Course Project Part 2 Coursework Example | Topics and Well Written Essays - 2000 words

Course Project Part 2 - Coursework Example These two ground are enough to take up this project. Depreciation is a non cash expense and it is also tax deductible. The depreciation is first reduced from the operating income to get earnings before interest and taxes. The amount of depreciation deducted is then added back in the cash flow statements to get the operating cash flows. We know that the net present value is determined by the cash flows expected from the project therefore; this non cash expense eventually increases the cash flows of the project. Ultimately, the net present value of the cash flows will increase which is beneficial for the company. In addition to the above, a company which opts for straight line depreciation method will have equal positive cash flows every year. For example: Depreciation of $100,000 per year, with an income tax of 35%, saves $35,000 of taxes each year and that amount is accounted as a positive cash flow. This amount is also known as the depreciation tax shield. Sunk Cost is a sum of money which has already been spent and it is not recoverable. It is essential to understand because many people feel intuitively that if an investment is made then it is essential to get a return on it. This will lead to rejection of one course of action which favors the other one to actually generate smaller cash flows. One needs to understand that sunk costs are irrelevant to financial decisions. Opportunity cost is a profit that is forgone by not investing in a particular opportunity. This is particularly true when there are mutually exclusive projects and you have to choose the best out of two good projects. The profit forgone from not choosing the other project is your opportunity cost (Shim & Siegel, 2008). Erosion is the slow but sure redirection of funds from profitable sections or projects within a business to new project and areas. It is considered to be an investment in the long, money flowing in new

Intellectual Property Torts Essay Example | Topics and Well Written Essays - 1750 words

Intellectual Property Torts - Essay Example The law identifies the following as the types of intellectual property rights; trademarks, patents, copyrights, rights emanating from industrial design and secrets of trade. In 1967, the United Nations, realizing the importance of protecting the unique ideas of people, formed the World Intellectual Property Organization (Glick et al, 21). The treaty recognized the importance of intellectual ideas in promoting the development of the economy of a state, and therefore it was essential to initiate laws meant to protect the intellectual properties. Another objective of the World Intellectual Properties Treaty was to negotiate for laws that will enable inventors of the idea an economic and moral advantage over the usage of the property Glick et al, 43). These laws will also regulate the use of the property by the public, and their access to it. Another objective of the treaty was to create measures of encouraging creativity, and the applications of the results emanating from the creative m ind. This was aimed at advancing economic and social development. The notion of intellectual property found it ways in the American Court system in 1845, at the Massachusetts circuit courts. Judge Charles Woodbury presided over a case involving Davoll et al vs. Brown. From the court system, the judge denoted that unique intellectual ideas belong to the creator, just as wheat, and animals belong to the farmer. In 1980, the United States Federal government enacted the Bayh-Dole act. Two senators, Birch Bay and Bob Dole sponsored the bill (Glick et al, 31). The main objective of the bill was to protect intellectual properties emanating from government funded research. Laws on intellectual property fall under the laws of Tort. Torts deal with undesirable results that emanate from the actions and behavior of another person. Tort is a civil case, and therefore breaching any laws that regulate the use of intellectual properties fall under the category of civil cases. A person, who sues an offender under Tort, is entitled to receive compensation from the offender. This is only after the courts analyzes the behavior and judges on whether there was a breach of the intellectual property law. This paper identifies the different ways and mechanisms of solving cases that emanate from the use of another person’s intellectual property, without authorization (Glick et al, 21). It emphasizes, and identifies the various laws and the legal procedures of solving cases that emanate from a breach of the intellectual property laws. This paper gives the various examples of intellectual properties, and their creators. It also identifies the various intellectual property case laws, and how the American court system solved the cases. It has a conclusion, which is a summary of the main arguments of the paper. This paper takes a stand that the best way to solve cases emanating from a breach of intellectual properties, is by developing laws that will protect the use and access of the intellectual property. To solve societal problems that emanate from a breach of intellectual properties, it is important to know the different types of intellectual properties in United States of America. The United States of America recognizes the following as examples of intellectual properties (Glick et al, 13), 1. Patents: A patent refers to the acquisition of all rights of an intellectual mind, by the inventor. The inventor has the right of controlling the usage and access of his inventions. The United