guidance. The first and hardest step in recovering from an addiction is recognizing that one needs help. With the generation that we live in now, it is especially easy to become a TV addict. The new invention of the TiVo, that became public in 1999, is a major contributor to â€Å"couch potatoes†. The TiVo stores television programs onto non-removable hard-disks. It also allows the viewer to pause live television, rewind and also replay up to a half hour of recently viewed television. Along with TiVo, where one can record their favorite shows, one can also watch their favorite programs online. On the internet one can find all the local listings to their favorite shows and even watch the re-runs if they may have missed an episode. According to data from the Convergence Consulting Group (1999), nearly a tenth of all broadcast and cable TV shows were viewed online. Convergence (1999) also estimates that 9% of all full-episode TV viewing was done online. Watching too much television can have negative effects. Reading, school work, playing, exercise, family interaction, and social growth are very important in a persons life and the time spent watching television takes away from those activities. By spending more time in front of the â€Å"tube†, the less time a person will have to spend with friends and loved ones. Too much TV can put a strain on many relationships. A TV addict will find themselves canceling regular get-togethers, just to watch their favorite show. Many will also schedule their lives around a certain TV program. The viewer may not accomplish tasks or goals that he or she feels are important. With some people, a lack of motivation, feelings of depression, and anger comes with the factors of making it a habit of watching television over long periods of time. Many viewers rely on the television because of its comforting effects. Trying to go for an extended amount of time without watching can lead to withdrawal sy mptoms as a person tries to cope with not having the security of the television. Another negative effect is that excessive TV watching inhibits physical activity causing obesity in the Unites States. With the large amount of TV that people watch, there leaves minimal time to do other activities such as work out and stay fit. Too much television does have its negative effects, but if the right TV shows are watched some benefits may appear. TV can be a great educational tool. According to the National Institute on Media and Family (1996), several studies have indicated that quality programming can be educational for young children. A 2001 study shows that â€Å"children who watch carefully constructed educational programs that are aimed at their age level do better on pre-reading skills than children who watch occasionally or not at all† (Walsh, 2001). Along with being an educational tool, TV can also bring the family together. Taking time out of the day to spend time with the whole family will help them grow stronger together. It is easy for children to fall into the category of being a TV addict because their parents do not limit how much they can watch. Children have become lazier than in the past and instead of spending time outdoors with friends playing and exercising, children would rather opt to watch TV shows. According to a recent study done by the Yale Family Television Research and Consultation Center, over the course of the year, children spend more time watching TV than they spend in school or participating in any other activity except sleep (Sather, 2007). Children would be at an advantage if they flipped those roles and watched less television and did more school work and other beneficial activities. Children would rather choose entertainment shows over educational, but in reality children who watch educational shows will do better in their school work. For parents, TV is a simple way to get their kids out of their hair. It is less stressful for parents to have the television entertain their kids rather than for them to have to all day. TV violence triggers many bad behaviors among young children. Not monitoring what kids watch can bring out these bad behaviors. According to a study backed by the cable television industry (2000) â€Å"fifty-seven percent of television programs contain ‘psychologically harmful violence. TV violence influences children to act in ways they usually would not. Viewing large amounts of TV violence does not necessary cause a child to act more violently, but it can contribute to promoting a view that violence is routine in everyday life† (Peele, 2007). TV violence not only affects the minds of children, but it encourages them to think that violent behavior is ok. To overcome any addiction, one must first realize that they have a problem. Correcting an addiction can take a matter or weeks, months, or years. â€Å"Overcoming addictions depends on your ability to persevere through difficulties and mistakes, your faith in yourself, your faith in the process, and how much youre willing to put into the process† (Television Addiction, 2008). If a person does not make an effort then there will be no results. Much like any addiction, it is important to have support from family and friends. The saying, â€Å"slow and steady wins the race† is a way of looking at overcoming TV addiction. Start slow by limiting your hours of TV watched. Continue to move forward by taking small steps to achieve your goal. The recovery process differs from person to person depending on how drastically one is addicted to the television. Overcoming addiction is going to be as difficult as one thinks it is going to be. If a person has the mindset that things are going to be hard then chances are they will be. With more extreme TV watchers, it may be best to get rid of the television set in general. For less severe watchers, it may be as easy as making a TV watching plan for each week. Monitoring how many hours of TV is watched per day is a great step towards minimizing the amount of TV being watched. Other tips to overcome a TV addiction include, only watching when a certain show is on, setting a timer to limit oneself to how long they watch, or throwing out the remote control (Sri, 2008). It is amazing how much less television will be watched when one has to get up every time they want to change the channel. If a timer is used, it is best to place it in another room so the viewer is forced to get up and turn it off. This means that they leave the room where the TV set is, making it a less likely that the viewer will return to watch more television. It is also important to not eat and watch TV at the same time. Doing both can lead to overeating and eventually obesity. Television viewing for those who are more susceptible to addiction is more like drinking or taking drugs, once you start it is hard to stop. Being aware of the negative effects of too much television will help one not become an addict. Limiting the television intake can increase family time and decrease violence within viewers. Once one decides to turn off the â€Å"tube†, the hours that were dedicated to watching TV can now be used for more productive activities throughout the day. By making the step to give up TV, one will be on their way to living a healthier and more fulfilled life.

Opposition to State-Mandated Premarital HIV Screening Essays -- AIDS

Opposition to State-Mandated Premarital HIV Screening When screening for HIV became possible in mid-1985, debates began concerning the role of such screening in controlling the spread of AIDS. One such debate concerned state-mandated premarital HIV screening. This policy was proposed to the CDC conference in February of 1987, but never received much widespread support, because it satisfied neither the proponents of public health nor the proponents of civil liberties (Reamer 37). This essay will show that the state is unjustified in enacting such policy and hopefully also shed some light on why such policy received so little support. In a liberal society such as the United States that values both civil liberties and public health, it is often unclear which policies best address the threat posed by the AIDS epidemic. It is clear that on the one hand, the United States is committed to respect the privacy and personal autonomy of its citizens. Though not expressly written in the constitution, the right to privacy is implicit in the right to deny illegal search and seizure of home and explicit in the recent laws that protect the privacy of internet and credit card users. On the other hand, the United States is also committed to "promote the general welfare", meaning it has a moral obligation to promote public health. Traditionally, in the struggle between civil liberties and public health, the United States has given precedent to civil liberties but yielded to departures when it was proven that doing so was justifiable by the resulting benefits to public health. AIDS, however, challenges the balance between civil lib erties and public health like no other previous epidemic, due to the strong threat it poses to public health and ... ...avior, they could probably have been identified through programs aimed at groups with a higher prevalence of seropositives. Hence, the last two conditions of our ethical framework are also not met. Using an ethical framework borrowed from Childress, it is clear that a state committed to upholding the civil liberties of its citizens as well as promoting public health is unjustified in mandating premarital HIV screening. Such screening infringes on civil liberties and does not promote public health in an efficient way. The state is obligated to seek other policies by which to promote public health, such as voluntary testing and educational programming for married couples, which do not violate civil liberties and which more efficiently target those who are seropositive. Works Cited Reamer, Frederic G. AIDS & Ethics. Columbia University Press: New York, 1991.

Public education reform: Community or national funding of education Essay

Soares presents an article that draws on a political economy model of public funding as a tool to assess the education implications of moving from a community-to nation-wide funding policy. His intention is to widen the source for the finance of education that will redistribute funds both at the intra-generational and inter-generational levels. Previous literature has focused on the intra-generational redistribution effects of going from a local to state funded approach. Instead, Soares suggests a model of education reform that would see funding include the social security system and would allow factor prices to vary. Such flexibility would benefit welfare effects to students by enlarging the funding net in the form of a nation-wide system. Significant welfare gains that would occur with a nation-wide system are supported by other research (Soares, 2006; Wasser & Picken, 1996). Soares also reflects on his previous writings on the important roles of altruism and self-interest in influencing the political decisions of public education policy. He points to the inter-relationship of three main factors in determining how policy will be formed; altruism; the impact of public funding of education of the social security system; and the impact of these factors on factor prices. In conclusion, Soares article depicts a critical issue in education reform that has been ongoing for many years: How to source optimal continual funding for education that does not detract from the welfare of the wider population? He provides a viable alternative to funding. At present most States provide fewer dollars to minority and low-income students. A nation-wide funding policy would ensure that the funding gaps which exist across schools in the USA would be narrowed, providing equality of access to learning opportunities and resources. This would align with the recent No Child Left Behind Act of 2001.

Free Essays on James Watt And Physics

James Watt was born in Greenock in 1736, the son of a ship's chandler (trader in canvas, etc). Watt had little formal education due to poor health in his youth, but pottering about in his father's shop he developed an interest in trying to make things "work clockwork". In his late teens he went to London to learn to be a "mathematical and philosophical instrument maker", and when he returned to Glasgow he got a job making instruments with Glasgow University, who gave him accommodations and a workshop. In 1763 John Anderson asked him to repair an early steam engine he had acquired. This early model, known as a Newcomen engine, was very inefficient. The cylinder (where the piston was) had to be heated when steam was admitted, and then gradually cooled again to condense the steam. This wasted a lot of time and fuel. Two years later, while wandering aimlessly through Glasgow Green, Watt hit upon the idea of condensing the steam in a separate vessel. This removed the need for heating and cooling, making the engine faster, safer, and more fuel-efficient. A stone in Glasgow Green marks this spot, where the industrial revolution really began. (Later, in 1778 Watt presented Anderson with a micrometer he had designed and made, as a gesture of thanks.) Watt went into business with Matthew Boulton, a Birmingham engineer, producing engines based on this new approach. Engineers from all the industrialized countries flocked to see their factories. Watt's engines were initially used for pumping water cornish tin and copper mines. Later, the new cotton mills, which had been built near fast-flowing rivers to take advantage of waterpower, almost all switched to steam. Gradually, mills began to move toward the centers of population. At first, steam power was used mainly for spinning, but eventually weaving was also powered by steam engine. By 1819, the year of Watt's death, there were 18 steam-weaving factories in Glasgow, with 2800 looms. (This... Free Essays on James Watt And Physics Free Essays on James Watt And Physics James Watt was born in Greenock in 1736, the son of a ship's chandler (trader in canvas, etc). Watt had little formal education due to poor health in his youth, but pottering about in his father's shop he developed an interest in trying to make things "work clockwork". In his late teens he went to London to learn to be a "mathematical and philosophical instrument maker", and when he returned to Glasgow he got a job making instruments with Glasgow University, who gave him accommodations and a workshop. In 1763 John Anderson asked him to repair an early steam engine he had acquired. This early model, known as a Newcomen engine, was very inefficient. The cylinder (where the piston was) had to be heated when steam was admitted, and then gradually cooled again to condense the steam. This wasted a lot of time and fuel. Two years later, while wandering aimlessly through Glasgow Green, Watt hit upon the idea of condensing the steam in a separate vessel. This removed the need for heating and cooling, making the engine faster, safer, and more fuel-efficient. A stone in Glasgow Green marks this spot, where the industrial revolution really began. (Later, in 1778 Watt presented Anderson with a micrometer he had designed and made, as a gesture of thanks.) Watt went into business with Matthew Boulton, a Birmingham engineer, producing engines based on this new approach. Engineers from all the industrialized countries flocked to see their factories. Watt's engines were initially used for pumping water cornish tin and copper mines. Later, the new cotton mills, which had been built near fast-flowing rivers to take advantage of waterpower, almost all switched to steam. Gradually, mills began to move toward the centers of population. At first, steam power was used mainly for spinning, but eventually weaving was also powered by steam engine. By 1819, the year of Watt's death, there were 18 steam-weaving factories in Glasgow, with 2800 looms. (This...

How to Plan for College in 11th Grade 8 Expert Tips

How to Plan for College in th Grade 8 Expert Tips SAT / ACT Prep Online Guides and Tips For many high school students, junior year causes tremendous anxiety because of its importance in the college planning process. Students are generally aware that what they do in the th grade matters to colleges, but they don't know exactly how to plan for college. In this article, I'll thoroughly explain everything you should be doing in the th grade to plan for college. If you're organized and equipped with this knowledge, you'll be able to successfully complete your junior year and increase the likelihood that you'll reach your college goals. Furthermore, I'll discuss aspects of college planning that you don't have to worry about in your junior year. This Isthe Most Important Year for College Planning Because your junior year is your last full year of school before you apply to college, it’s the most pivotal year in the college planning process. Your junior year grades are the last full year of grades colleges will see before they make admissions decisions. It’s the last complete academic year you have to learn about colleges and the financial aid process before deciding where you’ll attend. How to Make Your Junior Year Less Stressful Many students become incredibly anxious and stressed out during their junior year because they realize the stakes and feel overwhelmed by all their responsibilities.You can minimize your stress in th grade and reach your college goals by following our complete college application timeline. If you start working on your college planning in 9th grade, you’ll have much less to worry about and do when your junior year rolls around. Also, if you’ve excelled academically in your freshman and sophomore years, you can be confident in your abilities to do well in your junior year. What Do You Need to Do? All college-bound juniors have a number of responsibilities during their junior years. Here are eight tips onhow toplan for college and maximize your options. #1: Take the Right Classes The classes you take will greatly influence your college options. You should have been taking a college prep curriculum during your first two years of high school. If you didn’t, talk to your counselor about what you should do to become eligible for admission to college. You may have to take additional courses at your high school, online, or at a local community college. You can look at college websites to view their requirements for admission. Colleges will evaluate you based on the classes you’ve taken. Colleges, especially selective colleges, want to see that you’re challenging yourself and taking some of the hardest classes that are offered at your school. You don’t have to take every single honors or AP class, but to get into elite schools, you should demonstrate that you can do well in the most difficult classes. I recommend taking honors or AP classes in the subjects you're best at and the subjects you're considering studying in college. Here's an example of a good junior year schedule for a student who wants to be competitive for selective colleges. Note that this is just a rough guide, and you can take a more or less challenging schedule depending on your skill level and the courses offered at your high school: AP Biology Precalculus Honors American Literature AP US History Honors French III PE Elective Ultimate Goal: Have a schedule of challenging classes you can do well in. Tribesports/Flickr #2: Get Good Grades Not to put too much pressure on you, but your junior year grades are the most important for college admissions. They’re the last full academic year grades colleges will see before they make admissions decisions; colleges may not even get to see your first semester senior year grades, especially if you choose to apply early. If you didn’t do as well as you wanted in your freshman or sophomore year, you can use your junior year to demonstrate your improvement and show that you’re capable of succeeding in college. Learn how to get a 4.0 and better grades. If you don't do as well as you'd like in your junior year, it doesn't necessarily mean that your college dreams are shattered, though. You can make up for lower grades with higher test scores and exceptional achievements in your extracurricular activities. Additionally, if there's some extenuating circumstance that causes a dip in your junior year grades, you can explain the situation on your college application. Ultimate Goal: Get the best grades you can. #3: Get/Stay Involved in Extracurriculars Other than your grades and test scores, your extracurricular activities probably have the biggest influence on the quality of your college applications. Colleges want their students to have exceptional achievements outside of the classroom, and they’re looking for individuals who use their leisure time to pursue their passions. Some students believe they need to be well-rounded and do a ton of extracurriculars; however, to get into elite colleges, it may be more advantageous for you to develop a â€Å"spike† and exhibit excellence in a particular activity or field. If you play a sport, you can focus your energies on reaching the highest level in your sport and becoming a recruited athlete. If you excel in science, you can use your time outside of school to prepare for and compete in science fairs and competitions. Additonally, you can take extra science classes at a community college or volunteer to help a professor with research. Colleges prefer to see a sustained commitment to your activities, so if you participated in extracurriculars in your first two years of high school, you should try to stick with those activities, if possible. If you were part of a club, try to get a leadership position in that club. If you wrote for the newspaper, maybe you can become an editor. It's more impressive to show growth and accomplishments in the same activities than it is to start doing a bunch of activities in your junior year. Colleges want to see commitment and demonstrable achievement. Learn about the best extracurriculars for your college applications. Ultimate Goal: Demonstrate excellence in your extracurricular activities. Iqbal Osman/Flickr #4: Prepare For and Take Standardized Tests Ideally, you’ll be able to finish your standardized tests for college by the end of your junior year. That will free up time in your senior year to focus on your college applications, schoolwork, and extracurriculars. If you’ve been on top of the college planning process, you should have done some studying for the SAT/ACT in 9th and 10th grade. The SAT/ACT is an important component of your college applications. Figure out your target score, and if you’re trying to get into elite colleges, learn how to get a perfect score on the SAT or ACT. We recommend taking the SAT/ACT for the first time in the fall of your junior year, and, if you don't do as well as you'd like, you can retake the test in the spring or in the fall of your senior year. If you haven’t done any preparation for the SAT/ACT before your junior year, you can spend the fall studying and then take the test in the winter or spring. However, if you wait to take the SAT/ACT, then you'll have less time to retake it if you don't get your target score on your first attempt. Also, if you're intersted in qualifying for a National Merit Scholarship, you should take the PSAT NMSQT in your junior year. Furthermore, if you're considering applying to any schools or programs that require SAT Subject Tests, you should take those at the end of your junior year. Assuming you do some basic preparation and take the tests right after you finish related courses, you should do very well. For example, if you take the SAT Subject Test in chemistry in May while you're taking AP Chemistry, you shouldn't have too much difficulty with that Subject Test if you're doing well in your AP Chemistry class. Finally, especially if you're hoping to get into selective colleges, you should take Advanced Placement tests in the spring. Often, if you’re taking an AP class, you’ll be required or strongly encouraged to take the AP test for that class. If you elected not to take an AP class or are at a school that doesn’t offer AP classes, you can still self-study for AP tests and take AP exams. Doing well on AP tests demonstrates your readiness to do college-level work, and you can receive college credit by passing AP tests. Ultimate Goal: Achieve your target scores on the SAT/ACT, SAT Subject Tests, and AP tests. #5: Do Extensive College Research You should have a good idea of which colleges you want to apply to by the beginning of your senior year. Therefore, you should do extensive college research in your junior year. You need to ensure you’re aware of all your college options and figure out exactly what you’re looking for in a college. Do you want to go to a big or small college? Do you want to go to an urban, rural, or suburban school? Are you interested in a party school? An Ivy League school? A Big Ten school? A conservative school? A liberal school? You can use college finders, college search websites, guidebooks, ranking lists, and college fairs to get a better idea of your college options and narrow your college search. Also, you may want to take college tours to check out different college campuses, learn more about the schools, and get a feel for colleges in person. Additonally, if college representatives visit your school, you can speak with them and learn more about the schools they represent. Consult with other people who are knowledgeable about the college application and selection process. You can talk with your counselor, teachers, parents, college alumni, or current college students. Ask about specific colleges or the application process; if you're talking to somebody who knows you well, you can seek advice about which schools may be a good fit for you. Ultimate Goal: Figure out what you're looking for in a college and create a preliminary list of schools to apply to. #6: Learn More About Financial Aid Definitely, if you need financial aid to afford college, you should become knowledgeable about the financial aid process in your junior year. Furthermore, as you’re researching colleges, you should inform yourself about each school’s financial aid. Learn which forms are required and use websites like College Scorecard and FAFSA4Caster to get a rough idea about how much you’ll have to pay to attend each school. At this point, I recommend not disqualifying a school from consideration based on its cost or the financial aid you think you'll receive. You may end up getting scholarship money or receiving a more generous financial aid package than you're expecting. Educate yourself about how to save and pay for college. Involve your parents and learn about financial aid with them. Ultimate Goal: Know how to apply for financial aid and get a rough idea of how much the schools you're considering will cost you. #7: Apply for Scholarships If the cost of college is a concern for you or you just want to alleviate the impending financial burden of paying for college, you can apply for scholarships in your junior year. Check out our expert advice on how to find scholarships. Also, learn about the best scholarships for juniors. Most scholarships require an application and an essay, but you may be able to use the same essay for multiple scholarships. If you apply for more scholarships, you’ll have a better chance of winning some scholarship money. You can qualify for specific scholarships based on your background, extracurricular activities, or academic achievement. Ultimate Goal: Apply for four to fivescholarships by the end of your junior year. DigitalRalph/Flickr #8: Ask Teachers for College Recommendations It’s a good idea to ask your teachers if they’ll write your college recommendations in the spring of your junior year. By asking them early, they’ll be more likely to agree before they start getting tons of requests in your senior year. Furthermore, you’ll give them more time to consider what they’re going to write. Before asking, make sure you know which teachers to ask. Also, learn how to ask for recommendations. Generally, it’s best to ask teachers from your junior year, and ideally, at least one of your recommenders should teach a subject related to what you want to study in college. Most colleges that require recommendations want at least two from core academic subject (math, science, English, history, or foreign language) teachers. Ultimate Goal: Get your teachers to agree to write your college recommendations by the end of your junior year. What Not to Worry About While you should be doing thorough college planning in the th grade, you don’t need to have everything figured out by the end of your junior year. Here are some specific aspects of planning for college that you don’t need to stress about in your junior year. Picking a College Even though you should be narrowing your college search in your junior year and start thinking about how many colleges you’re going to apply to, you don’t need to have a dream school or top choice by the end of your junior year. At this point, it’s best to think about the qualities that your dream school would possess and keep a list of schools that could potentially be good for you. Also, for the schools you’re interested in, you can use the PrepScholar admissions calculator to get a rough idea of your chances of getting accepted to each school. Just google â€Å"prepscholar (name of school) admissions† to find the profile for each school and use the admissions calculator. With the calculator, you can plug in your GPA and standardized test scores to get an estimate the percentage chance you have of getting into that school. Based on your odds of getting accepted, you can start dividing your list into reach, target, and safety schools. Completing Your College Applications You don’t have to start working on your college applications and college essays in your junior year. If you want to be ahead of the game and make your senior year easier, it’s not a bad idea to start working on your college application essays in the summer before your senior year. However, even early application deadlines usually aren’t until the beginning of November of your senior year. If you start working on your applications at the start of your senior year, you should have ample time to write and revise your essays, complete your applications, and send your transcript and test scores to colleges. What's Next? Are you planning on going on a college tour? Know great questions to ask. Are you interested in selective colleges? Find out about the most selective colleges and how to get in. Are you relying on ranking lists to make your college decision? Learn why using ranking lists may not be the best way to determine the best college for you. Want to improve your SAT score by 160 points or your ACT score by 4 points?We've written a guide for each test about the top 5 strategies you must be using to have a shot at improving your score. Download it for free now:

Why Democracy is Better Than Autocracy For Economic Development

Why Democracy is Better Than Autocracy For Economic Development Free Online Research Papers Why Democracy is Better Than Autocracy For Economic Development Why, according to Olson, is democracy better than autocracy for economic development? What are the implications for your answer for the contrasting economic experiences of China and Western Europe since the late Middle Ages? In the essay â€Å"Dictatorship, Democracy, and Development†, Mancur Olson proposes a theory of how economic growth is related to the development of democracy. Using rational-choice theory as the basis of his argument, he concludes that â€Å"[t]he conditions necessary for a lasting democracy are the same necessary for the security of property and contract rights that generates economic growth† . Thus, Olson does not claim a causal relationship between democracy and economic growth, but that democracy and sustained growth – requiring the same set of institutions – will occur simultaneously. Olson’s theory may provide an explanation for why the Chinese economy under Qing rule (1644-1912) experienced no intensive growth at all, whilst per capita income during the same period in Western Europe more than quadrupled. This essay will outline the key features of Olson’s argument in the context of China and Western Europe at this time. By contrast ing the gradual emergence of democracy in Europe after the fall of medieval feudalism with the autocratic bureaucracy prevailing in China throughout the Qing dynasty, it will be argued that Olson’s theory is indeed applicable, yet not sufficient, for explaining the contrasting economic experiences of China and Western Europe since the late Middle Ages. Research Papers on Why Democracy is Better Than Autocracy For Economic DevelopmentBringing Democracy to AfricaPETSTEL analysis of IndiaAssess the importance of Nationalism 1815-1850 EuropeDefinition of Export QuotasInfluences of Socio-Economic Status of Married MalesAppeasement Policy Towards the Outbreak of World War 2Relationship between Media Coverage and Social andComparison: Letter from Birmingham and CritoWhere Wild and West MeetHarry Potter and the Deathly Hallows Essay

Short Story Essay Example | Topics and Well Written Essays - 500 words

Short Story - Essay Example The journey represents a necessary testing of his faith, but the fear expressed by his wife Faith indicates there is a hidden peril in undertaking such a journey. Her warning, â€Å"may you find all well when you come back† (293), seems to indicate the peril does not apply strictly to Goodman Brown as he sets off on his journey, but for Faith as well as she is left behind in the darkness. In this solitary journey, Hawthorne indicates that the doctrine of purposefully seeking challenges to a faith already weakened by church dictates is a highly dangerous proposition with the capability of leading many men and women to their dooms rather than their salvation. This concept that the experience is leading to doom rather than salvation is defined more as the story progresses and Goodman Brown goes deeper into the darkness of the forest. The people that Young Goodman Brown sees and hears as he makes his way to the heart of the forest proves to him that the human soul is beyond redemption, regardless of their good works performed in the light of day, such as â€Å"a female figure on the path, in whom Goodman Brown recognized a very pious and exemplary dame, who had taught him his catechism in youth, and was still his moral and spiritual adviser, jointly with the minister and Deacon Gookin† (295). It is witnessing of the meeting between the woman and his companion who is presented as the devil, that first opens Young Goodman Brown’s eyes to the idea that the people he has considered so good in his lifetime are as full of sin and corruption as anyone. Throughout his journey, he loses some heart, but determines to hold fast to his Faith and return home. However, when he hears the voices of the villagers in a passing cloud, along with the sound of his own Faith being carried along with them, he gives in altogether and determines to find out what lies at the end of the path. Crying â€Å"my Faith is gone!†,

Report Assignment Example | Topics and Well Written Essays - 2250 words

Report - Assignment Example It is important to understand that in the game, a player has to work through a set of situations for purposes of collecting key medieval artifacts as a way of gaining riches. It is this artifact that the female figure asks from its various players. Due to this situation, the organizations interactive online community has received a lot of negative comments regarding this situation. Another issue that emerges is the inability of the organizations programmers to remove this virus. This is because any attempt to remove the virus, another similar virus appears. The main reason as to why the organizations programmers are unable to remove this virus is based on the fact that there isn’t any programming solution that has the capability of solving the situation under consideration. Another issue that emerges is that this situation has managed to attract the attention of international media, which are reporting it as their headlines. The censorship bodies of the government are also notified, and they have put an injunction on the distribution of the game. Production: This situation will most possibly halt the production of these medieval quest games. This is because the audiences of these games are 13 year old children, who are not supposed to be exposed to sexually explicit materials. Marketing: The marketing of the games will have to stop, and the company engaging in a serious rebranding effort for purposes of promoting its image, and repairing the damage that is caused by the existence of the virus. It is important to explain that the relationship between the company and the media will also be on the negative, and this is mainly because of the negative publicity that emanates from the media, concerning the games under consideration. One proposal for solving the issues identified above is for the producer of the medieval gaming solution to is to stop the circulation

Analyze one of the book themes at play in John Demos's The Unredeemed Essay

Analyze one of the book themes at play in John Demos's The Unredeemed Captive - Essay Example The story starts with a reason that further leads to the cultural integration suitable to the situation. It’s a story of abduction and adoption by Indians of the American settlers (Sweeney 32). The Mohawk Indians are assisted by the French in Canada. They together attempt to attack a small village with name of Deerfield located in Massachusetts. They had targeted revered John Williams, the than Minister from Deerfield because they intended they get their man, with the name of Jean Baptist Gayen rescued in return, who had been held from Boston. Two of John William’s kids were murdered the night of the kidnap and the rest of the family was moved to Canada along with a number of other captives who were also taken up from Deerfield for the same cause of personal gain. John Williams’s family saw this event highly distressful and damaging. They kept very little hope of getting to see each other ever again. John William manages to break through the hostage couple of yea rs later. He remarries another lady after back home and recollects his shattered life to give it a new start. His rest of the children were also set free, leaving behind his daughter, Eunice Williams in their custody. The story majorly revolves around her and the way she chooses to built her life with the Native Americans willingly, once she experiences growing up amongst them. John Williams, the famous Revered of Deerfield is illustrated by John Demos to get stunned and spell bound by the choices his daughter, Eunice is shown to make for herself. After being left alone to live amongst them she has no other option rather than to settle herself with their norms and culture. She was at the age seven when she got taken up the Native Americans. In the early years of her captivity, as a young kid she feared the Native Americans when left to live alone with them. She begged her father to manage for her rescue from their custody (The Archive Organization 33). John Williams did nothing prac tically to get her rescued. He met her on regular basis and tried to get the process carried out on the official basis. Her desire to get out of the culture subsided along with the time and alongside developed into a revenge against her father and other protestants who had not dared to get her rescued from the alien culture where as a child she had frequently felt she did not belong to (Sweeney 12). She, along with the time instilled the culture to her roots and felt as a member of the Native Indian culture. She carried her physical appearances in the same way as they did and adopted their norms in her daily life. She also made religious shifts and got converted to Catholicism (The Archive Organization 57). In wider scenario, it’s the description of a girl, who uses a culture she had been abandoned into, to revenge against her own people, who had left her years earlier as young girl- it’s the Indian Culture’s insight through a young girl’s life (Meorial H all Mueseum 11). Cronon’s Changes in the Land William Cronon, the author of another famous book â€Å"Changes in the land† has also investigated the ecological changes from Indian to European dominance during the time period of 1620 to 1800 (William Coron Net 16). Demo’s book in my opinion is not reflective of the true way Cronon has

Cultural Experience of Boise Art Museum Essay Example | Topics and Well Written Essays - 750 words

Cultural Experience of Boise Art Museum - Essay Example Museum houses worthwhile collection of centuries old Bosque community. Masterpieces of artwork pertaining to prehistoric era are also part of the museum. More than 13000 students from different parts of the world seek arts education from this museum. Boise art museum comprises of art galleries, paintings, sculptures and artwork on cultural values of Idaho and surrounding areas. Boise art museum is consistently working on exhibitions. Exhibitions held in past helped museum to earn name and at the same time impart quality arts education to the art lovers. Museum has also focused on increasing permanent collection and on acquisition of new artwork as well. The museum’s administration is interested in increasing exhibitions, increasing attendance, expansion of community engagements, promotion of culture of surrounding areas and advancement in art education. Boise art museum has also planned to provide more space for art galleries on their web site. Therefore, the improvement work on the web site is in hand, to make it more versatile in future. Mexican art is well known in the world due to its unique Culture. Permanent collection mostly focuses on the American art. American artwork presents the live, colour and habits of the people. More than 2300 artworks present the American culture of 20thcentury. Mexican old and new art is part of permanent collection of the museum. Comparison of old and new art reflects change in old culture, people and technologies. Efforts are continuously been made to decorate the museum with new acquisitions. Artworks of different painters and sculptors are being added to the art gallery of the museum. Geoffrey Krueger has become a great artist in a very short time. He is a mid career artist of Idaho. Shotgun is very well known series of paintings because it leaves many questions for a visitor to answer. Geoffrey Krueger beautifully shows interior and exterior of an object in paintings. The visitor than has to answer the differences between normal home and a natural world. Pablo Ruiz Picasso, Charles gill and Robert Colescotte are the artists whose works have been made part of the museum gallery. Museum managed to organize number of exhibitions in the past. R.G.Degas was a French sculptor. Sculptors made by R.G Degas were exhibited in 2004. Display of about 73 sculptors made this exhibition a unique one for the viewers. William Morris is known for his glass work. 20 sculptors were displayed in an exhibition in 2004. Sculptures included the subjects of myth, culture and animals. This exhibition helped viewers to learn about the culture of the area. Current exhibitions are mostly focusing on the northwest region. The artists are also amply highlighting environmental and global issues in the present day exhibitions. Museum organizes six biennial exhibitions to educate high school students. Museum educational department plays active part to make the students better professionals. Numbers of exhibitions have been pl anned in near future. â€Å"Comic at the crossroads† exhibition will test the 40 artists of northwest. Displaying of comic styles and paintings for amusement will be the main feature of the talented artists. Catherine has done a great work on â€Å"American 19th century penmanship workbooks†. Exhibition is scheduled to be held in may 2011. She is aiming at the use of layered colour compositions in order to give a new touch to her paintings. An exhibition on footwear will be held

Transforming Organizational Culture Essay Example | Topics and Well Written Essays - 2500 words

Transforming Organizational Culture - Essay Example The CEO contacted Merriam and during their meeting, he clarified the function of the department and indicated that the department was underperforming and presented her with issues he believes is contributing to their poor performance. The issues are: He also stressed that this was influencing the ability of the other departments in the organization to deliver on their outputs, and this directly effects the bottom-line of the organization. The OD practitioner suggested the collection of preliminary data so that subsequent diagnostic and intervention activities can be focused on addressing the correct contributing issues. She explained that the issues mentioned by the CEO are most likely only symptoms of the underlying problems. To analyse the problematic department the OD practitioner used the Organizational Culture Inventory (OCI) survey, compiled through answers from questionnaires filled in by staff, to measure the characteristics of culture in the department. In figure 1, the results of the department wide survey has been plotted, giving a strong indication of an un-adaptive culture. The OD practitioner deducted from the OCI survey that their was almost a total absence of constructiveness in the department, with a strong extensions on the Passive/Defensive and Aggressive/Defensive styles. This showing compelling reasons why the department is experiencing absenteeism, low productivity and staff having very little or no job satisfaction. When the OD practitioner discussed the results with the departmental manager, he stated that the reason for absence of constructiveness in the department was due to the staff's attitudes towards management and their lack of discipline. It was clear that there was a total breakdown of trust within the department. The OD practitioner used the comprehensive open-system model to do an in-depth analyzes, to better understand the functioning of the problematic department in the organization. "The organization serves to coordinate behaviours of its departments so that they function together in service of a goal or strategy. The general diagnostic model based on systems theory that underlies most of OD is called the open-system mode," (Cummings & Worley, 2001, p84). Diagram 1: Comprehensive Model for Diagnosing Organizational Systems Through the above method, the OD practitioner found some of the contributing factors to the overall poor performance of the specific department. Firstly, the individual based performance appraisal and reward system tend to interfere with team functioning as each member is more interested in his own performance. Then organizational goals seem unclear within the department creating confusion and frustration among staff. Thirdly, coordination of staff efforts and regulation of their task behaviours by management are almost mechanistic, allowing very little innovation or group interaction. Lastly, the performance norms within

Special education case review Essay Example | Topics and Well Written Essays - 1000 words

Special education case review - Essay Example The court reversed the district courts grant for a summary judgment. It held that compliance with obligations to children with hearing disabilities under IDEA does not signify compliance with obligations for effective communications under the ADA. In arriving at this conclusion, the court noted that there are differences between the provisions of the IDEA and those of Title II of the ADA.   Because of this difference, failure of a claim under the IDEA does not necessarily exclude a claim under Title II of the ADA. In A.C v. Shelby County Board of Education, A.C was a minor with type I diabetes. She attended Bon Lin Elementary school, which is governed by the Shelby County Board of Education SCBE. Her parents had requested certain disability accommodations for her. These accommodations included the retention of a full-time nurse, making the child’s classroom a peanut free zone due to her allergy to peanuts and taking of her blood tests in her classroom as opposed to the school clinic. There had been tensions between the school and the child’s parents regarding these requests. The situation got out of hand when the school principal made reports to the department of child services alleging that the parents were medically abusing the child. The parents filed a suit claiming that the violation of section 504 of the Rehabilitation Act and the ADA. Section 504 and the ADA prohibits retaliations against individuals due to opposing practices made while seeking to enforce their rights unde r these Acts.

Cultural Experience of Boise Art Museum Essay Example | Topics and Well Written Essays - 750 words

Cultural Experience of Boise Art Museum - Essay Example Museum houses worthwhile collection of centuries old Bosque community. Masterpieces of artwork pertaining to prehistoric era are also part of the museum. More than 13000 students from different parts of the world seek arts education from this museum. Boise art museum comprises of art galleries, paintings, sculptures and artwork on cultural values of Idaho and surrounding areas. Boise art museum is consistently working on exhibitions. Exhibitions held in past helped museum to earn name and at the same time impart quality arts education to the art lovers. Museum has also focused on increasing permanent collection and on acquisition of new artwork as well. The museum’s administration is interested in increasing exhibitions, increasing attendance, expansion of community engagements, promotion of culture of surrounding areas and advancement in art education. Boise art museum has also planned to provide more space for art galleries on their web site. Therefore, the improvement work on the web site is in hand, to make it more versatile in future. Mexican art is well known in the world due to its unique Culture. Permanent collection mostly focuses on the American art. American artwork presents the live, colour and habits of the people. More than 2300 artworks present the American culture of 20thcentury. Mexican old and new art is part of permanent collection of the museum. Comparison of old and new art reflects change in old culture, people and technologies. Efforts are continuously been made to decorate the museum with new acquisitions. Artworks of different painters and sculptors are being added to the art gallery of the museum. Geoffrey Krueger has become a great artist in a very short time. He is a mid career artist of Idaho. Shotgun is very well known series of paintings because it leaves many questions for a visitor to answer. Geoffrey Krueger beautifully shows interior and exterior of an object in paintings. The visitor than has to answer the differences between normal home and a natural world. Pablo Ruiz Picasso, Charles gill and Robert Colescotte are the artists whose works have been made part of the museum gallery. Museum managed to organize number of exhibitions in the past. R.G.Degas was a French sculptor. Sculptors made by R.G Degas were exhibited in 2004. Display of about 73 sculptors made this exhibition a unique one for the viewers. William Morris is known for his glass work. 20 sculptors were displayed in an exhibition in 2004. Sculptures included the subjects of myth, culture and animals. This exhibition helped viewers to learn about the culture of the area. Current exhibitions are mostly focusing on the northwest region. The artists are also amply highlighting environmental and global issues in the present day exhibitions. Museum organizes six biennial exhibitions to educate high school students. Museum educational department plays active part to make the students better professionals. Numbers of exhibitions have been pl anned in near future. â€Å"Comic at the crossroads† exhibition will test the 40 artists of northwest. Displaying of comic styles and paintings for amusement will be the main feature of the talented artists. Catherine has done a great work on â€Å"American 19th century penmanship workbooks†. Exhibition is scheduled to be held in may 2011. She is aiming at the use of layered colour compositions in order to give a new touch to her paintings. An exhibition on footwear will be held

Special education case review Essay Example | Topics and Well Written Essays - 1000 words

Special education case review - Essay Example The court reversed the district courts grant for a summary judgment. It held that compliance with obligations to children with hearing disabilities under IDEA does not signify compliance with obligations for effective communications under the ADA. In arriving at this conclusion, the court noted that there are differences between the provisions of the IDEA and those of Title II of the ADA.   Because of this difference, failure of a claim under the IDEA does not necessarily exclude a claim under Title II of the ADA. In A.C v. Shelby County Board of Education, A.C was a minor with type I diabetes. She attended Bon Lin Elementary school, which is governed by the Shelby County Board of Education SCBE. Her parents had requested certain disability accommodations for her. These accommodations included the retention of a full-time nurse, making the child’s classroom a peanut free zone due to her allergy to peanuts and taking of her blood tests in her classroom as opposed to the school clinic. There had been tensions between the school and the child’s parents regarding these requests. The situation got out of hand when the school principal made reports to the department of child services alleging that the parents were medically abusing the child. The parents filed a suit claiming that the violation of section 504 of the Rehabilitation Act and the ADA. Section 504 and the ADA prohibits retaliations against individuals due to opposing practices made while seeking to enforce their rights unde r these Acts.

Cost Theory Essay Example for Free

Cost Theory Essay Once a plant owner spends money to manufacture goods, that money is no longer available for something else. Production facilities, machinery used in the production process and plant workers are all examples of costs. Cost theory offers an approach to understanding the costs of production that allows firms to determine the level of output that reaps the greatest level of profit at the least cost. 2. Features * Cost theory contains various measures of costs. These include a firms fixed costs and variable costs. The former do not vary with the quantity of goods produced. Rent on a facility is an example of a fixed cost. Variable costs change with the quantity produced. If increased production requires more workers, for example, those workers wages are variable costs. The sum of fixed and variable costs is a firms total costs. * Additional Measures * Cost theory derives two additional cost measures. Average total cost is the total cost divided by the number of goods produced. Marginal cost is the increase in total cost that results from increasing production by one unit of output. Marginalsincluding marginal costs and marginal revenueare key concepts in mainstream economic thought. Falling and Rising Costs * Economists often use graphs, similar to supply-and-demand charts, to illustrate cost theory and firms decisions about production. An average total cost curve is a U-shaped curve on an economic diagram. This shape illustrates how average total costs decline as output rises and then rise as marginal costs increase. Average total costs decline at first because as production rises, average costs are distributed over a larger number of units of output. Eventually, marginal costs of increasing output rise, which increases average total costs. Maximizing Profits * Economic theory holds that the goal of a firm is to maximize profit, which equals total revenue minus total cost. Determining a level of production that generates the greatest level of profit is an important consideration, one that means paying attention to marginal costs, as well as marginal revenue (the increase in revenue arising from an increase in output). Under cost theory, as long as marginal revenue exceeds marginal cost, increasing production will raise profit. Types of Cost Economics Economists factor costs in many different ways. Though you may read the cost of a soup can at $1 as it’s listed on the grocery store shelf, economists view the cost of the soup can in very different ways. For example, an economist asks what you are giving up to buy that can of soup over another item. They measure the firm’s cost of producing that soup can as it relates to their output and factors of production. Thus, the different types of economic costs are varied. 1. Sunk Cost * A sunk cost is an expense that cannot be recouped. Mark Hirschy, author of the book, â€Å"Fundamentals of Managerial Economics,† explains that sunk costs should not factor into a decision when deciding between alternatives. For example, say a person spent $50,000 on a degree in education and earns $60,000 as a teacher. She is later offered a job in marketing that pays her $80,000. Though she may be tempted to factor in her education degree as reason to stay in her current teaching job, her $50,000 degree is regarded as a sunk cost. She already spent this money, and it cannot be recouped. In this case, she should only compare the respective salaries of the positions. If all else is held equal, she should pursue the marketing job. Opportunity Cost * An opportunity cost is the value of an alternative choice. Though the word â€Å"cost† usually equates to a numerical value, like a dollar figure, this is not always the case. William Baumol and Alan Blinder, authors of the book, Economics: Principles and Policy, state that an opportunity cost calculates intangible things like time, location and job satisfaction. They explain opportunity costs are what you give up to follow one course of action. For example, a college graduate is deciding between a job as a tech consultant in Seattle or an investment broker in New York City. If the grad pursues the investment broker position, the opportunity costs of foregoing the job in Seattle could be a slower pace of life, $10,000 higher salary and lower costs of living like rent and food. * Marginal Cost * A marginal cost is the amount it takes to produce one more item. Under this view of costs, they vary along the production line and in most cases the cost to produce a good reduces over time. Intuitively, this makes sense: the more proficient you become at producing a good, the faster you can do it and less waste is produced. The savings in labor and material as you achieve â€Å"economies of scale† means the cost of production usually decreases. The way economists find the marginal cost is by taking the derivative of the total costs as it relates to the total output. How to Find Marginal Cost in Economics Deciding whether to produce more units is often based on marginal cost. The economic concept of marginal cost is the cost associated with producing one additional unit. This information is important to businesses because it allows the company to decide if the additional unit is worth producing from a financial standpoint. When a company produces a small amount of product, the cost of additional units often decrease. However, marginal costs increase when additional units are added once the production level reaches a minimum. This is based on the law of diminishing marginal returns. Instructions 1. * 1 Calculate the change in total variable cost. This is the amount that the costs increased by after additional units are produced. For example, if youd like to produce more T-shirts and the increase in output would change the costs by $100, then the total variable cost is $100. * 2 Find the change in quantity produced. This represents how many additional units you would like to produce in the given scenario. For example, the change in quantity would be 50 if youd like to produce 300 T-shirts instead of 250. * 3 Divide the change in total variable costs from Step 1 by the change in quantity from Step 2. This will give you the marginal cost (marginal cost = the change in total variable cost/the change in quantity). For this example, $100 (the change in total variable cost) / 50 (the change in quantity) = $2 in marginal costs, which is the cost of producing each additional T-shirt. What Is the Relationship Between Production ;amp; Cost? Production costs are linked to t he cost of materials and labor. The relationship between production and cost in any manufacturing process varies based on volume produced and whether any part of the manufacturing process is outsourced or performed by subcontractors. Additionally, production and cost ratios vary based on the amount of automation involved in production and the amount of human oversight and involvement required. 1. Factors of Production * The main factors of production are labor, capital and supply costs. Capital is defined as equipment, cash reserves, and physical location or production facility. Labor is defined as the amount of and cost of manpower required to bring a product to market. This includes not only the physical labor and oversight related to product production, but also the associated costs of salaries of positions such as managers, delivery drivers, warehouse supervisors, marketing directors and even administrative assistance. Supply costs are any fee associated with securing necessary materials for production. Subcontractor or outsourced work is considered a supply cost as well, as the manufacturer is essentially purchasing a product or service for use in the production process. In this example, work such as offsite creation of product packaging or assembly of minor components of a finished product are considered supply costs in the same way the purchase of raw materials are considered supply costs. Volume of Production * Volume of production figures signify the amount of products being produced. Typically, the greater the volume the lower the cost per unit as raw material suppliers often offer discounts on mass or bulk orders. Volume of production is based on a company’s anticipated product needs, past sales records and placed orders. * Volume of Business * The relationship between production and cost is frequently determined by the volume of business a company is doing. An example that illustrates this point is a multinational vitamin supplement company that produces vitamins in bulk compared to a small health food chain that produces its own vitamin line in small quantities. The cost of the product produced by the small company will typically be greater than the cost of the product offered by the bulk manufacturer because the smaller company produces its product in smaller volumes. Price Points The more it costs a company to produce a product, the greater price the company will have to charge consumers. A company’s production costs include the price of materials, the cost of manpower, the production and packaging process, advertising, and distribution. Mass producers may be able to offer more competitive pricing to end users because they have the luxury of working on a thin margin due to the large volume of production. In microeconomics, the long run is the conceptual time period in which there are no fixed factors of production as to changing the output level by changing the capital stock or by entering or leaving an industry. The long run contrasts with the short run, in which some factors are variable and others are fixed, constraining entry or exit from an industry. In macroeconomics, the long run is the period when the general price level, contractual wage rates, and expectations adjust fully to the state of the economy, in contrast to the short run when these variables may not fully adjust. [1] In the long run, firms change production levels in response to (expected) economic profits or losses, and the land, labor, capital goods and entrepreneurship vary to reach associated long-run average cost. In the simplified case of plant capacity as the only fixed factor, a generic firm can make these changes in the long run: * enter an industry in response to (expected) profits * leave an industry in response to losses * increase its plant in response to profits * decrease its plant in response to losses. Long-run average-cost curve with economies of scale to Q2 and diseconomies of scale thereafter. The long run is associated with the long-run average cost (LRAC) curve in microeconomic models along which a firm would minimize its average cost (cost per unit) for each respective long-run quantity of output. Long-run marginal cost (LRMC) is the added cost of providing an additional unit of service or commodity from changing capacity level to reach the lowest cost associated with that extra output. LRMC equalling price is efficient as to resource allocation in the long run. The concept of long-run cost is also used in determining whether the long-run expected to induce the firm to remain in the industry or shut down production there. In long-run equilibrium of an industry in which perfect competition prevails, the LRMC = Long run average LRAC at the minimum LRAC and associated output. The shape of the long-run marginal and average costs curves is determined by economies of scale. The long run is a planning and implementation stage. [2][3] Here a firm may decide that it needs to produce on a larger scale by building a new plant or adding a production line. The firm may decide that new technology should be incorporated into its production process. The firm thus considers all its long-run production options and selects the optimal combination of inputs and technology for its long-run urposes. [4] The optimal combination of inputs is the least-cost combination of inputs for desired level of output when all inputs are variable. [3] Once the decisions are made and implemented and production begins, the firm is operating in the short run with fixed and variable inputs. [3][5] Short run All production in real time occurs in the short run. The short run is the conceptual time period in which at least one factor of production is fixed in amount and others are variable in am ount. Costs that are fixed, say from existing plant size, have no impact on a firms short-run decisions, since only variable costs and revenues affect short-run profits. Such fixed costs raise the associated short-run average cost of an output long-run average cost if the amount of the fixed factor is better suited for a different output level. In the short run, a firm can raise output by increasing the amount of the variable factor(s), say labor through overtime. A generic firm already producing in an industry can make three changes in the short run as a response to reach a posited equilibrium: * increase production decrease production * shut down. In the short run, a profit-maximizing firm will: * increase production if marginal cost is less than marginal revenue (added revenue per additional unit of output); * decrease production if marginal cost is greater than marginal revenue; * continue producing if average variable cost is less than price per unit, even if average total cost is gre ater than price; * shut down if average variable cost is greater than price at each level of output. Transition from short run to long run The transition from the short run to the long run may be done by considering some short-run equilibrium that is also a long-run equilibrium as to supply and demand, then comparing that state against a new short-run and long-run equilibrium state from a change that disturbs equilibrium, say in the sales-tax rate, tracing out the short-run adjustment first, then the long-run adjustment. Each is an example of comparative statics. Alfred Marshall (1890) pioneered in comparative-static period analysis. [6] He istinguished between the temporary or market period (with output fixed), the short period, and the long period. Classic contemporary graphical and formal treatments include those of Jacob Viner (1931),[7] John Hicks (1939),[8] and Paul Samuelson (1947). [9] The law of diminishing marginal returns The law of diminishing marginal returns to a variable factor applies to the short run. [10] It posits an effect of decreased added or marginal product of from variable factors, which increas es the supply price of added output. [11] The law is related to a positive slope of the short-run marginal-cost curve. 12] Macroeconomic usages The usage of long run and short run in macroeconomics differs somewhat from the above microeconomic usage. J. M. Keynes (1936) emphasized fundamental factors of a market economy that might result in prolonged periods away from full-employment. [13] In later macro usage, the long run is the period in which the price level for the economy is completely flexible as to shifts in aggregate demand and aggregate supply. In addition there is full mobility of labor and capital between sectors of the economy and full capital mobility between nations. In the short run none of these conditions need fully hold. The price is sticky or fixed as to changes in aggregate demand or supply, capital is not fully mobile between sectors, and capital is not fully mobile to interest rate differences among countries amp; fixed exchange rates. [14] A famous critique of neglecting short-run analysis was by John Maynard Keynes, who wrote that In the long run, we are all dead, referring to the long-run proposition of the quantity theory of, for example, a doubling of the money supply doubling the price level. 15] Marginal  Analysis Thinking at the  Margin From Mike Moffatt, former About. com Guide From an economists perspective, making choices involves making decisions at the margin that is, making decisions based on small changes in resources: * How should I spend the next hour? * How should I spend the next dollar? On the surface, this seems like a strange way of considering the choices made by people and firms. It is rare that someone would consciously ask themselves How will I spend dollar number 24,387? , How will I spend dollar number 24,388? . Treating the problem in this matter does have some distinct advantages: * Doing so leads to the optimal decisions being made, subject to preferences, resources and informational constraints. * It makes the problem less messy from an analytic point of view, as we are not trying to analyze a million decisions at once. * While this does not exactly mimic conscious decision making processes, it does provide results similar to the decisions people actually make. That is, people may not think using this method, but the decisions they make are as if they do. Marginal Analysis An Example Consider the decision on how many hours to work, as given by the following chart: Hour Hourly Wage Value of Time Hour 1 $10 $2 Hour 2 $10 $2 Hour 3 $10 $3 Hour 4 $10 $3 Hour 5 $10 $4 Hour 6 $10 $5 Hour 7 $10 $6 Hour 8 $10 $8 Hour 9 $15 $9 Hour 10 $15 $12 Hour 11 $15 $18 Hour 12 $15 $20 The hourly wage represents what I earn for working an extra hour it is the marginal gain or the marginal benefit. The value of time is essentially an opportunity cost it is how much I value having that hour off. In this example it represents a marginal cost what it costs me by working an additional hour. The increase in marginal costs is a common phenomenon; I do not mind working a few hours since there are 24 hours in a day. I still have plenty of time to do other things. However, as I start to work more hours it reduces the number of hours I have for other activities. I have to start giving up more and more valuable opportunities to work those extra hours. It is clear that I should work the first hour, as I gain $10 in marginal benefits and lose only $2 in marginal costs, for a net gain of $8. By the same logic I should work the second and third hours as well. I will want to work until which time the marginal cost exceeds the marginal benefit. I will want to work the 10th hour as I receive a net benefit of #3 (marginal benefit of $15, marginal cost of $12). However, I will not want to work the 11th hour, as the marginal cost ($18) exceeds the marginal benefit ($15) by three dollars. Thus marginal analysis suggests that rational maximizing behavior is to work for 10 hours. Next Lesson: Market Distortions: Altering the Supply and Demand Equilibrium. Marginal Analysis * Marginal Revenue Glossary Dictionary Definition of Marginal Revenue * Marginal Significance Value Glossary Dictionary Definition of Marginal Si * Marginal Revenue and Marginal Cost Practice Question Related Articles * Running a Private Practice Working with Animals * Work Stress Long Work Hours Are Not the Culprit * Open for Business: Scheduling Your Week Being a Personal Trainer * Three Union Work Rules That Increase the Cost of Operating Transit * Hold On to Your Sanity Start Your Own Business AN INTRODUCTION TO COST BENEFIT ANALYSIS| * Background * Cost-Benefit Analysis (CBA) estimates and totals up the equivalent money value of the benefits and costs to the community of projects to establish whether they are worthwhile. These projects may be dams and highways or can be training programs and health care systems. * The idea of this economic accounting originated with Jules Dupuit, a French engineer whose 1848 article is still worth reading. The British economist, Alfred Marshall, formulated some of the formal concepts that are at the foundation of CBA. But the practical development of CBA came as a result of the impetus provided by the Federal Navigation Act of 1936. This act required that the U. S. Corps of Engineers carry out projects for the improvement of the waterway system when the total benefits of a project to whomsoever they accrue exceed the costs of that project. Thus, the Corps of Engineers had created systematic methods for measuring such benefits and costs. The engineers of the Corps did this without much, if any, assistance from the economics profession. It wasnt until about twenty years later in the 1950s that economists tried to provide a rigorous, consistent set of methods for measuring benefits and costs and deciding whether a project is worthwhile. Some technical issues of CBA have not been wholly resolved even now but the fundamental presented in the following are well established. * Principles of Cost Benefit Analysis * One of the problems of CBA is that the computation of many components of benefits and costs is intuitively obvious but that there are others for which intuition fails to suggest methods of measurement. Therefore some basic principles are needed as a guide. There Must Be a Common Unit of Measurement * In order to reach a conclusion as to the desirability of a project all aspects of the project, positive and negative, must be expressed in terms of a common unit; i. e. , there must be a bottom line. The most convenient common unit is money. This means that all benefits and costs of a project should be measured in terms of their equivalent money value. A program may provide benefits which are not directly expressed in terms of dollars but there is some amount of money the recipients of the benefits would consider just as good as the projects benefits. For example, a project may provide for the elderly in an area a free monthly visit to a doctor. The value of that benefit to an elderly recipient is the minimum amount of money that that recipient would take instead of the medical care. This could be less than the market value of the medical care provided. It is assumed that more esoteric benefits such as from preserving open space or historic sites have a finite equivalent money value to the public. * Not only do the benefits and costs of a project have to be expressed in terms of equivalent money value, but they have to be expressed in terms of dollars of a particular time. This is not just due to the differences in the value of dollars at different times because of inflation. A dollar available five years from now is not as good as a dollar available now. This is because a dollar available now can be invested and earn interest for five years and would be worth more than a dollar in five years. If the interest rate is r then a dollar invested for t years will grow to be (1+r)t. Therefore the amount of money that would have to be deposited now so that it would grow to be one dollar t years in the future is (1+r)-t. This called the discounted value or present value of a dollar available t years in the future. * When the dollar value of benefits at some time in the future is multiplied by the discounted value of one dollar at that time in the future the result is discounted present value of that benefit of the project. The same thing applies to costs. The net benefit of the projects is just the sum of the present value of the benefits less the present value of the costs. * The choice of the appropriate interest rate to use for the discounting is a separate issue that will be treated later in this paper. CBA Valuations Should Represent Consumers or Producers Valuations As Revealed by Their Actual Behavior * The valuation of benefits and costs should reflect preferences revealed by choices which have been made. For example, improvements in transportation frequently involve saving time. The question is how to measure the money value of that time saved. The value should not be merely what transportat ion planners think time should be worth or even what people say their time is worth. The value of time should be that which the public reveals their time is worth through choices involving tradeoffs between time and money. If people have a choice of parking close to their destination for a fee of 50 cents or parking farther away and spending 5 minutes more walking and they always choose to spend the money and save the time and effort then they have revealed that their time is more valuable to them than 10 cents per minute. If they were indifferent between the two choices they would have revealed that the value of their time to them was exactly 10 cents per minute. * The most challenging part of CBA is finding past choices which reveal the tradeoffs and equivalencies in preferences. For example, the valuation of the benefit of cleaner air could be established by finding how much less people paid for housing in more polluted areas which otherwise was identical in characteristics and location to housing in less polluted areas. Generally the value of cleaner air to people as revealed by the hard market choices seems to be less than their rhetorical valuation of clean air. * Benefits Are Usually Measured by Market Choices * When consumers make purchases at market prices they reveal that the things they buy are at least as beneficial to them as the money they relinquish. Consumers will increase their consumption of any commodity up to the point where the benefit of an additional unit (marginal benefit) is equal to the marginal cost to them of that unit, the market price. Therefore for any consumer buying some of a commodity, the marginal benefit is equal to the market price. The marginal benefit will decline with the amount consumed just as the market price has to decline to get consumers to consume a greater quantity of the commodity. The relationship between the market price and the quantity consumed is called the demand schedule. Thus the demand schedule provides the information about marginal benefit that is needed to place a money value on an increase in consumption. * Gross Benefits of an Increase in Consumption is an Area Under the Demand Curve * The increase in benefits resulting from an increase in consumption is the sum of the marginal benefit times each incremental increase in consumption. As the incremental increases considered are taken as smaller and smaller the sum goes to the area under the marginal benefit curve. But the marginal benefit curve is the same as the demand curve so the increase in benefits is the area under the demand curve. As shown in Figure 1 the area is over the range from the lower limit of consumption before the increase to consumption after the increase. * Figure 1 * When the increase in consumption is small compared to the total consumption the gross benefit is adequately approximated, as is shown in a welfare analysis, by the market value of the increased consumption; i. e. , market price times the increase in consumption. * Some Measurements of Benefits Require the Valuation of Human Life * It is sometimes necessary in CBA to evaluate the benefit of saving human lives. There is considerable antipathy in the general public to the idea of placing a dollar value on human life. Economists recognize that it is impossible to fund every project which promises to save a human life and that some rational basis is needed to select which projects are approved and which are turned down. The controversy is defused when it is recognized that the benefit of such projects is in reducing the risk of death. There are many cases in which people voluntarily accept increased risks in return for higher pay, such as in the oil fields or mining, or for time savings in higher speed in automobile travel. These choices can be used to estimate the personal cost people place on increased risk and thus the value to them of reduced risk. This computation is equivalent to placing an economic value on the expected number of lives saved. * The Analysis of a Project Should Involve a With Versus Without Comparison * The impact of a project is the difference between what the situation in the study area would be with and without the project. This that when a project is being evaluated the analysis must estimate not only what the situation would be with the project but also what it would be without the project. For example, in determining the impact of a fixed guideway rapid transit system such as the Bay Area Rapid Transit (BART) in the San Francisco Bay Area the number of rides that would have been taken on an expansion of the bus system should be deducted from the rides provided by BART and likewise the additional costs of such an expanded bus system would be deducted from the costs of BART. In other words, the alternative to the project must be explicitly specified and considered in the evaluation of the project. Note that the with-and-without comparison is not the same as a before-and-after comparison. Another example shows the importance of considering the impacts of a project and a with-and-without comparison. Suppose an irrigation project proposes to increase cotton production in Arizona. If the United States Department of Agriculture limits the cotton production in the U. S. by a system of quotas then expanded cotton production in Arizona might be offset by a reduction in the cotto n production quota for Mississippi. Thus the impact of the project on cotton production in the U. S. might be zero rather than being the amount of cotton produced by the project. * Cost Benefit Analysis Involves a Particular Study Area The impacts of a project are defined for a particular study area, be it a city, region, state, nation or the world. In the above example concerning cotton the impact of the project might be zero for the nation but still be a positive amount for Arizona. * The nature of the study area is usually specified by the organization sponsoring the analysis. Many effects of a project may net out over one study area but not over a smaller one. The specification of the study area may be arbitrary but it may significantly affect the conclusions of the analysis. * Double Counting of Benefits or Costs Must be Avoided Sometimes an impact of a project can be measured in two or more ways. For example, when an improved highway reduces travel time and the risk of injury the value of property in areas served by the highway will be enhanced. The increase in property values due to the project is a very good way, at least in principle, to measure the benefits of a project. But if the increased property values are included then it is unnecessary to include the value of the time and lives saved by the improvement in the highway. The property value went up because of the benefits of the time saving and the reduced risks. To include both the increase in property values and the time saving and risk reduction would involve double counting. * Decision Criteria for Projects * If the discounted present value of the benefits exceeds the discounted present value of the costs then the project is worthwhile. This is equivalent to the condition that the net benefit must be positive. Another equivalent condition is that the ratio of the present value of the benefits to the present value of the costs must be greater than one. * If there are more than one mutually exclusive project that have positive net present value then there has to be further analysis. From the set of mutually exclusive projects the one that should be selected is the one with the highest net present value. * If the funds required for carrying out all of the projects with positive net present value are less than the funds available this means the discount rate used in computing the present values is too low and does not reflect the true cost of capital. The present values must be recomputed using a higher discount rate. It may take some trial and error to find a discount rate such that the funds required for the projects with a positive net present value is no more than the funds available. Sometimes as an alternative to this procedure people try to select the best projects on the basis of some measure of goodness such as the internal rate of return or the benefit/cost ratio. This is not valid for several reasons. * The magnitude of the ratio of benefits to costs is to a degree arbitrary because some costs such as operating costs may be deducted from benefits and thus not be included in the cost figure. This is called netting out of operating costs. This netting out may be done for some projects and not for others. This manipulation of the benefits and costs will not affect the net benefits but it may change the benefit/cost ratio. However it will not raise the benefit cost ratio which is less than one to above one. For more on this topic see Benefit/ cost Ratio Magnitude. * An Example * To illustrate how CBA might be applied to a project, let us consider a highway improvement such as the extension of Highway 101 into San Jose. The local four-lane highway which carried the freeway and commuter traffic into San Jose did not have a median divider and its inordinate number of fatal head-on collisions led to the name Blood Alley. The improvement of the highway would lead to more capacity which produces time saving and lowers the risk. But inevitably there will be more traffic than was carried by the old highway. * The following is a highly abbreviated analysis using hypothetical data. TRIP DATA| No Extension, Blood Alley Only| 101 Extension and Blood Alley| Rush Hours|   |   | Passenger Trips ( per hour)| 3,000| 4,000| Trip Time (minutes)| 50| 30| Value of Time ($/minute)| $0. 10| $0. 10| Nonrush Hours|   |   | Passenger Trips (per hour)| 500| 555. 55| Trip Time (minutes)| 35| 25| Value of Time ($/minute)| $0. 08| $0. 08| Traffic Fatalities per year)| 12| 6| * The data indicates that for rush-hour trips the time cost of a trip is $5 without the project and $3 with it. It is assumed that the operating cost for a vehicle is unaffected by the project and is $4. * The project lowers the cost of a trip and the public responds by increasing the number of trips taken. There is an increase in consumer surplus both for the trips which would have been taken without the project and for the trips which are stimulated by the project. * For trips which would have been taken anyway the benefit of the project equals the value of the time saved times the number of trips. For the rush-hour trip the project saves $2 and for the nonrush-hour trip it saves $0. 80. For the trips generated by the project the benefit is equal to one half of the value of the time saved times the increase in the number of trips. * The benefits per hour are: TYPE| Trips Which Would Be Taken Anyway| Trips Generated By the Project| Total| Rush Hour| 6,000. 00| 1,000. 00| 7,000. 00| Nonrush Hour| 400. 00| 22. 22| 422. 22| * To convert the benefits to an annual basis one multiplies the hourly benefits of each type of trip times the number of hours per year for that type of trip. There are 260 week days per year and at six rush hours per weekday there are 1560 rush hours per year. This leaves 7200 nonrush hours per year. With these figures the annual benefits are: TYPE| Trips Which Would Be Taken Anyway| Trips Generated By the Project| Total| Rush Hour| $9,360,000| $1,560,000| $10,020,000| Nonrush Hour| $2,880,000| $160,000| $3,040,000| Total| $12,240,000| $1,720,000| $13,960,000| * The value of the reduced fatalities may be computed in terms of the equivalent economic value people place upon their lives when making choices concerning risk and money. If the labor market has wages for occupations of different risks such that people accept an increase in the risk of death of 1/1,000 per year in return for an increase in income of $400 per year then a project that reduces the risk of death in a year by 1/1000 gives a benefit to each person affected by it of $400 per year. The implicit valuation of a life in this case is $400,000. Thus benefit of the reduced risk project is the expected number of lives saved times the implicit value of a life. For the highway project this is 6x$400,000= $2,400,000 annually. * The annual benefits of the project are thus: TYPE OF BENEFIT| VALUE OF BENEFITS PER YEAR| Time Saving| $13,960,000| Reduced Risk| $2,400,000| * Let us assume that this level of benefits continues at a constant rate over a thirty-year lifetime of the project. * The cost of the highway consists of the costs for its right-of-way, its construction and its maintenance. The cost of the right-of-way is the cost of the land and any structures upon it which must be purchased before the construction of the highway can begin. For purposes of this example the cost of right-of-way is taken to be $100 million and it must be paid before any construction can begin. At least part of the right-of- way cost for a highway can be recovered at the end of the lifetime of the highway if it is not rebuilt. For the example it is assumed that all of the right-of-way cost is recoverable at the end of the thirty-year lifetime of the project. The construction cost is $200 million spread evenly over a four-year period. Maintenance cost is $1 million per year once the highway is completed. * The schedule of benefits and costs for the project are as follows: TIME (year)| BENEFITS ($millions)| RIGHT-OF -WAY ($millions)| CONSTRUCTION COSTS $millions)| MAINTENANCE ($millions)| 0| 0| 100| 0| 0| 1-4| 0| 0| 50| 0| 5-29| 16. 36| 0| 0| 1| 30| 16. 36| -100| 0| 1| * The benefits and costs are in constant value dollars; i. e. , there was no price increase included in the analysis. Therefore the discount rate used must be the real interest rate. If the interest rate on long term bonds is 8 percent and the rate of inflation is 6 percent then the real rate of interest is 2 p ercent. Present value of the streams of benefits and costs discounted at a 2 percent back to time zero are as follows:   | PRESENT VALUE $ millions)| Benefits| 304. 11| Costs|   | Right-of-Way| 44. 79| Construction| 190. 39| Maintenance| 18. 59| Total Costs| 253. 77| |   | | Net Benefits| 50. 35| | *independent rounding| * The positive net present value of $50. 35 million and benefit/cost ratio of 1. 2 indicate that the project is worthwhile if the cost of capital is 2 percent. When a discount rate of 3 percent is the benefit/cost ratio is slightly under 1. 0. This means that the internal rate of return is just under 3 percent. When the cost of capital is 3 percent the project is not worthwhile. It should be noted that the market value of the right-of-way understates the opportunity cost of having the land devoted to the highway. The land has a value of $100 million because of its income after property taxes. The economy is paying more for its alternate use but some of the pay ment is diverted for taxes. The discounted presented value of the payments for the alternate use might be more like $150 million instead of $100 million. Another way of making this point is that one of the costs of the highway is that the local governments lose the property tax on the land used. * Summary By reducing the positive and negative impacts of a project to their equivalent money value Cost-Benefit Analysis determines whether on balance the project is worthwhile. The equivalent money value are based upon information derived from consumer and producer market choices; i. e. , the demand and supply schedules for the goods and services affected by the project. Care must be taken to properly allow for such things as inflation. When all this has been considered a worthwhile project is one for which the discounted value of the benefits exceeds the discounted value of the costs; i. . , the net benefits are positive. This is equivalent to the benefit/cost ratio being greater than on e and the internal rate of return being greater than the cost of capital. * History of Cost-Benefit Analysis * CBA has its origins in the water development projects of the U. S. Army Corps of Engineers. The Corps of Engineers had its origins in the French engineers hired by George Washington in the American Revolution. For years the only school of engineering in the United States was the Military Academy at West Point, New York. In 1879, Congress created the Mississippi River Commission to prevent destructive floods. The Commission included civilians but the president had to be an Army engineer and the Corps of Engineers always had veto power over any decision by the Commission. * In 1936 Congress passed the Flood Control Act which contained the wording, the Federal Government should improve or participate in the improvement of navigable waters or their tributaries, including watersheds thereof, for flood-control purposes if the benefits to whomsoever they may accrue are in excess of the estimated costs. The phrase if the benefits to whomsoever they may accrue are in excess of the estimated costs established cost-benefit analysis. Initially the Corps of Engineers developed ad hoc methods for estimating benefits and costs. It wasnt until the 1950s that academic economists discovered that the Corps had developed a system for the economic analysis of public investments. Economists have influenced and improved the Corps methods since then and cost-benefit analysis has been adapted to most areas of public decision-making.