Corporation Finance Essay Example | Topics and Well Written Essays - 750 words

Corporation Finance - Essay Example Receiving a 10-year annuity may seem like an intelligent choice, for this will omit the chances of spending too much. This might be preferred by those who are closely controlled; this--- indeed, would have been a great preference, had I been certain that I’d still be here to celebrate my next birthday. It may sound morbid---but that’s reality. It would also be nice to receive $50,000 a year---for the rest of my life---only that no one knows how long that life would be. A person in his sixties may also find vacations less appealing than when he was in fifties. Leisure times and recreation activities are for those who can afford it---and those who can enjoy it. The gift is here, so why not enjoy it, while you make the most out of it†¦ Uncertainty of cash flow is a risk that every company takes, but then, several means and measures can be considered, and this is the significant role that the firms play. Like any other dilemma, these improbabilities, if not identified immediately, will definitely cause financial crisis---at times, worse than what the company anticipated. Like any other predicament, this can also be prevented, or improved, once its cause and solutions are evaluated. Firms, indeed, play a major function on this. Therefore, when financial status seems to be unbalanced, it is more than necessary for them to perform their finest approach that they could possibly provide. It is when they are expected to supply their much needed, required assistance. It is imperative that appropriate response and action be instantaneously put on the subject. In order to make correct capital-expenditure decisions, management needs a correct set of standard by which to select projects for execution so that long-run economic benefits to present owners will be maximized (Solomon). Not having an absolute grasp of the project may bring about conundrum to the agency---and this requires