Finance For International Business Essay Example | Topics and Well Written Essays - 2500 words

Finance For International Business - Essay Example The article presents the financing and the methods of capital budgeting. Capital budgeting is defined as the planning process which is applied by the managers of the company to decide whether the long-term investments are worth the supplying/funding of money through the capitalization structure of the company. Fenland Foods Plc should opt for debt financing method if it considers investing in the project in spite of the negative results of the Fresh Farm because it does not require sharing the company’s part with the investor. Financing through bank loan will be the better option because raising a loan through the bank will give the freedom to Fenland to run the Fresh Farm Foods Company without any intrusion from the lender. By opting for the bank loan, Fenland could also enjoy the tax benefits as the interest paid on loans are generally deducted from the income before computing the taxable income. The capital asset pricing model provides a practical risk measure that helps the investors to resolve what return they actually deserve for placing their money or capital at risk. It is recommended that Fenland Foods Plc should not undertake the project as the NPV of Fresh Farm Foods is negative and also the payback period is more than five years which signifies that Fenland will not be a ble to quickly pay the finances. It is also advised that if Fenland considers undertaking this project in spite of its negative result then they may invest  £400,000 which is less than the initial investment.

Destructions of Rainforest Research Paper Example | Topics and Well Written Essays - 1000 words

Destructions of Rainforest - Research Paper Example For example, The Amazonian rainforest of South America contributes 20% of the world’s oxygen. Rainforest contributes to pharmaceutical developments in the world. Flora and fauna in the rainforest are used in production of approximately 25-40% of pharmaceutical products with a minimal percentage of native life tested for use. Recently, human activities have drastically reduced the size of rainforests. Most scientists argue that tropical rainforests face exhaustion through the current deforestation rate between the years 2030-2050 (politics.co.uk, 2012). Background Human civilization has led to degradation of rainforests. The rise in human population and the quest for fertile land for agriculture contributed to loss of most forests. Advancements in civilization during the industrial revolution led to increased demand for wood fuel and fertile land for agriculture. Improvements in transport and communication affected rainforests. Deforestation accelerated in the 20th century. The modern version for destruction of rainforests was for commercial purposes. Commercial logging, deforestation to create space for livestock rearing became reasons for rainforest destruction. Creation of European sugar plantations in coastal Brazil and Caribbean propagated rainforest destruction. ... Controversies Science argues that destruction of rainforests has negative impacts on the earth. Destruction of biodiversity and indigenous culture is promoted. Desertification and land degradation promotes loss in soil fertility and Greenhouse Effect which reduces the planet’s ability to recycle carbon dioxide. Economic and politics play roles in deforestation. Most rainforests are found in developing countries, which are characterized by weak political and social institutions. Developing countries depend on timber, land for agriculture, and other valuable resources for economic development. Palm oil production and soy industries pose a threat to deforestation. Conservation measur es enforced by the developed world do not reflect the interest of developing countries. This controversy has led to the debate on conservation of rainforests as a rich-poor agenda. Guidelines used to curb rainforest destruction are flouted by some governments. A country like Brazil faces criticism by environmental organizations like Worldwide Fund for Nature for continuous logging and deforestation practices. Despite this opposition, the developed world cannot be blamed for international pressure. Surveys conducted reveal that most European countries react meagerly to stop illegal importation of timber and other rainforest products. Among the EU states, UK is singled out as the only state that monitors its sources of timber. Consumption of timber products in developed countries remains to soar. The timber products fetch smart money from developed countries than developing ones (politics.co.uk, 2012). As a result, indigenous communities from rainforest areas suffer from catastrophe d ecline. Mortality rates have increased because of diseases like flu, measles and smallpox.