Financial management and risk analysis Essay Example | Topics and Well Written Essays - 2000 words

Financial management and risk analysis - Essay Example The new assembly cell requires three cell programmer/operators recruited at a salary of  £20,000 per year each. The cell robots are expected to last for 5 years, after which they can be sold off for an estimated price of  £1,000 each. The company’s cost of capital is currently 10%. This is a two-option financial investment appraisal case which compares the cost of operating an existing sub-assembly line with the cost of a new automated assembly cell. Both options incur costs we could compare to find out which option results in lower expenses over the next five years. Any savings will increase profits, which we can then transform into additional value that would benefit our shareholders. We utilised common investment criteria to analyse this project, and considered other factors that may affect its financial viability. We included our suggested solutions and potential effects on the final decision through a sensitivity analysis, which takes into account: 1. The cost of replacing our eight fitters and with three skilled operators. We included the effect of granting separation pay to each displaced operator and made a recommendation on how much we could afford to pay. The key insight to our problem is to match the cash flows for both options. Option 1 is our existing sub-assembly line, whilst Option 2 would be our proposed investment in new automated machines. Each option has a cash outflow over the next five years. Whilst Option 1 would not require a large cash outflow now, it has the same level of cash flows we are currently spending to maintain the line. In contrast, Option 2 demands a large cash outflow now, but this would result in lower cash flows over the next five years. We compared both cash flow forecasts and arrived at a net cash flow, which is the amount of working capital we would save from the lower cash requirements of Option 2. A basic assumption is that the sub-assembly line’s productivity would be constant, and that

Aircraft Crash Analysis & Design Essay Example | Topics and Well Written Essays - 500 words

Aircraft Crash Analysis & Design - Essay Example All of the 297 passengers and 12 crew members evacuated the aircraft before the fire reached the escape doors. All of the passengers and crew members survived with only 12 were seriously injured. People called it a miracle and the role played by the highly trained crew members in an emergency situation was appreciated. The passenger cabin had eight emergency exit doors. Six of the doors are used in Type A emergency and the other two doors are used in Type l emergency. All of the doors were similar in operation. They had a design to be opened either from interior or the exterior. According to the operating manual of Airbus cabin crew the instruction states that opening the doors from interior in normal operations, the door control handle must be completely up. All of the doors were equipped with door assist system which had an emergency operation cylinder and a damper. Damper helps in limiting the travel of the door in normal operations especially when the conditions are windy. But in an emergency situation the damper acts as an actuator in order to open the door automatically. The damper is operated by compressed nitrogen gas which is stored in specially designed cylinders which have pressure gauge. Slide arm lever controls the release of nitrogen by and actuating device. When the arm lever is at armed state as normally it is during landing as a result the door assist opens the door automatically. Each emergency door also has a prismatic lens. The plane had 8 evacuation escape devices to help in fast occupant way out in state of an emergency. It had 2 single lane slides at emergency doors R3 and L3 and six double lane rafts at emergency doors R1, R2, R4, L1 and L2. The deployment and inflation of the rafts were automatically started when the emergency doors are opened. Normally the deployment and inflation time of rafts is 16 seconds but on Airbus A340 it is 8 seconds. There is no sign that the international