Llano-Ferro (2009) proposes a solution to avoid “significant errors” when the Weighted Average Cost of Capital (WACC) “obtained by the standard formula leads to significant errors in Net Present Value of the Firm calculations; particularly in those that apply to perpetual cash flow series”. In this paper we show that there are not “significant errors” but a wrong use of the formula and improper calculations of values. The Weighted Average Cost of Capital (WACC) is used in finance for several applications, including Capital Budgeting analysis, EVA® calculations, and firm valuation. WACC obtained by the standard formula leads to significant errors in Net Present Value of the Firm calcu- lations; particularly in those that apply perpetual cash flow series. The present paper identifies the problem, and provides alternative, and accurate formulas to obtain WACC for Firm Valuation calculations.
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generated. When recycling water, the environmental impact is reduced. The reutilization of shrimp shell as biomaterial is also shown. With the more dotted thick black arrows, the shrimp-chitosan link of the system is shown, where chitosan is reused and water is recycled. In the long term this system will transform into an integral production system where each one of the wastes from the links will become reintegrated into the global productive chain. What is expected is that the production costs will be reduced with this. The traditional financial evaluation of a project to estimate its Net Present Value (NPV) consists in estimating the benefits and costs in each period and obtaining a cash flow that is updated to the starting period when using a discount rate that was 12 % in this study. The initial investment is subtracted
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During the last decade, forced internal displacement in Colombia has been a growing phenomenon closely linked to the escalation of the internal armed conflict - particularly in rural areas. The displacement problem has affected nearly every region and vulnerable groups of the population. Two emerging policy questions are whether the magnitude of the response to this problem has been proportional to its size and to what extent the instruments chosen are the most adequate to address it. The purpose of this paper is twofold. First, to identify the determinants of displacement behavior and to compare these findings with standard migration literature. Second, to estimate the burden or welfare losses of displacement. Empirical evidence shows that the welfare loss of displacement is considerable and amount to 37 percent of the net present value of rural lifetime aggregate consumption for the average household. This loss is estimated for each household with a method that derives welfare changes from behavioral model estimates – widely used in environmental economics. Our empirical findings also show that the level of violence at the origin site is not only the dominant factor of displacement behavior, but also that in a violent environment other migration determinants have the opposite effect, relative to the one expected by the migration literature in a non-violent context. That is, the violent environment modifies the migration incentives for risk aversion, access to information, the planning horizon, and location-specific assets – human and non-human.
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The methodology for obtaining the net present value of the losses the Benefit Cost Ratio, encompasses the following steps: i) seismic hazard assessment, in which a set random seismic events are generated and the corresponding spectral accelerations at the buildings location are obtained; ii) exposure assessment, in which the buildings built area and their economic value are estimated and buildings are classified into structural typologies; iii) vulnerability assessment, in which vulnerability functions for each typology are developed; and, finally, iv) loss assessment, in which the annual average loss of the buildings portfolio in the current conditions and in the case of a hypothetical structural intervention are estimated.
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Therefore, customer equity (CE) is concerned with identifying the value of the whole base of customers for the seller. According to this idea, Richards and Jones consider that “measuring CE provides an indication that a margin is generated above and beyond both the product costs and the costs to sell those products to a group of customers”. In the calculation process for CE, individual customer lifetime values (CLV) or life time value (LTV) are determined for each customer and ultimately CE is related to a return on marketing measurement. Customer lifetime value is defined as the net present value (NPV) of a single customer's value and CE is defined as the discounted sum of each customer's LTV less any on-going investments required to maintain customer relationships. There are some mathematical models to express this concept depending on the characteristics of the market (business-to-business or business-to-consumer).
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eral) equilibrium effects of changes in entrepreneurial net worth and monitoring ability of investors when entrepreneurs and investors have incentives to form firms or partnerships through endogenous matching. In particular, we consider a market where heterogeneous entrepreneurs are assigned to heterogenous institutional investors. Entrepreneurs, heterogenous with respect to net worth, lack sufficient fund, and hence require to rely on institutional investors to fund their projects. Non- verifiability of entrepreneurial effort along with limited liability give rise to a moral hazard problem in effort choice. Investors, heterogeneous with respect to monitoring ability, may choose to monitor their borrowers in order to mitigate the entrepreneurial moral hazard problem. Since monitoring ac- tivities are costly and chosen after the firms are formed, there is an additional incentive problem in monitoring. As we have discussed earlier, differences in monitoring ability may stem from various fundamentals of the credit market, but for the purpose of the current paper we would assume that a higher ability to securitize loans translates into a lower monitoring efficiency because of the moral hazard problem that may exist between the issuers of the securities (investors in our model) and their buyers. Thus in the present context, partnership formation is subject to a double-sided moral hazard problem which implies the failure in implementing the efficient market outcomes.
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restoration costs); passive with protection (costs of fencing and fire suppression); and active (costs of native tree planting, fencing, and fire suppression). The opportunity costs of lost livestock production, which is the main alternative land use in each of the study areas, were also taken into account. Results showed that passive restoration was cost-effective for all study areas on the basis of the services analyzed, whereas the benefits from active restoration were generally outweighed by the relatively high costs involved (Birch et al. 2010; Figure 4). These findings were found to be relatively insensitive to discount rate but were sensitive to the market value of carbon. Substantial variation in values was recorded between study areas, demonstrating that ecosystem service values are strongly context specific. However, spatial analysis enabled localized areas of net benefits to be identified, indicating the value of this approach for identifying the relative costs and benefits of restoration interventions across a landscape. It should be noted that the analyses were limited to five ecosystem services, namely, carbon storage, timber, non- timber forest products, tourism, and livestock production. Different results might have been obtained had additional ecosystem services been considered.
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El Net Art es un movimiento que a través del estudio de su historia y evolución, abre una mirada distinta al manejo de la publicidad en Internet, específicamente en Colombia. En las décadas anteriores al surgimiento del grupo artístico, se instauró una nueva mirada del arte por medio de conceptos como experiencia, desmaterialización e interacción, creando un nuevo método comunicacional en el cual el espectador era un factor determinante en la realización de la obra. Dicho paradigma, visto desde el escenario publicitario, posibilita una nueva mirada a la publicidad en Internet, con el fin de que los usuarios en lugar de rechazar los anuncios, encuentren en ellos un espacio de atracción, identificación y entretenimiento a través de la creación de páginas Web que conformen espacios de discusión, crecimiento, y sobre todo una opción de vida para aquellos que no han encontrado un modo de surgir profesionalmente.
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A curtailment gain or loss comprises (a) the change in the present value of the defined benefit obligation, (b) any resulting change in fair value of the plan assets, and (c) a pro rata share of any related actuarial gains and losses, unrecognised transition amount, and past service cost that had not previously been recognised.
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A word of caution is advised at this point. The previous reasoning about liquidation is somewhat divorced from reality. The decision to liquidate is much more complex in practice since it must take into conside- ration other factors such as: optimum timing of the liquidation process, transaction costs and taxes related to liquidation and, most importantly, the option value of deferring the decision to liquidate. This option means that even though no value might be being added by management, the decision to liquidate must be postponed whenever there is a significant likeli- hood of improved prospects for the company in the future. With the purpose of centering the discussion on the main issues these considerations are ignored. Following the previous line of thinking about decrea- sing returns, some analysts recommend extending the horizon until the point when it is expected for the firm to stop creating value. At this moment a no-growth perpetuity (implying a return on reinvested assets r equal to the minimum return on assets r A ) is specified. As explained above, this procedure is equivalent to assume liquidation at the end of the horizon and thus demands a projection period as long as the expected remaining life of the firm. This is reasonable as long as free-cash flows can be estimated for such a length of time. But when the expected life of the company is considerable it might make more sense to set up one or more phases of declining growth between the end of the time period during which free-cash flows are projected and the beginning of the no-growth/liqui- dation stage.
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The purpose of this paper is to advance the evidence on the empirical va- lidity of the linear PV model of stock prices in two ways. In the …rst place, in order to avoid the econometric problems mentioned above, we make use of recent developments in cointegrated regression models with multiple structural changes. Speci…cally, we use the approach proposed by Kejriwal and Perron (2008, 2010) to test for multiple structural changes in cointegrated regression models. These authors develop a sequential procedure that not only enables detection of parameter instability in cointegration regression models but also allows for consistency in the number of breaks present. Furthermore, we test the cointegrating relationship when multiple regime shifts are identi…ed endoge- nously. In particular, the nature of the long run relationship between real stock prices and dividends is analyzed using the residual based test of the null hy- pothesis of cointegration with multiple breaks proposed in Arai and Kurozumi (2007) and Kejriwal (2008).
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Aditionally, the nature of the industry, an oligopolistic market where competitors are not allowed free entrance, is considered in order to evaluate the significance of real options embedded in the investment. Thus, we analyze the option to abandon as the main real option, due to the fact that in this industry, there are economies of scale that allow bigger players enjoy better margins. Consequently, new entrants have the option to sell their business to incumbent companies (already established players), which are able to extract more value from the same customer base, increasing its total size and having access to higher margins. As a recent real example it can be mentioned what happened in the UK in 2009 when T-Mobile and Orange – the smaller market players in the mobile market with 15% and 22% share respectively– merged their businesses, creating a much larger company with 28.4 million customers (BBC, 2009). Most likely at the end of the process the brand name will be Orange.
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El desarrollo del presente trabajo se abordó a través cuatro procesos que son: 1) Revisión del marco teórico con el cual se establecieron los criterios para la valoración; 2) Elaboración de diagnóstico a través del análisis estratégico, contable y financiero, consolidando la información del estado real de la empresa; 3) Proyección de los estados financieros con el objetivo de estimar el comportamiento futuro de las cuentas de la empresa, las cuales han sido impactadas por aspectos macroeconómicos, como también de decisiones gerenciales y 4) Aplicación de los métodos de valoración por Adjusted Present Value (APV) el cual permite conocer el valor de la empresa para el año 2017 sin incidencia de apalancamiento externo, y el valor presente de los ahorros impositivos y la aplicación del método de valoración por FCL con WACC tradicional, con el objetivo de corroborar la valoración. Además de establecer la incidencia del costo promedio del capital de la empresa y la generación del análisis de sensibilidad, creando escenarios optimistas, moderados y pesimistas que permitan evidenciar la variación del valor terminal y total de la empresa ante cambios en el costo promedio ponderado de capital (WACC) y la tasa de crecimiento g para, con la información obtenida a través de los procesos de valoración, determinar si la empresa genera, destruye, aumenta o disminuye valor a partir de las predicciones realizadas.
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Abstract: In this paper, we intend to address the causes that explain the value Spanish language has in the world today. A value linked to the number of its spe- akers, to an ancient culture and to an increasingly strong economic importance that makes studying Spanish as a second language a future investment for those who decide to learn it. This reflection is part of the research program framework “Africa con eñe”, carried on by the “Unesco Chair in Communication Research and Africa”, from the Universidad Rey Juan Carlos, Madrid, Spain, and by the “Fundación Mujeres por África”, with the aim of promoting the use of Spanish as a development instrument for Africa and, specially, African women. The project includes different lines of work, among them, the intention to incorporate Spanish language as part of the elective courses offered in academic programs at primary and secondary schools in various African countries, that´s why it seems necessary to show all demographic, cultural, geographic, economic and political elements that make Spanish one of the main languages at present and future in the world. This project is justified by the need to promote a language as impor- tant as Spanish –which occupies the second place in the international ranking of languages in terms of number of inhabitants, after Chinese and, for the first time, ahead of English– in a continent where it barely has a presence; Spanish is the official language only in Equatorial Guinea. Key words: Spanish; langua- ge; international communication; demolinguistics; economic value.
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La plataforma .NET ha supuesto, desde su aparición, una constante revolución en el mundo del desarrollo de software. Nuevos lenguajes con características cada vez más potentes, frameworks y librerías de componentes reutilizables de gran alcance, compatibilidad y versiones específicas para múltiples dispositivos y sistemas operativos, facilidades de comunicación a través de estándares, y entornos de desarrollo impensables hace unos años hacen de esta plataforma una tecnología ideal para el desarrollo de sistemas empresariales.
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El present TFC ha sigut concebut amb la idea d’organitzar anotacions, cites, etc.. dels usuaris que l’han de fer servir. És volia crear una eina multiplataforma, distribuïble i multiusuari. Per aquest motiu a més d’una aplicació d’escriptori Windows s’ha considerat important la realització d’una aplicació Web amb la que s’atorga una major mobilitat.
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13 partial pressure” and the possibility of air seeding coming from the pit pores. Reduced soil water availability increases xylem sap tension leading to higher probabilities of cavitation (Zimmerman 1983; Tyree & Sperry 1989). Gas created by embolism becomes trapped in the xylem conduits. This gas can spread across vessels with air seeding at pit membranes, cavitating more vessels and causing a progressive decrease of xylem hydraulic conductance (Sperry et al., 1988; Choat et al., 2008; Brodersen et al. 2013). Pit membranes are interconnections between vessels that present nanometer- sized pores that prevent the spread of gas through the xylem vessels. When critical pressure values are reached in vessels exceeding the capillary sealing capacity of pit membranes the embolism is spread to other vessels causing dramatic falls of hydraulic conductivity which could become irreversible (Choat, 2013; Lens et al., 2013). Plants need to maintain xylem water potential within a range that prevents extensive embolism in the xylem vessels in order to survive to drought stress. One method to control the spread of embolism is stomatal closure which limits water loss and delay the spread of gas embolism across the xylem network.
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A closer look at the numbers shows that Jason, Mark, and C. C. did pretty well, but nothing like the quoted fi gures. Using Mark’s contract as an example, although the value was reported to be $180 million, it was actually payable over several years. It consisted of a $5 million signing bonus plus $175 million in future salary and bonuses. The $175 million was to be distributed as $20 million per year in 2009 and 2010 and $22.5 million per year for years 2011 through 2016. Because the payments were spread out over time, we must consider the time value of money, which means his contract was worth less than reported. How much did he really get? This chapter gives you the “tools of knowledge” to answer this question.
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We will estimate the welfare losses brought about by displacement based on methods used in environmental economics. To value the wel- fare losses stemming from goods and services not transacted in markets, environmental econ- omists developed micro-based models to illus- trate how individuals modify behavior to mitigate the impact of environmental shocks and to deﬁne the consequent welfare losses. The shock from displacement exhibits a similar structure to those caused by environmental problems. An external negative shock, in this case violence, induces changes in behavior, which in turn impose welfare losses on house- holds. One way of measuring changes in utility in monetary units is compensating variation. 12 In this case, compensating variation can be interpreted as a measure of the willingness to accept income in exchange for a deterioration in security conditions. As shown by Hanemann (1982), compensating variation (CV) can be de- ﬁned as the measure equating the expected maximum utility before and after displacement. For the model explained above, expected com- pensating variation can be deﬁned as 13
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En el bloque 4 se valida el comando que el usuario introduce de acuerdo con la función o funciones que desee ejecutar. En caso de que el comando sea correcto, el bloque 5 captura en una o más variables la función o funciones invocadas. Dichas variables se utilizan para la posterior ejecución de la función solicitada. Cuando el usuario introduce valores por fuera del rango requerido por una función en particular, por ejemplo, valores negativos para la función lifetime, el programa de todas maneras se ejecuta pero utiliza los valores establecidos por defecto (de 5 segundos), lo cual se le indica al usuario mediante el bloque 6. El bloque 8 instala las capas físicas y de enlace en cada una de las interfaces de los nodos, mientras que el bloque 7 instala la pila de IPv6 en las mismas. El bloque 9 utiliza el API Ipv6AddressHelper para crear los prefijos de cada subred IPv6 dentro del sitio. Las líneas 13 y 14 de la figura 3 ilustran la creación del prefijo 2001:0:cafe:1::/64, el cual le corresponde a la subred net 1; las líneas 16 a 18 ilustran el código que hace que el nodo n0 carezca inicialmente de una dirección IPv6, y que para generar su dirección de manera automática, tome como base el anuncio del prefijo 2001:0:cafe:1::/64 (y del segundo prefijo, 2001:beca::/64), difundido por el encaminador R1; las líneas 20 a 22 presentan el código que permite asignar de manera estática la dirección 2001:0:cafe:1::2/64 a la interfaz que R1 tiene en el lado de net 1; la línea 24 habilita al nodo R1 para que haga las funciones de encaminador; la línea 25 permite que R1 sea la puerta de enlace por defecto de los equipos finales que están conectados en la net 1, por ejemplo el nodo n0. En el sistema desarrollado, las direcciones IPv6 de los nodos n0 y n1, se configuran automáticamente de acuerdo con los anuncios de encaminador (en adelante RA, Router Advertisements) difundidos por los encaminadores R1 y R2, respectivamente. En contraste, la dirección IPv6 del nodo n2 se configura de manera estática. Las líneas 28 a 35 presentan parte del código que hace posible que R1 difunda el prefijo
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