Net Present Value - 1958 Words

Critics to DCF methods Ducht an UK companies * However, it is found inappropriate to use DCF methods for investments that have got strategic implications. * There are various reasons for the use of open approach. Since the outcomes of these projects are highly unforeseen, according one interviewee, the application of quantitative tools is not plausible. Therefore, companies tend to apply the rule of thumb methods rather than standardized quantitative models. The justification for not applying quantitative models is some times attributed to the nature of a project. Capital inv appraisal of new technologies: Problems, misconceptions and research directions * Specifically, it has been alleged that the traditional appraisal†¦show more content†¦The missapplication of capital investment appraisal techniques * Surveys of capital budgeting practices in the UK and USA reveal a trend towards the increased use of more sophisticated investment appraisals requiring the application of discounted cash flow (DCF) techniques. Several writers, however, have claimed that companies are underinvesting because they misapply ormisinterpret DCF techniques. * the only justification we can think of for using the accounting rate of return method is because top management believe that reported profits have an impact on how financial markets evaluate a company. This is further reinforced in many companies by linking management rewards to short-term financial accounting measures. Thus a project’s impact on the financial accounting measures used by financial markets would appear to be a factor that is taken into account within the decision-mak ing process. * Dimson and Marsh (1994) have expressed concern that many UK companies may be using excessively high discount rates to appraise investments and, as a result, these companies are in danger of underinvesting. In the USA it has also been alleged that firms use discount rates to evaluate investment projects that are higher than their estimated cost of capital (Porter, 1992). Conclusions: Ducht an UK companies * All the UKShow MoreRelatedNet Present Value1157 Words   |  5 Pagesobtained and that authorised capital spending was not exceeded. Investment appraisal method; There are four methods which we can use to evaluate the investments. 1) The Payback period 2) The accounting rate of return 3) The net present value method 4) The internal rate of return method A. The Payback period; The payback period is the number of years it takes to recover its initial investment. This method assists with the project risk and liquidity. The projects with theRead MoreNet Present Value1875 Words   |  8 Pagesyear and reported the following information. The company had current assets of $153,413, net fixed assets of $ 412,331, and other assets of $83,552. The firm also has current liabilities worth $65,314, long-term debt of $178,334, and common stock of $162,000. How much retained earnings does the firm have? a. $ 405,648 b. $243,648 c. $167,918 d. $573,566 6.) Tre-Bien Bakeries generated net income of $233,412 this year. At year end, the company had accounts receivables of $47,199Read MoreNet Present Value/Present Value Index2559 Words   |  11 PagesNet Present Value/Present Value Index The management team at Savage Corporation is evaluating two alternative capital investment opportunities. The first alternative, modernizing the company’s current machinery, costs $45,000. Management estimates the modernization project will reduce annual net cash outflows by $12,500 per year for the next five years. The second alternative, purchasing a new machine, costs $56,500. The new machine is expected to have a five-year useful life and a $4,000Read MoreNet Present Value and Salvage Value1144 Words   |  5 Pages------------------------------------------------- FINC5001 Capital Market and Corporate Finance ------------------------------------------------- Workshop 5 – Capital Budgeting II 1. Basic Concepts Review a) In applying Net Present Value, what factors do we include, and what factors do we ignore? Use cash flows not accounting income Ignore * sunk costs * financing costs Include * opportunity costs * side effects * working capital * taxation * inflation Read MoreNet Present Value Essay940 Words   |  4 Pagesgrow. Although, this is true it much more valuable to know about the value and benefit of the investment. Selecting the best investment choice will ensure growth in the future and will generate value. The problem typically arises when trying to utilize capital budgeting skills in determining different tasks with the same risk. There are many ways to determine the correct return gained from investments. The (NPV) Net Present Value has proven to be the best method for organizations to use. NPV givesRead MoreNet Present Value Essay603 Words   |  3 Pages1. Basic present value calculations Calculate the present value of the following cash flows, rounding to the nearest dollar: a. A single cash inflow of $12,000 in five years, discounted at a 12% rate of return. b. An annual receipt of $16,000 over the next 12 years, discounted at a 14% rate of return. c. A single receipt of $15,000 at the end of Year 1 followed by a single receipt of $10,000 at the end of Year 3. The company has a 10% rate of return. d. An annual receipt of $8,000 for threeRead MoreNotes On The Net Present Value1462 Words   |  6 PagesQuestion C [1] The Net Present Value [NPV] is the total sum of the present values of all the expected cash flows. For a project with a normal cash flows, this would mean that the NPV is the present value of expected cash flows minus the initial cost of the project. The formula is as such; NPV = -CF0 + CF1 (1+k)-1 + CF2 (1+k)-2 + †¦ + CFn (1+k)-n where; CF0 is the initial investment outlay, or cash outflow CFt is the after-taxed cash inflows at time t k is the required rate of return for the projectRead MoreNet Present Value ( Npv )1530 Words   |  7 PagesNet present value (NPV) is a discounted cash flow technique used to determine the overall value of a project or a succession of cash flows (Blocher et al, 2008). See Appendix 1 for a simplified calculation. Belli (2001) argues that NPV is more suitably applied to mutually exclusive projects; these types of projects are those that if accepted, prevent other contending projects to be approved (Mowen et al, 2009). NPV is understood to be an absolute measure, therefore when selecting between mutuallyRead MoreNet Present Value and Project3264 Words   |  14 Pagesbe 13.487% and a Weighted Average Cost of Capital (WACC) to be at a value of 9.70%. Factoring in the WACC into our projections we found that if the demand maintains at an average rate the project will be at a positive Net Present Value of $5,997,505.31 with an IRR of 13.21%, a profitability index of 8.84, and an approx imate payback period of 6.84 years. Please see Exhibits below for a snapshot of the capital budget and NPV values. This information seemed to be very promising for the project inRead MoreNet Present Value and Question5593 Words   |  23 Pagesof capital. C) If you are unsure of your cost of capital estimate, it is important to determine how sensitive your analysis is to errors in this estimate. D) If the cost of capital estimate is more than the internal rate of return (IRR), the net present value (NPV) will be positive. Question 2 If it is feasible to undertake a project irrespective of the decision concerning the acceptance of another, the two projects are said to be: A) independent. B) dependent. C) mutually exclusive. D) none of

The Structure Of A Federal Government - 1591 Words

Intro: With the structure of a Federal government, a ruling Parliament and a written constitution, the country of Xlandia will now be served at its best, now and over time. By restricting, both, the government and the citizens from too much power, the base of this system will be provided by individuals with enough knowledge and insight for Xlandia to be successful. This will also allow the people speak their own opinions through free, fair, and relatively frequent elections. With ample representation for the citizens of Xlandia through popular vote and elections, the government cannot run against the population. -- Edited by Loveleen and Gigi 1st Body Paragraph : A written constitution to rely on is best for a country who is new to†¦show more content†¦Xlandia is a country that needs a new backbone, and a written constitution gives far more stability and structure than an unwritten constitution. --Jaapyman wrote this =D Gigi edited, Re-Edited by Vinh ( Í ¡Ã‚ ° ÍÅ"Êâ€" Í ¡Ã‚ °) Edited Again By -Loveleen 2nd Body Paragraph: The central civilian government should command the military. The Military’s purpose is to defend the Xlandia’s people and government. It should not be a political entity, which does whatever it wants. This makes sure that the armed forces do not do anything unseen, as an autonomous uncontrolled army can cause all manner of issues like refusing to defend certain peoples or ignoring civilian rights just because it feels like it. Therefore the military must go for Parliamentary approval for large troop deployments, policy, and budget. The national armed forces will also send an representative to recommend military options to the head of state, so that the civilian leaders don’t make tactical mistakes. The police and local militia shall be independant from the military, under county and district control. This makes sure that one branch of defense does not take all the funding from the other branches. This separation also makes it harder for any b ranch of defense to stage a coup or rebel against the government. -- Edited by Loveleen ( kind of ) 3rd Body Paragraph: Our parliamentary system perfectly fits the needs of both the wealthy and the commoners. Since

Nen perfoming loan in banks Free Essays

string(115) " to get the defaulted borrowers’ to conduct interview with them to know their likely causes of loan default\." Banks exist to provide financial Intermediation services while at the same time endeavor to maximize profit share holders value. Availing credit to borrowers is one means by which banks maximize their profit. Loans are the dominant asset represent 50-75 percent of total amount of most banks, generate the largest share of operating Income represent the banks greater risk exposure (Mac Donald Koch, 2006). We will write a custom essay sample on Nen perfoming loan in banks or any similar topic only for you Order Now Managing loan in a proper way is not only has a positive effect on the banks performance but on borrowers firms and the country as a whole. Failure to manage moans, which make up the largest share of banks assets, would likely lead to the episode of high level of NP. According to MIFF (MIFF, 2009), a non performing loan is any loan which interest and principal payments are more than 90 days over due ; or more than 90 days worth of interest has been refinanced. Under the Ethiopians banking business directives (N.B., 2008), non performing loans are defined as â€Å"Loans and Advances whose credit quality has deteriorated such that full collection of principal and/or interest in accordance with the contractual repayment of term loans or advances in question†. Theoretically, there are so many reasons why loans fail to perform. Some of this includes, depressed economic conditions, high real Interest rate, Inflation, lenient terms of credit, high credit growth risk appetite and poor credit monitoring are among the others. Forestall (2002) categorize non performing loans to bank specific and macro economic conditions. Accordingly, this study is focused on assessing factors that contributed for nonperforming loans of Awash International Bank mainly targeting on bank specific determinants of non performing loans. 1. 2 Statement of the problem An efficient and well functioning of financial sector is essential for the development of any economy. Loan qualities are one of the indicators of financial sectors soundness. A sound financial system among other things requires maintenance of low non performing loans. In Ethiopians context. The banks In the country are required to maintain ratio of their non performing loans below five percent (N.B., 2008). The data obtained from the 2011/12 2012/13 annual progress report of BIB shows that the ratio of non performing loan of the bank was below the threshold for both years. Despite the fact, the non performing loan of the bank was Increased from Birr 98 million in 201 1/12 to Birr 1 77 million in 2012/13, showing an increments of Birr 108. 9 million (104%). Similarly, the bank’s non performing loan ratio was increased from 1. 9% to 2. 8% during the same period. Even, this ratio was above ten percent in some branches of BIB. This fact raises the issue of what causes this non performing loan Increment. Accordingly, two research questions were drawn to investigate this Issue. What does the tends of loans and NP looks like in BIB? Defaulted? What are the main causes for these defaulted loans? 3 Objectives of the Study The general objective of the study is to review the non performing loan of BIB and to identify its causes. Side by side, the study was assessed the following issues. Reviewed Loans NP trends of BIB? 0 Indemnify which loan category, loan purpose economic sectors more defaulted. Searched the main causes of NP in BIB in general identify those branches that were highly contributed for this NP. Assessed the credit assessment follow up practice of other commercial banks. 0 Recommended some remedial actions to be taken to reduce these non performing loans. 1. 4. Methodology Research Design: A sample survey was carried out to seek the characteristics of defaulted loan files and to identify likely causes for their loan default. Survey Population: 25- Branches were recorded NP as of June 30, 2013, comprising about 74 defaulted loan files. Sampling Design: Using random sampling method, seventeen branches and 43 defaulted loan files were taken for this study purpose. Table 1. 1: NP Recorded Branches Profile Branches Total NP recorded branches Sampled NP Branches % GE Responded branches Total NP files Sampled NP files % city 119 829 31 21 68 outlying 148 578 432251 Total 25 176017744358 Data Sources: To achieve the stated objective, both primary and secondary data were utilized. The primary data was collected by interviewing Selected Alba’s Credit Directorate staffs, Compliance Risk Management Department staffs that are on supervisory position. Questionnaires were also distributed to selected branches incurred loan default. Secondary data was utilized from various documents of BIB, mainly from Annual progress report of BIB, credit policies procedures of the bank, NP action plan report and other related documents. Various published and unpublished literatures were also utilized from different sources grading the subject. Data Analysis Presentation: After collection, the data was organized, analyzed interpreted using both quantitative qualitative descriptive analysis methods mainly tables, percentages, charts etc. 1. 5 Scope Limitations of the study Scope of the study The study was reviewed factors that contributed for non performing loan of BIB and it was focus on bank specific determinants of non performing loan. The spectrum of the study, therefore, includes: Examinations of loans NP of BIB by loan category individual economic sectors. – An in depth analysis of the loan file characteristics of the defaulted rowers with special reference to their likely causes for their loan default. – An in depth analysis Credit analysis follow up practice of BIB with special reference to identification of their limitations that contributed for the banks non performing loans. – Suggestions of relevant non performing loan reduction strategies based on The respondents were busy and usually uncooperative. Particularly, some branch managers were unwilling to fill the questionnaire by themselves and order other officers to fill the questionnaire. As a result, the researcher had called phone many times to branches before getting a fulfilled questionnaire. In addition it was difficult to obtain some of the required data’s from credit directorates since some of the data’s were not compiled properly and regularly. Similarly, it was difficult to get the defaulted borrowers’ to conduct interview with them to know their likely causes of loan default. You read "Nen perfoming loan in banks" in category "Papers" Accordingly, the researcher was forced to see the likely causes of their loan default from the analysis of their loan files and interview conducted with staff members. Despite this limitation, the result of the research provided a meaningful basis for filling the gap and made recommendations that can be used by the management to improve performance of loan portfolio in BIB. 2. Literature Review 2. 1 Theoretical Review of Non- Performing Loans Loans and advances are the most profitable of all the assets of a bank. These assets constitute the primary source of income by banks. As a business institution, a bank aims at making a huge profit. Since loans and advances are more profitable than any other assets, it is willing to lend as much of its funds as possible. But banks have to be careful about the safety of such advances. In the words of Dry. Leaf, the banker â€Å"has to tamper liberty with caution. If he is too liberal, he may easily impair his profits by bad debts, and if he is too timed, he may fail to obtain an adequate return on the funds which are confided to him for use. It is by his capacity in lending that a bank manager is Judged. A bank needs to be careful in giving loans as there is a greater risk which follows it in a situation where the loan defaults. Loan loss or defaulted loans puts a bank in a difficult situation especially when they are in greatest amount. Banks gives loans with uncertainty whether they are returned or not though they may hold some security. In assessing any proposal for n advance or a loan, the banker has to satisfy himself/herself regarding the period for which the advance is required and the prospects of its repayment at the end of the period. He/she should not be carried away by the soundness of the security offered to him/her or the rate of interest. Profitability should be given only a sound consideration. He/she should also satisfy himself [herself about the purpose for which the advance is required. He/she is expected to discriminate against and discourage speculative advances. As a matter of fact most bank failures may be traced to faulty policies in respect of loans and advances. From the point of safety and liquidity, loan and advances are poor assets. The risk mostly ensues when loans become non- performing. Allocating loans has always been one of the central pillars of the banking business. Traditionally this marked the start of a long term relationship with the client, which would continue at least until the maturity of the loan. With the growth of deposits, banks are supposed to increase the lending. However, when Non-performing Loans (Naps) are high, the willingness to expand loan reduces. This relationship will be distorted under high NP condition. In any lending recess, there is inherent risk of loans being defaulted which leads to the concept of non- performing loans. The concept of non-performing loans has been defined in performing loans are defined as defaulted loans which banks are unable to profit from. They are loans which cannot be recovered within stipulated time that is governed by the laws of a country. The criterion for identifying non performing loans also varies in Africa. Some countries use quantitative criteria to distinguish between â€Å"good† and â€Å"bad† loans (e. G. , number of days of overdue schedule payments), while others rely on qualitative arms (such as the availability of information about the client’s financial status, and perspectives about future payments). However, the Basel II Commission emphasizes the need to evolve toward a standardized and internal rating-based approach. Accordingly, the Basel committee puts non performing loans as loans left unpaid for a period of 90 days. Under the Ethiopians banking business directive, non-performing loans are defined as â€Å"loans or advances whose credit quality has deteriorated such that full collection of principal and/or interest in accordance with the contractual payment terms of the loan or advances in question† It further provides that: . moans or advances with pre established repayment programs are nonperforming when principal and/ or interest is due and uncollected for 90 (ninety) consecutive days or more beyond the scheduled payment date or maturity. In addition to the above mentioned category of non- performing loans, the following are also considered as non- performing. Overdrafts and loans or advances that do not have re-established repayment program shall be non-performing when: – The debt remains outstanding for 90 (ninety) consecutive days or more beyond the scheduled payment date or maturity; – The debt exceeds the borrower’s approved limit for 90 (ninety) consecutive days or more; – Interest is due and uncollected for 90 (ninety) consecutive days and more; or – For the overdrafts, (I) the account has been inactive for 90 (ninety) consecutive days or deposits are insufficient to cover the interest capitalized during 90 (ninety) consecutive days or (it) the account fails to show the following debit balance at least once over 360 days preceding the date of loan review: 1 . 20% of approved limit or less 2. 5 % or less This is in accordance with the Basel rules. If a loan is past due 90 consecutive days, it will be regarded as non- performing. The criteria used in Ethiopians banking business to identify non- performing loan is a quantitative criteria based on the number of days passed from loan being due. 2. 2 Classification of Loans Advances The National bank of Ethiopia supervision of banking directives classifies loans and advances as follows. Pass loan: loans and advances in this category are fully protected by the current financial and paying capacity of borrower and are not subject to criticism. In general loans and advances, which are fully secured both as to ironical interest by cash or cash substitutes are classified under this category regardless of past due status or other adverse credit factor. Special Mention: Any loan or advance past due 30 days or more, but less than 90 days is classified under this category. Substandard: Non performing loans or advances past due 90 days or more but less than 180 days is classified under this category. Doubtful: Non classified as doubtful. Loss: Non performing loans or advances past due 360 is classified as loss. As per the directive the provision for impairment losses is determined as follows Loan Category Pass loan Mention Extent of provision required 1% of outstanding loan balances Special 3% of outstanding loan balances Substandard 20% of the net loan balance Doubtful balance Loss Non-performing Loans 65% of the net loan 100% of net loan balance 2. 3 Causes of Default culture is not a new dimension in the arena of investment. Rather in the present economic structure, it is an established culture. The redundancy of unusual happening becomes so frequent that it seems people prefer to be declared as defaulters. Basically, the non- performing loans are a result of the compromise of the objectivity of credit appraisal and assessment. The problem is aggravated by the weakness in the accounting, disclosure and grant of additional loans. In the assessment of the status of current loans, the borrower’s credit worthiness and the market value of collateral are not taken into account thereby rendering it difficult to spot bad loans. The causes for loan default vary in different countries. It extends from borrower’s specific act to banks weak regulatory mechanism in advancing loans and monitoring procedures. Generally, in developing and underdeveloped countries, the reasons for default have a multi dimensional aspect. Various researchers have concluded various reasons for loan default. A. Reduced Attention to Borrowers Few of the loan defaults that make trouble for banks can be blamed on reduced attention to borrowers. Borrowers give better attention to the loans that they borrowed when they have the perception that better attention is given to them. Lending officers of institutions should try to keep up with their loans, visiting the borrower’s premises at least once a year or up to a half a dozen times a year on larger loans. Banks rarely lose money solely because the initial decision to lend was wrong. Even where there are greater risks that the banks recognize, they only cause a loss after giving a warning sign. More banks lose money because they do not monitor their borrower’s property, and fail to recognize warning signs early enough. When banks fail to give due attention to the borrowers and what they are doing with the money, then they will fail to see the risk of loss. The objective of supervising a loan is to verify, first, whether the basis on which the lending decision was taken continues to hold good. And second whether the loan funds are being properly utilized for the purpose they were granted. . Macroeconomic Instability Macroeconomic stability and banking soundness are inexorably linked. Both economic theory and empirical evidence strongly indicate that instability in the macro economy is associated with instability in banking and financial markets and instability in these sectors is associated with instability in the macro economy. Most problems of poor loan quality faced by banks were compounded by macroeconomic rate also makes loan appraisal more difficult for the bank, because the viability of potential borrowers depends upon unpredictable development in the overall rate of inflation, its individual components, exchange rates and interest rates. Moreover, asset prices are also likely to be highly volatile under such conditions. Hence, the future real value of loan security is also very uncertain. Banks do poorly both when product and asset price inflation accelerate unexpectedly and when inflation decelerates unexpectedly, unemployment increases, and/or aggregate output and income decline unexpectedly. Unexpected accelerations in inflation adversely affect banks that, on average, lend longer term at fixed-rates than they borrow because nominal interest rates will rise more than expected. This will increase their cost of deposits more than their revenues from loans. Decelerations in inflation and, in particular, bursting of asset prices harm banks because the value of their asset collateral is likely to decline below the value of the associated loans and fuel defaults and losses. Indeed, probably the greatest threat to banking stability in almost all countries is increasing asset price. C. Unsound Assessment Mechanism and Weak Risk Consciousness Risk, and the ways, in which it can be identified, quantified and minimized, is key concerns for a banks management and its auditors when they are engendering the need to provide for bad and doubtful loans. No loan is entirely without risk. Every loan, no matter how well it is secured, and no matter who is the borrower, has the potential to generate loss for the lender. It is the degree of risk to which a loan is susceptible and the probability of loss that vary; these should normally be reflected in the interest margin and other terms set at the inception of the loan. A bank, in considering whether to lend or not, takes into account the quality of a borrower which is reflected in, inter alai, its past and projected profit reference, the strength of its balance sheet (for example, capital and liquidity) the nature of and market for its product, economic and political conditions in the country in which it is based, the quality and stability of its management and its general reputation and standing. It is important for the bank to know the purpose of the loan, to assess its validity and to determine how the funds required for the payment of interest and the repayment of capital will be regenerated. D. Lack of Strict Admittance policies and no active exit Under the influence of idea of pursuing market share excessively, banks do not establish detailed and strict market admittance policies, which undermine the first risk to prevent gate and weaken the orientation effect of admittance policies to market. During pre-loan investigation, some relationship managers put little emphasis on authenticity and integrally review on related materials. They haven’t clarified the true intended usage of the loan (especially when extending short-termed credit) and the review is too optimistic, which does not analyze the potential influence of changes in related factors. There is also no deep review on the market, no enough understanding on enterprises’ operation management situation, no horrors risk revaluation; inaccurate assessment, the risk of loans is not fully covered and the risk on group customers and affiliated enterprises are not identified effectively. The factors above damage the loans at the early stage. 2. Debt Recovery Processes interest comprises a banks principal source of revenue, and therefore, of profit. Accordingly, from a banks perspective it is essential that its borrowers keep their contractual commitments and repay interest and capital as scheduled. Defaults are inevitable, but when they occur a bank should take appropriate remedial action, or ailing that, recover the outstanding interest and capital promptly. Ethiopians Banks adopt different ways of recovering non- performing loans. These methods are one or the combination of the following: Settlement – This engages both the lender and the borrower in negotiation to settle through collection of cash. Reschedule/Renewal – this method is used whenever a bank believes that the Naps can be regulated in favorable terms and conditions through negotiation (term loans) and renewals (overdrafts). This is not without limitation. National Bank Directive No. SUB/43/2008 states a bank shall not reschedule restructure or negotiate worth or medium term loan to a borrower for more than three periods. Before rescheduling, restructuring or renegotiating a short or a medium term loan, a bank shall collect in cash full amount of interest thereof and the following principal amounts: a. A minimum of 25% of outstanding principal balance in case of rescheduling, restructuring or renegotiating for the second time. How to cite Nen perfoming loan in banks, Papers

Shakespeares time Essay Example For Students

Shakespeares time Essay Alonso: Good boatswain, have care. Wheres the master? Play the men.  Boatswain: I pray now, keep below.  We can see the Boatswain tries to maintain the respect that ought to be kept with a king in a diplomatic manner.  Antonio: Where is the master, boatswain?  Boatswain: Do you not hear him? You mar our labour-keep your cabins. You do assist the storm.  We can see that soon the Boatswains tolerance will run out.  Gonzalo: Nay, good, be patient.  Boatswain: When the sea is. Hence! What cares these roarers for the name of king? To cabin. Silence! Trouble us not. Finally his patience has snapped. He says when the sea is in response to Gonzalos request for him to be patient, meaning that he will become more tolerant when the storm has also become more tolerant.  The way that different productions of The Tempest stage the scene varies. For example sometimes it is presented on a bare stage but then others have large models of a ship or the elements of a shipwreck strewn about the stage, such as a frayed mast. I think that a production with modern technology would have a better effect of a realistic storm, but only if its well done. For example if the staging is particularly shabby and the quality of the technology is bad then obviously so is the effect it has on the audience. A bare stage can be very successful, but only if the actors are very good as well. In Shakespeares time the sound of thunder could be made with rolling cannon balls and drums. Usually squibs were used in scenes like this, which could give off a great amount of noise. If I were to use modern technology I would probably use the sounds of thunder and dark, dingy lighting to create an effect of a black sky. I might cover the stage floor with dry ice or a smoke machine in order to create the illusion of a boat rather than just a bare stage. This effect and the actors movements could make the swaying of the ship or violent rocking motion more believable if it is hard to tell where the stage floor is. I might just have large bits of wood scattered about the stage with a couple of wooden poles standing with white cloth draped over them to create an effect of a decrepit state. To create an illusion of rain I might use the sound of rain and actors entering the stage with wet clothes and wet hair. What I have also noticed in other productions of The Tempest is that although Ariel conjures up the storm he is never present in the first scene. I think that this is because the impact that this scene would have would be considerably lessened. The reason for this is that I think that the storm is meant to be realistic; with an airy spirit flying around the mast I think that the intensity of the scene would be lost, as I found out with a production that I took part in. I have found that with some productions of The Tempest people have cut out most of the scene completely. Taking Dereck Jarmans The Tempest, the first scene is of Prospero sleeping but with a very disturbed sleep, full of nightmares. There are quick shots of footage of a storm, then back to Prosperos face, as if we are looking at parts of his dreams. I think that this was very ineffective because it lacked the dramatic impact that the first scene would have had if it were included and there was no show of the power struggles, no introduction to characters. The second production I have seen of The Tempest is by John Gorrie. Although the acting was very bad, the scene took place on a proper ship and incorporated the full scene. There were realistic sounds and special effects such as the rocking of the ship and rain. I also felt more of a sense that this was something very exciting and that hopefully the rest of the production would be too. I also saw an entirely different form of The Tempest in Peter Greenaways adaptation, Prosperos Books. It starts off with an old man speaking of his books, what powers they possess, what they are called. Echoes can start to be heard of the dialogue from the storm sequence. .u0df410086bd99a29cdb046ea5f0535b8 , .u0df410086bd99a29cdb046ea5f0535b8 .postImageUrl , .u0df410086bd99a29cdb046ea5f0535b8 .centered-text-area { min-height: 80px; position: relative; } .u0df410086bd99a29cdb046ea5f0535b8 , .u0df410086bd99a29cdb046ea5f0535b8:hover , .u0df410086bd99a29cdb046ea5f0535b8:visited , .u0df410086bd99a29cdb046ea5f0535b8:active { border:0!important; } .u0df410086bd99a29cdb046ea5f0535b8 .clearfix:after { content: ""; display: table; clear: both; } .u0df410086bd99a29cdb046ea5f0535b8 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u0df410086bd99a29cdb046ea5f0535b8:active , .u0df410086bd99a29cdb046ea5f0535b8:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u0df410086bd99a29cdb046ea5f0535b8 .centered-text-area { width: 100%; position: relative ; } .u0df410086bd99a29cdb046ea5f0535b8 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u0df410086bd99a29cdb046ea5f0535b8 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u0df410086bd99a29cdb046ea5f0535b8 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u0df410086bd99a29cdb046ea5f0535b8:hover .ctaButton { background-color: #34495E!important; } .u0df410086bd99a29cdb046ea5f0535b8 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u0df410086bd99a29cdb046ea5f0535b8 .u0df410086bd99a29cdb046ea5f0535b8-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u0df410086bd99a29cdb046ea5f0535b8:after { content: ""; display: block; clear: both; } READ: Just-in- Time in Kalamazoo EssayWe see the old man writing some of the dialogue as it is being said. Some footage of raindrops is inserted between shots. The setting of the scene suddenly changes to what looks like a Turkish bath with the old man bathing in it. We soon see a child swinging on a swing above. The dialogue of the storm sequence was still echoing around while the child (playing Ariel) continued to urinate on a toy ship in the middle of the bath, to represent Ariels construction of the storm. The intention of this production may have been symbolic but I found it all rather confusing and much less dramatic than the BBC production, which had a lower quality of ac ting and probably not as much to spend in the way of the setting and special effects.