Utilizing the Time Value of Money Essay Example | Topics and Well Written Essays - 500 words

Utilizing the Time Value of Money - Essay Example But do to some limitations of these tools other tools such as Profitability Index and Payback Period. The payback period determines the duration of the time it would take to recover the investment made initially. This will give us the number of periods it would take to breakeven for the initial investment made. The profitability index is used as well in investment decisions because it measures the value created per dollar invested. So if the PI shows a greater than 1 value, then it means that the investment is returning a greater amount than invested. These two techniques are used because they resolve the disadvantages of NPV and IRR methods. (Helmkamp, 1990) The first disadvantage of a NPV calculation is its dependency on the interest/discount rates. It is very difficult for the investor to know the correct discount rate since they can change though out the life of that investment making considerable differences on the decision. (Investopedia, 2008) Another issue with the discount rate is the differences in the risk factor of the investment. Since the risk can change, therefore the discount rate, this can make lives very hard in calculating NPV. (Investopedia, 2008) Another disadvantage lies in the facts that NPVs are just mathematics calculations that do not take into account the real options available for investment.

Does IT lead to job elimination, or job enhancement Essay

Does IT lead to job elimination, or job enhancement - Essay Example s are assembled or foods processed, through the use of robotic arms and conveyer belts, a job that may have been retrospectively been done by a hundred unskilled workers can be done by just a handful of machine operators. Inevitably, given the sensitive nature of labor issue, machines were not very well received by the workers they stood to replace; even today the interrogation of technology is often condemned by those who view it as a negative force rendering people jobless especially in labor intensive economies. While this is a logically sound argument, it is nevertheless one sided in view of the fact that the relationship between labor and technology is not as simple as that. In as much as technology may result in unemployment in some sectors, it has spawned millions of jobs in in numerous sectors and one can even argue that in the end it creates more jobs than it destroys. In the late 19th century at the height of the industrial revolution, a group of artisans working in the textile industry started a revolution of sorts in Britain against the use of machines in the production of textiles. They were afraid that automation of the process of production would cause them to lose their jobs since less skilled and therefore cheaper employees rendering them redundant could operate the machines. The Luddites as they were known became a significant social and political movement and they engaged in numerous acts of destruction in protest of adaption of machines in their industry (Baggaley, 2010). So much so that it is estimated that British soldiers were at some point involved in fighting the luddites than engaging napoleon. Ultimately, the movement was crashed through a series of trials in which the Luddites were convicted for machine breaking, which had been made a capital crime, and many were executed (Edgerton, 2011).  Today, the term Luddite is used to d escribe someone who is seen as being opposed to or slow to incorporate technology (Baggaley, 2010). Proponents