Money investing/investments

Working capital is what must be invested to get the process into productive operation. This is money invested before there is a product to sell and includes... 

For this simphfied case the net present value (NPV) after n years with money invested at a required aftertax compound annual fractional interest rate i is given by the equation... 

The same money invested in a project with a (DCFRR) of 10 percent would, by Eq. (9-108), obtain an entrepreneurial return i = 8.37 percent on the whole investment, i.e., 8.37/ 100. Investment of the entrepreneur s own money would only achieve an aftertax return of (0.1)(1 — 0.40) = 6 percent on 50, or 3/ 100 of total investment. The incentive to the entrepreneur to manage the projeci thus corresponds to a tax-free income of 5.37/ 100 of total investment. In practice, money is borrowed from more than one source at different interest rates and at different tax liabihties. The effective cost of capital in such cases can be obtained by an extension of the above reasoning and is treated in detail by A. J. Merrett and A. Sykes Capital Budgeting and Company Finance, Longmans, London, 1966, pp. 30 8). 

However, Lynn and Howland included in the fixed-capital cost not only money invested in production and storage facilities but also that invested in land, research and development costs, and any auxiliary facihties necessaiy to support the process. Typical values of capit ratios for the year 1958 are listed in Table 9-49. 

If the loss can be measured in money, the cash value of the risk can be compared with the cost of safety equipment or design changes to reduce the risk. In this way, decisions on safety can be made in the same way as other design decisions to give the best return of the money invested. 

Total money invested Number of shares purchased... 

You don t have a whole lot of money invested in this book, so don t feel obliged to read what you don t need. Concentrate on the topic(s) in which you need help. Feel free to skip over any text in a gray shaded box (which we refer to as sidebars). Although interesting, they ciren t required reading. 

Working capital In the accounting sense, the current assets minus the current liabilities. It consists of the total amount of money invested in raw materials, supplies, goods in process, product inventories, accounts receivable, and cash minus those liabilities due within 1 year. 

Like NPVs and nnlike ROI, DCFR allows for the time value of money. That is the money invested in a project only produces profits after that period of time needed to carry ont R D, bnild and commission a manufacturing plant, establish a distribution network and a sales organisation and make appreciable sales etc. Whereas if that money had been invested in a bank throughout that period it would have been steadily earning interest at a snbstantial rate with very little risk incurred. 

Earning interest on money invested is of utmost importance to the wise investor. Some funds pay a higher rate of interest but may be a bit risky. To offset the risk, the shrewd investor puts some money in a high-risk fund and the rest in a fund that doesn t pay as well but one that can be trusted to give a return and not lose any of the investment. 

Write an equation in which the first interest plus the second interest is equal to 4,500. The first interest and second interest are expressions that you write using the interest formula. This is another quality times quantity situation. Let x represent the amount of money invested in the first account and 50,000 - x be the amount of money in the second account. Assume that the time is one year. Then solve for x. 

Think of the division of money as being divided into three parts — one part in the 5 percent fund and two-thirds in the 10 percent fund. Rather them use fractions, let the whole three-thirds be represented by 3x. Then let x represent the amount of money invested at 5 percent and 2x represent the amount invested at 10 percent. Write the two interest terms, add them up, and set them equal to 20,000. 

What can a pharmacist do to reduce the amount of money invested in inventory in a community pharmacy In a hospital pharmacy ... 

I did good things with my money, invested in clothes and equipment and put all the rest into cameras and film. My big dilemma of course has always been finding someone else behind the camera when I m the one in front of it. 

Faster return on the money invested during development. 

And while it is also true that thirty pharmaceutical companies alone account for 60 percent of worldwide ethical drug sales, the sums of money invested in research do not always get their full return. Thus it is that a small company like Janssen s laboratory, Janssen Pharmaceuticals, in Belgium, which was acquired in 1979 by Johnson and Johnson and which has among its discoveries diphenoxylate (1963) and loperamide (1975), has proved more innovative over the last fifteen years than the Rhone-Poulenc group, which has produced no major new molecule during the same time, although it devotes far more money to its research. 

The working capital for an industrial plant consists of the total amount of money invested in (1) raw materials and supplies carried in stock, (2) finished products in stock and semifinished products in the process of being manufactured, (3) accounts receivable, (4) cash kept on hand for monthly payment of operating expenses, such as salaries, wages, and raw-material purchases, (5) accounts payable, and (6) taxes payable. 

It is evident that the network of relationships between a university and a company, exemplified by Figure 3.3, has enormous benefits to both partners in the context of government support for interaction as discussed above. The alliance provides ready-made partners for collaborative ventures in which the sums of money invested by the company in the university enable other funds to come from the government and, in the European context, intergovernmental funding that makes use of the multinational nature of the industrial partner. 

The time and money invested in model parameter determination has to be in balance with the aim of a certain chromatographic separation. Very often, only sample products are needed for further studies with the pure substances and, to evaluate a separation process, only a few milligrams of the feed mixture are available. Additionally, time is an important factor and quick and dirty /short-cut methods will be applied to find conservative operating parameter values for a safe separation. A quite different situation is the design of commercial large-scale production plants. Here process economics come to the fore. Therefore, precise parameters are necessary for process optimization. As some parameters may change during operation, repeated determination may be necessary to reestablish optimal production. 

Investors in pharmaceutical research and development (R D) put up their money because they expect, on average, to get returns that adequately compensate them for the time and risk involved. Just as the interest rate on bank deposits is a payment for the use of depositors money (or capital), the return on an investment in R D is a payment the company or its investors get from the use of their capital. Riskier investments require higher dollar returns otherwise, investors would put their money in safe investments like U.S. Treasury bills or bank certificates of deposit. The riskier the investment, the higher the required return. The rate of return that investors must be able to expect from money invested with a given level of risk is referred to as the investment s cost of capital. ... 

Is the matter of satisfactory profits to the heavy chemical industry of sufficient concern to warrant prolonged and detailed discussion After all, in spite of some of the problems cited, we are talking about big blue chip companies with hundreds of millions of dollars invested, with many millions of dollars of profits, and with impressive growth forecasted. First, we should remember that we are talking for the most part about product lines within broadly based chemical companies. Secondly, for proper perspective, it is vital that we focus on return on money invested in specific product lines rather than on total dollars of profit. 

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