How Open was the Landed elite during the era 1780 - 1888 Essay

How Open was the Landed elite during the era 1780 - 1888 - Essay Example In European agrarian societies, after the medieval period, land was attributed as a highly demanded asset because it enabled the feudal lords to produce crops for subsistence. However, that was not the only purpose land served. Land was largely seen as a status symbol, a highly valued possession, whose worth could be gauged and flaunted .It was regarded as a safe asset, where wealth could be sustained for a long period, without the fear of deception or fraud. In addition to economic power, land enabled the landowners to amass political powers as well. This was so, as the owner of an estate also served as the head of the community and solved domestic disputes. Moreover, it allowed the landlords to control the inhabitants that lived on his estate, the majority of which derived subsistence through working on his lands. A landlord had a wide access to people who held positions of authority, which buttressed his influence and prestige in his region . Hence, land enabled him to uphold an administrative role in his area, in addition to it,accruing economic and political power. In England, while some men acquired land in order to establish their names, from a feudal family or become part of the landed elite, the others acquired it as an investment or amenity. Due to laws and policies, acquiring land became easier. For example, the Act of 1711 passed in Ireland, which forced MPs to hold land, which was later, revised in 1760 to add more people who were legally able to possess land, greatly incentive people to acquire landiii. The legal obstacles were removed for them and lawyers devised easy and cheap ways to acquire land. Some political entities also bought land in order to ensure their electoral strength.The demand for land also increased as people sought to keep it in order to undertake leisurely endeavors such as shooting and hunting. Some bought land in order to keep it as a buffer before they retirediv. Interest rates came to be greatly associated with the worth of land in the early eighteenth century. Sometimes, when the interest rates were low, espec ially during and after Louis XIV wars, many people expected that the value of land would adjust to ultimately lower levels and hence, acquired lands. During the mid-Victorian boom 1790-1815, rental rates in England surged, and hence, the attractiveness of land as an asset increased. In addition, it was regarded as a stable investment as its value did not fluctuate as much as government bonds in England, as a result of political shocksv. Marriages also allowed for acquisition of land, as office holders who belonged to prestigious families but did not have lands, often married into landholding families, and hence became part of the landed elite. Many of them either belonged to political establishment, or were rich merchants. Many of them were traders in East India Company, who later themselves married into land owning families, or married their sons and daughters, and became part of the landed elitevi. A number of these merchants, who served in the subcontinent, commonly known as â₠¬Ëœ

Financial Management (MBA) Essay Example | Topics and Well Written Essays - 750 words

Financial Management (MBA) - Essay Example The project's cost of equity stands at 13.08% and it is calculated by using the equation of CAPM. In this analysis the average beta is 1.48 and it shows that the project also bears some risk. Market risk premium is calculated by using the geometric average prices of the stock from 1973 to 2000. In the early part, the cash flow is slightly vulnerable because it recovers the initial cost outlay associated with the project, but later the project's net cash flow is in the positive zone which in the end makes a strong reflection on the NPV and the IRR of the project. Cost of capital stands at 10.44%, which is higher than the other project primarily due to the high debt financing which would leverage the firm's net income and also increases the costs associated with debt financing. The NPV of the project is $36,367,676 which is quite solid as far as the project valuation is concerned and the IRR provides a rate of return equivalent to 24.70% which is lower in comparison with the other project. It is reviewed that the project's cash flow stream is in positive zone throughout the period. The cash flow of the whole project's life increases gradually year by year because the profit overcomes all the cost associated with the project. The ultimate decision criteria would be to proceed with Front End Loader Project. ... iated with the project, but later the project's net cash flow is in the positive zone which in the end makes a strong reflection on the NPV and the IRR of the project. OUTBOARD MOTOR PROJECT The facts related with the Outboard Motor Project are disclosed below: Due to heavy debt financing of 70%, the project's cost of debt is high with a 4.82% which in the end makes an impression on the cost of the capital of the project. Cost of capital stands at 10.44%, which is higher than the other project primarily due to the high debt financing which would leverage the firm's net income and also increases the costs associated with debt financing. The NPV of the project is $36,367,676 which is quite solid as far as the project valuation is concerned and the IRR provides a rate of return equivalent to 24.70% which is lower in comparison with the other project. It is reviewed that the project's cash flow stream is in positive zone throughout the period. The cash flow of the whole project's life increases gradually year by year because the profit overcomes all the cost associated with the project. CONCLUSION The ultimate decision criteria would be to proceed with Front End Loader Project. This type of expansion bears a greater positive Net Present Value as compared to the outboard project, and since the company primarily focuses on NPV to make these capital decisions Front End Loader clearly adds more value. Assuming that the sales projections are correct, and after accounting for the initial cash outlay, the operating costs and maintenance, the discounted cash flow over the life of the project and after factoring in the depreciation of assets and their disposition value, the NPV of the outboard motor project is $ 36,367,676 which is no where close to the NPV of Front end loader,