Essay: Discount Rates

15 Apr

Essay: Discount Rates

Sample Essay

The discount rate desired by the management should be used to evaluate the NPV (Net Present Value) of the project so that one is able to determine whether the expected results are achieved. Since the project uses finances and other scarce and valuable resources, a shorter payback period of the project is desirable.

The payback period is measured through evaluating the cash inflows without considering the time value of money and profitability (Milosevic 60).

In most cases during project implementation, there changes that are expected to be done in the firm. In order to ensure a successful implementation of the project, there has to be scheduling of time such that the new changes advocated for in the project are incorporated in the working. There should be training of the employees prior to the implementation process to ensure that each of the employees is familiar with what is ought to be done and the expected results. due to conflicts brought about by resistance to change, some employees are expected to resist and in order to overcome this, they need to be informed in details of the expected benefits once the project is implemented. This means that the employees need to made to understand once they allow their working schedule and methods to be altered, they will be able to achieve satisfaction and feel motivated at the end of the project.

These are just excerpts of essays for you to view. Please click on Order Now for custom essays, research papers, term papers, thesis, dissertations, case studies and book reports.