The Industrial Revolution Essay - 595 Words

The Industrial Revolution The Industrial Revolution is a term usually applied to the social and economic changes that mark the transition from a stable agricultural and commercial society, to a modern industrial society relying on complex machinery rather than tools. There have been numerous debates to the use of this term because the word revolution suggests sudden, violent, unparalleled change. Even though there was an unparalleled change in the world, it was by no means sudden nor violent. The worlds social and economic structures changed due to marvelous inventions and innovations. These inventions and innovations led to a factory system of large-scale machine production and greater economic specialization. Britain is†¦show more content†¦In India, this idea of industrialization had a complete opposite effect. Indias economy survived on two major markets; the cotton market and the agricultural market. The cotton was grown by hand, picked by hand, and weaved by hand. Because of this, Indian cotton and cotton products were the best in the world and they carried a best in the world price. Beautifully hand woven cotton was very expensive and because of this, weavers and growers were living comfortably. But when the Industrial Revolution hit Britain, this all changed. The British (and an American man named Eli Whitney) invented new machines, such as the Spinning Jenny and the Cotton Gin, that could pick and weave cotton almost ten times faster than a hand could. Because more cotton products could be produced in a shorter time and therefore would cost less money, people began buying British cotton goods. This drove Indian cotton farmers and weavers out of work. And because of this, these unskilled workers had to move to cities or take up other jobs. For most Indians, this was impossible because they were so unskilled. No only did industrialization ravage the Indian Cotton Industry, but it ravaged Indian family traditions. Indians, who were lucky to find work, foun d it harder and harder to spend time with their families. So family ties and traditions almost ended right then. And since a large portion of the population relied on the Cotton Industry, aShow MoreRelatedIndustrial Of The Industrial Revolution1666 Words   |  7 PagesMartinez English IV, 1st hour 4/29/16 The Industrial Revolution The Industrial Revolution set people away from farms and small villages and moved them to cities and towns because of the job opportunities that arose in the cities. The Industrial Revolution not only helped people move along in the late 1700s and early 1800s but also it has made the people what they are today. During the Industrial Revolution, the movement from an agrarian society to an industrial one reshaped the roles of families, widenRead MoreThe Revolution Of The Industrial Revolution917 Words   |  4 PagesWhen thinking of the industrial revolution, I usually correlate this transitional period to great advancements in machinery, and an increase in jobs. However, after looking past the surface of the industrial revolution, in regards to the promise of great wealth, this promise was not kept, along with other issues. I believe that a â€Å"better life† would mean that people would not have to go through the same struggles they once did before the revolution, struggles such as not having a job, money, homeRead MoreThe Industrial Revolution943 Words   |  4 PagesThe Industrial Revolution, a Revolution that began in Britain in the nineteenth century, saw people move from working in the farming industry to working in factories. This transition from an agrarian society meant that many people moved to cities in search of jobs. New methods of manufacturing allowed goods to be produced far more cheaply and quickly than before. However, the Revolution came with its own negative consequences. The lives of children during the Industrial Revolution were torturousRead MoreThe Industrial Revolution1633 Words   |  7 Pagesmeans of communication, factories to manufacture the products you need, places to work, and ways to travel and transport goods. And what made these possible? The answer is the Industrial Revolution, which started in Europe around the year 1730. A revolution is a major change or turning point in something. The Industrial Revolution was a major turning point in history and in the way people lived. Their careers, living situations, location, values, and daily routines all changed, and they needed it desperatelyRead MoreThe Industrial Revolution1097 Words   |  5 PagesBefore the advent of the Industrial Revolution, most people resided in small, rural communities where their daily existences revolved around farming. Life for the average person was difficult, as incomes were meager, and malnourishment and disease were common. People produced the bulk of their own food, clothing, furniture and tools. Most manufacturing was done in homes or small, rural shops, using hand tools or simple machines. Did You Know? The word luddite refers to a person who is opposedRead MoreThe Industrial Revolution1090 Words   |  5 PagesShort Term Misery†¦ Long Term Gain There are two major industrializations that have occurred through out history, both which began in England. The Industrial Revolution was from 1750 until 1800. The first and second industrialization were filled with many inventions, new societal ideas, new raw materials, new sources of power, also new ideas and societal implements were made enabling the world and society to evolve. Overall these industrialization was filled with death, neglect, and disease but endedRead MoreThe Industrial Revolution936 Words   |  4 Pageseconomist Robert Emerson Lucas wrote in regards to the Industrial revolution: For the first time in history, the living standards of the masses of ordinary people have begun to undergo sustained growth. The novelty of the discovery that a human society has this potential for generating sustained improvement in the material aspects of the lives of all its members, not just the ruling elite, cannot be overstressed.† (Lucas 2002). The revolution itself was ce ntred in Britain before spreading to theRead MoreThe Industrial Revolution705 Words   |  3 PagesThe Industrial Revolution was the quintessence of capitalistic ideals; it bred controversy that led to Karl Marx’s idea of communism as a massive grass roots reaction to the revolution’s social abuses. Firstly, the Industrial Revolution featured the construction of machines, systems and factories that allowed goods to be manufactured at a faster rate with a lower cost. The seed drill made it so there could be â€Å"a semi-automated, controlled distribution and plantation of wheat seed†(Jones 2013). SecondlyRead MoreIndustrial Revolution1160 Words   |  5 Pagesend of the 19th century, a significant change took place in the fundamental structure of the economy. That change was industrialization. During this time period, the United States of America changed from a large, agricultural country, to an urban industrial society. The process of industrialization began to take place in America, and eventually took over the economy during this period. Entrepreneurs and inventors put together various machines and businesses to help better the country function on aRead MoreThe Industrial Revolution Essay2099 Words   |  9 PagesThe Industrial Revolution was one of the largest social and cultural movements that changed the methods of manufacturing of metal and textiles, the transportation system, economic policies and social structure as well. Before the Industrial Revolution, people used to live by season due to agriculture. They thrived on whatever food was in season. Now, as a result of the Industrial Revolution, we live regimented and almost everything that is made, is mass produced. I will discuss three major topics

Gender Issues and Sexuality in Marge Piercys Sex Wars...

Sex Wars; a title provocative enough to garner not only a second look when encountered on an overcrowded bookshelf, but undoubtedly a perfunctory lift from the shelf and a superficial perusal. If you do delve deeper into the novel by Marge Piercy you come to see that Sex alludes to gender and the relationship between men and women; not just the act. War denotes power, agency; a struggle to gain it, fought in our own cities not on some far off shores. It isnt peculiar that Marge Piercy would devote over four hundred pages to such a struggle. A prolific author of poetry, fiction and non; Piercy, a staunch feminist, always examines womens roles, especially those traditionally relegated to men. in her work. (Unknown) Sex Wars does that as†¦show more content†¦It was not until the twenty-seventh of forty-five chapters when the lives of the characters began to intertwine and the story as a whole began to take shape. By that time, the suspense had turned to longing and had begun t o feel burdensome. The setting was analogical genius. Just as American society was reconstructing its values and identity after the civil war and with the rise of the industrial revolution, so was each character. Victoria Woodhull, born into a transient poverty-stricken criminal family, envisioned, planned and executed a life of wealth and respectability for herself. Freydeh Levin, disadvantaged in wealth, heritage, familiar ties and with limited means of supporting herself carved out a niche in an oppressive society in which she not only thrived financially but created a much longed for family. Elizabeth Cady Stanton was the ideal of the time; a devoted wife and mother. Although she has attained such status she envisioned and worked for more for herself and all women, renovating society and herself. Even Anthony Comstock, the true ideal of the time: male, national and ambitious is fueled to restructure society and by doing so transforms himself. Although each personality differed g reatly, they all shared the struggle against the society of their time and their success at re-shaping themselves and subsequently society, on their own terms; therein lies the theme. In a novel so

Drivers of Product Quality Improvement †MyAssignmenthelp.com

Question: Discuss about the Drivers of Product Quality Improvement. Answer: Introduction: The goal of any business organization that gets into the market with a product or a service is to make a profit from the selling the good or the service from the customers. Before a decision is made regarding a particular product production, there must be a gap in the market that should be existing that should be catered for. The difference in this context implies a difference between supply and demand. Consumer needs are usually the main trigger towards the production of a particular commodity or service. However, how much better an organization produces a helpful product, marketing plays a critical as it determines the success rate of the same product. The marketing strategy that should be embraced by a particular organization should be in a position to convince new customers on the purpose of the product as well as maintain an existing customer. In other words, any production and marketing of a particular product or service should be aim at the sustainability of the business in th e days to come. Technology has been in the lead as far as marketing of the goods and services is concerned in the 21st century. The marketing strategy applied should be efficient and convenient to ensure that whenever an organization gets to the market will not make losses but instead make a profit. One of the products that have been doing well in the market is Anza espresso machine which provides solves a problem of making coffee in the hotel industry. In the course of this research, the concentration will be directed to marketing aspects that are related to Anza espresso and how it has been in successfully been maintained in the market in the competitive business world. One of the industries that in the global business perspective that is growing at an alarming rate is the hotel industries. The number of customers who are being served in the local and international hotels is increasing annually. The law of demands and supply tend to be applied in that with the increase in the number of the customers; the demand goes up which is relative to the increase in the profit until a certain point when the increase will be constant. Despite the market expanding, the number of organizations who are getting into the industry to utilize the opportunity is also growing at an alarming rate. After the industry started experiencing the full impact of the law of demand and supply, the only remaining thing is to come up with a mechanism to lower operational costs as well as improve quality to attract more customers and maximize profits. As a result of this Anza espresso machine which is an electronic equipment that will develop the strong coffee taste is introduced in the market. Anza espresso machine aims at reducing the number of employees who are employed in a particular organization to offer their services. When the appliance is introduced into an organization, some of the recurring costs such as salaries and allowances is reduced while on the hand they increase the quality of the services they to the customers. Anza espresso machine is ideologically designed in a manner that it enhances portability as well as save on the space. The appliance is available with white and wood details by weighing 15 Kg making it easy to carry and handle (Cruz et al., 2012). The product is meant for the Australian market and will be released at an affordable price that favors the market. One of the reasons as to why the idea of introducing the Anza espresso is due to the need of the hotel industry to revive the concept of strong coffee which is increasing on a daily basis. Despite the fact that that the concept of strong coffee exists, the experience needs to be advanced to a level that the customers will be fully satisfied. Also, in the past couple of years, coffee consumption has increased annually. The high consumption rate implies that the market is growing regarding demand and something should be done to close the gap. Black coffee, in particular, has attracted the majority of the consumers which requires a specialized tool to make it in bulk and maintain the taste as per the expectation of the customers. From the market research conducted 2014, the consumers of the black coffee are the parents. Marketing of the Anza espresso machine As stated earlier, the market is the primary success determinant as this will be showing what is required in ensuring that the customers are aware of a new product that is released in the market. For the organization to succeed in the marketing of the product, both the primary and secondary marketing techniques should be used to reach out the customers and increase the level of acceptance. Before deciding on a particular product or service marketing, it is advisable for an organization to research to ensure that it gathers the required information that will be of importance in the release of the product. Gathering of research in the market helps the organization to identify the issues that exist in the market that can lead to failure. Also, the organization will be in a position to understand the various competitors that are in the market before the release of the product and the strategies they utilize to remain competitive. Primary techniques of information gathering in this contex t include the use of surveys, Questionnaires and focus groups. The three primary methods primarily aim at meeting the stakeholders on direct contact basis to ensure that they give the information that is relevant regarding a particular activity. The interested parties in this context are all those individuals who either directly or indirectly are involved in the production as well as consumption of the product. It covers the community, the government, the consumers and the employees of the organization that is involved in the production of the product. Stakeholders engagement Involving the stakeholders enhances the acceptance rate of a particular as it develops a sense of ownership among them. For example, when the government is involved in the production of a particular product and service, it responds by giving the required standards of operation of the product. The government aims at ensuring that the laws regarding a particular product and service production are followed to the letter. Therefore, this prevents the organization from being involved in an activity that does not enhance public protection. Also, when the market and the community are participating in a production information gathering as stakeholders, the acceptance of the product or service is much higher. Some beliefs are usually within a particular community that many at times hinder the success of a product. For instance, if the community beliefs that are consuming a particular product or service will affect its people negatively, no matter how good the product and solving a particular problem, it will not be accepted. In the community, there dwells the customers and the market where an organization aims at. The consumers are the main reason as to why a particular idea is implemented. It is important to first understand the scope of the problems of the problem before being involved an attempt of solving it. When the customers are consulted before the release of a particular product, they become aware of what is going and thus when the actual implementation comes, the chances of failure of the product will be reduced. They become part of the product production an as well as they are involved in the marketing. The final and very crucial aspect of production is the employees' involvement. When the employees are involved in the production activity, there are high chances that the expectation of the organization is met with ease. An organization may proceed and gather information from the external sources, but the implementers of the ideas are the employees. When the e mployees are less involved in the decision-making process, the final product will have faults or even fail to address the issues raised by the customers. An organization involves it employees through proper communication to make them aware of the goals and what the customers' needs are. On the other hand, secondary techniques of information gathering involve use of journals, articles, and the internet (Zikmund et al., 2014). In the secondary information gathering, it involves making the organization aware of what other researchers did regarding a particular product. The research conducted saves the organization from being involved in an activity that other organizations participated in and failed. Also, the organization is made aware of the current status of the market before actualizing an idea. When the organization is aware of what is taking place outside the organization, it produces products that are in line with the expectation of the customers. Instances that may lead to the failure of the organization are avoided at all cost. The information collected using secondary methodologies is subjected to quantitative analysis through statistics and table formats. Analysis helps to determine the various factors that are to be considered in the production activity. Th e management usually, sets a benchmark which will be used in the production and when a deviation is experienced correction can be made with immediate effect. The analysis, in this case, involves the marketing strategies used by the various related companies in their production. The best strategy is adopted which promotes the success of the organization. Market Assessment and demand assessment Before the organization decides to adopt a particular marketing strategy, there is need to have an assessment done to the market to identify the various factors that may impact the process of marketing both positively and negatively. One of the assessments that should be highly considered consumption behavior of the product idea in this context Anza espresso machine. This usually starts with the feasibility study to identify the market opportunities. In the context of Anza espresso, the assessment that should conduct should focus on the factors that are making consumption of strong Black coffee go up. In this regard, the company should consider the market population that is making the hike in demand. In this case, coffee is largely consumed by the youth and the working women who prefer the beverage to other drinks such as tea (Biotto et al., 2012). Therefore, in the design of the appliance, it should consider the taste and preference of the youth and women to ensure that only what is relevant is incorporated. The taste and preference should also consider what the competitors are offering and how they should make it unique. Sustainability issues should also be considered as this will determine if the product will be long term or short term. If the factors are not favorable for the long-term success of the market, they should be avoided at all costs. In the market and demand assessment, marketing mix model should be considered. In this case, the Four Ps model is considered as they will influence customer purchasing decision. The four Ps are product, price, promotion, and place. In this context, Anza espresso is the result which is designed with features that favor usability. The machine as initially stated is portable and lightweight. The price, in this case, should be set in a way that the customers get the real values of their money. The price should also be in line within the range of the various competitors. Promotion involves how marketing will be done. In this case, Anza espresso will utilize the use of modern technology in the marketing. Finally, the place discusses the target market and the timing. Anza espresso will be made available in the Australian electrical market by 2018 according to Luan and Sudhir (2010). References Biotto, M., De Toni, A. F., Nonino, F. (2012). Knowledge and cultural diffusion along the supply chain as drivers of product quality improvement: the illycaff case study.The International Journal of Logistics Management,23(2), 212-237. Cruz, R., Cardoso, M. M., Fernandes, L., Oliveira, M., Mendes, E., Baptista, P., Casal, S. (2012). Espresso coffee residues: a valuable source of unextracted compounds.Journal of agricultural and food chemistry,60(32), 7777-7784. Frost, W., Laing, J., Wheeler, F., Reeves, K. (2010). Coffee culture, heritage and destination image: Melbourne and the Italian model.Coffee culture, destinations, and tourism,24, 99. Huang, R., Sarigll, E. (2014). How brand awareness relates to the market outcome, brand equity, and the marketing mix. In Fashion Branding and Consumer Behaviors(pp. 113-132). Springer New York. Iannario, M., Manisera, M., Piccolo, D., Zuccolotto, P. (2012). The sensory analysis in the food industry as a tool for marketing decisions. Advances in Data Analysis and classification,6(4), 303-321. Luan, Y. J., Sudhir, K. (2010). Forecasting marketing-mix responsiveness for new products management. Journal of Marketing Research,47(3), 444-457. Smith, J. A. (Ed.). (2015).Qualitative psychology: A practical guide to research methods. Sage. Zikmund, W. G., D'Alessandro, S., Winzar, H., Lowe, B., Babin, B. (2014).Marketing research. Cengage Learning Australia.

Financial Management Principals and Applications

Question: Describe about the Financial Management for Principals and Applications. Answer: 1. The NPV of the given projects based on the cash flow expected over the project life is computed below using 10% as the discount rate (Damodaran, 2008). Discounted cash flows ($) Year A B C D E F 0 -100000.00 -150000.00 -60000.00 -100000.00 -50000.00 -100000.00 1 18181.82 -45454.55 18181.82 54545.45 18181.82 27272.73 2 33057.85 82644.63 33057.85 49586.78 33057.85 24793.39 3 45078.89 75131.48 30052.59 75131.48 45078.89 22539.44 4 54641.08 95621.88 0.00 0.00 27320.54 20490.40 NPV ($) 50959.63 57943.45 21292.26 79263.71 73639.10 -4904.04 Cumulative NPV 50959.63 108903.08 130195.34 209459.05 283098.15 278194.11 It is apparent from the above table, that cumulative NPV is increasing with every project except project F. Thus, project F is not acceptable as it leads to reduction of the total NPV arising from the investment. However, it is known that the company has a capital of only $ 300,000 to invest. The projects are divisible and hence allocation must be done in accordance with the highest NPV generated per dollar invested (Shim and Siegel, 2008). NPV generated per dollar invested Amount ($) A 0.51 B 0.39 C 0.35 D 0.79 E 1.47 Hence, firstly allocated would be made to project E ($50,000), D ($100,000), A ($100,000) and remaining $ 50,000 would be invested in project B since part investment in the project is also feasible. NPV generated from E =$ 10 NPV generated from D = $ 79263.71 NPV generated from A = $ 50,959.63 NPV generated from B = (50000/150000)* 57943.45 = $ 19,314.48 Total NPV generated from allocated projects = $ 223,176.92 Now, investment cannot be divided and hence the capital allocation would be made on the basis of highest NPV that is derived from the project keeping in mind that all the capital is used and no capital stays idle. Hence, the chosen projects should be B, D and E since these generate the highest amount of NPV and are also able to completely utilise the initial capital of $ 300,000 (Petty et. al., 2015). The total NPV of the acquired projects = $ 57943.45 + $ 71 + $ 73639.10 = $ 210, 846.3 It is known that projects A and E are exclusive. Since projects are divisible, hence selection would again be done on NPV generated per dollar of investment. NPV generated per dollar invested Amount ($) A 0.51 B 0.39 C 0.35 D 0.79 E 1.47 Between A and E, it is apparent that E is preferable since it offers higher returns per unit investment and also in absolute terms (Parrino and Kidwell, 2011). Hence, investment in project E = $ 50,000 Then, investment of $ 100,000 would be made in project D due to second highest value of NPV generation. Since, A cannot be chosen, hence investment of $ 150,000 would be made in project B which would exhaust the available capital completely (Brealey, Myers and Allen, 2008). Total NPV of the projects acquired = $ 57943.45 + $ 71 + $ 73639.10 = $ 210, 846.3 2. The NPV of the given projects is estimated assuming the discount rate to be 10%. Present value Year Cash flow A ($) Cash flow B ($) PV Factor Project A Project B 0 -100000 -140000 1.00 -100000 -140000 1 30000 53000 0.91 27272.73 48181.82 2 35000 53000 0.83 28925.62 43801.65 3 40000 53000 0.75 30052.59 39819.68 4 45000 53000 0.68 30735.61 36199.71 5 55000 53000 0.62 34150.67 32908.83 NPV 51,137.22 60,911.7 The IRR may be defined as that rate at which the NPV of the project becomes zero (Damodaran, 2008). Project A The IRR comes out to be 26.46% as shown below. Year Cash flow A ($) PV Factor Project A 0 -100000 1.00 -100000 1 30000 0.79 23723.86 2 35000 0.63 21887.51 3 40000 0.49 19781.2 4 45000 0.39 17598.24 5 55000 0.31 17009.19 NPV 0 Project B The IRR comes out to be 25.88% as shown below. Year Cash flow B ($) PV Factor Project B 0 -140000 1.00 -140000 1 53000 0.79 42103.78 2 53000 0.63 33447.71 3 53000 0.50 26571.23 4 53000 0.40 21108.48 5 53000 0.32 16768.81 NPV 0 The relation between discount rate and NPV for the two projects is summarised in the table below. Discount Rate (%) NPV (Project A) NPV (Project B) 0 105,000.00 125,000.00 10 51,137.22 60,911.70 20 16,259.36 18,502.44 25.88 1,296.80 0.00 26.46 0.00 -1,630.20 The requisite diagram is shown below. It is apparent that both the projects are feasible and commercially viable. However, the exact acceptability would depend upon the cost of capital. Assuming the cost of capital of 10% per annum, project B would be more preferable as compared to A since it delivers a higher NPV although the investment is also higher in this case. However, with regards to IRR as the decision making tool, preference would be given to project A as it has a higher value of IRR. Clearly, there is a conflict between the two metrics and in such situations preference is given to NPV instead of IRR (Brealey, Myers and Allen, 2008). 3. In the given case, the range of financing for the various sources and also their corresponding cost after tax has been provided. Also, it is known that the target capital structure for the firm is the one it currently has. Contribution of long term debt through debentures = $ 1,500,000*(245.33/200) = $ 1,839,975 Contribution of share equity = $ 1,500,000 * (23/15) = $ 2,300,000 Contribution of preference shares = $ 400,000 *(5.75/5) = $ 460,000 Total capital = $ 4,599,975 Weight of long term debt = (1839975/4599975)*100 = 40% Weight of share capital = (2300000/4599975)*100 = 50% Weight of preference shares = (460000/4599975)*100 = 10% Using the above information, the breaking points may be determined as shown below (Shim and Siegel, 2008). Breaking point (Long term Debt) = 300000/0.4 = $ 750,000 Breaking point (Preference Shares) = 100000/0.1 = $ 1,000,000 Breaking point (Equity shares) = 500000/0.5 = $ 1,000,000 There are the following ranges of financing that are viable based on the calculation above. Case 1: 0 to $ 750,000 Source of Finance Optimum Weight Amount Long term debt 40% 300,000 Equity 50% 375,000 Preference Share 10% 75,000 Case 2: 750,000 -$ 1,000,000 Source of Finance Optimum Weight Amount Long term debt 40% 400,000 Equity 50% 500,000 Preference Share 10% 100,000 Case 3: $1,000,000- $2,00,000 In this case, the contribution of equity would exceed more than $ 500,000 and hence the cost of capital would change. Case 4: $2,000,000- $ 2,400,000 In this case, the contribution of equity would exceed more than $ 1,000,000 and hence the cost of capital would change. Case 5: More than $ 2,400,000 In this case, the contribution of debt would be more than $ 600,000 and hence the cost of capital would change The corresponding WACC for the various cases presented above are as follows (Petty et. al., 2015). Case 1: 0 to $ 750,000- WACC calculation is shown below. Source of Finance Optimum Weight Post tax cost Effective cost Long term debt 40% 6.5 2.6 Equity 50% 11 5.5 Preference Share 10% 9.5 0.95 Total 9.05 Case 2: 750,000 -$ 1,000,000 WACC calculation is shown below. Source of Finance Optimum Weight Post tax cost Effective cost Long term debt 40% 7.5 3 Equity 50% 11 5.5 Preference Share 10% 9.5 0.95 Total 9.45 Case 3: $ 1,000,000 - $ 2,000,000 - WACC calculation is shown below. Source of Finance Optimum Weight Post tax cost Effective cost Long term debt 40% 7.5 3 Equity 50% 12.5 6.25 Preference Share 10% 10 1 Total 10.25 Case 4: $ 2,000,000 - $ 2,400,000 - WACC calculation is shown below. Source of Finance Optimum Weight Post tax cost Effective cost Long term debt 40% 7.5 3 Equity 50% 14 7 Preference Share 10% 10 1 Total 11 Case 5: More than $ 2,400,000 - WACC calculation is shown below. Source of Finance Optimum Weight Post tax cost Effective cost Long term debt 40% 9 3.6 Equity 50% 14 7 Preference Share 10% 10 1 Total 11.6 The IRR associated with the various investment opportunities is given below, Investment Opportunity IRR A 14% B 12% C 11% D 10% E 9% F 8% The requisite plot is shown below (Parrino and Kidwell, 2011). From the above, it is apparent that the projects that would be funded are A,B and C. This is because the total amount of funding required for these in $ 1,000,000. For D, the marginal cost of capital would be higher than the IRR delivered, hence it would not be chosen. Project E and F are not feasible due to lower IRR (Damodaran, 2008). If project C is not available, then investment opportunity D can be pursued instead of it as the IRR of this would be greater than the marginal cost of capital (Shim and Siegel, 2008). 4. The various risks that tend to impact the shareholders and/or financial managers are highlighted below (Petty et. al., 2015). Business Risk Every business has an underlying risk which would be driven by the nature of business model. This business risk may be compounded due to adverse economic conditions and other factors which may undermine the stability of the business. Financial Risk Typically, all business have obtained some level of credit and it is imperative that the money should be returned in a timely fashion along with the requisite interest payments. Delays in this regards or inability to meet the payments may lead to insolvency. Liquidity Risk This risk is primarily faced by the shareholders of the company when there is not enough liquidity for the securities of the company and hence there is a high liquidity premium which may be charged. Market Risk The value of the share of the company is driven by a plethora of factors and is exposed to systematic risk or market risk which the shareholders have exposure to due to underlying fluctuations in the stock price. Tax and Exchange rate Risk Any unfavourable alterations in the tax regime or exchange rate could have impact on the earnings of the firm and impact its growth and market value. Hence, this is a risk factor for both managers and shareholders. References Brealey, R., Myers, S. and Allen, F. (2008), Principles of Corporate Finance (Global edition), New York: McGraw Hill Publications Damodaran, A. (2008), Corporate Finance, London: Wiley Publications Parrino, R. and Kidwell, D. (2011), Fundamentals of Corporate Finance, London: Wiley Publications Petty, J.W., Titman, S., Keown, A.J., Martin, P., Martin J.D. Burrow, M. (2015), Financial Management: Principles and Applications, Sydney: Pearson Australia, Shim, J.K. and Siegel, J.G. (2008), Financial Management, New York: Barrons