relationship between government spending on infrastructure development and economic growth. Indicators used for government spending are values for defence‚ transport/communication‚ and inflation rate as the explanatory variables‚ while gross domestic product constituted the explained variable. The model for the study was estimated using the Ordinary Least Square (OLS) technique‚ and further evaluation was carried out using the coefficient of determination to explain the variations between the dependent
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Expenditures and Revenues Matrix and Summary Monya L. Duncan AJS 522/Finance and Budgeting in Justice and Security November 25‚ 2013 Professor Michael Scott Expenditures and Revenues Matrix and Summary Introduction Lynch and Smith‚ 2004 state that‚ “A “budget” is a plan for the accomplishment of programs related to objectives and goals within a definite time period‚ including an estimate of resources required‚ together with an estimate of the resources available‚ usually compared with one
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different instruments. Public expenditure has traditionally been a component of fiscal policy which is an instrument of the State to influence economic growth. Several models of government investment and growth have been designed to investigate the relation between government expenditure and economic growth. However‚ some debate prevails. To illustrate‚ studies done by Landau (1986)‚ Barro (1990)‚ Grier and Tullock (1989) reveal a negative relationship between government expenditure and economic growth‚ while
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The internal rate of return (IRR) and the net present value (NPV) techniques are 2 investment decision tools that satisfy the 2 major criteria for the correct evaluation of capital projects. This criterion is that the techniques should incorporate the use of cash flows and the use of the time value of money. This makes them viable techniques for evaluating investment proposals. The Net Present Value is one of the techniques that are used by firms when evaluating which investment proposals to take
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Case: Integrated Siting Systems‚ Inc. (ISSI) PROBLEM STATEMENT Integrated Siting Systems Inc (ISSI) manufactures and installs state-of-the-art mobile vehicle tracking systems. ISSI’s primary market is municipal emergency vehicles‚ and when functioning effectively‚ the system allows municipal authorities to track their vehicles and deploy them more effectively to respond to emergencies. While the company already has an extensive network of clients across the Midwest in rural areas‚ a new project
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Understanding the response of personal savings and expenditure to changes in the interest rates is a central to many issues in the economic policy. If personal savings decline as a result‚ the overall increase in the national savings would be less than the reduction in the budget deficit. Alternatively‚ contractionary monetary policy generally causes interest rates to rise. It personal saving increase as a result‚ the corresponding fall in consumer expenditure helps to slow the economy. Household behaviour
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Impact of Capital Structure on Firm Value Financial Management Assignment 10/12/2010 Completed and Submitted by‚ Aishwarya R. (06) Anjana Pradeep (12) Arijit Ghosh (18) Gayathri M.A. (34) Jyothi D. (44) Lavanya P. (51) CONTENTS INTRODUCTION.......................................................3 COMPANIES CHOSEN..............................................3 LARSEN AND TOUBRO............................................3 Overview……………………………………………………………
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Abstract This essay will discuss the net present value (NPV)‚ payback period (PBP) and internal rate of return (IRR) approaches for a project evaluation. It is often said that NPV is the best approach investment appraisal‚ which I why I will compare the strengths and weaknesses of NPV as well as the two others to se if the statement is actually true. Introduction To start of‚ the essay will attempt to explain the theoretical rationale of the net present value approach to investment appraisal as
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Family values In the past decade there has been a drastic down turn in the ethical and moral standards in the western world‚ especially in America. There is a vicious attack on the fundamental institution our family .It is sad to see how this downward trend is leading to an increasing decay of our family life. Basic ethics is a science that evaluates and explains the values that differentiate between right and wrong or good and bad conduct. The basic tool used to destroy the moral standards in our
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Chapter 13 Real Options and Other Topics in Capital Budgeting Learning Objectives After reading this chapter‚ the student should be able to: ◆ Explain why conventional NPV analysis may not capture a project’s impact on the firm’s opportunities. ◆ Identify five different types of real options. ◆ Explain what an abandonment/shutdown option is‚ give an example of a project that includes this type of option‚ and explain what an option value is. ◆ Explain what a decision
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