Capital Budgeting Analysis of Replacing Existing Product

Question: Discuss about the Capital Budgeting Analysis of Replacing Existing Product. Answer: Introduction Capital Budgeting is the process of determining the profitability of an investment in order to maximize returns on investment. Various techniques are used to decide whether a particular investment should be undertaken. Some of these techniques include NPV, IRR, profitability index, payback period. Depending on the decision rule for the above techniques, an investment project is accepted or rejected. (Peterson, Fabozzi, 2004) Cash Flow Analysis Runwell Corporation is planning to introduce a new line of vehicle parts which will be environment friendly as carbon emission will be reduced. However, the new project will require renovation of an existing section of the factory. The project will have a life of eight years as it is expected that the technological up gradation of the manufacturing process will render the production line obsolete in 10 years. There are various expenditures which the company will have to undertake immediately in order to start the production line like purchase of plant equipment, increase in working capital, renovation of the existing part of the factory. Apart from the initial investment, the project will have annual expenditures related to the project. However, the revenue will start flowing only from the first year. Hence, in order to decide whether to invest in the project or not, a capital budgeting analysis has been carried out which will determine of the project is viable and profitable or not . A cash flow table presenting the various cash inflows and outflows for the project period of 8 years is presented below: Cash Flow 0 1 2 3 4 5 6 7 8 No. of boxed sold 48000 48000 48000 48000 48000 48000 48000 48000 Selling price $30 $30 $30 $30 $30 $30 $30 $30 Sales Revenue $14,40,000 $14,40,000 $14,40,000 $14,40,000 $14,40,000 $14,40,000 $14,40,000 $14,40,000 Variable cost $7,20,000 $7,20,000 $7,20,000 $7,20,000 $6,48,000 $6,48,000 $6,48,000 $6,48,000 Fixed cost $1,60,000 $1,60,000 $1,60,000 $1,60,000 $1,60,000 $1,60,000 $1,60,000 $1,60,000 Opportunity cost of rent $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 Quality assurance inspection $36,000 $36,000 $36,000 $36,000 $36,000 $36,000 $36,000 $36,000 Training expense $18,000 Total Operating cost $9,64,000 $9,46,000 $9,46,000 $9,46,000 $8,74,000 $8,74,000 $8,74,000 $8,74,000 Depreciation $1,30,000 $1,30,000 $1,30,000 $1,30,000 $1,30,000 $1,30,000 $1,30,000 $1,30,000 Net Income $3,46,000 $3,64,000 $3,64,000 $3,64,000 $4,36,000 $4,36,000 $4,36,000 $4,36,000 Tax @30% $1,03,800 $1,09,200 $1,09,200 $1,09,200 $1,30,800 $1,30,800 $1,30,800 $1,30,800 Profit after tax $2,42,200 $2,54,800 $2,54,800 $2,54,800 $3,05,200 $3,05,200 $3,05,200 $3,05,200 Operating cash flow after tax $3,72,200 $3,84,800 $3,84,800 $3,84,800 $4,35,200 $4,35,200 $4,35,200 $4,35,200 Initial Investment $16,67,000 Terminal Value $2,92,000 Net Cash flow -$16,67,000 $3,72,200 $3,84,800 $3,84,800 $3,84,800 $4,35,200 $4,35,200 $4,35,200 $7,27,200 Discount factor@14% 1 0.877 0.769 0.675 0.592 0.519 0.456 0.400 0.351 Present value of cash flows -$16,67,000 $3,26,491 $2,96,091 $2,59,729 $2,27,832 $2,26,029 $1,98,271 $1,73,922 $2,54,927 NPV NPV = $2, 96,293.08 Discounted payback period Year PV of cash flows Cumulative discounted cash flows 0 -$16,67,000 -$16,67,000 1 $3,26,419 -$13,40,581 2 $2,95,911 -$10,44,669 3 $2,59,740 -$7,84,929 4 $2,27,802 -$5,57,128 5 $2,25,869 -$3,31,259 6 $1,98,451 -$1,32,808 7 $1,74,080 $41,272 8 $2,55,247 $2,96,519 Discounted payback period = 6.8 years Working Notes Initial Investment Initial Investment Cost of PE $14,00,000 Renovation cost $1,30,000 Transportation cost $40,000 HR cost $48,000 Increase in working capital $49,000 Total Investment $16,67,000 Depreciation Cost of PE $14,00,000 Transportation costs $40,000 Installation costs $70,000 Total cost of PE $15,10,000 Salvage value $2,10,000 Depreciable amount $13,00,000 Depreciation per annum $1,30,000 Terminal Value Terminal Value Proceeds from sale $2,50,000 Cost of sales $24,000 Net Proceeds $2,26,000 book value of PE $4,70,000 Loss on sale $2,20,000 Tax benefit on loss on sale $66,000 After tax proceeds from sale $2,92,000 Recommendation The project has a positive NPV of $2, 96,293.08.On the basis of the NPV, the project is viable as the present value of future cash flows is more than the cash outflow and the project will give a profit of more than 2 lakhs. Moreover, the company has an option to sell the contract to another company for $200,000. Since the NPV is more than the amount receivable on selling the contract, it is more profitable to introduce the new line of vehicle parts. The company has a required discounted payback period of 5 years. However, the project has a discounted period of 6.8 years which means the company will not be able to recover the original investment before the 6th year. On the basis of the required discounted payback period, the project cannot be accepted. Hence, the company should sell the contract to another company for $200,000. Risk Analysis A company needs to discount its future cash flows in a capital budgeting analysis. The discount rate used to discount such cash flows is a very important phenomenon as a small mistake in selecting the appropriate discount rate may result in huge differences in the analysis results. Hence, it is important to select a discount rate which accounts for the risk of the project. WACC of a company is considered to be the ideal discount rate for projects having risks similar to that of the existing business of the company. WACC is the minimum required rate of return for the investors. It is a sum of the cost of equity and cost of debt of a company. The capital structure of a company consists of debt and equity. Hence, a rate of return which accounts for both the sources of finance is the cost of capital. WACC is ideal for investment proposals with similar business risks like an investment proposal of a cloth trader to open a new store in a new location. Here since the business risk is the same; it is advisable to take WACC as the discount rate. However, for the current project proposal, WACC is not the ideal discount rate because the project has a risk higher than the normal course of business. The project is a technology driven one where the new production line will produce vehicle parts that will be environment friendly and reduce carbon emission. However, in a competitive world where technology seems to be ever changing, it is expected that the production process will become obsolete and hence the project will have to be closed. The risk of the technology up-gradation is very high and as such it is important to account for the higher risk in the discount factor. If the technology up-gradation takes place before the expected period of eight years, then the company will have to immediately stop the new production process as the vehicle part will no longer be saleable. A higher discount rate will ensure that higher cash flows are generated in order to recover the initial investment in the project life as with higher discoun t rate the present values will decrease and as such higher cash flows will be required to recover investment. The discount factor will have to be increased. An increase in the discount factor will lead to a reduction in the present value of cash flows and as such the NPV of the project will decrease. (Landier, Thesmar, Kruger, 2011) With WACC as the discount rate, the project has a discounted payback period of more than 5 years, so with an increase in the discount rate, the discounted payback period will further increase and the NPV will fall making the project unacceptable. References Peterson, P., Fabozzi, F.J, (2004), Capital Budgeting : Theory and Practice, Wiley Finance Kruger, P., Landier, A., Thesmar, D., (2011), The WACC Fallacy: The Real Effects of Using a Unique Discount Rate

Report on Reading and Writing

Educational research on reading and writing has revealed valuable information about recent discussion of reading problems as well as effective strategies for improving this situation. In particular, much research has been done to evaluate such problems as reading approaches to children with disabilities.Advertising We will write a custom report sample on Report on Reading and Writing specifically for you for only $16.05 $11/page Learn More Many programs have been developed for fostering children’s adjustment to particular reading instructions. In addition, the National Right to Read Foundation (n. d.) provides the examination of the programs on reading recovery whose major mission lies in evaluating the major effects of whole-language tutorial program (Federally Funded Research, n. d.). More importantly, reading recovery program also strives to unveil the program is efficiency and implementation is not justified. Finally, educational research has also been dedicated to the discussion of reading models and theoretical frameworks that should be used to improve educational techniques. While analyzing the history of reading, it purposefully to discuss this aspect from different points of view, beginning with history of reading and ending with contemporary achievements in this field. In order to examine the historical development of reading, it is necessary to refer to the analysis and definition of spoken language and human communication and consider reading a necessity to sharing and retaining information (A Brief History of Reading, n. d.). Examining such historical issues as the development of phonetic system and the invention of alphabet allows teachers to better understand what strategies and techniques should be applied to ameliorate children’s reading comprehension. In addition, a thorough investigation of reading history also helps realize the importance of reading as a means of information comprehension. While co mparing past achievements in reading and writing with the contemporary ones involving electronic and digital introductions to reading activities, it is worth saying that technology has greatly contributed to the development of reading techniques.Advertising Looking for report on education? Let's see if we can help you! Get your first paper with 15% OFF Learn More Report on Literacy Statistics According to the National Assessment of Adult Literary statistics (1990), more than 19.000 adults take part in state-level and national evaluations representing the US adult population. The evaluation provides the results from a 1992-2003 period to pursue the shifts in adult literacy. The National Assessment of Adult Literacy also presents the information on the literacy performance and background characteristics to policy makers, practitioners, and researchers. The Literacy research involves a list of components that cover the extent of adult literacy in the USA. In particular, i t is based on background questionnaire that helps define the connection between adult literacy and demographic characteristics. Further, the research involves the prison component that evaluates the literacy skills of adults in state and federal prisons. Such aspect as health literacy is also crucial in assessing the adults’ abilities to apply their literacy skills for understanding health-related materials and forms. Other research has been conducted assess the educational progress (National Assessment of Educational Progress, 1990). The project is aimed at evaluating students’ abilities in different subject areas, particularly in reading, writing, science, mathematics, the arts, economics, civics, and the US history. The research discloses the results in instructional experiences, subject-matter achievements and school environment. It should be stressed that the National Assessment of Educational Progress (1990) does not reveal the results of separate students, but p rovides the scores of particular groups. In addition, while conducting research, the Committee has chosen particular groups for analysis due to the fact that those groups constitute special interest to the examination. Reference List A Brief History of Reading. (n. d.). Live Link. Retrieved from http://www.liveink.com/whatis/history.htm Federally Funded Research (n. d.). The National Right to Read Foundation. Retrieved from http://www.liveink.com/whatis/history.htmAdvertising We will write a custom report sample on Report on Reading and Writing specifically for you for only $16.05 $11/page Learn More National Assessment of Adult Literacy (1990). National Center for Educational Statistics. Retrieved from https://nces.ed.gov/naal/ National Assessment of Educational Progress (1990). National Center for Educational Statistics. Retrieved from https://nces.ed.gov/nationsreportcard/ This report on Report on Reading and Writing was written and submitted by user Luciano N. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Free Essays on The Yearling

After the Civil War many men moved to the scrubs. One of those men was Penny Baxter, who moved to a place in the scrubs called Baxter’s Island. He settled there and started a family. He had a wife who goes by Ma, and a son named Jody. Jody’s maturity is shown throughout one year, through different events, in the novel called The Yearling. In the early stages of the book Jody spends his time avoiding his chores, and having fun instead. â€Å"He [Penny] was doing Jody’s work, and in his good coat†(9). Although, it seemed not always to be Jody’s fault that he did not do his work, but some blame could be put on Penny. â€Å"’Men-folks has got to stick together in the name o’ peace’†(11). Penny remembers what it’s like to be a kid, there is just one rule, to act like a kid. Jody did eventually mature enough to do his chores around the house. â€Å"’ Look at him [Jody] move,’ his mother said. ‘To see him hoe, you’d think he was a snail. Say â€Å"huntin†Ã¢â‚¬â„¢ ‘ and he’s as quick as an otter’†. (29) Besides hunting, something else motivated Jody to be responsible; Flag. Flag was a fawn that Jody found and raised by himself. Jody was extremely proud of Flag, although Flag was a bit rambunctious toward the end of the book, ruining the only crops the Baxter’s had to eat. This was a serious matter because there was no more hunting to be done at this point, hunting season had ended and the crops and the little meat were suppost to get them through the winter. Throughout the past year, Jody is maturing with each coming day. Different events also guided Jody on the right path to becoming a man. For instance, the death of Fodder-wing. This was a horrible tragedy in this story, yet w if it had not happened, Jody would not have had that motivation to take on more responsibility as he grew older. â€Å"’I come to see Fodder-wing. I come to show him my fawn’. . .’Buck said, ï ¿ ½... Free Essays on The Yearling Free Essays on The Yearling After the Civil War many men moved to the scrubs. One of those men was Penny Baxter, who moved to a place in the scrubs called Baxter’s Island. He settled there and started a family. He had a wife who goes by Ma, and a son named Jody. Jody’s maturity is shown throughout one year, through different events, in the novel called The Yearling. In the early stages of the book Jody spends his time avoiding his chores, and having fun instead. â€Å"He [Penny] was doing Jody’s work, and in his good coat†(9). Although, it seemed not always to be Jody’s fault that he did not do his work, but some blame could be put on Penny. â€Å"’Men-folks has got to stick together in the name o’ peace’†(11). Penny remembers what it’s like to be a kid, there is just one rule, to act like a kid. Jody did eventually mature enough to do his chores around the house. â€Å"’ Look at him [Jody] move,’ his mother said. ‘To see him hoe, you’d think he was a snail. Say â€Å"huntin†Ã¢â‚¬â„¢ ‘ and he’s as quick as an otter’†. (29) Besides hunting, something else motivated Jody to be responsible; Flag. Flag was a fawn that Jody found and raised by himself. Jody was extremely proud of Flag, although Flag was a bit rambunctious toward the end of the book, ruining the only crops the Baxter’s had to eat. This was a serious matter because there was no more hunting to be done at this point, hunting season had ended and the crops and the little meat were suppost to get them through the winter. Throughout the past year, Jody is maturing with each coming day. Different events also guided Jody on the right path to becoming a man. For instance, the death of Fodder-wing. This was a horrible tragedy in this story, yet w if it had not happened, Jody would not have had that motivation to take on more responsibility as he grew older. â€Å"’I come to see Fodder-wing. I come to show him my fawn’. . .’Buck said, ï ¿ ½...

How to Use Material Safety Data Sheets (MSDS)

How to Use Material Safety Data Sheets (MSDS) A Material Safety Data Sheet (MSDS) is a written document that provides product users and emergency personnel with information and procedures needed for handling and working with chemicals. MSDSs have been around, in one form or another, since the time of the ancient Egyptians. Although MSDS formats vary somewhat between countries and authors (an international MSDS format is documented in ANSI Standard Z400.1-1993), they generally outline the physical and chemical properties of the product, describe potential hazards associated with the substance (health, storage cautions, flammability, radioactivity, reactivity, etc.), prescribe emergency actions, and often include manufacturer identification, address, MSDS date, and emergency phone numbers. Key Takeaways: Material Safety Data Sheet (MSDS) A Material Safety Data Sheet or is a summary of the key properties of a substance and the hazards associated with its use.Material Safety Data sheets are not standardized, so its important to consult one provided by a respected source.Two chemicals that have the same name may have very different MSDS sheets because the particle size of the product and its purity may significantly affect its properties.MSDS sheets should be kept in an easy-to-find location and made accessible to all persons dealing with chemicals. Why Should I Care About a MSDS? Although MSDSs are targeted at workplaces and emergency personnel, any consumer can benefit from having important product information available. An MSDS provides information about proper storage of a substance, first aid, spill response, safe disposal, toxicity, flammability, and additional useful material. MSDSs are not limited to reagents used for chemistry, but are provided for most substances, including common household products such as cleaners, gasoline, pesticides, certain foods, drugs, and office and school supplies. Familiarity with MSDSs allows for precautions to be taken for potentially dangerous products; seemingly safe products may be found to contain unforeseen hazards. Where Do I Find Material Safety Data Sheets? In many countries, employers are required to maintain MSDSs for their workers, so a good place to locate MSDSs is on the job. Also, some products intended for consumer use are sold with MSDSs enclosed. College and university chemistry departments will maintain MSDSs on many chemicals. However, if you are reading this article online then you have easy access to thousands of MSDSs via the internet. There are links to MSDS databases from this site. Many companies have MSDSs for their products available online via their websites. Since the point of an MSDS is to make hazard information available to consumers and since copyrights dont tend to apply to restrict distribution, MSDS are widely available. Certain MSDSs, such as those for drugs, may be more difficult to obtain, but are still available upon request. To locate an MSDS for a product you will need to know its name. Alternate names for chemicals are often provided on the MSDS, but there is no standardized naming of substances. The  chemical name  or  specific name  is used most often to find MSDSs for health effects and protective measures.  IUPAC  (International Union of Pure and Applied Chemistry) conventions are used more often than  common names.  Synonyms  are often listed on MSDSs.The  molecular formula  may be used to locate a chemical of known composition.You can usually search  for substance using  its  CAS (Chemical Abstracts Service)  registry number.  Different chemicals  may have the same name, but each will have its own CAS number.Sometimes the easiest way to locate a product is to search by  manufacturer.Products may be found using their  US Defense Department NSN. A National Supply Number is a four-digit FSC class code number plus a nine-digit National Item Identification Number or NIIN.A  trade name  or  product name  is the brand, commercial, or marketing name the manufacturer gives the product. It does not specify what chemicals are in the pr oduct or whether the product is a mixture of chemicals or a single chemical. A  generic name  or  chemical family name  describes a group of chemicals with related physical and chemical properties. Sometimes an MSDS will list only the generic name of a product, although in most countries laws require that chemical names also be listed. How Do I Use a MSDS? An MSDS might appear to be intimidating and technical, but the information is not intended to be difficult to understand. You might simply scan an MSDS to see if any warnings or hazards are delineated. If the content is difficult to understand there are online MSDS glossaries to help define any unfamiliar words and often contact information for further explanations. Ideally you would read an MSDS before obtaining a product so that you could prepare proper storage and handling. More often, MSDSs are read after a product is purchased. In this case, you can scan the MSDS for any safety precautions, health effects, storage cautions, or disposal instructions. MSDSs often list symptoms that might indicate exposure to the product. An MSDS is an excellent resource to consult when a product has been spilled or a person has been exposed to the product (ingested, inhaled, spilled on skin). The instructions on an MSDS do not replace those of a health care professional, but can be helpful emergen cy situations. When consulting an MSDS, keep in mind that few substances are pure forms of molecules, so the content of an MSDS will depend on the manufacturer. In other words, two MSDSs for the same chemical may contain different information, depending on the impurities of the substance or the method used in its preparation. Important Information Material Safety Data Sheets are not created equal. Theoretically, MSDSs can be written by pretty much anyone (although there is some liability involved), so the information is only as accurate as the authors references and understanding of the data. According to a 1997 study by OSHA one expert panel review established that only 11% of the MSDSs were found to be accurate in all of the following four areas: health effects, first aid, personal protective equipment, and exposure limits. Further, the  health effects  data on the MSDSs frequently are incomplete and the chronic data are often incorrect or less complete than the acute data. This doesnt mean that MSDSs are useless, but it does indicate that information needs to be used with caution and that MSDSs should be obtained from trustworthy and reliable sources. The bottom line: Respect the chemicals you use. Know their hazards and plan your response to an emergency before it happens!

Globalisation Essay Example | Topics and Well Written Essays - 1500 words

Globalisation - Essay Example The opportunity hidden in globalisation has led to the development of globalisation. The first opportunity that globalisation provides us free trade facility and its resultant effect on the global economy (Milward, 2003, p.10). Free trade would lead to an increase in the trade which would increase the financial flows between various economies. Globalisation would result in an increase in free trade which would increase lateral financial flows and the redistributed capital would help to pull up the impoverished countries from their financial woes. The second opportunity provided by globalisation in development of a transnational framework which would help in the development of a smooth trade system. The origin of internationalisation of industry and commerce can derived from both macroeconomic approach and micro economic approach. The macro economics approach consists of expansion of firms' activities beyond the countries where they have their registered offices can be explained with the help of international division of labour theory and the huge circuits of capital. A micro economic approach deals with the theory of product life cycle and Dunning Eclectic Paradigm (Hansen, 2009, p.3). Nation’s now have less control over their individual industries and economies so the global network is assuming more control over the markets around the world. The global network must keep in mind the welfare of both the global community and the individual nations. Globalisation refers to the intensification of the relationship between various countries which has been set with the help of internationalisation. Foreign Direct Investment involves transfer of intangible or tangible assets from one country to another in order to generate wealth in that country through total or partial control over their assets (Sornarajah, 2010, p.8). Foreign Direct Investment is one of the key elements of the rapidly evolving international economy. This is also referred as globalisation. Fore ign Direct Investment helps to create a stable, long lasting and direct link between economies. Under a correct environmental policy the Foreign Direct Investment can serve as an important tool for the purpose of development of local enterprise. Foreign Direct Investment helps in economic development of the developing countries. The level of economic development is higher in the case of FDI than in licensing, franchising or exporting (Jones and Wren, 2006, p.9). Foreign Direct Investment infers when a group of companies or individuals of one country buy assets of another country (OECD, 2009, p.14). The acquisition of the assets happen when foreign companies or individuals to control the means of production as well as distribution. Example- a company in US can purchase a production facility in Australia. By acquiring the production facility in Australia, the corporation can control the entire production process from US. This would help to ensure the quality of the product. A foreign direct investor can have a varying amount of stake in the company invested by him. FDI indicates at least 10% ownership in a company which helps the investor to control the daily affairs of the company as compared to licensing, export and franchising where very control can be exerted (Cohen, 2007, p.38). Some countries have a cap on the equity investment in their country. FDI helps in generating economic growth for a country so it preferred over licensing, franchising and exporting (Neuhaus, 2006, p.42). People who buy stocks in the company own a part of the company and have the ability to control the affairs of the co

None Essay Example | Topics and Well Written Essays - 750 words - 20

None - Essay Example of the high demand for iPhone 6 and iPhone 6 plus, the Apple Inc chief executive, Time Cook, and the management decided to delay the production of an extra-large iPad. It seems that the leadership did not want to overwork its supplier while they were still trying to meet the demand of their customer on another product. According to the Wall Street Journal unnamed source from one of Apple’s suppliers said that the 5.5- inch iPhone 6 plus output remains unsatisfactory. Splitting resources among the display makers would be challenging in producing a large screen iPad at the moment (Luk and Wakabayashi 1). Therefore, it is a significant understanding by the Apple management for allowing its suppliers to push the production of the large screen iPad. They were well aware of the challenge the company is facing in hiring enough factory employees who will assemble the new iPhone in some of its suppliers’ branches. In an organization, there are different individuals trying to accomplish as a specific goal, but working on different tasks. Therefore, organizational behavior is how these individuals or groups are working together within an organization. The idea is focusing on the best way to manage the workers, organization and processes. It is based on the idea of what are employees’ motivated by and why does it motivate them. Managers and supervisors can accomplish organizational goals by defining goals, motivating staff and monitoring performance (Schmermerhorn, Hunt & Osborn 63). With the information that a manager gathers in the organization, he or she is able to make a decision. Therefore, managerial control of the management over the organization is a very significant part of organizational behavior. It includes the decision process by the management of an organization in choosing a course of action to deal with an issue or opportunity. In this case, Apple Inc. Decided to delay the production of a large-screen iPad and instead produce iPhone 6 and iPhone 6 plus

Investigating Resistance Essay Example for Free

Investigating Resistance Essay Resistance is a property of a substance that conducts electricity. Resistance opposes the flow of electricity through conductors and it depends on the PHYSICAL NATURE of the particular conductor. In this investigation I must investigate how one of these physical facts affects the resistance. I will split my investigation into four parts, I will firstly plan my investigation. This will allow me to explain how I will carry out my investigation and predict what I think will happen. The second part of my investigation will be the obtaining part. To complete this I must carry out my investigation and record the results. I will then be able to say if my prediction was correct. The third part will be analyzing the results I have made. This will allow me to draw conclusions. The fourth and final part will be evaluating my investigation, I will say if it could have been improved and if it worked as expected. APPARATUS I will need a Digital ammeter and a digital voltmeter because the readings given are a lot closer than with an analog one. I will need just over a meter of 0. 19mm thick nichrome, a meter stick, a power supply, some wires and two crocodile clips PLANNING I have been given a piece of wire called Nichrome, which has a thickness of 0.19mm. I will connect this into the circuit using crocodile clips, I will stretch the wire across a meter stick and connect one crocodile clip at 0cm and one at 10 cm, I will record a reading from both the ammeter and the voltmeter, I will then move the crocodile clip which is on 10cm to 20 cm and again take a reading from both the ammeter and the voltmeter before recording the results into a table. The variable for my experiment will be the length so to keep it a fair test I must use 10 cm jumps each time, use the same metal each time meaning it must be Nichrome of 0. 19mm. I will eventually have a full table of results ranging from 10cm to 100cm. PREDICTION I predict that as the length of the wire increases, the resistance will increase. I predict this will happen because Resistance is due to the atoms in the wire. The electric charges will collide with the atoms, slowing them down. If the wire is longer, then there are more atoms in the way of the charges so the resistance will increase. The resistance will depend directly on the number of atoms in the wire. I have indicated in the rough graph below on what I think will happen and what it will then look like on the graph. RESULTS Results below are first set recorded Length Of Wire Current Voltage Resistance CMSecond set will now be recorded before finding the eventual average Results below are Second set recorded Length of wire Current Voltage Resistance CM (A) (V) (Ohms) The table below shows the average of the results allowing me to plot the graph. It shows the average resistances Temperature Resistance results 1 Resistance results 2 Average Resistance CM (Ohms) (Ohms) (Ohms) . I will now go on to plot the graph before recording my conclusion. Conclusion After recording my results and plotting the graph I can say that my prediction was correct. This shows that resistance is greater the longer the wire is because there will be more atoms for the electrical charges to hit the atoms and get slowed down. From what my results say I am willing to predict that if I had a thicker piece of Nichrome say 0. 37mm thick then the resistance would be even greater because not only will the length give more resistance but now that it is thicker will mean there will be space for more atoms.