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Why Is Salary An Irrelevant Cost In Capital Budgeting

Getting a Visa for South Korea for at least 6 months stay?

I'd recommend you just come on a 90-day tourist visa, then go to Tsushima (a few-hour trip to Japan) and come back, and get 90 more days. It costs less than $100 to do this and you get to see Japan for a few hours.

Korea does not have a six-month tourist visa except for a few very lucky nationalities like the Canadians. However, just make a quick run to Japan and back on a boat (I've done this many times with no incident) and you'll be fine. If you were from the Philippines or China, they'd be suspicious, but most Europeans should be just fine -- no questions asked.

You can't work legally unless you have some kind of working visa, but if you work illegally, you probably won't get caught unless you keep doing it for years and years. Hopefully at that point, you'll be married and have an F-2 visa that lets you do whatever work you want. For continental Europeans, getting a regular, non-marriage working visa is extremely hard. It would be much easier if you had citizenship in an English-speaking country, but it sounds from your post like you don't.

Koreans almost always employ Koreans for various jobs. Whether you can speak Korean well or not is irrelevant -- the immigration bureau almost never issues working visas to foreigners except for cheap labor and to teach languages. Therefore, if you really want to work in Korea legally, you'll either need to get married, do a Working Holiday (reciprocal agreement between Korea and your home country), get a student visa with an S-3 work permit (not recommended, but you could make a living wage if you worked at a hagwon with the S-3 exemption), invest a significant sum in the country and start a business, or that kind of thing.

Some people are willing to grit their teeth and make a visa run to Japan every 90 days, or put up with a few unnecessary classes to get the S-3 work permit on the D-4 or D-2 student visa. Some people are willing to grit their teeth and invest a substantial sum in the country and open up a small business, like a Chinese restaurant. Unfortunately, there are few easy ways to come to Korea and work, especially for Europeans. I guess it all depends on how much you love this girl, and how hard you're willing to work for her!

How much does it cost to build a hospital?

The healthcare sector is one of the most challenging and fastest growing sectors in India. Revenues from the healthcare sector account for 5.2 per cent of the GDP, making it the third largest growth segment in India.The healthcare industry in the country, which comprises hospital and allied sectors, is projected to grow 23 per cent per annum. According to McKinsey & Co. a leading industrial and management consulting organization, the Indian healthcare sector, including pharmaceutical, diagnostics and hospital services, is expected to more than double its revenues to Rs 2000 billion by 2010. Expenditure on healthcare services, including diagnostics, hospital occupancy and outpatient consulting, the largest component of this spend is expected to grow more than 125% to Rs 1560 billion by 2012 from Rs 690 billion now.We can provide you detailed project reports on the following topics. Please select the projects of your interests.Each detailed project reports cover all the aspects of business, from analysing the market, confirming availability of various necessities such as plant & machinery, raw materials to forecasting the financial requirements. The scope of the report includes assessing market potential, negotiating with collaborators, investment decision making, corporate diversification planning etc. in a very planned manner by formulating detailed manufacturing techniques and forecasting financial aspects by estimating the cost of raw material, formulating the cash flow statement, projecting the balance sheet etc.Here, checkout this informative section on Healthcare business ideas.https://www.niir.org/profile-pro...Hope that helps.Best Regards,Ajay Gupta

Captial Budgeting HW Issues?

A venture has an initial cost of $52,125, expected net cash inflows of $12,000 per year for 8 years, and a cost of capital of 12%.

What is the projects:

a. NVP
b. IRR
c. MIRR
d. Projects PI
e. Payback period
f. Discounted payback period

Please I need help...please show me how the problem is solved using the formulas not just the answers.

How will long term capital gains tax be levied on inherited shares? Some shares I have inherited were bought more than 30 years ago and there is no way to find the purchase price.

You don't need to find out the original purchase price.Long term capital gain will be evaluated taking into account the value of stock on 31st January 2018 for stocks bought preceding 31st January 2018.Example :- If you decide to sell your shares orginally bought in 1990 in November 2018 at the price of 150 then the price of the stock at 31st jan will be taken and not that on 1990. Let's price at 31st jan was 100. Your LTCG will be taxed as (150–100) × 10%.Also, there is no indexation benefit available. So, the original price is irrelevant.Note that any gain after 31st January 2018 will be taxed. This rule isn't retrospective. The finance minster citied the following example :If an equity share is purchased six months before 31st January, 2018 at Rs 100/- and the highest price quoted on January 31 2018 in respect of this share is Rs 120/-, there will be no tax on the gain of Rs 20/- if this share is sold after one year from the date of purchase. However, any gain in excess of Rs 20 earned after January 31, 2018 will be taxed at 10% if this share is sold after July 31, 2018. The gains from equity share held up to one year will remain short term capital gain and will continue to be taxed at the rate of 15%.However, existing investors will be exempted from capital gains tax up to January 31, 2018. All gains made thereafter this cut-off date will be taxed.[1]Footnotes[1] LTCG tax reintroduced in Budget 2018, Sensex suffers brief shock

What is the difference between recurring and non recurring cost?

A Recurring Cost is a regularly occurring cost or estimated cost which is documented with one record—a Recurring Cost record—that describes the income or expense and its pattern (how often it occurs, the rate at which it increases or decreases, the time period during which the cost applies, and so forth).Non recurring costs include write offs such as design, development, and investment costs, and fire or theft losses, lawsuit payments, losses on sale of assets, and moving expenses. Also called extraordinary cost.

Shouldn't the health care debate in the United States be about reducing costs?

Perhaps, for some it might be the most important point.But often the two major parties define the points of discussion; points are raised if they raise them. So why don't they discuss them? First off, we should clarify that universal healthcare seems to pretty unanimously drive costs down, despite what some would have you believe.For the Republicans the major point of concern is that they don't want the rich to be forced to subsidise the poor. You can debate the intricate moralities of it, I'm not going into details; at the end of the day, they don't want a system where the rich are forced to pay for the poor. Cost doesn't come into it; either they are catering for the rich, at which point average cost is unimportant as the rich pay more under single payer; or they are saying it's immoral to coerce someone to pay for someone else, at which point cost is irrelevant because they don't believe that the ends don't justify the ends.For the Democrats, I'm shooting the dark a bit here, but I'm guessing it's because you can't guarantee costs will go down. They'll almost certainly see the rate of increase drastically slow, but they may or may not go down. Promise that a person's premiums will half and then the premiums don't decrease at all? Guaranteed repeal. Look at Obamacare; Obama promised that if you wanted you could keep your old plans if you liked, I gather that didn't happen. So Trump won the election partly on repealing Obamacare and the Universal Healthcare agenda has just been reset to worse than before Obama got involved.It's not the driving force behind the discussion because it's a poison chalice for whoever tries to claim it.

Why do we use the after tax cost of debt in WACC? Or, put another way, why does the government give tax deductions on interest payment of debt?

When we calculate WACC what we want to calculate is the actual cost of the capital we are employing. To calculate this cost we take cost of each type of capital and calculate the average cost of the whole capital based on the weights which are again decided by the quantum of each type of capital we have.Now coming to the debt part. It is capital employed. Now when we take a debt from anyone in any form whether it be a debenture or a loan we have to pay interest on it.Paying this interest reduces our net profit. Again we also get a reduction in the total income calculated in accordance with the income tax act as this interest is considered as business expense.Now if we have incurred an expense of rs100 as interest then we would account these 100 as an expense. This in return would cause your profit to be reduced by 100 which results inyou not ppaying income tax on that 100.Now as you are saving taxes on rs100 let's say @30% then your total saving would be rs30 due to reduction in profit by 100.So you can consider this rs30 as the amount of income tax you would have had to pay had you not been paying any interest.So the real cost of that debt would be interest - tax savings.So real cost will be 100-30=70Due to this while calculating WACC we consider after tax cost of debts. As having to pay interest on those debts cause you a huge savings in tax and if you had earned that same profit by applying your own money you wouldn't be paying any interest and your cost for income tax would increase.

Why do we use the market value of debt and not the book value of debt in calculating the weights for WACC?

Book Value represents the accounting worth of the enterprise, calculating WACC using book value will not reflect accurate returns we need to earn.Our comparison is with market, if I take book weights for calculating returns for future implies that I am taking historical cost of debt. Hence we take weights in following order of preference:1.Target capital structure ratio.2.Market Value of debts.3.Book Value of debts.

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