International Finance Case Study Example | Topics and Well Written Essays - 1250 words

International Finance - Case Study Example The new equipment will have a useful life of 10 years. The equipment being replaced had a book value of Pts. 1,605,000 and a market value of Pts. 950,000 meaning a Pts. 655,000 loss on disposal. The net present value rule states that an investment should be accepted if its net present value is greater than zero and rejected otherwise. The new equipment produced by Brevetti Cea, s.p.a ,an Italian firm has a number of benefits including larger production volumes, inspection and rejection thresholds are easily adjustable and the machine does not require specially trained operators. The fact that the new machine does not need trained personnel means that new employees can within no time learn how to handle the new equipment as compared to the 2 or 3 months needed to earlier train them. The semi-automated, old model inspection equipment has operational costs of Pts. 88,496 in 1988, which are expected to gradually rise to Pts. 124,872 in 1997. The new photoelectric equipment has relatively lower operational costs of Pts. 69,676 in 1988 which are expected to rise to Pts. 98,318 in 1997. Use of the new photoelectric equipment is expected to result in savings in operational expenses . After this 10 year period, the new photoelectric equipment would have exhausted its useful life. Cash flows relevant to the new photoelectric equipment include; the initial Pts. 61.525 million or $500,000. The savings in the materials and labor cost, that is the difference in the operational costs of the old model equipment versus the new efficient equipment consists cash inflows or savings. The revenues or cash sales anticipated from assimilation of the photoelectric equipment are however unstipulated. There is also a loss of Pts. 655,000 on disposal of the old equipment, as its net book value is Pts. 1,605,000 and its market value is Pts. 950,000. Merck considers the savings

Effects of globalization on national food cultures Term Paper

Effects of globalization on national food cultures - Term Paper Example Nowadays, local communities are abundant in their own local cuisines, and they have access to fast food chains like McDonalds and other foreign dishes simultaneously. The increasing trend of fast food culture is significantly affecting lifestyle and health of youth globally, and they are now carrying the burden of poor nutritional practices and obesity. Thus, Globalisation has very negative effects on national food culture, which extends to the effects on national cuisines and food, impact on health and obesity, and economic impact on local food market. To begin with, Globalisation is significantly influencing the national food culture by affecting the national cuisines and food. One can observe a growing importance for imported foreign foods, which is affecting the relevance of local cuisines and national food culture. In many nations, food is an integral part of culture and over exposure to foreign goods due to Globalisation is becoming a major threat to the cultural identity of these nations. To illustrate, according to the Levin Institute report (n.d.), the French has their own culinary tradition with unique cuisines like crepes and pastries, and they are quite resistant to US cultural imperialism especially in the case of food culture (p. 180). But with the crowding of several US restaurant chains in urban regions which produce unhealthy and greasy burgers and processed food, recent statistics prove that urban population of France is suffering from eating related problems and obesity. Hence, according to the Levin Institute re port, increased trend of fast food brought by Globalisation is forcing people to take food of lower quality. As per the same survey, in China, children were not expected to buy food using their own money, and there were no festivities in celebrating birth date. But with the introduction of McDonald’s restaurant, more and more children begin to buy