Discussed from Paperco, Inc. Essay Example for Free

Discussed from Paperco, Inc. Essay This case study is discussed from Paperco, Inc. point of view of whether they should avail the tax benefits and cost savings in replacing the mechanical drying equipment. Recommendation Based on the analysis below in this memo, Paperco should purchase new mechanical drying equipment now in advance in anticipation of the passage of new tax legislation. Purchasing the equipment now maintains a positive Net Present Value for the capital project if the legislation is not enacted, or if the new legislation is enacted and the capital project is contracted early enough so that it is grandfathered in. With tax legislation grandfathered, the project gets the benefit of the new lower corporate tax rate and the old ACRS depreciation method. Although when presented with this project one year ago in 1984, Paperco was able to be postponed this capital project since it was merely â€Å"moderately attractive†. The prospect of new tax legislation being enacted as rumored makes the Net Present Value of the project comparatively more positive if the tax law changes are enacted, so Paperco should act now before tax law changes make this project infeasible. Background In November 1985, Jane Rogers a marketing representative of Pressco, Inc. approached Paperco, Inc. to sell its mechanical drying equipment at a price of $2.9 million. This new equipment would replace less efficient facilities that had been placed in service late in December 1979. According to Roger, the total cost saving (exclusive of depreciation charges) from the proposed installation of new equipment amounted to $560,000 per year. Of this amount, $360,000 in savings was expected to come from more efficient fuel utilization. One year earlier, Rogers had been unsuccessful in interesting Paperco’s management in purchase of new equipment. Paperco felt that the investment in  new equipment as moderately attractive at that time. However, beginning 1986, new tax legislation had been rumored to: (1) eliminate the investment tax credit for new equipment; (2) extend depreciation lives for new equipment, and (3) reduce the corporate tax rate from 46% to 34%. Paperco’s senior management was concerned that the basic thrust in the firm’s sales of mechanical drying equipment. Paperco’s management suddenly expressed significant interest in moving forward with the purchase of new equipment and seemed anxious to sign a binding contract. Discussion and Analysis We need to analyze when is the best situation for Paperco, Inc. to replace the old facilities with new drying equipment that will enable the Company to avail greater tax benefits and cost savings. There are three alternative courses of action available to Paperco, Inc. to decide whether to buy the new drying equipment or not. I. Buy the new equipment yet no legislation is enacted Advantages Continue to use a 5 years ACRS depreciation model with higher depreciation expense Efficiency in operations due to new equipment Disadvantages Retain all tax credits due to using 5 year ACRS depreciation model in equipment with useful life of 7 years Tax rate continued at 46% II. Buy the new equipment when the new tax proposal is enacted and bind the contract soon enough to be grandfathered or before the enactment of the law Advantages Continue to use a 5 years ACRS depreciation model with higher depreciation expense Efficiency in operations due to new equipment Investment tax credit that will reduce Paperco’s taxes Tax rate reduced to 34% from 46% Disadvantages Depreciation life of the equipment will not be extended III. Buy the new equipment when the new proposed tax is enacted but do not bind the contract in time to be grandfathered or after the enactment of the law Advantages Efficiency in operations due to new equipment Tax rate reduced to 34% from 46% Depreciation life of the equipment will be extended by 2 years Disadvantages MACRS depreciation model will generate lower depreciation expenses than the ACRS depreciation model No investment tax credit due to binding the contract after the law was enacted Option I in which the rumored tax proposal is not enacted and that the new equipment replaces the old equipment in December 1986. Paperco would retain all tax credits due to the fact the machine has been in service for 84 months, and use a 5-year ACRS depreciation model for the new equipment. This option has a positive NPV of $2,619,745. Option II in which the new tax proposal is enacted. The new equipment is installed in December 1986. Paperco signs a binding contract soon enough to be â€Å"grandfathered†, this allows Paperco to receive the 8% tax credit and use ACRS depreciation. At the same time, their tax rate would fall to 34%. Paperco would benefit from this more favorable â€Å"grandfathered† tax approach. Option II has a positive NPV of $3,414,104. Option III in which the new tax proposal is enacted and Paperco installs the new equipment in December 1986, but they do not sign a binding contract in time to be â€Å"grandfathered† and receive the 8% invest ment tax credit and use ACRS depreciation. The company will use MACRS and a depreciation period of 7 years. The NPV of the project with this timing and structure is $3,228,044. Without the â€Å"grandfathered† tax allowance, the new tax legislation makes the project unattractive based on lower Net Present Value. Calculations Re-affirmation There are three options available to Paperco, Inc. with respect to this capital investment: Option I: New legislation is passed and Paperco qualifies for â€Å"grandfathering,† Option II: New legislation is passed and Paperco does not qualify for â€Å"grandfathering,† Option III: Buy the new equipment when the new proposed tax is enacted but do not bind the contract in time to be grandfathered or after the enactment of the law Last year (1984) investment in new drying equipment pursuant to Option I was not pursued despite its attractiveness as a viable capital project, perhaps because it was possible that a better alternative might arise. However, given the impending tax legislation, the possible alternatives are now known, and they are not good. Under the new tax legislation without grandfathering, the project is not viable. Paperco should invest in the new equipment (with binding contract) because not doing so soon enough, the project will not a viable alternative, while investing in the equipment is a viable alternative (i.e., the Net Present Value of the project in Option II is higher than other alternatives).

Nazi Use of Darwinism Essay -- History, Politics, The Treaty of Versa

After the Great War in the nineteenth century, European nations had a difficult time finding economic stability. Germany took full responsibility for starting World War I and by signing the Treaty of Versailles, Germany agreed to give up huge portions of territory and pay reparation to victorious allies. The harsh principles which were outlined by the Treaty of Versailles made economic stability in Germany difficult to achieve and caused Germany to suffer from inflation and the Great Depression. Unemployment and the fear of communism allowed Adolf Hitler to rise to power in 1933. Before Hitler came to power, he spent nine months in jail where he wrote his autobiography Mein Kampf (My Struggle), where he mentions how Darwin’s theory of evolution was the only basis for a successful Germany. He sets forth a number of evolutionary ideas such as; struggle, survival of the fittest, and extermination of the weak to create a better society (Bergman.) Unable to accept Germanys defeat i n the Great War, Adolf Hitler convinced the German people they had been defeated from within-or stabbed in the back by Communist, Socialists, liberals, and the Jews. These â€Å"races† became scapegoats in Germany, and that is how they were constructed as the â€Å"inferior race.† These groups of people, especially the Jews, were not even considered human. With the belief of an inferior race, came the belief of a superior race, which were the self-proclaimed Germans. Concentration camps were created in Germany to separate the inferior race, or the non-Germans from the Germans. It was believed that the inferior race was contaminating the German gene pool. Social Darwinism is a term used to describe ideologies which compare Darwin’s ideas of evolution to social scienc... ...lf was an atheist, although Bergman cannot speak for a group of people who believed what Hitler said to be true. If Hitler was an atheist it further validates the point I am trying to make, Hitler indeed used Darwin’s ideas to justify his actions along with creationist ideas. Bergman unable to acknowledge the fact Hitler used manipulation and propaganda to encourage Nazism, was quick to attack the ideas of evolution. Now I shall ask, is it fair to say Hitler was a creationists because he used god in his speech, thus creationism is equivalent to Nazism? Better yet, if the Nazis did not believe in a god, would the holocaust have occurred? Now, do not be fooled by my last statement, I do not believe creationism is the cause of the holocaust. However, I am trying to prove that Bergman’s argument about Darwinism is just as foolish as my previous statement. Nazi Use of Darwinism Essay -- History, Politics, The Treaty of Versa After the Great War in the nineteenth century, European nations had a difficult time finding economic stability. Germany took full responsibility for starting World War I and by signing the Treaty of Versailles, Germany agreed to give up huge portions of territory and pay reparation to victorious allies. The harsh principles which were outlined by the Treaty of Versailles made economic stability in Germany difficult to achieve and caused Germany to suffer from inflation and the Great Depression. Unemployment and the fear of communism allowed Adolf Hitler to rise to power in 1933. Before Hitler came to power, he spent nine months in jail where he wrote his autobiography Mein Kampf (My Struggle), where he mentions how Darwin’s theory of evolution was the only basis for a successful Germany. He sets forth a number of evolutionary ideas such as; struggle, survival of the fittest, and extermination of the weak to create a better society (Bergman.) Unable to accept Germanys defeat i n the Great War, Adolf Hitler convinced the German people they had been defeated from within-or stabbed in the back by Communist, Socialists, liberals, and the Jews. These â€Å"races† became scapegoats in Germany, and that is how they were constructed as the â€Å"inferior race.† These groups of people, especially the Jews, were not even considered human. With the belief of an inferior race, came the belief of a superior race, which were the self-proclaimed Germans. Concentration camps were created in Germany to separate the inferior race, or the non-Germans from the Germans. It was believed that the inferior race was contaminating the German gene pool. Social Darwinism is a term used to describe ideologies which compare Darwin’s ideas of evolution to social scienc... ...lf was an atheist, although Bergman cannot speak for a group of people who believed what Hitler said to be true. If Hitler was an atheist it further validates the point I am trying to make, Hitler indeed used Darwin’s ideas to justify his actions along with creationist ideas. Bergman unable to acknowledge the fact Hitler used manipulation and propaganda to encourage Nazism, was quick to attack the ideas of evolution. Now I shall ask, is it fair to say Hitler was a creationists because he used god in his speech, thus creationism is equivalent to Nazism? Better yet, if the Nazis did not believe in a god, would the holocaust have occurred? Now, do not be fooled by my last statement, I do not believe creationism is the cause of the holocaust. However, I am trying to prove that Bergman’s argument about Darwinism is just as foolish as my previous statement.

A Raisin in the Sun: Poem of Insecurities Essay

The dreams of the characters in the Raisin in the Sun by Lorraine Hansberry illustrated the theme of Langston Hughes poem. Lena, Walter, Ruth, and Beneatha all lived under the same roof, but their aspirations were all different. Being the head of the house, Lena just wanted her children to live the lives they imagined for themselves. Walter’s dream was to invest his mother’s money in a liquor store and to create a better life for his son Travis. Beneatha in the other hand wants to use her mother’s money to become a doctor when she got out of college and Ruth wants to be wealthy. A Raisin in the Sun was a book about â€Å"dreams deferred† and in this book Loraine Hansberry fluently described the dreams of the Younger Family and how their dreams became a destructive weapon on their family. Lena Younger, Walter and Beneatha’s mother was a widow who devoted her life to her children after her husband died. When she retired she was waiting for her husband’s insurance money to arrive. With the ten thousand dollars in her hand, Lena decided to buy a 3500 dollar house at Clybourne Park and she was also going to put some money in the bank for Beneatha so she could go to medical school. Those were her dreams, they were so simple and ordinary and also beautiful. She expected everyone to be delighted and surprised of the things she had done with the check and indeed they were, except for Walter. While Lena got her pie in the sky, Walter was upset his mother had spent the insurance money on the house and thought it wasn’t fair that Beneatha got some of it for her medical school while he got nothing for his liquor store business. Walter always discussed his dream thoroughly to his family and talked about how it would make their lives different, but Lena, who always wanted her son to be happy, trustingly gave the rest of the insurance money to Walter. Holding the money in his hands, Walter thanked his mother and appreciated the trust she had in him. Walter then gave the money to his buddies so that they could get him the liquor license without realizing that they betrayed him. This is how a dream can become destructive for others. As his dream crumbled into pieces, he began to regret that he didn’t listen to his mother, wife, and sister. He not only destroyed Beneatha and his dream but Ruth’s as well. Ruth was pregnant during his moment in despair and forgave and encouraged him to start everything over. Ruth, whose dream was to be wealthy and to have a fine family, calmly accepted the fact that her dream was only a dream. To her, it was a consolation that her husband had come back to reality after his unsuccessful dream. It is not essential to keep a dream alive, reason why is because if you don’t accomplish your reverie you’ll spend your whole life complaining about it. Ruth was not about to do that, she sucked it up and forgave Walter. Beneatha was upset to hear that Walter didn’t put anything in the bank for her medical school. Sad and depressed that the reality turned out differently from her dream, Beneatha gave up hope of becoming a doctor. Fortunately, her friend Asagai kept her dream alive and convinced her that there was still hope and ream in the world and that she should forget about the money because if her father did not die then she would have never gotten the chance. So Beneatha went with Asagai to his homeland, Nigeria, to practice her medical career. Conclusively, the family forgot their despair and moved to the new house for a new life. Although they knew it was tough to start everything over, but for them, it was as if their lives had just begun. Lorraine Hansberry had successfully illustrated the four main characters in the story as human beings with desires, dreams, aspirations, conflict, foibles, and strength. And it was â€Å"A Raisin in the Sun† that expressed those dreams and desires and how they ended up as â€Å"dreams deferred.†

Ethics Analysis The Alaska Code Of Ethics - 2293 Words

Running head: ETHICS ANALYSIS 1 ETHICS ANALYSIS 2 Ethics Analysis Professional Ethical Comparison The Alaska Code of Ethics for teachers contain many points that deal with normative and applied ethics. I drew this conclusion because many of the topics within the code lead to things that explain how things should be done or if situations arise, it explains how they should be handled. These more general ideas provide a framework, which grounds these ethics (Moral Philosophy, 2009). From there the Alaska Code of Ethics spirals down to more specific terms and situations. This is when the code gets into more applied ethics (Moral Philosophy, 2009). The Alaska Code of Ethics seems to speak to the personal values and morals of those for whom they are intended. This can be seen in many of the codes such as, ?The educator may not engage in physical abuse of a student or sexual conduct with a student and shall report to the commission knowledge of such an act by an educator? (Alaska Department of Education Early Learning, 2000). This is just one example of how Alaska?s code asks educators to abide not only by the professional code of ethics, but to also base their actions and judgments on their personal values and ethics. Teachers, in their responsibility to society, must work in order to not betray that trust (Nelson, Palonsky, McCarthy, 2010). The knowledge of this responsibility is obvious throughout the Alaska Code of Ethics. The Alaska Code of Ethics provides a veryShow MoreRelatedShould Vaccines Be Government Enforced?1584 Words   |  7 Pagesnumerous diseases which were once prominent. However, they are neither perfectly safe nor perfectly effective. Government enforced vaccines disregard modern medical ethics as well. Nevertheless, they should be widely encouraged. The problem with forced vaccinations is that they, by definition, run counter to every relevant set of medical ethics. Particularly the principles of Autonomy, beneficence, and nonmaleficence (AMA). Autonomy argues a patient obtain autonomy of thought, intention, and action whenRead MoreEssay Anthropology Midterm2029 Words   |  9 Pageshistory, reconstruct past life ways, and understand cultural processes. The study of culture history is to piece together the history of how culture changes over time. To reconstruct past life ways is a complex process that involves a good deal of analysis which is to figure out as much you can about the people who lived at a particular site or civilization. To understand cultural processes entails trying to figure out how and why material culture has changed which happens in three ways inventionRead MoreEthnicity, Culture And Alcohol Analysis And Cultural Competence914 Words   |  4 PagesEthnicity, Culture and Alcohol Analysis and Cultural Com petence in with Diverse Groups Introduction Attempting to treat individuals that have alcohol related issues requires a depth of knowledge and skill, specifically, when providing care to individuals of differentiating ethnic and cultural backgrounds. The National on Alcohol Abuse and Alcoholism (NIAAA) article discusses a multitude of resourceful information that is related to ethnicity, culture, and alcohol. Procuring detailed informationRead MoreBp s Improve Sustainability And Its Reputation For The Deepwater Horizon Disaster1620 Words   |  7 Pageshaving more oil than they could sell and not having a demand for it. Also BP has had disasters related to social responsibility, and before the major oil spill in 2010, BP was gaining a better reputation as a socially responsible oil company. This analysis will explain the different struggles that BP has faced over the years. I. Analyze BP’s efforts to improve sustainability and its reputation prior to the Deepwater Horizon disaster. Was the company on the right track? Why or why not? DespiteRead MoreComplete Guide to Ethics Management: an Ethics Toolkit for Managers10784 Words   |  44 PagesComplete Guide to Ethics Management: An Ethics Toolkit for Managers Written by Carter McNamara, MBA, PhD, Authenticity Consulting, LLC. Copyright 1997-2008. (This guide is located at http://www.managementhelp.org/ethics/ethxgde.htm on the Web.) The profession of business ethics has long needed a highly practical resource that is designed particularly for leaders and managers -- those people charged to ensure ethical practices in their organizations. Unfortunately, far too many resources about businessRead MoreMà ¤ori Public Health:4032 Words   |  17 PagesMà ¤ori Public Health: Ethics A discussion paper Preamble Being asked to write a paper on Mà ¤ori perspectives on Public Health ethics raises issues for me. Some years ago my research colleagues and I invited Moana Jackson to participate in a project on genetic engineering. Our first question for him was along the lines of whether Mà ¤ori had a ‘unique perspective’ on genetic engineering. It was then that we received our lesson about the use of the word ‘perspective’ (Cram, Pihama Philip-BarbaraRead MoreStandards Of Care And Emergency Preparedness Essay3381 Words   |  14 Pages10/15/16 – Standards of Care and Emergency Preparedness Unit 1 The nursing professional of today, have come a long way in achieving the Standards of Care (SOC), participating in the decision making of policies. Ethics learning according to the Code of Ethics should be practiced with every patient you come in contact with, advocating and providing the right treatment for your patients. This unit was informative about the Standards of Care, which is an important guideline for the nursing professionRead MoreCsr Report on Tesco Plc3390 Words   |  14 PagesTable of Contents Corporate Social Responsibility (CSR) 2 Definition of CSR 2 Development of CSR 2 Approaches to CSR 2 Business Benefits of CSR 3 Critical Analysis of CSR 3 Factors influencing CSR 4 The Business Case for CSR 6 TESCO PLC 8 Tesco and Corporate Social Responsibility 8 Environment 8 Community 9 Suppliers 9 People / Employees 10 Government / Regulators 10 How Tesco manages their Corporate Responsibility (CR) 10 Conclusion 10 Bibliography 13 Corporate Social ResponsibilityRead MoreThe Long Lasting Effects Of The Deepwater Horizon On The Gulf Of Mexico1544 Words   |  7 PagesCEO-mandated slashes in operating costs directed to lower maintenance and safety morals. The second incident would encompass a corroded pipe near Prudhoe Bay, Alaska. The spill would drive 200,000 gallons of crude into the water system. The spill was a result in an effort for management to save money, which resulted in a halt of cleaning and analysis of the pipeline. The evidence suggest that BP’s management has a track record of not putting safety ahead of cost and each time has resulted in a loss ofRead MoreCarnival Cruise Lines: Long and Short Term Strategies Essay8254 Words   |  34 PagesCarnival Cruise Lines: Long and Short Term Strategies Contents Contents 2 History of the Carnival Corp 3 Mission and Vision Statements 5 SWOT Analysis 6 Business Ethics for Carnival Cruise Lines 8 Social, Cultural, Demographic, and Environmental Forces 10 Social Forces 10 Cultural Forces 10 Demographic Forces 10 Environmental Forces 11 External Forces 11 Economic forces 11 Government, Legal, and Political Forces 13 Internal Operations Strengths and Weaknesses 16 Management