The eight Stages of Development

The eight Stages of Development Article: A Personality Measure of Erikson ´s Life Stages: The Inventory of Psychosocial Balance Source: Journal of Personal Assessment, 1990 Summary: Theses article deals with all the eight Erikson ´s psychosocial stages. A pool of 208 items that survived a clinical analysis was administered to 528 subjects and then factor analyzed. It focuses on life-span development. Due to this fact, the study reports on the development and initial validation of an instrument, the Inventory of psychosocial balance (IPB). It was designed to measure all eight stages, with a primary focus on its implementation to adult subjects. The method is composed of a scale development, subjects and a factor analysis. The analysis of Ericson`s eight stages resulted in an initial pool of 346 items, written to reflect both positive and negative aspects of the eight stages. Each item was five-point Likert response format ranging from strongly agree (1) to strongly disagree (5). In addition the pool was administered to 528 subjects. The sample was quite heterogeneous. The respondent had to rate 0%-100% scale, how successfully they had met each of 19 life challe nges for example productive person, trusting other people or loving someone etc. The 528 IPB protocols were submitted to a factor analysis using a principal component and a correlational analysis with self-ratings of life challenges. The factor analysis eight meaningful factors corresponding to the eight stage: trust, autonomy, initiative, industry, identity, intimacy, generativity and ego integrity. The total variance accounted for by the eight factors is 72,34 %, with the trust factor having the largest percentage of variance (17,46%) and the Ego Integrity factor having the smallest (5,47%). The evidence presented suggests that the IPB is an psychometrically reliable and valid instrument to analyze life-span to approach personality development. The IPB shows adaptive range of subjects , from college age adolescents to elderly and its reliability and validity appear satisfactory. The IPB represents a vertical translation of Erikson`s psychosocial stages. 2. Article: Psychology Development and Friendship Functions in Adolescence Source: Sex Roles, Vol. 25 Summary: The articles is about the relationship between friendship variables and adolescent psychosocial development, in particular identity and psychosocial intimacy as focused by Erikson. This research includes sex differences. Erikson rather did not explicitly postulate differentepigenetic charts for males and females, nor did he suggest different processes for males and females in terms of movement through the experiences of crisis and commitment at each stage of development. The aim of the present research was to investigate different styles of identity and intimacy development through examination (a) of whether the sexes differed in their relative proportions across these different styles, and (b) whether specific friendship beliefs and characteristics were associated with the different styles. The styles were defined by establishing four groups based on high and low scoring on the identity and intimacy measures used. In fact, friendship patterns are likely to be relevant to both identity and intimacy formation, although their meanings and importance may well vary for males and females. One hypothesis tested in the present study, therefore, was that females and ma les would be unequally distributed across developmental style, with relatively more males choosing the High Identity road tomaturity and relatively more females the High Intimacy style. In contrast to this hypothesis the research shows that there were no differences between the sexes in their choice of developmental style. But those in the high-identity-high-intimacy and the high-identity-low-intimacy groups were more satisfied with their friendships, which appeared affectively richer. In addition the friendship during adolescence and youthhas an unique and important influence in the life of the individual. The research appears that there are differences between same- and opposite-sex friendships. Sex differences showed that while friendship variables were more strongly chained with development for boys, girls viewed their relationships as closer and imputed more importance to this closeness. The method is composed of a sample of secondary school students and college students. Subje cts were drawn from two secondary schools and two colleges, each ofthese institutions serving students from middle to lower middle class areas. The attendant were asked friendship questions, which were divided in four sections: Section ADemographic variables; Section BIntimacy and Identity scales; Section CGeneral friendship information; Section D-Specific best friend information. The total questionnaire took about 30 minutes to complete. For example in section B, the identity and intimacy measures administered were subscales of the Erikson Psychosocial Stage Inventory. The EPSI is a self-report inventory that measures resolution of the conflicts associated with the first six of Eriksons psychosocial stages. Items are rated on a 5-point scale ranging from almost always true to hardly ever true. In order to investigate the relationships between two sets of friendship factors (General factors and Specific Close Friendship (Same Sex)) and other variables of concern, factor scores on eachfactor were computed, using the regression method. In conclusion friendship and romantic relationships developed with psychosocial maturity, independently (as far as can be judged by this research), but not as alternatives. 3. Article: Generativity Versus Stagnation: An Elaboration of Eriksons Adult Stage of Human Development Source: Journal of Adult Development, Vol. 10, No. 1, January 2003 Summary: This research focuses on the adult stage of generativity vs. stagnation by Erikson`s psychosocial development. The research offers new concepts which are associated to Eriksons theory of development in the form of 7 psychosocial conflicts. The stage of generativity versus stagnation represents the major conflict of adulthood. The research starts with an Eriksonian viewpoint, and then, makes changes to argue for a competing conception, which could be understood within Eriksons original proposal and placed within the developmental chart. The research appears a tentative explanation of how each major stage of development takes form during adulthood and it also shows an impression of how these conflicts fill out Eriksons theory. 7 psychosocial conflicts are analyzed: inclusivity vs. exclusivity, pride vs. embarrassment, responsibility vs. ambivalence, career productivity vs. inadequacy, parenthood vs. self-absorption, being needed vs. alienation, and honesty vs. denial. Each conflict is connected to one of Eriksons other stages of development. The analyze try to enlarge Ericson`s 7 conflicts. In conclusion the conflicts could be defined empirically and validated by connecting them with other measures of ego development and generativity. The conflicts and crises of adulthood could be made more clear and at the same time more complex by using the humanities to draw out and illustrate the ramifications of each conflict. There is also a need to connect these ideas with history and broader societal issues. 4. Article: Development and Validation of a Measure of Eriksonian Industry Source: Journal of Personality and Social Psychology, 1991, Col. 60, No. 3, 390-397 Summary: This study place emphasis on the fourth stage of Erikson`s psychosocial development: industry-inferiority. Operationalization of the industry construct was begun by describing it as consisting of three components: skills and knowledge, their application, and affective experience of their acquisition and application in useful directions. These components span the cognitive (Component 1: skills and knowledge), behavioral (Component 2: Application of Skills and Knowledge) and affective domains (Component 3: Attitudes Toward and Experience of the Acquisition and Application of Skills and Knowledge). The process of demonstrating predictive validity for the current measure, a step on the way to establishing construct validity for the concept of industry, consisted of several procedures. The first involved determining the conceptual validity of the current definition of industry by correlating each componentscore both with each other and with the overall mean industry score. Second, childrens own industry scores were correlated with those provided by two categories of observers, teachers and parents. Third, seven variables were selected in order to assess the predictive validity of the new industry measure. Three of these were behavioral and four were based on test responses. The first behavioral measure for example involved observation of classroom behavior, that is, on-task versus off-task performance. Four other variables were formed by items embedded in the Childrens Industry questionnaire (CIQ) and were based on Eriksons theoretical descriptions of correlates to a sense of ind ustry. The final subject pool of this research consisted of 187 pupils from eight classrooms in three public elementary schools. There were 101 boys (54%) and 86 girls (46%). The age range was 8.6-12.8 years. The CIQ as a measure consisted of 47 items assessing the three components of the industry construct and 22 items measuring the expected correlates of industry. Three response modes were used with the CIQ. The most prevalent form (54 items) was the structured alternative format developed by Harter (1982). The child is asked first to decide which kind of child he or she is most like by choosing the child described on the left or right. Once the choice is made, the child is required to decide the extent to which the description is true for him or her on a scale ranging from 1 to 4that is, sort of true or really true, and so fortha score of 1 indicating the lower levels of the industry construct. The second response mode on the CIQ was multiple choice. The third CIQ response mode was open-ended questions. In addition there were used a Teacher Industry questionnaire (TIQ) and a Parent Industry questionnaire (PIQ). In conclusion current findings are generally supportive of the present definition of industry and this measure of it. Significant agreement between different categories of observers, making observations in a number of different ways, and the industry measure was consistently obtained. Results of the present study provide a solid beginning to the process of validating the construct of industry. 5. Article: Psychosocial development in the elderly: An investigation into Eriksons ninth stage Author: Cynthia Brown, Michael J. Lowis Department of Psychology, University College Northampton, Park Campus, Northampton, England. Source: Journal of Aging Studies 17 (2003) 415-426 Summary: In their article Psychosocial development in the elderly: An investigation into Eriksons ninth stage the authors Brown and Lowis want to figure out the exist of a ninth stage regarding to Joan Eriksons suggestion. Because of an increasing number of old people especially in developed countries like Germany or Japan it is necessary to do a research about this. In the end an older society provide new demands, reevaluations and daily difficulties. Even Erik Erikson saw personality as a lifelong developmental process but his theory ends with the eight stage ego integrity versus despair at the age of 65. For their research the authors used a self-report survey with individuals either completing questionnaires themselves or being assisted to do so through closed question interviews. The responses were suitable for coding and subsequent quantitative analysis. Additional qualitative data were obtained through open questions. As a result they found out that the Stage 9 scores for participants aged in their 80s/90s are significantly higher than for those aged in their 60s, but there is no significant difference between Stage 8 scores for the two age groups. But these findings can only be generalized to a wider population when they are confirmed by additional research: the present participants did embrace a range of ages, locations, and living arrangements, but comprised females only, and numbered just 70 individuals in total. Nevertheless the authors produced an instrument that has reliably measured a variable that reaches its ascendancy at an age beyond that normally ascribed to the developmental stage of ego integrity versus despair. And if confirmed, the existence of a Stage 9 would suggest that human beings remain in a situation of potential psychological growth throughout their life span. 6. Article: Eriksons Theory of Psychosocial Development and Career Development Author: Patrick H. Munley, Veterans Administration Hospital, Lyons, New, Jersey Source: Journal of Vocational Behavior 10, 261-269 (1977) Summary: In this article the author figures out some of the contributions of Erik Eriksons theory of the eight stages of development in providing a developmental perspective on career behavior. First he describes Eriksons Theory of the eight life stages. In his opinion the development of basic senses of initiative, industry, identity, generativity, and integrity all seem to be especially relevant to career development behavior. The theory offers a framework for integrating career development with overall human development. Furthermore Eriksons theory recognizes the role of social and cultural factors in relationship to life cycle development and provides a theoretical framework for integrating research findings on the sociology of career behavior which was already shown by several researches. A third contribution of Eriksons theory is that of the identity crisis and ego identity. Making a vocational choice or commitment is often the first important decision marking the transition from adolescence to adulthood. Thats the reason why one of the major tasks through which identity concerns are expressed in adolescence is the process of making a vocational choice. For example A person who is undecided in terms of career may not just be undecided about a vocation. He may be in the midst of an overall identity crisis. On the other side a person who has a sense of ego identity is probably more able to make appropriate vocational decisions and choices. At the end the author concluded that from both a theoretical and empirical point of view, Eriksons theory seems to provide a promising perspective for viewing career development. He said that The theory offers a framework for integrating career development with overall human development and makes a contribution toward offering a perspective for integrating social factors and personality development with career development. 7. Article: The Recovery Process Utilizing Eriksons Stages of Human Development Author: Suzanne E. Vogel-Scibilia, Kathryn Cohan McNulty, Beth Baxter, Steve Miller, Max Dine, Frederick J. Frese III Source: Community Ment Health J (2009) 45:405-414 Summary: The authors offer a psycho-developmental model that parallels Erik Eriksons theory of human development, and theorize that the process of psychiatric recovery involves a psychic reworking of these fundamental steps. They integrated all the following fundamental components of recovery which were identified by the United States Department of Health and Human Services (2005) into this developmental model: self-direction, individualized and person-centered, empowerment, holistic, non-linear, strength-based, peer-support, respect, responsibility and hope. In the eyes of the authors this builds an understandable, practical framework that allows transformation of traditional programs and therapeutic contacts into recovery-oriented services. The authors propose eight opportunities to resolve conflict in the service of personal growth and development, which parallels Eriksons eight stages. The eight stages are: Trust versus Doubt, Hope versus Shame, Empowerment versus Guilt, Action versus Ina ction, New self versus Sick self, Intimacy versus Isolation, Purpose versus Passivity Generativity and Integrity versus Despair. Based on these eight stages and on Eriksons stages of development they explain and compare the different recovery stages regarding to the recovery process of people. 8. Article: Identity Status Theory and Eriksons Theory: Communalities and Differences Author: Alan S. Waierman, Trenton State College Source: Developmental Review 8, 185-208 (1988) Summary: In this article the author outline the critique of Cà ´tà © and Levine on the identity status theory developed by James Marcia and he compares the theory with Eriksons theory of the eight stages of development. Marcias theory provides four statements: Identity Diffusion (the status in which the adolescent doesnt have a sense of having choices), Identity Foreclosure (the status in which the adolescent seems willing to commit to some relevant roles, values, or goals for the future), Identity Moratorium (the status in which the adolescent is currently in a crisis, exploring various commitments and is ready to make choices) and Identity Achievement (the status in which adolescent has gone through a identity crisis and has made a commitment to a sense of identity) , which differ in some important respects from that used by Erikson. The author says that there is basic agreement regarding the construct of identity itself. Erikson, Marcia and other authors using the identity status paradigm are all grasping for the same phenomenon. Furthermore they are the same opinion regarding to the domains in an individuals life that provide the context within which a persons sense of identity is formed. These include vocational choice, religious beliefs, political ideology, sex-role attitudes, and spousal and parenting roles. These are only two communalities of seven which the author claims. But there are also differences between these two theories. First he says that There is a wide divergence between Erikson and the identity status theorists using the identity status paradigm, regarding the viability and utility of the psychoanalytic framework within which the construct of ego identity was originally developed. The next difference is that the identity status paradigm explicitly addresses the more conscious aspects of the task of identity formation which is related to the rejection of psychoanalytic theory by man y identity status theorists and researchers and in contrast to Erikson. There are five more differences which the author figures out in his article. And the end of his article he gives a forecast on identity research. 9. Article : Personality Theories Erik Erikson Author : Dr.C George Boeree From Shippensburg University Source : Original E-Text-Site: [ http://www.ship.edu/%7Ecgboeree/perscontents.html ] Summary : Oglala Lagota, Among the Oglala Lagota, it was traditional for an young teenage or adolescent to go off on his own. Everybody got a dream, you got a dream and I got a dreams. In some case, the dream would lead us into the realm of controlled deviations among the everybody. Eight states start from infancy on the oral sensory state, the second is the anal muscular stage, third state is genital-locomotor stage or play age, fourth state is the latency stage or school age child from 6-12, five state is adolescence. Its beginning with puverty and ending around 18 for 20 years old, six I dont know what stage name, writer not giving it. Which lasts from about 18 to about 30. The ages in the adult stage are mush fuzzier than in the childhood stages. And people may differ dramatically. 7 stage is that of middle adulthood. The middle life crisis, if you success at this stage, you will have a capacity for carring that serve you through the rest of your life. Reffered to delicalely as late adulth ood or maturity, or less delicately as old ages of last stage, begins sometimes around you retirement after the kids have gone say somewhere around 60. Its the stage just see the good thing and bad. 10. Article : Using Erikson to Work More Effectively with Teenage Parents Author : Lorraine DeJong Source : www.naeyc.org/resources/journal. Summary : According to the article, its talk about the using Ericksons theory to tech young mothers. If we see in article, well know more of quantity of teenager parent in U.S.A. Its very big problem because of the rate of pregnancy in teenagers become higher and it will be a social problem. But how Ericksons theory concern with this article? The writer gives the idea that it can help teacher understand teenager parent emotion and the need of them. The writer selects the stage 1 to 5 because it concern about teenager ages. Stage1 is talk about infancy. If the teenager lacking a trust in the world, it will effect to her baby, she will reject advice of teacher. Stage2-Toddlerhood, if young mother grow without responsibility, she may reprove about her difficulties. May be she wont take care of her child. Stage3-Preschoolyears, without the positive guide line in this stage, an adolescent may luck in basic sense of inquisitiveness, ambition, and empathy, she may not interest in her child. Stage4-School-ageyears, if teenager fails in success in this stage, she may feels incompetent and inferior. And the last-Adolescence, everything depend on the past if they didnt get trust, autonomy, initiative, and industry, they may show behavior that hazard for positive identity development. After the effect of Ericksons theory of teenager parent, a writer gives the suggestion for developing trust; autonomy, initiative, and industry such as find the way to indentify teenager, train teenagers show and manger responsibility, and etc. If adolescence mother have a good personality development technique, she will care about her responsibility to take care her child. Its very important to consider because every stage have a meaning in term of them, if it lack or gone, it will affect to feeling of the mothers and the problem will on children. 11.Article : Trust, Identity, and Ego Integrity: Modeling Eriksons Core Stages Over 34 Years. Author : Joel R. Sneed, Susan Krauss Whitbourne, Michelle E. Culang Source : Summary For this article, Writers study in Erikson development stages in term of core stage that consist of stage1, stage5, and stage8. Stage1-Trust that study in term of continuity and wholeness in the self and in another. Stage5-identity that study in the self and social. And the last is Ego integrity that study about exceeds of individual lifecycle. They take a hypothesis to examine the last investigations on the RALS that results are as follow: Stage1 is stable from ages 20 to 42, increasing in stage5 for ages 20 to 31 but stable in ages 31 to 42 and the last stage8 decreases in ages 31 to 42. After they use multilevel modeling testing, writers found the difference development trajectories across child and middle adulthood in each core stage. The first stage, writers predict endure stable over adult but after testing, the value increases in trust over a 34-year period. And next is stage5 follow Erikson set the time of the Identity ages 20 to beyond, but the present test show that substantial not occur until the late of ages 20 and early ages 30. And the last is stage8 that it value is decreasing. But in fact it will increase that affect from environment on personality. 12.Article : Eccles Development of Children Ages 6-14. Author : Jacquelynne S. Eccles Source : The Future of Children WHEN SCHOOL IS OUT Vol. 9 à ¢Ã¢â€š ¬Ã‚ ¢ No. 2 Fall 1999 Summary : This article summarized stage 4 of Ericson, the major developmental change that take place from 6-14 years old. Both article provide an overview of the kind of biological, psychological, and social changes that characterize the years between 6 to 14 for article from Eccles to facilities the our research. For children years in stage 4 is a critical period to knowing themselves. And during this time, children will grow to adults who have the power, have a freedom, feel free to participate in family. Physical insight will change the mental condition. A social role will change and pass quickly when they enter the school or doing activities with other outside the family. During mid-childhood,, they will begin to compare themselves with other, they expect success and failure, they might develop and transition to other challenges in many years. During early adolescence is they will confuse with physical and the social theat change from the start. They have a freedom and distance between the family. Meanwhile, the problem may occur. They may lose of confidence and have a negatives behavior such as abandonment of duty or resigned from the school. 13. Article : College-Educated Womens Personality Development in Adulthood: Perceptions and Age Differences Author : Alyssa N. Zucker et all Source : Journal of Adult Development, 8, p. 28. Summary : The researcher study the different between the perception of women in each age groups. Procedures and level of personality development in social change. And they recognize that confidence in each age range. The specific timing and different forms in adults and children. Research to look for reasons and what limits to reflect the development of personality in the beginning to the end of life. Characteristics of personality development in the next phase of maturity We use the information for the study of the College of Education to consider the possibility that adults are better developed. The development will be personality kick picture pros and cons are different. Women are more concerned than men. Concerns that arise are the future, career, financial, and family. Even maternity Developed differently in each generation. Women age 40-60. Will develop faster in women age 20. State conditions because of different concerns of people in each generation. A group of teenagers are relatively private world is much less likely to develop their own personality to fit the outside world. Development must have their own ways to develop the correct principles of personal. 14. Article : From Trust to Intimacy: A New Inventory for Examining Eriksons Stages of Psychosociai Development Author : Doreen A. Rosenthal, 1.4 Ross M. Gurney, 2 and Susan M. Moore 3 Source : Journal of Youth and Adolescence, Vol. 10, No. 6, 1981 Summary : Trust to intimacy is related to the six stages of Eriksons is the relationship of each stage the adolescent ,adulthood the adjustment of adolescents in terms of differences in race thought and attitude comparison of thought , maturity , moral and the decision of the human of each stage. The some information from researchers, other who have. Both the consistent and distinctive have a reasons for supporting the theory of them self. The attitude, ethics of each stage is different. The problem of behavior or personality of human and experienced is effect on the cause of the research or evidence that the theory is accepted six stage of Erikson 15. Article : The Learning Disabled Adolescent: Eriksonian Psychosocial Development, Self-Concept, and Delinquent Behavior Author : Daniel B. Pickar and Christopher D. Tori Source : Journal of Youth and Adolescence, Vol. 15, No. 5, 1986 Summary : This journal study about disabled adolescents on three variables: Eriksons stages of psychosocial development, self-concept, and delinquent behavior. It was predicted that learning disabled adolescents would show significantly less resolution of Eriksons fourth stage, industry versus inferiority The researchers focus on the affective and motivational and use Eriksons psychosocial theory to understanding the social and emotional difficulties of learning disable adolescence. The development of an adequate feeling of competence is the critical task of a sense development and the effective in interactions with the environment. The researcher use statistical standard of Two-way ANOVA concern with the EPSI data, The Piers-Harris Childrens Self-Concept Scale and Delinquency Checklist. To find to result of significant of gender effect between learning disable and non-learning disable groups. Measure the significant of group and gender interaction. The comparison group of the self-concept of learning disabled adolescents showed that these youngsters self-concept was not significantly different than nondisabled but learning disabilities are significantly related to juvenile delinquency. Hypothesized that learning disabled adolescents would demonstrate more negative self-concept and report more delinquent behavior than their nondisabled peers. The hypothesis that learning disabled adolescents would engage in more delinquent behavior than nondisabled adolescents was not supported. The self-report delinquency data indicated that learning disabled and nondisabled adolescents participated in the same kinds and amounts of delinquent behavior. The results of this study to provide more understanding of the psychosocial development of adolescence on different variables. 16. Article : The Course and Psychosocial Correlates of Personality Disorder Symptoms in Adolescence: Eriksons Developmental Theory Revisited Author : Thomas N. Crawford,1 Patricia Cohen,2 Jeffrey G. Johnson,3 Joel R. Sneed,4 and Judith S. Brook5 Source : Journal of Youth and Adolescence, Vol. 33, No. 5, October 2004, pp. 373-387 ( C _ 2004) Summary : Researchers focus on personality disorder in adolescents have been related with developmental patterns of behavior measured with dimensional symptom scales, personality disturbances are age-related trends in personality development. How it reflect to developmental processes in long-term risks for personality development. To understanding of how personality disorders impact on normal psychosocial development, this study used longitudinal data from a community sample to track declines in personality disorder symptoms from early adolescence to young adulthood. They used it to formulate hypotheses about how personality disorders would impact on the normative tasks of adolescence and young adulthood: (1) developing an internal sense of well-being through the consolidation of identity and (2) establishing intimacy in the form of lasting and committed romantic relationships. Although researchers now agree that identity formulation is a life-long process, adolescence and young adulthood provide the first real opportunity to develop a sense of continuity with the past, meaning in the present, and direction for the future. Identity consolidation thus emerges as the cornerstone of the capacity to do well and forms the basis of self-acceptance and self-esteem. Identity diffusion is known to share many characteristics with personality disorder symptoms according to a community-based sample of adolescents to determine whether age-related declines in Axis II symptoms are related with increases in well-being during adolescence and interpersonal intimacy during adulthood to focus on borderline, histrionic, and narcissistic symptoms (Cluster B symptoms). Two groups of sample were investigated to determine if age-related declines in Cluster B symptoms are associated with increases in well-being and interpersonal intimacy during adolescence and early adulthood. To the extent that personality disor

The Genome Project and the Disruption of Evolution :: Genetics Darwin Science Essays

The Genome Project and the Disruption of Evolution The genome project was successfully completed in June 2001. As a result, many controversies have arisen regarding the ethics of altering a person's genetic makeup. These arguments will most certainly continue for generations to come. However, the real problem will involve how evolution itself will be dramatically altered if genetic manipulation is allowed. If every human being alters his genes to make offspring free of diseases and variations, then eventually the human population will be void of variation. Variation has always been the key to life. With even a slight modification in environment, the whole human population, if permitted to change nature's plan, could die out. Altering the genetic makeup of a human offspring is evolutionarily wrong. Admittedly, a perfect race seems like an ideal lifestyle. Since the beginning of time, humans have strived to have perfect bodies, clear complexions, and high IQs. Now with the completion of the genome project, they may have the opportunity to erase all defects and diseases. Although this sounds like the ideal situation for mankind, it is far from ideal. If every human altered the genetic makeup of his offspring, eventually the human population would have no allowances for variation and no way to combat sudden environmental challenges. Charles Darwin first proposed that variation was the key to life. Without it, natural selection could not occur. Because natural selection is the driving force of evolution, evolution is ultimately disrupted. Darwin stated in his Origin of Species, "The preservation of favorable variations, I call Natural Selection." (Raven and Johnson, 13) If the entire human population were altered so that each human were perfect in every way, then, as each reproduced, there would be no variation in one's offspring. (Gendron) The differences between individuals develop through minor mutations. Those harmful to an individual usually decrease the chance of survival. However, there are some that enhance the survival of that individual. These mutations spread throughout the population. Over time, this leads to the creation of new, "more fit" species. (Rine) Unfortunately, manipulation of the new offspring's genes would quickly prevent the normal genetic mutations from occu rring.

The Influence Of Organisational Culture Versus National Culture Essay

The Influence Of Organisational Culture Versus National Culture Within The Global Group of Companies Author: Table of Contents: Executive Summary  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Page 3 Company Background  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Page 4 Research Analysis  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Page 6 Recommendations  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Page 13 References  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Page 15 Appendix  Ã‚  Ã‚  Ã‚  Ã‚  (Survey questionnaire attached as a separate document) Executive Summary: Research (1) indicates that national culture has a greater impact on employees than does their organisation’s culture and this report examines both cultures within VOLE Inc. a seventeen month old company with the ambition to establish a worldwide presence within three years. At the moment VOLE is small enough to debate and address these issues but diverse enough with operations across four continents in fourteen countries to already be experiencing the strains of cultural differences, particularly between the Far East where the company has its roots and the recently opened markets of Western Europe and the United States. It will hopefully lead to the formulation of some agreed corporate communication policies as these will become increasingly difficult to put together and implement as global expansion... ...rketing of the VOLE network to individual JV companies, who are also granted financial autonomy and control of their respective P&L functions, the primary drawback of such a structure – the reduction of management control over key parts of the business – must be constantly borne in mind. This weakness can be best tackled from the centre by a continual emphasis on the interdependency of each VOLE JV on each other, a fact well recognised in the survey, but easily forgotten in the day to day business activities of each JV as new successful companies are built from the ground up. Maximum advantage must also be taken of the flexibility such an organisational structure provides and the ability of VOLE companies to provide a network management service simply, quickly and for a far smaller cost than the traditional video conferencing industry must be continually highlighted as the company’s USP. References: (1)  Ã‚  Ã‚  Ã‚  Ã‚  N.J. Adler 2002 International Dimensions of Organizational Behavior. 4th Ed Ciciinatti, OH: Southwestern pp. 67-69 (2)  Ã‚  Ã‚  Ã‚  Ã‚  S.P. Robbins 2002. Prentice Hall Self Assessment Library. Pearson Education Company

Iceland Crisis

Background Information In three year period of 2008-2011 Iceland suffered one of the worst financial crisis in history. It Is bewildering how a country with population of only 320,000 could gather massive sums of money per capital, lose It all In such a short time period, and then manage an incredibly quick recovery since. Let's start by shedding some light on the situation leading to the crash. Iceland has always been affiliated with nature and fishermen. Fishing was the most prevalent occupation in Iceland, and a major backbone of their economy for years.Things turned direction in the ass following the liberalizing of Icelandic banks. Deregulation of banks added a whole new dimension to Icelandic economy and money was flowing more than ever. Glitter, Gapingly. And Landsman were Iceland's three most notable commercial banks who were enjoying a great time. High savings interest rate offered by Icelandic banks attracted plenty of foreign investors . Fishermen slowly turned into financ ial advisers to manage the capital inflow from outside, particularly from Germany and the I-J and create more wealth for Icelandic economy in the long-term.As with every great financial crash, greed and carelessness played a part. Banks, having believed the hype and buzz, were careless handing out big mortgages to loads of under-qualified applicants on low interest and made under-thought Investments abroad, particularly in the US. Iceland's banking sector was pride of the country which had transformed Iceland into one of the richest countries in Europe in a couple of decades. What Went Wrong The banks were accountable for themselves. There was no precise rules set for them.They had to go out there and produce. Their capabilities was the most important hinging and all else was secondary. If the banks didn't have to give ethical answers to the government, then they could be capable of many unthinkable things, especially in the banking world of the ass's and early asses. The prime mini ster of Iceland in that period (1991-2004), DavidГÂ ¶ Dodson, was no fan of government owned banks in Iceland, so none of the banks In Iceland had to answer directly to governmental authority. Reliant on external financing.They used mass wholesale funding to finance their way into the local mortgage market and obtain foreign financial firms mostly in the UK and Scandinavia. The banks were following the international ambitions of a new generation of Icelandic entrepreneurs who set to form global empires in industries from retailing to food production to pharmaceuticals. By the end of 2006, the total assets of the three main banks were $150 billion, eight times the country's GAPS. Low interest rate offered by Icelandic banks had allowed financing for rapid and pre- mature expansion of various companies in various industries perhaps beyond the nation's capacity.In half a decade, Icelandic banks experienced a mass transformation from being pretty much entirely domestic lenders to b ecoming major international financial intermediaries. The shift and growth was almost too good to be true. This is where things started to go south. As wholesale funding markets seized up (e. G. Lehmann Brothers' bankruptcy in September 2008), Icelandic banks were shaken and started to collapse under a mountain of foreign debt. The Crash and Its Consequences On October 8th 2008, Suppurating was placed into administration. The government had to intervene. Iceland was on verge of national bankruptcy.Foreign investors were seeking their money from Icelandic banks and threatened to sue. Everything was a sees. The Icelandic government nationalized Glinting. The control of Lambskin and Glinting were given to representatives of FM (Financial Supervisory Authority). Prime minister, Geri Heard, believed those actions taken by the government prevented the country from national bankruptcy. The impacts of the crash were severe on Icelandic economy, however. At end of second quarter of 2008, Ice land's external debt rose to close to Ð ²?50 billions), more than 80% of which was held by the banking sector.The national currency (Icelandic Akron) fell sharply in value. Foreign currency orientations were basically suspended for weeks. The Icelandic stock exchange fell by more than 90% and as a result Iceland officially bid hello to a period of economic recession. Recovery Icelandic economy continued to suffer for two years, but the signs since late 2010 have been very positive. Islanders have taken the right steps and have shown urgency in their efforts to get their economy back on track and it has paid dividends. The government's priority was to minimize the impact of financial crisis on the country.They placed Iceland ahead of foreign investors. As a result, an emergency isolation was passed, allowing the Financial Supervisory Authority to take over the domestic operations of Iceland's three major banks. The state intervened by protecting domestic creditors and depositors, no t allowing the taxpayers to take the burden of a bailouts. Instead of bailing out the banks (e. G. I-J, Ireland, etc), Iceland opted for defaults of the banks. This fumed foreign depositors, but Icelandic quick recovery was devaluation of Icelandic currency and implementing measures of capital control. The Corona's value halved making Icelandic exports (e. . Fish) and ours cheaper and more attractive to foreigners. These two sectors flourished as a result and played a significant role in growing the Icelandic economy again. Iceland have worked hard in restoring macroeconomic stability and rebuilding the financial sector. They put the money they received from MIFF ($10 Billion) in use to a 3-year restructuring programmer. The results are impressive as since then, the GAP has grown 2. 5% in two consecutive years. Now that the Icelandic economy is doing better, the government is making settlements to gradually pay the foreign investors back.The unemployment rates have fallen in half an d those accountable for the crash, even the former prime minister, were persecuted at the courts. Iceland did the opposite of Europe and the US to the situation and it has proved effective. Of course, it's a different situation managing 320,000 people as opposed to millions. It's not all rosy yet, however, as other economic sectors, notably private and household must catch up to fishing and tourism sector to take the momentum to next level and fully take Iceland out of what could have been a fatal blow. Conclusion 2008 Financial crash shook the world.The impact in Iceland was more incredible than most places as it nearly brought depression to the country. Deregulated Icelandic banks bit more than they could chew and ambition turned into greed and gamble. Series of factors gave hands to each other and took Iceland on verge of national bankruptcy. What happened after, is perhaps a lesson for all other nations who are struggling with their economies. Icelandic government prioritize its own nation above anyone else, and allowed its banks to default, protecting its people. They have since taken the right measures to increase spending and business in the entry.

Demonstrative Communication Paper Essay

Demonstrative communication consists of accepting and sending messages that can be silent; this can help give attention for the start of verbal communication even though a non verbal communication can transmit the message all by itself. An example of this would be facial expressions, which can be used to express most non verbal communications. According to Nayab body language along with facial expressions represent 55% of all communication. With demonstrative communication it can highlight the verbal communication for instance appropriately dressed, a nice firm handshake and conducting oneself in a professional manner while on employment interviews. Another example would be when two people meet for the first time; demonstrative communication can either show that the other person is either friendly or unpleasant by just saying the word hello. The facial expression of a smile can demonstrate whether the person is in good spirits and have a friendly personality. A good way to figure this out without the verbal communication would be the smile and other gestures through the nonverbal communication of the other person. An example of this would be a two people doing business together and when they meet for the first time and both business men smile at each other. This would be a nonverbal communication. The way that a person’s personality is shown is through their nonverbal communication. Demonstrative communication can go both ways in being effective and negative. There are many different facts that play into the nonverbal communication, like the clothes that people wear, their tattoos and possibly their hairstyles. Although these types of communications are nonverbal it does make some people a little uneasy about how they handle their business with someone with this type of communication. It does not matter what the tattoo is of. It can be misunderstood by the person that is viewing the symbol and the person with the tattoo will be labeled as a thug or someone that you should not do business with. That is why body language and facial  expressions can be very important when it comes to demonstrative communication. An example of body language that can be misunderstood would be when two people are talking and one person has their arms folded across their chest. This can be perceived as the person not listening or being considered overprotective of themselves and will not take criticism lightly. The person with the folded arms could just be cold or it is a learned gesture from their parents and that is how they listen. This is why many people would agree that demonstrative communication should not only have the nonverbal but also the verbal to go along with it so that people do not have any misunderstandings and the issue can be handled properly. According to Sutton, a person cannot fully deliver the anecdote of the day to anyone lacking words, except if the person can mime the entire tale (Sutton, 2011). Even if the person is able to mime they cannot express the entire issue perfectly. There has to be some degree of distance. This type of communication cannot always be expressed perfectly. An example of this would be that a person cannot convey the nonverbal communication over the phone and the person on the other end only has the verbal part of the communication and might take something the wrong way because they are not able to see the nonverbal part of the communication and that is where misunderstandings come in. Just like all other types of communication demonstrative communication requires listening and responding. It has been said time and time again that people receive more knowledge from someone’s actions more than their words. There are times when a person needs to listen not only with their ears but also with their eyes. An example of this would be when a new student has to get up in front of the class and introduce themselves, at first the new student may roll their eyes like so many do because they already know that it is hard enough to start school as the new kid but to have to stand up in front of everyone makes things even more intense. So the other kids have seen the new student roll their eyes but they also have to listen to what is being said because the action was just an annoyance for having to stand up in front of everyone. It is important to remember to listen as well as taking in the scene of what is going on around them. Both the verbal and nonverbal communication will create the listening and response aspect of the  communication. In today’s world all around us there are people unknowingly using demonstrative communication. Just by smiling at their neighbor or waving at someone they are using demonstrative communication. Even though this communication can be misinterpreted or misunderstood it is still wise to try and listen to see if there is anything that the person is also saying. References: ReferencesCheesebro, T., O’Connor, L., & Rios, F. (2010). Communicating in the workplace . Upper Saddle River, NJ: Prentice Hall. Nayab, N. (2010, July 26). Different types of communication . Retrieved from http://www.brighthub.com/office/project-management/articles/79297.aspxSutton, N. (2011, March 26). Pros and cons of nonverbal communication.

Literature Review Essay

Abstract The primary role of literature review in a quantitative research study to gain information on the subject of your research question and identify unbiased and valid studies connected with your research question. For instance, my quantitative research question is â€Å"all other factors being equal, do high school students reading popular fiction achieve better Language Arts test scores than high school students reading curriculum-required fiction? † My hypothesis is that high school students reading popular fiction will outperform the students who read curriculum-required fiction, because if you enjoy reading you will perform better. Then I need to do a literature review to discover if my question has already been answered and I may need to modify it or if there are related studies to my research question that can provide quantifiable research. Introduction Quantitative Research involves collecting numerical data though content analysis, performance tests, personality measures, questionnaires, etc. This type of research procedures include an objective/unbiased approach to collecting numerical data from a large number of participants and analyzes these numbers using statistics in order to answer a specific, narrow research question. As part of research, a literature review is required. A quantitative literature review is an extensive review of literature that may or may not influence the study and your research question (UOA 2013). The primary role of literature review in a quantitative research study to gain information on the subject of your research question and identify unbiased and valid studies connected with your research question. For instance, my quantitative research question is â€Å"all other factors being equal, do high school students reading popular fiction achieve better Language Arts test scores than high school students reading curriculum-required fiction? † My hypothesis is that high school students reading popular fiction will outperform the students who read curriculum-required fiction, because if you enjoy reading you will perform better. Then I need to do a literature review to discover if my question has already been answered and I may need to modify it or if there are related studies to my research question that can provide quantifiable research. Why This Research Question This research question â€Å"all other factors being equal, do high school students reading popular fiction achieve better Language Arts test scores than high school students reading curriculum-required fiction? † needs to be answered. There is a controversy over what types of literature is acceptable for students to have access. One of my favorite book series (Harry Potter) is a banned book in certain states. This research question would add to research already completed. Methodology in the Research Question This research question â€Å"all other factors being equal, do high school students reading popular fiction achieve better Language Arts test scores than high school students reading curriculum-required fiction? † is an experimental research question and a casual research question. An experimental research question tests the cause and effect and a causal research question that test for a cause and effect relationship between variables. The variables in this research question are the independent variable (IV), age, ethnicity, and gender, the dependent variable (DV), assigned popular fiction and curriculum-required fiction, and the covariant (CoV) socio-economic status. Additionally, this question has ratio data. Ratio data is continuous. Ratio data rank order, but also quantify and compare the sizes of differences between them. Ratio data has an absolute zero and allows for how many times greater. The research question can discover how many times greater or less are the test scores of high school students who read popular fiction than those who read curriculum-required fiction. Supporting Research My hypothesis of the research question is that high school students reading popular fiction will outperform the students who read curriculum-required fiction, because if you enjoy reading you will perform better. The other similar research found during the literature review relates to my research. Although, my specific research question has not been fully researched. Other research relates to my question. According to the article, Impact of Students’ Reading Preferences on Reading Achievement, middle school students in Canada found â€Å"The most significant indicators were reading novels or fictional texts, informative reading or non-fiction, and reading books or other texts from the school library. In-class reading and participation in discussions pertaining to school-related reading were also shown to enhance reading achievement. These results are somewhat surprising in that research documenting this subject mainly emphasizes the use of pedagogical material corresponding to the interests/needs of students to foster achievement in reading† (Bouchamma, et al. 2013). This research shows that reading achievement can come from both required and optional reading. Moreover, according to the article, Reading Attitude and its Effect on Leisure Time Reading, â€Å"gender, educational level, age, and amount of spare time have a positive effect on reading behavior† (Stokmans 1999). Additionally, there is â€Å"a positive relationship between time spent reading fiction and educational level† (Stokmans 1999). This research shows that reading fiction relates positively to reading level. Additionally, according to the article, Popular Publications May Help Students’ Reading Scores, â€Å"We are concerned about the struggle to increase scores that children are posting on state-required exams — not because of the scores themselves, but because they are strong indications that state students may not be gaining the thorough and analytical skills they need to become successful readers† (Michigan Chronicle 1997). This newspaper article shows that popular publications may help students on their reading score. Conclusion This research question â€Å"all other factors being equal, do high school students reading popular fiction achieve better Language Arts test scores than high school students reading curriculum-required fiction? † needs to be answered. This research question addresses the controversy over what types of literature is acceptable for students to have access to. Moreover, this research question would add to research already completed. It would allow  administrators and other educators to decide if certain books can be helpful in high school students learning environments. Bibliography Bouchamma, Y. , Poulin, V. , Basque, M. , & Ruel, C. (2013). Impact of students’ reading preferences on reading achievement. Creative Education, 4(8), 484-491. Retrieved February 6th, 2014 from: http://search. proquest. com/docview/1441488139? accountid=28844 Mia J. W. Stokmans, Reading attitude and its effect on leisure time reading, Poetics, Volume 26, Issue 4, May 1999, Pages 245-261, ISSN 0304-422X, Retrieved February 6th, 2014 from: http://dx. doi. org/10. 1016/S0304-422X(99)00005-4 http://www. sciencedirect. com/science/article/pii/S0304422X99000054 Popular publications may help students’ reading scores. (1997, Oct 01). Michigan Chronicle. Retrieved February 6th, from: http://search. proquest. com/docview/390200035? accountid=28844 University of Arkansas Libraries (2013, Oct. 30) Literature Reviews. LibGuides. Retrieved February 6th, 2014 from: http://uark. libguides. com/content. php? pid=110370&sid=1384703

Fin 571 Week 4

Guillermo’s Furniture Store Scenario There are three alternatives available to the Guillermo’s Furniture Store. One is they can keep the current position or they can become broker or make it high-tech. Therefore, Guillermo’s furniture store can divide the project into current project, High tech project and the broker project. Guillermo’s furniture store needs to select the option which is good for them and can provide competitive advantage to the store. It has been clear that managers are responsible for the use of capital budgeting techniques to find out exclusive project. We have different types of capital budgeting techniques. These capital budgeting techniques are: 1-Simple Payback, and/or Discounted Payback 2-Net Present Value (NPV) 3-Internal Rate Of Return (IRR) The simple payback period: â€Å"We can define the simple payback period as the expected number of years required to recover the original investment by Guillermo’s Furniture Store† (Brown, et. al, (2006), i. e. if the store has invested $300 millions in its project, then how much time it will take to recover its invested amount. Payback period is the first formal method used to evaluate capital budgeting projects. Here is the payback period for Guillermo’s Furniture Store. The cumulative cash flow of Guillermo’s Furniture store at t = 0 is just the initial cost of -$300,000. At Year 1 the cumulative cash flow is the previous cumulative of $300,000 plus the Year 1 cash flow of $500: -$300,000 + $42,573=-$257,427. Similarly, the cumulative for Year 2 is the previous cumulative of -$257,427 plus the Year 2 inflow of $42,573, resulting in –$214,854. We see that by the end of Year 7 the cumulative inflows have more than recovered the initial outflow. Thus, the payback occurred during the third year. If the $40,584 of inflows comes in evenly during Year 3, then the exact payback period can be found as follows: pic] Applying the same procedure to Project High-Tech and Broker, we find Payback period for them is 1. 53 years and 5. 89 years respectively. It is known that the shorter the payback period, the better. As the projects are mutually exclusive, Project High-tech would be accepted but Project current would be rejected. If the projects were mutually exclusive, High-tech would be ranked over Broker and Current because High-Tech has the shorter payback. Mutually exclusive project means that if one project is taken on, the other must be rejected (Brigham, 2004). Discounted Payback Period: In the real world firms use a variant of the regular payback, the discounted payback period, which is similar to the regular payback period except that the expected cash flows are discounted by the project’s cost of capital (WACC). So we can say that the discounted payback period uses the time value of money in its decision. Here, the discounted payback period is defined as the number of years required to recover the investment from discounted net cash flows generated from the project. If we look at the values of discounted cash flows we can find that the discounted payback period for Current project is 9. years whereas High-Tech and Broker project 1. 4 year and 8. 1 years respectively For Projects Current, High-Tech and Broker, project High-Tech ranked higher as compared to the others (Brigham, 2004). Payback Vs Discounted Payback: We can also says, that a payback is a type of â€Å"breakeven† calculation in the sense that if cash flows come in at the expected rate unt il the payback year, then the project will break even for that year. Here the simple payback period doesn’t consider the cost of capital whereas the discounted payback does consider capital costs it shows the breakeven year after covering debt and equity costs. The biggest drawback of both the payback and discounted payback methods is that they ignore cash flows that are paid or received after the payback period of the project. For example, suppose Project High-Tech had an additional cash flow at Year 5 then the discounted and simple payback period will ignore these values. In real live project with more cash flow after the pay back period would be more valuable than Project with no cash flow, yet its payback and discounted payback make it look worse. This is the reason, the shorter the payback period, other things held constant, the greater the project’s liquidity. Apart from this, since cash flows expected in the distant future are generally riskier than near-term cash flows, the payback is often used as an indicator of a project’s riskiness because the longer the payback period the higher is the risk associated with the project (Brigham, 2004) (Fabuzzi, 2003). Overall there is only one major demerit of the discounted cash flow method that it do not consider the cash flow generated by the company after the payback period and due to this a project with high cash flow after the payback period is rejected in front of a project that pays no cash flow after the payback period. Net Present Value (NPV): NPV is known as the best technique in the capital budgeting decisions. There were flows in payback as well as discounted pay back periods because it don’t consider the cash flow after the payback and discounted pay back period. To remove this flows net present value (NPV) method, which relies on discounted cash flow (DCF) techniques is used to find the value of the project by considering the cash flow of the project till its life. To implement this approach, we proceed as follows: a. Find the present value of each cash flow, including all inflows and outflows, discounted at the project’s cost of capital. b. Sum these discounted cash flows; this sum is defined as the project’s NPV. c. If the NPV is positive, the project should be accepted, while if the NPV is negative, it should be rejected. If two projects with positive NPVs are mutually exclusive, the one with the higher NPV should be chosen. [pic] Here CFt is the expected net cash flow at Period t, k is the project’s cost of capital, and n is the life of the project. Cash outflows (initial investments like expenditures such as the cost of buying equipment or building factories) are treated as negative cash flows for the project because the investor cash position decrease with the investment. In evaluating Projects Current, High-Tech and Broker, only CF0 is negative, but for some project the cash flow remains to be uneven (Brigham, 2004). We can find out the most effective project using NPV method by following techniques. An NPV of zero signifies that the project’s cash flows are exactly sufficient to repay the invested capital and to provide the required rate of return on that capital. If a project has a positive NPV, then it is generating more cash than is needed to service the debt and to provide the required return to shareholders, and this excess cash accrues solely to the firm’s stockholders. This is the reason, if a firm takes on a project with a positive NPV, the wealth of the stockholders increases due to inflow of net cash in there investment. If we take the projects Current, High-tech and Broker shareholders’ wealth would decrease by $26,755 if the firm takes on Project Current, increase by $955,065 if it takes the project High-Tech but by only increase by $27,014 if it takes on Project Broker. So we can easily decide, as the projects are mutually exclusive the Project high-tech is ranked higher than the other two (Brigham, 2004). We can also say that there is a direct relationship between NPV and EVA (economic value added of the project. As NPV is equal to the present value of the project’s future EVAs generated each year. This is the reason if a project has a positive NPV its EVA and MVA (market value added, or the excess of the firm’s market value over its book value) will remain positive (Fabuzzi, 2003). This is commonly used capital budgeting technique by the managers in the current scenario. Internal Rate of Return (IRR) The internal rate of return is similar to the concept of calculating bond yield to maturity. Similar concepts are used in capital budgeting when the internal rate of return (IRR) method is used to evaluate any project. The IRR is defined as the discount rate that equates the present value of a project’s expected cash inflows to the present value of the project’s outflows: [pic] Here CFO is the cash out flow from the project where CFI is the cash inflow from the project. Now how we can find the most valuable project using IRR there are following technique that will help to find out which project among Project Current, High-Tech and Broker is most valuable: i) The IRR on a project is its expected rate of return. i) If the internal rate of return exceeds the cost of the capital (WACC) used to finance the project, a surplus will remain after paying for the capital, and this surplus will accrue to the firm’s stockholders. Therefore, taking on a project whose IRR exceeds its cost of capital increases shareholders’ wealth. iii) But, if the internal rate of return is less than the cost of capital, then taking on the project will impose a cost on current stockholders. If we look at the project Current, High-Tech and Broker we can find that for project Current, IRR is 6. 9% where as the cost of capital is 9. 7%, for project High-Tech IRR is 64. 7% and the cost of capital is 9. 17% and for project broker IRR is 11% and cost of capital is 9. 17%. Hence we can decide that project high-tech is more valuable for Guillermo’s Furniture Store (Brigham, 2004) (Fabuzzi, 2003) (Reilly & Brown, 2006). Works Cited Brigham, E. F. , & Houston, J. F. (2004). Fundamental of Financial Management. South Western: Thomson. Brown, & Reilly. (2006). Investement Analysis and Portfolio Management. Thomson ONE – Business School. Fabozzi, F. J. (2003). Financial management and analysis. New Jercy: John willy and sons.