Software As A Service Information Technology Essay

Software As A Service Information Technology Essay SaaS is nothing but a high end software model that enhances the interaction of companies with their clients or consumers. The most common instances of SaaS are to track the shipment online or online billing. The advantage of implementing SaaS is that there is no cost incurred upon the consumers/ clients. The software is developed and ported on the internet and is accessible 247 throughout the world. This document covers the information regarding traditional Client-Server model and SaaS. Also advantages and disadvantages of SaaS are discussed in this paper. Document Overview: This document gives an overview of the SaaS, basic architecture how it is using in the real world, and describes the advantages and disadvantages of SaaS. What is SaaS: SaaS is a software application which is ready to use where user can purchase or rent the software on a monthly or yearly basis, and user nothing to worry about application software or any other installation process. Client Server Vs SaaS: Traditionally, most of the software applications have been developed using client-server model. In a client-server model, we can find many hidden costs for supporting and deploying a client server system, together with expensive hardware to install and maintain. In most of the scenarios, the initial software license worth of a client server system is only one third of the total worth of the system. Client Server Model The significance of SaaS is that is a technology platform and its becoming increasingly recognized as a more efficient way to deploy software application. SaaS model is a technique of providing the same software to dissimilar customers through a network, over the Internet. In other way, we can say that the software is not installed on the customers personal computers. SaaS model delineates a vendor is whole responsible for the creation, maintenance, enhancements and all software and hardware related updates. Customers are only responsible for initial purchase of the product or subscription to access it. This subscription includes a separate license for each individual person that will make use the software. The Saas model can add cost savings and efficiency for the both the customer and product vendor. Customers save money and time since they do not have to install drivers and maintain software programs or any other hardware related system upgrade. We get softwares from different customers through network, commonly Internet. Software is not presented in client side, it is provided by a vendor. Vendor have to be uploaded the software in the server. If anything needs to update, preparing to upload new software and maintenance of the application means software vendor has to do this. Once customer purchased the software, he gets the licensed key, it is unique and applicable for one time and no one can share the information. SaaS MODEL SaaS and SOA: SaaS also uses Service Oriented Architecture to communicate between subsystems in the Enterprise Applications. Each application subsystem can act as service to interact with other subsystems via public brokers. These services also act as service requesters. Enterprise application some time requires a web services to verify the data with some other third party agencies. In order to interact with some other application, web service call will be routed through SOA. SaaS Applications: In our real life we are currently using many SaaS applications. Those are free to use but more useful in our real world. Free SaaS Applications: Gmail Google Calendar MapQuest Google Maps. Wikipedia All these above applications have simple interfaces and powerful enough to do everything we want to do. Any types of enhancements for any SaaS application vendor do it in a single shot then everyone (customers) can use those changes on their machines without doing any operations. Profit Organizations Using SaaS Applications: FedEx Chase Air Canada Hertz Google Finance All profit organization using SaaS applications are fully tested while they going for any new application related enhancements or any application related fixes. Benefits of SaaS: Lower Costs: Most SaaS solutions are offered at a lower subscription cost (Monthly/Quarterly/Yearly) with no up-front fees. By using Saas software consumers can save a lot of money. All they have to do is pay a subscription fee for the duration of time they will be using an application for and vendors bear all the security and infrastructure costs. This is a very cost effective solution for users who may only use a software application on rare occasions. Data storage requirements: Some application can occupy a lot of hard drive space at end users systems. By using SaaS software consumers can save a lot of hot drive space because data is stored on the vendors database. Also users dont have to worry about constantly backing up the data as this is handled by SaaS vendors. SaaS vendor profits: SaaS allows software vendors to receive a continuous stream of income in the form of subscriptions. Speed of deployment: Potentially very fast as the application is already up and running on the vendors server so you just have to get your data onto the system. Simpler Solution: The less software and hardware components installed on-premise, the simpler faster the deployment becomes. The time to value is much faster compared to on-premise Alternatives usually measured in minutes. Lower Risk: In a SaaS model the customer can unsubscribe or cancel the subscription, and with no databases and application servers to install, this means lower overall risk to IT and the business. Enhance Scalability:   In SaaS Model expansion of business and contract is easily accommodated by providing the flexibility to expand their operations without having to wait for their Information Technology infrastructure to grasp up. This allows organizations to simply add new applications when they needed. This type of flexibility in other business model is not possible.   Improved Data Security: The SaaS provider has many resources to provide systematic and widespread data security options and guard the computer centers from casual access. Access Anywhere: Users can access their data by using the SaaS application from anywhere as long as they have the internet connection. This will enhance the user experience in making the work done in a faster way. Automatic Upgrades: The version of software available when you log into your SaaS account is latest because there is only one version offered. If there is an error found in the software the SaaS provider can quickly make the changes. Not Platform Specific: The software is platform independent and can be used from any operating system as long as you have an internet connection to use the application. It will enable you to use a wide variety of platforms. End User Advantages: End user or Customer no needs to main the Software, deployments in the server and updating. If new versions are release user nothing to bother about any type of operations. Vendor is responsible to upgrade the versions. But user needs to update those versions. Risks Disadvantages: More costly in the long run: Flouting point usually occurs around two to three years Less manage over the application: Customization and integration of application is more limited for end users. Vendor feasibility becomes even greater unease: Since users data is restricted by the vendor. Security issues: Since the data is stored on the servers of the SaaS application provider there might be a security issue of intruders hacking the personal information while the data is transferred over the network. To prevent this, the SaaS application providers need to apply necessary security patches. It depends on the vendor for providing good security. Limited applications: Generally SaaS vendors offer the applications which are more popular and the application user wants to use may not be he is from that group. So the only way to user use the application is to buy it and install it in his computer. Summary: In this paper we discussed about Software as a Service (SaaS) how it works in a real time and why SaaS replaced by traditional Client Server Model. Also we discussed about various types of applications that are using SaaS. At the end we discussed about advantages, Risks and disadvantages by using SaaS.

Assessment and Planning of Discharge Needs in Geriatrics Essay

Elderly patients have unique discharge planning needs. As such, the hospital nurse and case management team may find themselves challenged to not only identify the needs of each patient, but to also address those needs when planning the patient’s discharge. In the case of Mr. Trosack, a 72-year-old widower being discharged following a total hip replacement (THR), careful assessment of his home situation needs to be completed prior to discharge to ensure his safety and continued recovery once home. Healthcare Issues  After reviewing the patient’s chart and performing interviews with the patient and his family, the case manager identifies three healthcare issues that need to be addressed on discharge.  ·The patient admits he has not seen a doctor in over 10 years prior to this hospitalization.  ·The patient has been diagnosed with two new health issues: hypertension and diabetes.  ·He has been prescribed new medications for each new diagnosis that he will need to continue taking after discharge.  ·The patient cannot identify pills he currently takes at home, stating simply that they are â€Å"vitamins† for â€Å"energy. Importance of Healthcare Issues Each of these issues needs to be addressed to ensure Mr. Trosack’s safety and continued recovery after discharge: The patient has not seen a doctor in over 10 years prior to this hospitalization. It is important for the case worker to find out why the patient has not seen any doctors, as it may be detrimental to his well-being. For example, did he have a bad experience with a previous provider and refuses to go back? Or, has he just not felt ill? Is his reasoning ability still sound? Or, is there some confusion? Is he in denial or facing fear that has kept him from seeing someone? If the patient is able to make sound decisions and simply has no concerns, he may do well at home. However, it may also be that he is unaware he should be seeing a physician, as â€Å"elderly patients may not report symptoms that they consider part of normal aging† (Besdine, 2009, para. 9). And, if he has had a bad experience in the past with a physician, it may have lead to a mistrust of the entire profession. If he has been refusing to see a doctor despite some concerns over the years, it could foreshadow similar situations in the future. He may not call when new problems or questions arise about is new medications. And, as evidenced by the cabinet of unused medications in the bathroom, he has a history of poor compliance, which could further impact his health. By discussing the reasons behind his lack of preventative care, the case manager will better understand the patient’s mindset and any concerns he may have. If a previous provider’s treatment or behavior has caused a mistrust of the profession, the case manager can recommend or introduce the patient to other providers, especially those that specialize in caring for geriatrics, as these providers have specialized training in caring for the elderly. If cost is a factor, the case manager can refer the patient to applicable programs such as food stamp programs, insurance and Medicare supplement policies, state-based programs, drug company assistance programs and more. If transportation is an issue, the case manager can refer to area agencies or senior citizen centers to utilize low-cost or volunteer-driven services that assist in transporting seniors. The patient has been newly diagnosed with hypertension and diabetes. New medical diagnoses can be scary for any individual, but with elderly patients, it can often bring about a new level of uncertainty and anxiety. Like all patients, they have questions about the new diagnosis and prescribed medications. However, the elderly patients of today grew up in a time when medical problems were not openly discussed. And now, society often looks at senior citizens as â€Å"lesser† citizens—a source for humor and pity in the media, weaker, less productive and expected to retire as they age (Day, 2011). Because of the way in which they were raised and the beliefs of society today, elderly patients may not feel comfortable asking questions. Knowing this, the nurse will look for additional clues from the patient’s interview as to how Mr. Trosack is feeling about his new diagnoses. During his interview with the case manager, the patient seems reluctant to accept his new diagnoses. Stating he doesn’t need any â€Å"darn† medications and doesn’t like being â€Å"disabled,† the patient also shows frustration. When a patient expresses this level of frustration and denial, there is an increased risk for lack of compliance. The need for education is greatly increased in this elderly patient. Because he has no outward symptoms of his new diagnoses, the patient does not feel he needs the new medications. The nurse needs to help the patient understand that his medications need to be continued to help prevent future symptoms from occurring. In addition, the nurse needs to be aware of additional challenges the patient may incur. Since elderly patients have often lost several members of their family (parents, siblings, even children in some cases), they are very much aware of their own mortality. A new diagnosis can bring a new awareness of that mortality, sometimes leading to a depression. When planning other discharge needs, the case manager needs to include these factors into her plan. Home health nurses can assist by visiting the patient at home during the week to ensure proper medication administration as well as assessing the patient for signs of depression and worsening hypertension, diabetes or depression. The patient has two new medications to continue upon discharge and cannot identify pills he currently takes at home. With the patient’s new diagnoses, he has been prescribed new medications. He has already voiced opposition to the idea of continuing these new medications because he does not feel he needs them. Because he does not feel they are needed, he is likely to have poor compliance in taking the medications. The patient would benefit greatly from education about why the medications have been prescribed and that–with appropriate compliance–he will be more likely to remain free of symptoms. The patient being unable to state which pills he does take on a daily basis is cause for concern. Without the name of the pills, there is no way to verify its overall safety. Furthermore, the nurse and case manager cannot be sure there are no contraindications to taking the newly prescribed medications with the pre-admission supplements. The patient’s inability to recall the name of the pills also reiterates the concerns above regarding the new medications he has been prescribed. The case manager needs to work with the patient’s nurse to ensure the patient understands the importance of maintaining a current medication list, including over-the-counter â€Å"vitamins† for â€Å"energy,† to avoid future problems when being seen for other medical concerns. The Interdisciplinary Team For the patient’s discharge to be a success, the case manager needs to incorporate appropriate members of the healthcare team to make a discharge plan. In the case of Mr. Trosack, this interdisciplinary team needs to include the patient’s nurse, physical and occupational therapy staff, a dietician, a pharmacist, and staff from the local home health agency or public health district. Each member of the team will bring to the discharge plan a unique vision for the patient’s recovery. The nurse is familiar with the patient’s medical history, as well as his feelings regarding his new diagnoses and medications. S/He has learned how best to communicate with the patient and worked to educate the patient on his new health problems and medications. In creating a discharge plan, the nurse will share this information with the home health nurse, include the medication and treatment regimens that are to be continued, and identify goals for the patient related to each. The physical therapist will instruct the team on the patient’s abilities and limitations in relation to the patient’s ambulation and transfers. He may visit the patient’s home to complete an evaluation of additional needs. And, he will create an exercise regimen for the patient to continue once home and make recommendations for assistive devices that the patient may be able to use. The occupational therapist will also identify assistive devices and continued therapy needs, however, these recommendations will be in relation to the patient’s activities of daily living (ADLs) rather than ambulation. She will watch the patient get completely dressed to identify any special needs and assess risk (can the patient tie his shoes or will the laces be a fall hazard? ). She will assess the patient’s ability to shower or bathe, looking for shortcomings or safety concerns. She may also visit the home to complete a home safety evaluation, watch the patient has he carries out his ADLs, and make recommendations for ways to alter his methods to ensure safety. The dietician will make nutritional recommendations based on the patient’s needs for adequate healing. In doing so, she will take into consideration his abilities and limitations identified by the physical and occupational therapists. The dietician may suggest menus for the patient to follow. And, her knowledge of nutrition will allow for suggestions on easy-to-carry foods, snacks or supplements that require no refrigeration and can be stored outside the kitchen, making it easier for the patient to obtain. The pharmacist will provide the other members of the team with information related to his medication regimen. He will alert the other team members to possible side effects, adverse reactions and interactions that may occur. This information will be helpful to the other members of the team as they make their own recommendations for needs after discharge. The dietician will nclude foods that have less chance of interacting with medications and the therapy staff will be alerted to side effects that may impact the patient’s safety. Because the patient will be homebound, he will likely be referred to home health. The staff from the home health agency or public health district will take the information from all of the team members in making their own plans for assignment and recommendations after discharge. They will perform safety evaluations of their own to identify risks for patient and staff alike. They will assign staff to the patient based on the recommendations from the nurse and therapists. They may sign the patient up for meals-on-wheels, or a similar program, based on the recommendations of the dietician and assessments of the patient’s ability to cook and clean up as needed. They will reiterate the teaching provided by the nurse and therapists while visiting the patient and look for side effects or adverse reactions while working with the patient. In short, they will develop a complete plan of care to incorporate all of the feedback from the interdisciplinary team. Safety Assessment There are several areas of concern in regards to safety at the patient’s residence. First, the patient requires a walker and lives on the second floor in a building with no elevator. This presents a safety issue, as well as a potential psychosocial problem. Not only will the patient be unable to safely enter his apartment without assistance; but, he will also not be able to safely leave. The patient, should he reach his apartment after discharge, would be isolated from friends and family and completely homebound. He would not be able to assist in the bakery located downstairs; instead, becoming dependant on his brother to maintain the business. Additionally, the family members interviewed by the case manager share concerns about the patient’s safety once inside his apartment, due to the small and cluttered environment. They worry that the apartment is too cluttered with memorabilia from World War II for him to safely ambulate with a walker. Per the safety assessment, there are also several rugs throughout the space. Each rug represents a trip hazard and should be removed from the environment prior to the patient’s discharge home. Additionally, there are no safety devices in the bathroom. While these devices can be installed, the patient is at risk until the installation is complete. And, until the devices are installed, the patient cannot be assessed by the occupational therapist to ensure safe use. With the safety issues present in his current apartment, it is unlikely the patient will continue to improve in this environment. Not only is he at a high risk for fall and injury in this apartment, but his mobility will also be greatly limited by the crowded environment, reducing his physical activity. Such limitation would reduce the patient’s physical improvement, which is vital in recovery from a total hip replacement. Discharge Planning Needs Per the family interview, there is a lack of support available to the patient. For any patient to recovery successfully after discharge from the inpatient setting, they must have adequate support from friends and family. Elderly patients are especially reliant on adequate support, as they are more likely to experience a functional decline from baseline in the two weeks following a hospital discharge (Naylor et al. , 1994). Mr. Trosack has a brother and a married middle-aged son. Mr. Trosack co-owns the bakery with his brother, who is now running the bakery on his own. His son is somewhat estranged due to a difference in religious beliefs, has a young family of his own, and works nearly 60 hours a week, as does his wife. None of the people closest to Mr. Trosack can make him a priority in their lives. During the family interview, the case manager learns that they were planning on taking turns assisting the patient in his home. However, their busy lifestyles leave little time for that and they do not want to bring in outside assistance. Further, the family does not seem to understand the importance of regular medication administration in addition to denying the two new medical conditions exist since the patient has shown no outward symptoms of being sick. Their answer to cleaning up the apartment is throwing away some of the patient’s most treasured items. Rather than asking for suggestions in making the apartment safer, the family would prefer to have Mr. Trosack dispose of his memorabilia from World War II. This, combined with the social isolation brought on by being homebound and unable to participate in his long-time business, would worsen his chances of developing depression. Should the patient develop depression, his recovery would be further impacted by lack of compliance with medications (Carney, Freedland, Eisen, Rich, & Jaffe, 1995). Further, depression can lead to elderly patients becoming confused or forgetful, eating less, poor hygiene, and becoming further isolated from friends and family (â€Å"A. D. A. M. Medical Encyclopedia,† n. d. ), all of which would further delay a complete recovery. Social Isolation & Psychological Factors With the patient’s physical limitations, if he were to discharge to his apartment, he would be isolated from the outside world. Because he still relies on a walker, he would be unable to climb or descend the stairs and unable to participate in his own bakery business. He would also rely on visitors for his groceries, trash removal as well as any social interaction. Despite the fact that family members are physically close to his apartment, the relationships are strained and their schedules do not allow for him to become a priority in their lives. When patients are socially isolated, they tend to do poorly. Not only do socially isolated people tend to become anxious and depressed, but they are also more likely to develop high blood pressure. Additionally, isolation has been significantly correlated both with an extended wound-healing time (Cacioppo & Hawkley, 2003). Despite the length of time the patient has been in the hospital setting, he is still recovering and his body is still healing. The patient needs to be in an environment that promotes healing. Furthermore, isolation has also been shown to cause impaired vision and hearing, which could increase the likelihood of fall and injury in the patient’s cluttered apartment (Frintner, 2008) In addition to the health-related dangers of social isolation, there are emotional reactions to isolation that one should consider when planning Mr.  Trosack’s discharge. Isolation and loneliness not only affect the body’s immune and cardiovascular systems, but it can also lead to sleep disturbances and depression (Marano, 2003). Depression makes social interactions difficult and sometimes even stressful, causing the depressed person to withdraw from family and friends even more. And, with the patient being unable to fulfill his duties at his family-owned business, the likelihood of dev eloping depression increases, due to a reduced sense of purpose (Smith, Robinson, & Segal, 2011). The patient’s risk for isolation upon discharge home indicates that the patient may do better in another setting. Recommendation Upon review of Mr. Trosack’s chart, interviews with the patient and family and the safety assessment performed, it is the recommendation of this writer that the patient not be discharged home. This recommendation would be different if the patient lived on a first-floor apartment or had access to an elevator. However, given the safety and isolation issues present in his home, the patient would be better served in an assisted living facility. Because the patient does not need skilled nursing care, and can perform his most of his ADLs, the patient does not require nursing home placement. An assisted living facility would allow the patient to have some independence in regards to his individual space and performing his ADLs while ensuring the patient a safe environment. An assisted living facility allows for monitoring of the patient overall wellness and general health and can coordinate medication administration and monitor compliance (Maryland State Bar Association, 1998). The services provided by the assisted living facility would help to ensure that the patient stays safe by keeping a watchful eye on the patient—routine safety checks are performed and fall risks are identified and corrected as needed. The facility can also monitor his overall health through the routine safety checks as well as monitor his medication compliance, ensuring the patient takes his medications as scheduled. Furthermore, several facilities offer social activities, which would increase the patient’s likelihood of continued physical activity and reduce the risk of depression and decline after discharge.

Evaluation Of Investment Alternatives Essay

Introduction – Capital budgeting A critical role of a financial manager is the evaluation of capital projects.   This is a very important task because the money involved in such activities is significant and the benefit or loss derived from will highly influence the financial performance of the whole organisation (Brockington R. B. 1996, p 102).   Indeed, Nobel laureates Modigliani and Miller suggested in their theory of capital structure that the value of a company is not affected by its gearing, but the primary factor that influences such value is the investment in wealth creating projects (Pike R. et al.   1999. p 557 and 577). 1.1   Evaluation of plans if their risk equals that of the firm 1.1.1 Net Present Value Method PLAN X Details 0 â‚ ¬Ã¢â‚¬â„¢000 1 â‚ ¬Ã¢â‚¬â„¢000 2 â‚ ¬Ã¢â‚¬â„¢000 3 â‚ ¬Ã¢â‚¬â„¢000 4 â‚ ¬Ã¢â‚¬â„¢000 5 â‚ ¬Ã¢â‚¬â„¢000 Initial Investment (2,700)                Cash Flows    470 610 950 970 1,500 Net Cash Inflow/(Outflow) (2,700) 470 610 950 970 1,500 12% Discount Rate 1.0000 0.89286 0.79719 0.71178 0.63552 0.56743 Present Value (2,700) 419.64 486.29 676.19 616.45 851.15 Net Present Value – â‚ ¬349,720 PLAN Y Details 0 â‚ ¬Ã¢â‚¬â„¢000 1 â‚ ¬Ã¢â‚¬â„¢000 2 â‚ ¬Ã¢â‚¬â„¢000 3 â‚ ¬Ã¢â‚¬â„¢000 4 â‚ ¬Ã¢â‚¬â„¢000 5 â‚ ¬Ã¢â‚¬â„¢000 Initial Investment (2,100)                Cash Flows    380 700 800 600 1,200 Net Cash Inflow/(Outflow) (2,100) 380 700 800 600 1,200 12% Discount Rate 1.0000 0.89286 0.79719 0.71178 0.63552 0.56743 Present Value (2,100) 339.29 558.03 569.42 381.31 680.92 Net Present Value – â‚ ¬428,970 Source:   Drury C. 1996, p 389. 1.1.2 Internal Rate of Return Method PLAN X Year Net Cash Inflow/(Outflow) Discount Factor* Present Value    â‚ ¬ 16% 17% 16% 17% 0 (2,700,000) 1.0000 1.0000 (2,700,000) (2,700,000) 1 470,000 0.86207 0.85470 405,172.90 401,709.00 2 610,000 0.74316 0.73051 453,327.60 445,611.10 3 950,000 0.64066 0.62437 608,627.00 593,151.50 4 970,000 0.55229 0.53365 535,721.30 517,640.50 5 1,500,000 0.47611 0.45611 714,165.00 684,165.00 Net Present Value 17,014 (57,723) PLAN Y Year Net Cash Inflow/(Outflow) Discount Factor* Present Value    â‚ ¬ 18% 19% 18% 19% 0 (2,100,000) 1.0000 1.0000 (2,100,000) (2,100,000) 1 380,000 0.84746 0.84034 322,034.80 319,329.20 2 700,000 0.71818 0.70616 502,726.00 494,312.00 3 800,000 0.60863 0.59342 486,904.00 474,736.00 4 600,000 0.51579 0.49867 309,474.00 299,202.00 5 1,200,000 0.43711 0.41905 524,532.00 502,860.00 Net Present Value 45,670.80 (9,560.80) Source: Horngren T. C. et al. 1997, p 785 – 787. 1.1.3 Evaluation of projects Plan Y is more financially feasible under both methods.   The net present value of Plan Y is â‚ ¬79,250 [â‚ ¬428,970 – â‚ ¬349,720] higher than Plan X.   The internal rate of return of Plan Y is also 2.61% higher than the other plan, indicating a higher margin of safety on losses in case the expected cash flows are not achieved (Randall H. 1996, p 446). 1.2 Examination of plans at different risk profiles 1.2.1 Net Present Value Method PLAN X Details 0 â‚ ¬Ã¢â‚¬â„¢000 1 â‚ ¬Ã¢â‚¬â„¢000 2 â‚ ¬Ã¢â‚¬â„¢000 3 â‚ ¬Ã¢â‚¬â„¢000 4 â‚ ¬Ã¢â‚¬â„¢000 5 â‚ ¬Ã¢â‚¬â„¢000 Initial Investment (2,700)                Cash Flows    470 610 950 970 1,500 Net Cash Inflow/(Outflow) (2,700) 470 610 950 970 1,500 13% Discount Rate 1.0000 0.88496 0.78315 0.69305 0.61332 0.54276 Present Value (2,700) 415.931 477.722 658.398 594.920 814.140 Net Present Value – â‚ ¬261,111 PLAN Y Details 0 â‚ ¬Ã¢â‚¬â„¢000 1 â‚ ¬Ã¢â‚¬â„¢000 2 â‚ ¬Ã¢â‚¬â„¢000 3 â‚ ¬Ã¢â‚¬â„¢000 4 â‚ ¬Ã¢â‚¬â„¢000 5 â‚ ¬Ã¢â‚¬â„¢000 Initial Investment (2,100)                Cash Flows    380 700 800 600 1,200 Net Cash Inflow/(Outflow) (2,100) 380 700 800 600 1,200 15% Discount Rate 1.0000 0.86957 0.75614 0.65752 0.57175 0.49718 Present Value (2,100) 330.437 529.298 526.016 343.050 596.616 Net Present Value – â‚ ¬225,417 Source:   Hirschey M. et al. 1995, p 799. 1.2.2 Comparison of decisions at different risk rates When the discount rate of the project is considered instead of the overall rate of the company, the financial viability of Plan Y diminishes because this plan is a riskier project than the other one and hence, a higher discount rate is chosen.   The process of discounting arises from the time-value of money principle, and the higher the discount rate the lower the present value from the cash flows generated from the project (Pike R. et al. 1999, p 66 & 67).   In such a stance, Plan Y is no longer the most optimal project because Plan X net present value exceeds that of Plan Y by â‚ ¬35,694 (â‚ ¬261,111 – â‚ ¬225,417). 1.3 Analysis of real option data for plans 1.3.1 Net Present Value Method PLAN X Details 0 â‚ ¬Ã¢â‚¬â„¢000 1 â‚ ¬Ã¢â‚¬â„¢000 2 â‚ ¬Ã¢â‚¬â„¢000 3 â‚ ¬Ã¢â‚¬â„¢000 Initial Investment (2,700)          Cash Flows    470 610 950 Net Cash Inflow/(Outflow) (2,700) 470 610 950 13% Discount Rate 1.0000 0.88496 0.78315 0.69305 Present Value (2,700) 415.931 477.722 658.398 Net Present Value: -â‚ ¬1,147,949 + (â‚ ¬100,000 x 25%) = -â‚ ¬1,122,949 PLAN Y Details 0 â‚ ¬Ã¢â‚¬â„¢000 1 â‚ ¬Ã¢â‚¬â„¢000 2 â‚ ¬Ã¢â‚¬â„¢000 3 â‚ ¬Ã¢â‚¬â„¢000 4 â‚ ¬Ã¢â‚¬â„¢000 5 â‚ ¬Ã¢â‚¬â„¢000 Initial Investment (2,100)                Cash Flows    380 700 800 600 1,200 Net Cash Inflow/(Outflow) (2,100) 380 700 800 600 1,200 15% Discount Rate 1.0000 0.86957 0.75614 0.65752 0.57175 0.49718 Present Value (2,100) 330.437 529.298 526.016 343.050 596.616 Net Present Value: â‚ ¬225,417 + (â‚ ¬500,000 x 20%) = â‚ ¬325,417 Source:   Lucey T. 2003, p 416. 1.3.2 Comparison of real option plans with original plans If we consider and apply the real options available, Project Y becomes the best project, on the contrary of the conclusion noted in sub-section 1.2.2.   It is also worth nothing that the application of the real option for Plan X is not financially viable because we will end up with a negative net present value.   If we compare the net present value of Plan Y under the real options scheme with the net present value of Plan X we can deduce that Plan Y real options project is more feasible than the other plan since the net present value is â‚ ¬64,306 higher [â‚ ¬325,417 – â‚ ¬261,111]. 1.4 Effect of Capital Rationing Capital rationing is an absolute restriction on the amount of finance available for a project irrelevant of cost.   This should not be confused with scarcity of economic resources.   Capital rationing on projects is sometimes applied even though the organization posses or can attain available finance.   For example, a capital rationing may be imposed on the amounts of debts an organisation can take in order to limit the gearing of the firm (Brockington R. B. 1996, p 151). When conditions of capital rationing are imposed, there is the possibility that the most optimum project is not selected.   Therefore yes capital rationing may effect the selection of Plan X or Plan Y.   For example if a capital rationing is adopted by the firm which states that the initial investment cannot exceed â‚ ¬2,000,000 due to its effect on gearing. Under such conditions no Plan would be selected by the firm.   Another example of capital rationing that will affect the project choice is if management decided to restrict expansion of the factory, because they fear that control on employees may be lost affecting negatively their relationship and control on staff.   In this case Plan X would be excluded, even though it is the most optimal project as denoted in sub-section 1.2.2., and the available choice would be Plan Y. 1.5 Financial instruments available for private companies The alternative financial instruments that the firm can use, apart from shares are: Corporate Bonds & Debentures; Overdraft facility by the bank; Bank loan; Venture capital; and Leasing 1.5.1 Advantages and disadvantages of corporate bonds/debentures The advantages related to corporate bonds are (E*Trade Financial website): Corporate bonds are usually lent at a longer period of time (Veale R. S. 2000, p 155). Interest payments for bonds are tax deductible. Interest rates of corporate bonds are frequently lower than those of banks. Percentage ownership of shareholders is not weaken by the issue of corporate bonds or debentures (Veale R. S. 2000, p 156) The disadvantages encountered with corporate bonds are: Obligation of interest on the firm’s cash flow, thus increasing the risk of bankruptcy during periods of financial problems. Upon maturity, the company has to pay back all the amount of the bond. 1.5.2 Advantages and disadvantages of bank overdraft facility A bank overdraft facility can provide the following benefits (tutur2u website): Allows flexibility of finance.   The company can increase the overdraft facility within acceptable limits. Interest is only charged on the amount used and is tax deductible. Percentage ownership of shareholders is not diluted by taking an overdraft facility. The disadvantages imposed by an overdraft facility are (tutur2u website): Rates of interest are higher than those of bank loans. Money due is repayable on demand. The facility limit can be changed by the bank according to its discretion. Usually used for short-term borrowing. 1.5.3 Advantages and disadvantages of bank loans These are the advantages derived from bank loans (tutur2u website): Loan is repaid back in regular payments thus allowing better cash management. Lower interest charged than bank overdraft. Percentage ownership of shareholders is not diluted by taking an overdraft facility. Large amounts can be borrowed for long term finance. Limitations of this type of finance are (tutur2u website): Interest has to be paid within a specified date. Less flexible than an overdraft facility. 1.5.4 Advantages and disadvantages of venture capital The advantages of venture capital are (Business Link website): Obtain proficient management expertise, if they get involved in the firm’s operations. Large sums of finance can be obtained from venture capital. The disadvantages incurred by using such medium of finance are (Business Link website): Require detailed financial reporting like business plans and financial estimates. Legal and accountancy fees are incurred in the negotiation process. Firm require a proven track record to take such finance. High returns are frequently expected from venture capitalists.       15.5 Advantages and disadvantages of leasing The advantages obtained from leasing are (Enterprise. Financial Solutions website): Provides 100% financing of asset. There is no need of credit lines with banks and other depositary associations, which are hard to obtain. Minimal paperwork required to acquire lease. Acts as hedging against inflation. Flexible payments are allowed in leasing. Interest on leasing is not subject to increases like bank overdrafts. The disadvantages encountered through leasing finance are (Auto Leasing Software Lease Tips website): The organisation is committed to the entire validity period of the lease. High amounts of insurance coverage are frequently demanded in leases. No ownership of the asset the firm is using in the project’s operations. References: Auto Leasing Software Lease Tips.   Disadvantages of leasing (on line).   Available from:   http://www.autoleasingsoftware.com/LeaseTips/Disadvantages.htm (Accessed 13th March 2007). Brockington R. B. (1996).   Financial Management.   Sixth Edition.   London:   DB Publications. Business Link.   Equity Finance (on line).   Available from:   http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1075081582 (Accessed 13th March 2007). Drury C. (1996).   Management and Cost Accounting.   Fourth Edition.   London:   Thomson Business Press. Enterprise.Financial Solutions.   Advantages of leasing (on line).   Available from:   http://www.efsolutionsinc.com/Advantages_of_leasing.htm (Accessed 13th March 2007). E*Trade Financial.   Corporate Bonds Overview (on line).   Available from:   https://us.etrade.com/e/t/kc/KnowArticle?topicId=13200&groupId=8722&articleId=8723 (Accessed 13th March 2007). Hirschey M; Pappas L. J. (1995).   Fundamental of Managerial Economics.   Fifth Edition.   Orlando:   The Dryden Press Horngren T. C.; Foster G.; Srikant M. D. (1997).   Cost Accounting – A Managerial Emphasis.   Ninth Edition.   London:   Prentice-Hall International (UK) Limited. Lucey T. (2003).   Management Accounting.   Fifth Edition.   Great Britain:   Biddles Ltd. Pike R.; Neale B. (1999).   Corporate Finance and Investment.   Third Edition.   London:   Prentice-Hall International (UK) Limited. Randall H. (1999).   A Level Accounting.   Third Edition.   Great Britain:   Ashford Colour Press Ltd. Tutur2u.   Bank Loans and Overdrafts (on line).   Available from:   http://www.tutor2u.net/business/gcse/finance_bank_loans_overdrafts.htm (Accessed 13th March 2007). Veale R. S. (2000).   Stocks, Bonds, Options and Futures.   Second Edition.   United States of America:   New York Institute of Finance.

Essay on Results of Animal Testing - 783 Words

In today’s humanity, multitude amounts of animals are mistreated and eradicated during animal testing. Because testing on animals has become a law throughout the world, a lot of scientists have not realized the immortality that has been put upon the animals. Is it fair to test cosmetics and potential carcinogens on animals? During each year, millions of animals are tested on for biomedical research, chemical testing and training (Lee Bowman 2011). Testing cosmetics and chemicals on animals is catastrophic because it is abusive, detrimental and carcinogenic. Testing cosmetics and chemicals on animals has evolved as disastrous because it is extremely abusive and causes animals to suffer physical pain and psychological distress (Lee Bowman†¦show more content†¦Ask the experimenters why they experiment on animals, and the answer is: Because the animals are like us. Ask the experimenters why it is morally OK to experiment on animals, and the answer is: Because the animals are not like us. Animal experimentation rests on a logical contradiction, according to Professor Charles R. Magel (Vegan Peace 2008). Animal testing has developed into a virulent outbreak in animal experimentations. Testing on animals has resulted into extensively convicted â€Å"lethal dose† evaluations, where animals are compelled to consume enormous supplies of an evaluation synthetic to establish what dose generates the end of life (11 Facts about Animal Testing†). Animal testing results to death in animals because what the body of a human cannot handle does not determine what the body of animal can. Although animal testing is legally a law in the United States, researchers are taking advantage of the tests and have begun a cloning method on animals that sustain the worst pain. Animals usually die due to it being the only way for researchers to inspect the contamination in the animal. Doing such research has been considered to be a barbaric method to compel an animal to endure such administered pain. I dont think most people have any idea of the vastness of the animal research field in this country , said Sue Leary, president of the AmericanShow MoreRelatedSave Animals. Say No to Animal Testing!1390 Words   |  6 PagesArgumentative essay: Save animals. Say no to animal testing! Nowadays, it is a well-known fact that many companies test their products like cosmetics and medicines with animals before production to check their products ’safety and quality. A huge amount of animals are used in research purpose every year. Is it right for human beings to sacrifice millions of animals for testing purpose? Should animal testing be banned? Animal testing is a controversial issue and there is a heated debated about prosRead MoreShould Animal Testing Be Ethical?1328 Words   |  6 PagesAnimal testing has been an important type of research in various science fields for many years, because it has been able to replicate the results of the research to positively affect humans. It has provided many cures to diseases and many basic products that are mass produced such as lotion, shampoo, sunscreen, etc. Adding on, animal testing is ethical since it follows many guidelines and restrictions made by numerous laws that protect animals from inhumane treatment. Although such testing can provideRead MoreAnimal Testing Is Not All Humane And Pain Free1130 Words   |  5 Pagesâ€Å"An estimated 26 million animals are used every year in the united states for scientific and commercial testing† (ProCon.org). We are rapidly using up the earth’s supply of small animals. â€Å"A 2011 poll of nearly 1,000 biomedical scientists conducted by the science journal Nature found that more than 90% agreed that the use of animals in research is essential (ProCon.org). Right now, millions of mice, rats, rabbits, cats, dogs, and other animals are locked up in cages and are getting killed for scientificRead MoreAlternative to Animal Testing Essay911 Words   |  4 PagesAlternatives to Animal Testing Animal testing has become a controversial issue among many people in the world today. Some of these people involved in this controversial debate believe that animal testing is unethical and should be replaced by other methods. The other group of people in this debate believe that animal testing is necessary in order to research new products that cannot be tested on humans. Traditional animal testing forces animals to undergo numerous experiments for different formsRead MoreAnimal Testing On Cosmetics : Its Not Necessary1620 Words   |  7 Pagesâ€Å"100,000-200,000 animals suffer and die just for cosmetics every year around the world.†(Humanesociety.org). Majority of these innocent animals ends up dying for no absolute reason at all also. Animal testing in cosmetics is a problem all around the world, but especially in the US. These animals need our help. Animal testing on cosmetics is nothing new in the US; animals have been getting tested on since the beginning of time. Wha t’s different about cosmetics testing is that it’s not necessary. There’sRead MoreHuman Testing : The Dangers Of Animal Testing944 Words   |  4 PagesAnimal testing is used to see the effects of products before the products are put up for human consumption. With this testing, thousands and thousands of animals are kept in cages and subjected to pain and isolation every year. Even though these animals endure this extreme pain for the safety of humans, results are rarely the same in animals as they are in humans. Even though animal testing is deemed as bad science, people say that every major medical advance is because of animal testing. This isRead MoreAnimal Testing Should Not Be Banned1721 Words   |  7 Pages † Today, more animals are being used in experiments than ever before: around 100 million in the United States alone† (3). Animal testing is now an international issue, and it is becoming a major story. Currently, animals are often used in medical testing, make-up testing, and other consumer product testing. Animals used in such product testing are often abused and suffer from serious side-effects. Animal testing can be painful for the animals, testing results are usually not even useable forRead MoreAnimal Testing Is Not A Recent Occurrence Essay1359 Words   |  6 Pagesmanufacture their products, testing is conducted in the expense of animals. In the following report, we will examine many of the adversities that are associated with animal testing while offering some recommendations on how to remedy this issue. Background on the Issue Animal testing is not a recent occurrence. According to Nohynek et al. (2010) animal testing has been conducted since the 1930’s in order to evaluate the toxicity of consumer products. Animal testing began to attract attention whenRead MoreEssay on Animal Testing798 Words   |  4 PagesEvery year, animals are subjected to cruel and unnecessary experimentation. According to the USDA, â€Å"between 1990-1997 research labs registered with the USDA reported killing at least 12,895,885 dogs, cats, primates, guinea pigs, hamsters, rabbits, bears, armadillos, squirrels, wild rodents and other species. This doesnt include non USDA registered labs† (â€Å"Wikianswers†). Lab animals are cut up and tortured to death all in the name of science. How can we as fellow animal species continue to allowRead MoreAnimal Testing Should Not Be Banned891 Words   |  4 PagesHumans are Animals Every year millions of animals are burned, tortured and crippled in research that does not even result in safer products for humans. In fact, more than 90% of experimental drugs that are shown to be safe and effective in animals do not work for humans and are considered unsafe. Animal testing is barbaric; the small benefit that may be gained through testing in no way rights the torture these animals are put through. Not only is the testing harmful to the animals, it is extremely