Challenges and Opportunities of a Manager - 1095 Words

MANAGER’S CHALLENGE AND OPPORTUNITIES IN THE CURRENT ECONOMIC CLIMATE VARUN ADITYA MURALINATHAN 4071817 In the current economic climate, most of the countries are facing recession for the past few years. Apart from the effective management of time for getting things done, the basic things to be followed are career planning, effective team building, improve as a communicator, on motivating others, controlling recession driven economic scenario and must be a leader as well†¦show more content†¦The MBA grades especially those in the highly-paid sectors of investment banking and private equity is a topic of great investment in any economy. In the current economic climate, it is given that Finance industry is not the easiest place to find a job in a moment of recession. But for few managers of MBA grade with a good work experience are enough to l and a job. The recruiters are fed up the new employees because of the salary they expect. As most of the countries are facing recession for the past few years, the flow of providing salary has been decreased. So finally, what can you do to land yourself in a job, in investment banking or private equity in this economic climate? It is left as a question mark for the opportunities of managers in the current economic climate. I conclude that managers have more challenges than opportunities. Management is complicated. It requires proper managerial skills and motivation. But most of all it requires commitment. So managers must have to concentrate on their interpersonal skills like professional communication, motivation and showing genuine concern. Moreover, the smart mistakes can provide innovative and creative ideas whereas the fatal mistakes which leads to the disastrous results by the manager to the industry. The Budgeting is one of the big responsibilities for managers. It should be very systematic and standardised or else itShow MoreRelatedChallenges And Opportunities For Product Managers2230 Words   |  9 PagesNever in history has there been more challenges and opportunities for product managers bringing new and innovative products to the marketplace. However, competitive pressures in the form of economic and global shifts have made it more difficult for product managers to respond to increased cus tomer demands and infidelity. Many product managers are asking; Are we building the right products with the right features? Which features or technologies should I invest in or which features should we ceaseRead MoreThe Challenges and Opportunities Facing Today’s Leaders and Managers1188 Words   |  5 PagesLeading and managing people and resources BSB10351-5 The challenges and opportunities facing today’s leaders and managers Submitted by: Kevin Broe 28/05/2013 Introduction This assignment looks into the challenges and opportunities facing today’s leaders and managers. The assignment is broken down into four simple parts. * What are leaders and manager and how do they differ? * The challenges and opportunities that face both in today’s world * Three different leadership and managementRead MoreApplying System Thinking For Address Challenges And Opportunities Managers784 Words   |  4 PagesTo analyze The Goal, Part 1, I have chosen the second option to apply system thinking to address challenges and opportunities managers. This novel flow of information talks about a Bearington manufacturing plant that appears to be very much unorganized. Mr. Rogo, the new plant manager, is now faced with the task of turning this plant around by showing improvements in three months; otherwise the plant will be shut down as was advised by Mr. Peach. It’s apparent here that system thinking was not includedRead Morethe biggest challenges and biggest opportunities facing new managers entering industry883 Words   |  4 Pagesï » ¿ In the current economic climate, what are the biggest challenges and biggest opportunities facing new managers entering industry? Full reference 1 Department for Business (2012) ‘Leadership Management in the UK - The Key to Sustainable Growth’ [online] available from [05 November 2013] Source type This paper has been written by the Department for Business, Innovation Skills Leadership and Management Network Group (LMNG). Key contributors include Petra Wilton and Patrick Woodman ofRead MoreThe Role Of Management During The 21st Century : Challenges And Opportunities1080 Words   |  5 PagesThe role of Management in the 21st century: Challenges and Opportunities The development in management studies has flourished largely; it is with no doubt that the internet and information technologies have caused this major development. On one hand, the classic management practices became less effective in organisations. On the other hand, the effects of the global economy have introduced new management concepts that shape the world business activities. Historically, the industrial revolutionRead MoreThe Evolution Of Management Studies1116 Words   |  5 Pagespractices in modern management have proposed that the role of leadership gives manager more extended responsibilities. On the other side, the complexity of today’s business issues such as the dynamic changes in economic, politics and social challenges require managers to react and respond promptly. This essay will consider different views with respect to the challenges of modern management as well as the opportunities that management role could inspire in today’s businesses aspec ts. The firstRead MoreThe Importance Of Interpersonal Skills On The Workplace1695 Words   |  7 PagesInterpersonal skills are important because they can help determine the effectiveness of a manger. It has been shown that places that have a reputation of being a good place to work have performed well in comparison to those that don’t have a good reputation. Managers that display interpersonal skills help companies attract quality employees and improve the retention of employees. Interpersonal skills in the workplace are so important because the quality of relationships in the workplace have been shown to affectRead More Management Essay1393 Words   |  6 PagesWe live and work in a condition with challenging opportunities and dramatic uncertain economic environment, especially for managers, must have enough skills and knowledge to manage the changeable business environment. This essay will discuss whether the managers nowadays have the tendency to focus on economic results at the expense of more important things or not, and yes, the managers have the tendency to focus on the expense of more important things, the discussion will be demonstrated from theRead MoreBenefits Of A Subordinate Taking On More Self Management1481 Words   |  6 PagesCounseling the employee periodically throughout an evaluation period, affords the employee the opportunity to understand how they are doing either in a negative or positive way. Counseling also affords the leader the opportunity to provide and receive information that can facilitate the possible challenges that the employee is facing, or if the employee is not being challenged professionally, this is the opportunity to revisit the metrics that were previously established. Self-Management A leader whoRead MoreThe Challenges of E-Commerce1403 Words   |  6 PagesThe Challenges of E-Commerce MKT552 The Challenges of E-Commerce Today’s business managers face many challenges when migrating a traditional ‘brick and mortar’ company to that which is now known as the evolutionary ‘click and mortar’ business model – that is, a business that operates in the Internet market space. To stand boldly in the face of challenges presented by the networked economy, firms must develop competencies that enable not only high performance market interactivity and adaptive

1967 Cultural Revolution of China - 1617 Words

Question: Why did Mao launch the Cultural Revolution? For instance, do you think the occurrence of the CR had any connections with the CCP s organizing principle and guiding ideologies, such as democratic dictatorship and the democratic-centralism, or was caused more by other reasons? Also, although many things people did during the Cultural Revolution look so absurd, irrational, and even cruel today, millions of Chinese, especially the Chinese youth seemed to be obsessed with the movement during that time. What do you think motivated the public to respond to Mao s last revolution so actively? Please give your explanations. Moreover, please also discuss: How some Cultural Revolution mentality or phenomena remain working nowadays and†¦show more content†¦For Mao, It was impossible to tolerate the fact that political elites of CCP were no longer cohesive and shared the same ideology. In order to achieve pure communism in the state, there was a need to remove other ideology which might probably undermine the governance of CCP. Therefore, Cultural Revolution was triggered off to eliminate people and elites who caused class struggle and violate the dominant dictatorship of CCP. 4. Explanation for active public response. 4.1 Cultural Revolution gained public supports though some scholars described it as â€Å"Ten-year disaster†. It did really badly affected people’s livelihood at that time. Indeed, it has aroused many scholars’ interest to study the general public’s enthusiasm for this massive movement. In order to transform China into a pure communist state, massive propaganda work has implemented to promote Chinese political philosophy. During the â€Å"First Five Year Plan†, the â€Å"Campaign on Education of Illiteracy† was launched to infused people with communist ideology. People who are the lower class of society like peasants, students and workers were the most targeted group because they occupied a larger proportion of population at that time. Mao manipulated people’s mindset by instilled people with communist value and ideals. (Guo,2013) People were easily controlled and influenced at that time for having not much education and more important ly communism was promoted asShow MoreRelatedMao Zedong : The Revolutionary Revolution1607 Words   |  7 PagesIf you applied the chaos theory to Chinas Revolution, Mao Zedong would most definitely be the butterfly whose wings set off a series of disasters in China. He assembled the Chinese youth in 1966, to initiate the â€Å"Cultural Revolution† . This revolution was a violent operation eliminating thoughts, customs, old Chinese culture, and habits, removing â€Å"counter-revolutionary† party members, and heightening Mao’s personality cult . In this paper, I will condense evidence collected from books, documentsRead MoreChinese Cultural Revolution717 Words   |  3 PagesThe Chinese Cultural Revolution A revolution is not a dinner party or writing an essay or painting a picture or doing embroidery; it cannot be so refined, so leisurely and gentle, so temperate, kind, courteous, restrained and magnanimous- Mao said in 1927 to a youth activist The reason for china to trying to become such a new generation was solely the opinion of Mao and his followers. Mao had seen the way the Russian revolution had gone astrayRead MoreChina s Cultural Revolution : Mao Zedong Essay1500 Words   |  6 PagesChina s Cultural Revolution: Mao Zedong The Cultural Revolution of 1966 led by Chairman Mao Zedong, a strong believer in Socialist ideologies, thought China needed sociopolitical reform in order to erase aspects of the traditional Chinese culture. Although Mao implemented new political principles, the revolution was a time of mass destruction and overall led to negative effects, disrupting China’s economy and preservation of the Chinese culture. The Revolution brought about massive change thatRead MoreMao Zedong Of The Communist Party Of China946 Words   |  4 PagesCommunist Party of China, Mao Zedong feared that China would move too far in a revisionist direction with an emphasis on expertise rather than on ideological purity as the Soviet model was doing. In response Mao gathered a group of radicals such as Defense Minister Lin Biao to help him attack current party leadership to reassert the authority he had lost during the recent economic crisis and the Great Leap Forward. In 1966, Mao launched the Great Prol etarian Cultural Revolution (1966 – 1976). TheRead MoreNo Revolutionary Paradox By Nien Cheng838 Words   |  4 Pagesto the Cultural Revolution in China, most of these memories are drafted by the adolescents of that time who identified themselves as the Red Guards. However, once reading a book/story such as that of Nien Cheng’s, the perspective of the victim and every sort of political aspect of someone who understood everything makes the whole revolution within China come to life for the reader. Nien Cheng’s novel is the heart and living explanation of the Great Proletarian Cultural Revolution that China had almostRead MoreCultural Revolution And Its Effect On The World Essay1149 Words   |  5 PagesStudents in Cultural Revolution in 1960s China In 1960s, the wave of revolution spread all over the world, as well in China. It is said that China was experiencing an energetic and fanatical revolution from 1966 to 1976 called â€Å"Culture Revolution† which was directed against some specific fields of Culture such as foreign capitalism literature and traditional customs. The purpose of the President Mao is to consolidate the regime and clean the opponents. But how could the people believe himRead MoreEssay about Life for Teenagers in China During the Late 1960s1246 Words   |  5 PagesHave you ever wondered how life must have been for teenagers in China during the late 1960s? Most teenagers were inspired to fight in the Cultural Revolution. The Cultural Revolution was a movement in 1966. Mao Zedong motivated millions of chinese youths to challenge authority in order to depart from socialism. To further control the actions and ideas of the people in China, a group of youths called the â€Å"Red Guards† followed Mao’s beliefs and humiliated non-believers. These adolescents joined theRead MoreTo What Extent Did The Chinese Cultural Revolution Impacted China s Economy From 1966-1970?2063 Words   |  9 PagesTo what extent did the Chinese Cultural Revolution impact the Chinese economy from 1966-1970? —————————————————— Word Count: 1984 excluding section headings Number of Pages: 17 Table of Contents Plan of Investigation†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..3 Summary of Evidence†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦4 Evaluation of Sources†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦7 Analysis of Evidence.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.8 Conclusion†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.11 Bibliography†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..12SectionRead MoreMay Fourth Movement and Beyond1056 Words   |  5 PagesMao Zedong, the prominent leader of the Cultural Revolution and one of the innovators of the People’s Republic of China, once declared, â€Å"Classes struggle, some classes triumph, others are eliminated. Such is history; such is the history of civilization for thousands of years.† By the time the Qing Dynasty met its inevitable downfall in 1919, a new set of radicals started protesting of a new form of government on May Fourth. This movement, known as the May Fourth Movement, facilitated the MarxistRead MoreEssay about Chaotic Period During the Cultural Revolution in China2332 Words   |  10 PagesIntroduction The period of the Cultural Revolution (1966-1976) was a period in which every level of society was subjected to great sufferings. Although the loss of life was greater during the Great Leap Forward and the second Sino-Japanese war, suffering is not only measured in loss of life. Great pieces of cultural heritage was destroyed, official institutions seized functioning and everyone was in danger of being accused of counter-revolutionary (so called black) activities or tendencies.

Global Warming Humans Are Destroying the Planet Essay

Global warming is the gradual increase of temperature in the world’s atmosphere. It is often caused by high levels of carbon dioxide and other pollutants. It may also be increased by fossil fuels and agriculture causing many severe consequences, such as: species extinction, reduced forest and coral reefs, drought increases in Africa, severe flooding in Asia, threats to small islands because of ocean levels rising, and severe weather in hurricane zones. Our society today is destroying the climate. Every time we drive our vehicles just to get out of the house for fun or because we forget and have to make a double run, when we run our electric too long, wasting water, burning our trash, especially plastics, and just not taking proper care of†¦show more content†¦The melting of ice sheets and snow caps will return to the oceans and result in higher sea levels. Over the past nine hundred years, data of tree rings, ice cores, coral reefs and other direct measurements have b een taken and made to conduct various studies on the subject of climate change at hand. (Prothero) The most obvious results are the temperature; the temperature is increased in such a tangible way. The studies conducted were primarily so they would have it written down on paper, for proof. Since the 20th century the earth’s mean temperature has increased by about 1.4 degrees Fahrenheit. Everyone knew of the changes. The changes in temperature could be felt, and they were. The temperature was starting to make people realize that there was a change occurring and they needed to make a change themselves. The affect people have on the world is a grand one, yet most do not know or even understand this. Most people do not care or ever think of it, assuming that the Earth will self-sustain itself. This cannot be assumed or even true due to our unhealthy habits. Our selfish habits prevent the world from its self-preservation and it eventually it will not be able to withstand and soon it will be destroyed if we cannot make a change; a change that will happen quickly and work effectively. How many people in the United States are truly aware of global warming? If people areShow MoreRelatedEssay on Global Warming: Humans Are Destroying the Planet1327 Words   |  6 PagesEveryone knows that global warming is a serious environmental health problem with its effects reflecting on nature and all of mankind on Earth since the mid-twentieth century – emission of concentrated greenhouse gases, rise of sea levels, melting of polar ice caps, and increase in global surface air temperature. The rise in global surface air temperature causes frequent droughts in dry areas and accelerated ocean warming and hence the rapid increase in sea levels and melting of the polar ice capsRead MoreGlobal Warming Is The Biggest Problem Of The World Or Face Imminent Destruction? Essay1416 Words   |  6 Pages2) Humankind has shaped the Earth to what it is today by destroying land, building factories, real estate, burning fossils fuels, and even by just driving a motor vehicle around. Thi s all led to the epidemic we call today as global warming. Taking a stance to make a change against global warming is very important but it also might be too late. Global warming is real and it is one of the biggest problems civilization faces. The rising global temperature threatens to create insane weather changes,Read MoreGlobal Warming : Human Exploit Or Natural Phenomenon941 Words   |  4 PagesGlobal Warming; Human Exploit or Natural Phenomenon Global warming stems back to the beginning of time. In more recent years, however, the discussion about this phenomenon has been that it’s happening too rapidly and opposing sides argue that this may be a natural occurrence involving the sun or the result of human activity in which may be to blame. An adversary from St. Petersburg s Pulkovo Astronomical Observatory in Russia, the head of space research, Habibullo Abdussamatov stated that â€Å"Man-madeRead MoreGlobal Warming : Is The Planet Earth Just Going Through A Natural Warming?866 Words   |  4 PagesBautista Global warming a real or is the planet Earth just going through a natural warming, and cooling cycles? There are a number of people that believe global warming does not exists, that the planet Earth goes through changes of warm and cool temperatures, every ninety to hundred years. But, there is also a bigger number of people saying that this is not true, and the changes of warm temperatures that are happening now, and the changes of the last thirty years are due to a global warming, done byRead MoreGlobal Warming Will Destroy Our Planet Earth1355 Words   |  6 Pages Title: Global Warming Will Destroy Our Planet Earth Introduction: The most important place in our galaxy that we know is inhabitable is now being destroyed by humans. As humanity has grown over the years, we have created many problems along the way that later we will regret. The main problem that our planet is facing right now is called global warming. Throughout the years we have damaged many ecosystems trying to better ourselves, and we have not yet think about once the danger we are puttingRead MoreDeforestation of Our Rainforests931 Words   |  4 PagesThe most destructive and harmful tragedy that our rainforests, specifically the Amazon, suffer from is deforestation. Deforestation is the clearing or destruction of land throughout forests. Unfortunately, human beings are the number one cause of deforestation throughout the world. The reason if this is simply because we use the wood mainly for things like hydroelectric dams that power communities, palm oil for its biofuel resourcefulness, and the mining for diamond and gold. Ano ther reason wouldRead MoreGlobal Warming And Its Effects On The World Essay919 Words   |  4 Pagesthat is changing more and more but not in a very good way that it can end in the extinction of the planet earth. â€Å"Earth Hasn’t Heated Up This Fast Since the Dinosaurs’ End† (Lavelle). Carbon is growing so fast in the atmosphere faster than in the past 66 million years since the dinosaurs went extinct (Lavelle). All the presidents hold a position of power that could change this big problem that the planet is having, behind this problem there is other problems that are causing a much bigger problem inRead MoreThe Problem Of Global Warming1311 Words   |  6 Pagesdestroyed by man. As humanity has revolutionized we have created many problems along the way. The main problem we are facing right now is called global warming. We have damaged many ecosystems trying to better ourselves, and we have not yet once thought about the damage we are inflicting on our mothe r earth. We are already beginning to see the effects of global warming. It will make little changes that will have a huge impact, and devastate many ecosystems and everything living on earth. Thesis: If weRead MoreTittle : Global Warming Will Destroy Us1316 Words   |  6 PagesTittle: Global Warming will destroy us Introduction: The only place in our galaxy that we know is inhabitable is now being destroyed by man. As humanity has revolutionized we have created many problems along the way. The main problem we are facing right now is called global warming. We have damaged many ecosystems trying to better ourselves, and we have not yet once thought about the damage we are inflicting on our mother earth. We are already beginning to see the effects of global warming. It willRead MoreHow Do Pollution Affect The Life?941 Words   |  4 Pagesearth? The global warming is a gradual increase in the overall temperature of the earth s atmosphere generally attributed to the greenhouse effect caused by increased levels of carbon dioxide, chlorofluorocarbons, and other pollutants. The main cause of pollution is the human being. The contamination caused damage not only in animals and plants but also in the same man. In their attempt to progress and have an easier and bearable life has invented and used products that are destroying stability and

Capital Investment Time value of money and Importance of NPV and IRR

Question: Describe about Time value of money, Net present value of IRR and Importance of NPV and IRR? Answer: Introduction The feasibility of a business project for building a new project or investment in a long term venture can be determined by the capital budgeting procedures. The cash inflows from the investment in a project can be determined in order to determine whether the returns generated from the investment will be sufficient for the target project (Belli, 2001). Time Value of money The idea that money is available at the present time is worth more than the same amount of money in the future due to the potential earning capacity can be determined by time value of money (Clayton and Spivey, 2015). It is used for the comparison of the investment alternatives and solving the problems related to loans, mortgages, savings and annuities. For example, dollar can be invested for one year at an interest rate of 6% annually. At the end of one year an interest amounting to $1.06 will be accumulated (Silver, 2009). Net Present value and IRR Net present value can be defined as the sum of the present values of the cash inflows and the outflow of cash during a period of time. Net present value serves as a tool for determining the feasibility of a particular project (Nikbakht, Nikbakht and Groppelli, n.d.). The net present value of inflows includes the salvage value if there is any which is subtracted from the investment in the project initially. It is considered as one of the reliable methods as it considers the time value of money by using the inflows which has been discounted (Belli, 2001). Internal rate of return is a capital budgeting method to measure and compare the profitability of the various investments. It is also known as the cash flow return at discounted rate. It is also known as the interest rate which is effective in context of the loans and savings. However the environmental factors are not considered in the calculation of IRR (Wright, 2015). Importance of NPV and IRR The feasibility of a project can be determined from the net present value method. It is an authentic method of project evaluation as it uses the time value of money as the cash inflows are determined using discounted cash flow method. The original return from a project can be determined from the internal rate of return. It determines the outflow of cash that has been spent on investment and the cash inflows that comes to a company as a result of investment. The feasibility of an investment project can be determined from IRR (Khan Jain, 2004). Calculation of NPV and IRR Initial Capital Outlay $25,000.00 Rent per month $2,000.00 Annual rent $24,000.00 Gross profit per cake $7.00 Cakes sold to grocery store $500.00 Total gross profit per month $3,500.00 Annual Gross Profit $42,000.00 Capital inflow Rent + Sale of cake $66,000.00 Year Capital Inflow PVF PV 1 $66,000.00 $0.94 $62,264.15 2 $66,000.00 $0.89 $58,739.77 3 $66,000.00 $0.84 $55,414.87 4 $66,000.00 $0.79 $52,278.18 5 $66,000.00 $0.75 $49,319.04 Present value of Total Capital inflow $278,016.01 Net Present value $253,016.01 Capital outlay ($25,000) Year 1 66000 Year 2 66000 Year 3 66000 Year 4 66000 Year 5 66000 IRR 264% References Belli, P. (2001). Economic Analysis of Investment Operations: Analytical Tools and Practical ... (pp. 200-230). Clayton, G., Spivey, C. (2015). The time value of money: worked and solved problems. Khan, M., Jain, P. (2004). Financial management ; Text, problems and cases. New Delhi: Tata McGraw-Hill. Nikbakht, E., Nikbakht, E., Groppelli, A. Finance. New York: Barron's. Silver, T. (2009). The Time Value of Life: Why Time Is More Valuable Than Money (pp. 5-30). Wright, T. (2015). Why Is the Internal Rate of Return Important to an Organization?. Small Business - Chron.com. Retrieved 12 February 2015, from https://smallbusiness.chron.com/internal-rate-return-important-organization-67279.html