The Effect Of Political Changes On Egyptian Economy

Decision Making Area 3:Investment Decisions * Table of Articles * Summary of Articles * Observations * Conclusion

Before an investment decision is made it is necessary to determine whether or not the planned investment idea is feasible. The feasibility of an investment has to be considered with respect to several different aspects in order to determine whether the investment should be realized or not. Carrying out a feasibility analysis is therefore one of the most critical steps in the decision-making process.

Now we want to examine the analysis business report concerning the cost of capital that has been increased at 28% in accordance with the Net Present Value which is $500,000 the question being would still be worth it to make the investment to the company (Needles, 2010). While at the same time the internal rate of return is still at 21% which is lower than the 25% in the expenditures. In reflection of these calculations the investment would not

With any major investment, it is important to consider the monetary and non-monetary aspects including gaining an understanding of the culture, the ideal management approach, past and future trends, along with political roadblocks.

Egyptian survivals and flourishing economy were dependent on agriculture. Agriculture provided rich and bountiful resources. Abundance relied on their river. The positives are the earl farmers grew crops, raised farm animals, and hunted birds and fish to supplement their diet. The negatives were when the eaters were too high or too low, severe food shortages occurred.

Egypt, a transcontinental country that spans the north east corner of Africa and the southwest corner of Asia, houses the historic flooding Nile and the ancient man made Great Pyramids. The Nile is the only significant source of water in the dessert region and without it early civilizations would not have been able to develop and thrive like the Egyptian society has done throughout time. The Egyptian society origins can be traced back to the 10th millennium BC, with a culture of hunter and gatherers evolving into a grain-grinding society. With a change in climate and overgrazing, the Sahara desert began to form, thus early societies migrated to the banks of the Nile around 8000 BC. This migration contributed to the development of economic, political, and religious structure among the earliest of Egyptian societies.

This time, we went a little more back in time when Amenhotep IV was Pharaoh.

Karissa Background Information- Info about the country and location prior to colonization Political Rule Timeline: 639-642 A.D Egypt conquered my Muslim Arab armies o Egypt becomes province of Islamic empire § Ruled by Caliphs or Muslim leaders § Caliphs rule Egypt until 1250 1250 Mamluks revolt and gained control of Egypt o Mamluks are slave soldiers from Mongolia, Turkey, Circassia § For 200 years different Mamluk groups compete for leadership § Create great art, literature and architecture 1517 Ottomans invade Egypt from Syria o Overthrow Mamluks § Making Egypt part of Ottoman Empire § Mamluks continue to fight Ottomans for power until mid-18th century 1798 Napoleon Bonaparte’s armies defeat Mamluks in the battle of the Pyramids

5. What means can managers use to assess political risk? What do you think is there lative effectiveness of these different methods? At the time you are reading this,what countries or areas do you feel have political risk sufficient to discourage you from doing business there?

Investment decisions companies make today will have a direct impact on their ability to reach financial objectives. Most companies are faced with questions such as: which projects should your company invest in, which returns are needed and what risks are the company willing to take to achieve company goals?

As a financial manager three major decisions are to be made which are investment, financing, and dividend decisions (Pujari, S 2015). When decisions are made in investments financial managers carefully select fixed assets also known as capital budgeting decision or current assets in which funds will be invested by the company (Pujari, S 2015). There are factors that affect the investment and capital budgeting decisions such as cash flow of the project, return on investments, risks involved, and investment criteria. For the cash flow of the project the company invests a huge amount of funds in an investment proposal it is expected to sustain a regular amount of cash flow to meet the daily requirements (Pujari, S 2015).  The amount of cash

Negotiations and decisions are act as key counterparts in every business. A clear definition as well as the recognition of core elements surrounding the decision making process is required to reach a suitable decision. These approaches purpose to be achieved clear concerns before a final decision-making. This paper will outline prospect theory and discuss the differences between prospect theory and expected utility theory. Following will be, as explanation of the biases and heuristics of the investment decision-making process.

These two cases present the capital investment decisions under consideration by executives of a large chemicals firm in January 2001. The A case (case 20) presents a go/no-go project evaluation regarding improvements to a polypropylene production plant. The B case (case 21) reviews the same project but from one level higher, where the executive faces an either/or investment decision between two mutually exclusive projects. The objective of the two cases is to expose students to a wide range of capital budgeting issues:

The role of political risk factors has also been quantified in relation to various macroeconomic variables, such as interest rates, Foreign Direct Investments, Private Investments, interest rates, and more importantly with the real output growth. The pioneering research study by Alesina et al. (1996) on this regard, explore the relationship between political

An investment also known as a security is a pledge of money from an individual, government, or cooperation that is expected to accrue additional wealth on top of its original dollar amount. An investment can be a long-term or short-term obligation depending on the investor’s goals and/or assets they choose to invest in. The investment decision process is a two-step process which is necessary to make a sound trustable and efficient investment. The first step involves an evaluation of the investment you as the investor are interested in committing money towards, including characteristics of the security (i.e. how it acts in the current market, how the current/future market may react to this investment and possible returns on your investment). Finally, the management of your investment portfolio, including how often it should be revised, how the performance of your securities should be measured (how often they should be measured), and other important aspects of your current investments. Investing revolves around one basic concept, improving our future, investors invest money today to improve their welfare in the future which is why understanding what an investment is and the process of decision making before investing is extremely important.