The Economic Crisis Of The European Union - 1013 Words

Due to the economic recession which started in 2008, several members of the European Union became historically known as PIIGS. These states include Portugal, Italy, Ireland, Greece and Spain. The reason why these countries were grouped together is the substantial instability of their economies, which was an evident problem in 2009. The reason why the five countries gained popularity is a serious concern within the EU, with regard to their national debts, especially for Greece. The latter country was involved in a controversial affair after allegedly falsifying its public financial data. In the year 2010, it was evident that the five states were in need of corrective action in order to regain their former financial stability. Looking back†¦show more content†¦Banks in stronger European countries, such as France and Germany, own lots of bonds from struggling European PIIGS countries, (PIIGS, 2016). That s not all: In Spain and Ireland, many banks have bad loans on their books as a result of their collapsing real estate markets. Illustration of the money borrow by the PIIGS: http://demonocracy.info/infographics/eu/debt_piigs/debt_piigs.html A deficit is the difference between the money Government takes in, called receipts, and what the Government spends, called outlays, each year. Receipts include the money the Government takes in from income, excise and social insurance taxes as well as fees and other income. Outlays include all Federal spending including social security and Medicare benefits along with all other spending ranging from medical research to interest payments on the debt. When there is a deficit, Treasury must borrow the money needed for the government to pay its bills. One way to think about the debt is as accumulated deficits. In economies with highly inverted balance sheets, shocks can be so self-reinforcing that periods of rapid growth become growth â€Å"miracles† but, as happened in nearly every growth miracle case in history, the subsequent periods of decelerating growth can swiftly degenerate into collapse or lost decades of unexpectedly low growth. In Europe’s case, the intensively reflexive relationship between sovereign creditworthiness and the domestic banking system may be

Should Marijuana Be Legalized - 1486 Words

Marijuana should not be legalized as a medical option. This has become one of the most debated topics since the 1990s. Although there are some who say there are positive medical benefits, the truth is that it may even make things worse. There isn’t enough improvement, if any, when marijuana is used to justify allowing to become a medicine. It is not recommended by most doctors, physicians, and government authorities. Most people believe that marijuana, when used medically, can help cure various diseases. Diseases like Alzheimer’s, glaucoma, epilepsy, and even asthma. This is why people are so inclined to legalize marijuana. They believe that it has significant effects. Only some of this is true. This brings me to my first reason why marijuana should not be legalized for medical purposes. There is little evidence that any significant improvement was seen in the patients that were given marijuana as a medicine for various diseases, and if improvement was seen, there were side effects that made you think if it was worth it. One example is of a study done on patients with Alzheimer’s. According to Susanne Sorensen, MD, head of research at the Alzheimer s Society. â€Å"†¦long-term use of marijuana can also lead to depression in many individuals. Here the trade-off is depression, to slow or cure the disease, but what is we could use an alternative that doesn’t cause the negative effects. That is precisely what The Alzheimer’s Research Trust said on an interview with the BBC. TheyShow MoreRelatedShould Marijuana Be Legalized?849 Words   |  4 Pageswhether marijuana should be legalized. Around 23 states have legalized marijuana for medical and recreational use. In the state of Illinois, medicinal use of marijuana has been passed on April 17, 2013. Since January 2014, patients are able to obtain marijuana with a doctor s recommendation. The new debate is whether marijuana should be legalized for the general public as a recreational drug. Although some believe that marijuana is h armless, and that it has beneficial medicinal uses, marijuana shouldRead MoreShould Marijuana Be Legalized?1715 Words   |  7 PagesMarijuana in Society Cannabis, formally known as marijuana is a drug obtained from the tops, stems and leaves of the hemp plant cannabis. The drug is one of the most commonly used drugs in the world. Only substances like caffeine, nicotine and alcohol are used more (â€Å"Marijuana† 1). In the U. S. where some use it to feel â€Å"high† or get an escape from reality. The drug is referred to in many ways; weed, grass, pot, and or reefer are some common names used to describe the drug (â€Å"Marijuana† 1). Like mostRead MoreShould Marijuana Be Legalized?1489 Words   |  6 Pagescannabis plant or marijuana is intended for use of a psychoactive drug or medicine. It is used for recreational or medical uses. In some religions, marijuana is predominantly used for spiritual purposes. Cannabis is indigenous to central and south Asia. Cannabis has been scientifically proven that you can not die from smoking marijuana. Marijuana should be legalized to help people with medical benefits, econo mic benefits, and criminal benefits. In eight states, marijuana was legalized for recreationalRead MoreShould Marijuana Be Legalized?1245 Words   |  5 PagesMarijuana is a highly debatable topic that is rapidly gaining attention in society today.   Legalizing marijuana can benefit the economy of this nation through the creation of jobs, increased tax revenue, and a decrease in taxpayer money spent on law enforcement.   Ã‚  Many people would outlaw alcohol, cigarettes, fast food, gambling, and tanning beds because of the harmful effects they have on members of a society, but this is the United States of America; the land of the free and we should give peopleRead MoreShould Marijuana Be Legalized?1010 Words   |  5 PagesThe legalization of marijuana became a heated political subject in the last few years. Twenty-one states in America have legalized medical marijuana. Colorado and Washington are the only states where marijuana can be purchased recreationally. Marijuana is the high THC level part of the cannabis plant, which gives users the â€Å"high† feeling. There is ample evidence that supports the argument that marijuana is beneficial. The government should legalize marijuana recreationally for three main reasonsRead MoreShould Marijuana Be Legalized?1231 Words   |  5 Pagesshows the positive benefits of marijuana, it remains illegal under federal law. In recent years, numerous states have defied federal law and legalized marijuana for both recreational and medicinal use. Arizona has legalized marijuana for medical use, but it still remains illegal to use recreationally. This is absurd, as the evidence gathered over the last few decades strongly supports the notion that it is safer than alcohol, a widely available substance. Marijuana being listed as a Schedule I drugRead MoreShould Marijuana Be Legalized?1350 Words   |  6 Pagespolitics in the past decade would have to be the legalization of marijuana. The sale and production of marijuana have been legalized for medicinal uses in over twenty states and has been legalized for recreational uses in seven states. Despite the ongoing support for marijuana, it has yet to be fully legalized in the federal level due to cultural bias against â€Å"pot† smoking and the focus over its negative effects. However, legalizing marijuana has been proven to decrease the rate of incrimination in AmericaRead MoreShould Marijuana Be Legalized?1145 Words   |  5 PagesLegalizing Marijuana Marijuana is a drug that has been actively used for centuries. This drug can be traced back to 2737 BC by the Chinese emperor Shen Nung. He spoke about the euphoric effects of Cannabis and even referred to it as the â€Å"Liberator of Sin.† Since early on, marijuana was seen as a medicinal plant that was recommended for medical uses. Marijuana is currently in schedule I, which means that physicians are not allowed to prescribe it in the United States (Hart, Ksir 2013). This drugRead MoreShould Marijuana Be Legalized?997 Words   |  4 PagesLegalize It: The Benefits of Legalizing Marijuana Should marijuana be legalized? Many Americans have been asked this question or have heard some type of news about the issue. Marijuana is commonly known as cannabis which refers to the dried up hemp plant cannabis sativa, even though marijuana is a plant and has no chemical additives it has been a tropic of controversy for many years but nowadays it is in the spotlight more than ever. For centuries, marijuana has been used by people throughout theRead MoreShould Marijuana Be Legalized? Essay1457 Words   |  6 PagesSHOULD MARIJUANA BE LEGALIZED? Marijuana is a drug that has sparked much controversy over the past decade as to whether or not it should be legalized. People once thought of marijuana as a bad, mind-altering drug which changes a person’s personality which can lead to crime and violence through selling and buying it. In the past, the majority of citizens believed that marijuana is a harmful drug that should be kept off the market and out of the hands of the public. However, a recent study conducted

Rich Confectionaries Company Case Study

Question: Discuss about theRich Confectionaries Company Case Study. Answer: Introduction Incremental Cash flow Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 cash inflows 5,100,000 5,100,000 6,750,000 6,750,000 9,500,000 9,500,000 9,500,000 9,500,000 9,500,000 9,500,000 less cash outflow Marketing Expenses 487,500 487,500 387,000 387,000 153,000 153,000 153,000 153,000 153,000 153,000 Variable costs 3,540,000 3,540,000 4,200,000 4,200,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 lease 325,000 325,000 325,000 325,000 325,000 325,000 325,000 325,000 325,000 325,000 Depreciation 320,000 320,000 320,000 270,000 270,000 270,000 270,000 270,000 270,000 270,000 Other expenses 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 Taxes 38,250 38,250 365,400 365,400 1,035,600 1,035,600 1,035,600 1,035,600 1,035,600 1,035,600 Net Cash Flow 89,250 89,250 902,600 902,600 2,416,400 2,416,400 2,416,400 2,416,400 2,416,400 2,416,400 Discounting Factor 0.8696 0.7561 0.6575 0.5718 0.4972 0.4323 0.3759 0.3269 0.2843 0.2472 Present value 77,612 67,482 593,460 516,107 1,201,434 1,044,610 908,325 789,921 686,983 597,297 Rich Confectionaries should expand their operations. It has been in operation for a very long time meaning it has gained a substantial number of loyal customers. Due to this, they should lease the nearby factory in an attempt to expand their operations. The location of the new factory should be near the main factory so as to reduce transportation and relocation costs. It will also aid in sharing of employees between the two factories thus assist in labor and experience. From the estimations in Appendix 1 it is assumed that the expansion will require new equipment which will be responsible for making chocolate bars. The equipment is estimated to cost about 3 million together with its installation costs. However, the new equipment will boost the overall production of the business. It is expected to double up their yearly output in units from 50,000 units to 100,000 units. In order to maintain their loyal customers, they should reduce the price per unit and take advantage of economies of scale (Mohnen et al, 2007). The current cost is stated at $80 but with a price of $65 the company will still realize a substantial amount of profit. The large scale operation will reduce the overall overhead costs incurred by 30% in terms of fixed and variable costs. The current overheads stand at around $5,000,000. The new factory overheads will be around $3,500,000. With such the payback period of the expected expansion will be: = 1 year Payback period is the time taken by a business to recover its initial capital investment through the cash income it generates from its activities. In case of two projects the project with the shortest period is accepted. It is determined by dividing the amount of capital investment by the projected cash inflow of the project (Juhsz, 2011). Businesses are advised to use payback periods since it is easy to compute and understand. It also allows business managers to make decisions based on the liquidity of the investment at hand. It is also important for companies with limited cash for investments thus the need to know projects with short payback so as to recover their cash quickly. However, during the computation of payback period it ignores the time value of money. Payback period also emphasizes on liquidity aspects of a project other than its profitability. It ignores the cash inflow that occurs after the payback period. This nullifies the importance of pay-back period. Rich Confectionaries should undertake a performance appraisal of the investment project in an aim to obtain the most benefits out of the costs incurred. The company should consider the legality of their intended expansion. The expansions impact on the environment should also b considered (Bidard, 1999). The return on investment expected could be measured in terms of quality of life improvement and saving lives of members of the adjacent community. It should also lead to competitive advantage, improved customer satisfaction and employee morale. The associated risks should be well calculated to avoid future losses. The expansion should improve the capabilities of the business in terms of experience and improving the management systems. It should meet and match the qualities set by the industry. References Bidard, C. (1999). Fixed capital and internal rate of return.Journal Of Mathematical Economics,31(4), 523-541. https://dx.doi.org/10.1016/s0304-4068(97)00062-1 Juhsz, L. (2011). Net Present Value Versus Internal Rate Of Return.Economics Sociology,4(1), 46-53. https://dx.doi.org/10.14254/2071-789x.2011/4-1/5 Martin, R. Internal Rate Of Return Revisited.SSRN Electronic Journal. https://dx.doi.org/10.2139/ssrn.39520 Mohnen, A. Bareket, M. (2007). Performance measurement for investment decisions under capital constraints.Rev Acc Stud,12(1), 1-22. https://dx.doi.org/10.1007/s11142-006-9020-1