Machiavelli’S The Prince Was Written During The Early Years

Machiavelli’s The Prince was written during the early years of the sixteenth century and was one of the most profound and controversial pieces of literature to emerge from the Renaissance. The political treatise was written for Lorenzo de Medici in hopes that he would use the principles taught in it to rule in Italy. Machiavelli planned for the piece of literature to impress Medici and hopefully persuade him to give Machiavelli a position within the Italian government, a position that he longed to go back to. The Medici family ultimately never implemented any of Machiavelli’s recommendations, but one could find examples of famous rulers from the past that exemplify Machiavelli’s ideal ruler. The Prince is a timeless piece of literature†¦show more content†¦At the very least, one could say that the books influence spread much farther than the author intended or even expected to. According to Machiavelli, there are four main ways that a prince is able to come to power. The first way to achieve power is through â€Å"prowess†(personal skill and ability). The second way is through fortune, which means good luck. The third way is through corruption; examples would be to attain power through a rebellion, plot, or assassination. The fourth and last way is constitutional, meaning to attain power by support from either the nobles or commoners. The most important comparison to be made between these four ways is between prowess and fortune. Attaining a state through prowess is clearly going to be more difficult than profiting from sheer good fortune, however; a prince that is blessed with prowess is more likely to hold a strong foundation on his rule, whereas a man with fortune is erratic and unpredictable which potentially leads to a prince’s overthrow just as it had to his rise. That being said, preserving a prince’s power is far easier when said prince attained power through his own cleverness. Being that the preservation of power is essential to Machiavelli, he determines that prowess is the better of the two routes for becoming a prince. Another similarity can be made amongst the criminal and constitutional methods of attaining control. The mainShow MoreRelatedEssay about Reflection on Machiavelli919 Words   |  4 PagesMachiavelli was born on May 3, 1469 in Florence, Italy. Florence was considered one of the most dominant Italian power to conquer. It was the main attraction for the renaissances influences. Throughout the years, Machiavellis presence was around the time that both the French and Spanish armies were fighting over the control of Italy. During this time, Italy was falling apart because it was deficient in leadership. Machiavelli served 14 years as Chancellor of Florence before he was exiled in 1513Read MoreAnalysis Of Niccolo Machiavelli s The Prince 1625 Words   |  7 PagesThe fifteenth century was a period known as the Renaissance, or the new birth, of many philosophers. One well-known Renaissance thinker, Niccolo Machiavelli, was one of those philosophers whose political views caused an uproar during earlier centuries. His view on effective leadership was rather harsh and not exactly adopted in the Italian society. As a Renaissance citizen, Machiavelli proved his writing skills through a number of works such as short stories, plays, and histories. His more popularRead More Machiavelli Essay1597 Words   |  7 Pagesthought. His most famous work The Prince has been misunderstood due to the motives discussed and the blatantly honest language used. Many of his critics have condemned him for his pessimistic outlook of man as a whole and in doing so try to negate the bulk of his work. Yet even after over 470 years his works are still thought provoking and influential in the political arena. This paper looks at some of the influences that may have created such a man. Machiavelli was born in Florence on May 3, 1469Read MoreMachiavellian Leadership : The Prince1285 Words   |  6 Pagesprinciples brought forth through Nicolà ² Machiavelli in his writing, The Prince, have been quite controversial both on the political forefront and the mainstream of leadership training. Though most people do not know that they are fighting battles over the principles brought about in the writing of Machiavelli. The Prince was written in the years following Machiavelli’s time in the political scene, as secretary of the seigneur, during the republican regime. Since the time these principles were publishedRead MoreEssay on Machiavelli1580 Words   |  7 Pagesphilosopher, despite the many things he introduced to mankind. Machiavelli was born on May 3, 1469 in Florence, Italy. Brought up in a relatively poor family, his parents could not afford to send him to school. Instead, he was educated at home by his mother, a religious poet, and his father, an attorney. Since little is known about his early life, not a lot can be found in references about his childhood and teenage years. It is only known that his family did their best to obtain a respectable andRead MoreEssay about Machiavellis Reputation in the Modern World2985 Words   |  12 PagesMachiavellis Reputation in the Modern World Niccolà ² Machiavelli was known during much his life as a part of the republican government in Florence until 1512. At that time, the Medici family took over the city and ruled under a more monarchical system. From that point until his death in 1527, Machiavelli was always just on the outside of Florentine politics. He would occasionally get work from the Medici but his tasks were never as important as they had been under the republican governmentRead MoreThe Life And Importance Of Machiavelli Essay1367 Words   |  6 Pagesuseless† (Niccolà ² Quotes). Niccolà ² Machiavelli was one of the greatest influences on our world today. His research and philosophies explored new strategies and ways of thinking. Machiavelli was before his own time and possibly had the utmost influence on the world of any person from the Renaissance. Machiavelli’s life is greatly a part of history as well as his influence and importance. On May 3rd, 1469, in Florence, Italy, Niccolà ² Machiavelli was born. He was known as the originator of modern politicalRead MoreEssay on Machiavelli and the Roman Empire1489 Words   |  6 Pagesin both The Prince and the Discourses on Livy, when followed, will lead to a successful state. In particular, he refers to the Roman Republic a great deal in the Discourses, which are focused around Livys account of Romes history, to demonstrate what about this ancient society was so unique and worthy of repeating in terms of its existence as a republic. In fact, the Roman Republic serves as Machiavellis central example in the work. In The Prince, however, since Machiavelli was more concernedRead MoreMachiavelli Essay1825 Words   |  8 Pagespolitics, and wanted Italy to rise above the rest of the world. Machiavellis writings dealt with many issues that had not been attacked in his time, and utilized his distinct brand of political philosophy to try and change the politics and government that shaped his era. The Prince, regarded as his most controversial and successful work, spelled out a method of amelioration; whether positive or negative, virtuous or severe, a prince was to uphold the strength of a nation and a government. The nextRead MoreEssay on Machiavelli’s The Prince and the Modern Executive1943 Words   |  8 PagesThe Prince and the Modern Executive  Ã‚      Few question The Prince’s place in the canon of western literature. That it marks a turning point in our collective history, the origin of the study of politics as a science (Pollock 43), is alone enough to warrant its classification as a Great Book. Its author, Niccolo Machiavelli, a contemporary of Copernicus, is generally accepted as an early contributor to the scientific revolution, because he looked at power and the nature of sovereignty through

Cbt Therapy - 5297 Words

CBT to Treat Generalized Anxiety Cognitive Therapy (CT) or Cognitive Behavior Therapy (CBT) was pioneered by Dr. Aaron T. Beck in the 1960s, while he was a psychiatrist and professor at the University of Pennsylvania. Before being hired for this job he had practiced psychoanalysis elsewhere and became interested in advancing the field. While at the University of Pennsylvania Dr. Beck designed and carried out several experiments to test psychoanalytic concepts that delta with depression. Through this research Dr. Beck was hoping to validate the fundamental concepts associated with psychoanalytic therapy, during his studies he was surprised to find the opposite. Instead of validating his previous studies he founded the concept of†¦show more content†¦Cognition can involve anything dealing with judging, conceiving, reasoning and remembering. Cognition can be anything that one think. In cognitive therapy these are usually negative thoughts. These thoughts are usually what therapy sessions are centered around Beck identified six different types of faulty thinking: 1. ARBITRARY INFERENCE - Drawing conclusions about oneself or the world without sufficient and relevant information. 2. SELECTIVE ABSTRACTION - Drawing conclusion from very isolated details and events without considering the larger context or picture. 3. OVERGENERALIZATION - Holding extreme beliefs on the basis of a single incident and applying it to a different or dissimilar and inappropriate situation. 4. MAGNIFICATION AND EXAGGERATION - The process of overestimating the significance of negative events. 5. PERSONALIZATION - Relating external events to one another when no objective basis for such a connection is apparent. 6. POLARIZED THINKING - An all-or-nothing, good or bad, and either-or approach to viewing the world. therapy sessions can be done individually,with a group of people, and more recently popular with a self-help book or computer program ( individual and group therapy are more widely known forms of therapy however with the fast pace and technology savvy world we live in today self-help and computer based programs are growing in popularity, self-help booksShow MoreRelatedCognitive Behavior Therapy ( Cbt ) Essay1174 Words   |  5 PagesCognitive behaviour therapy (CBT) is now growing within today’s society. It is very popular as it is efficient with known to have long lasting treatments for with many individuals who suffer from psychological problems. However, there has been some parsimony and empiricism within in CBT, it aims to be parsimonious. CBT is a short intensive course. The course of the treatment mostly lasts 30-60 minutes long with 5-20 sessions. Just when you are set tling into the treatment and becoming comfortableRead MoreCognitive Behavioral Therapy ( Cbt )2001 Words   |  9 PagesINTRODUCTION Cognitive Behavioral Therapy (CBT) is ubiquitous and a proven approach to treatment for a host of diverse psychological difficulties (Wedding Corsini, 2014). There are copious of acceptable created experiments that show to be highly useful in treating anxiety disorders through GAD Generalized Anxiety Disorder approach (Fawn Spiegler, 2008). The purpose of this assignment is to expound on the client’s demography and demonstrating concern. The first procedure in this assignment willRead MoreCognitive Behavior Therapy ( Cbt )857 Words   |  4 Pagescombination of cognitive therapy with behavioral therapy to form CBT (Hansen, 2008). Cognitive behavior therapy (CBT) was developed by Aaron Beck in 1967 (field, Beeson, Jones, 2015). In the late mid-1980s, people were still very resistance to the combination of the two therapies, despite the great works of Ellis and Beck (Hansen, 2008). CBT proposed that dysfunctional emotional and behavioral responses were caused directly by dys functional thinking, known as cognitive distortions. CBT is the most commonlyRead MoreCognitive Behavioral Therapy ( Cbt )937 Words   |  4 PagesFirst and foremost, what is cognitive behavioral therapy? The Mayo Clinic website defines cognitive behavioral therapy (CBT) as a common type of psychotherapy, talk therapy, wherein the individual seeking therapy works with a mental health counselor in a structured way for a prescribed set of meeting. (web citation) CBT is a goal oriented therapeutic approach which allows the individual in therapy to identify troubling situations or conditions in their life; allows the individual to become awareRead MoreCognitive Behavioral Therapy ( Cbt ) Essay935 Words   |  4 PagesCognitive Behavioral Therapy (CBT) is a therapeutic approach that is based on a combination of cognitive and behavioral therapy. CBT focuses on how a person’s distorted thought process and inaccurate belief system influences their mood and behaviors. Once it can be identified, the blended therapy aims to change a person’s thinking to be more adaptive and healthy, which will lead to change unhealthy behavior patterns (National Institute of Mental Health, 2015). This type of psychotherapy has beenRead MoreCognitive Behavioral Therapy ( Cbt )1257 Words   |  6 PagesCognitive-behavioral therapy (CBT) is a short-term, empirically valid amalgamation of facets from cognitive and behavior therapies. Cognitive-behaviorists believe that psychological problems stem from maladaptivity in both thought and behavior patterns, whether self-taught or learned from others. Therefore, changes have to take place in both thoughts and actions. Cognitive-behavioral therapy is structured as collaboration between client and therapist, focusing on the present. A prominent aspect of CBT is the client’sRead MoreCognitive Behavior Therapy (CBT)1559 Words   |  7 PagesAssumptions and Definition Cognitive Behavior Therapy (CBT) addresses dysfunctional emotions, maladaptive behaviors, and cognitive processes. This is an effective treatment for patients who are dealing with anxiety and depression. CBT refers to a group of psychotherapies that incorporate techniques from cognitive therapy and behavior therapy. Albert Ellis and Aaron Beck are the two psychologists who came up with therapies. Beck developed the cognitive therapy (CT) that focuses on changing the client’sRead MoreCognitive Behavioral Therapy ( Cbt )1480 Words   |  6 PagesCognitive Behavioral Therapy (CBT) approach was used for this case conceptualization that consists of a pre-initial evaluation of client M and six weeks of individual therapy sessions using CBT therapy and the Beck Depression Inventory has the domain of counseling theory. Within the behaviorist strand of counseling theory, Cognitive Behavior Therapy (CBT) has been successfully used to treat mild depression. In this case study, the client has mild depression; which is one of the most multi-problemRead MoreCognitive Behavioral Therapy ( Cbt ) Essay1036 Words   |  5 PagesIntroduction Cognitive-behavioral therapy (CBT) is a short-term and goal-oriented approach, which is increasingly popular in both the research field and the practical field. It has become the psychotherapy investigated most extensively due to its wildly application to various disorders and mental problems (Butler, Chapman, Forman, Beck, 2006). One salient advantage of CBT is its flexibility. It is adaptable to different age groups and various cultural backgrounds in both individual and group settingRead MoreCognitive Behavioral Therapy ( Cbt )1134 Words   |  5 Pagesneed help. There are different ways to help with PTSD, but the most effective treatment is cognitive behavioral therapy (CBT). CBT is the most effective treatment option for veterans because it focuses on committing the mind on present day and future events, relieves the mind of the traumatic events, and has been proven to help with a variety of mental illnesses. The therapist helping with CBT will attempt to help understand and change the effects and how to think about the trauma. He or she will help

New Directions †Exploration, Expansion, Society, and the Arts Free Essays

string(66) " come to an end in the first part of the seventeenth century\? 8\." Unit 3: New Directions – Exploration, Expansion, Society, and the Arts Chapters 15 Palmer Study Guide Part I Identifying Key Terms Notable People * Prince Henry the Navigator: Prince Henry the Navigator of Portugal developed a school of merchant and sailor to prepare them for exploration. He supported the exploration of the West African coastline and later controlled the flow of gold to Europe. * Christopher Columbus: After Vasco da Gama reached India by rounding the Cape of Good Hope, Columbus decided to just sail West without knowing the presence of the â€Å"New World. We will write a custom essay sample on New Directions – Exploration, Expansion, Society, and the Arts or any similar topic only for you Order Now His landing in the Caribbean in 1492 ushered in the era of European exploration and domination of the New World. * Bartholomew Diaz: In 1488, Bartholomew Diaz rounded the Cape of Good Hope and returned back to Portugal without reaching India. His journey gave motivation for Vasco da Gama to round the Cape of Good Hope and reach India. * Hernando Cortez: In 1521 Hernando Courts conquers the Mexica (Aztec) Empire by convincing the natives that he was the God. He used the encomienda system which was a disguised form of slavery. Bartolome de las Casas: de las Casas, a former conquistador, publicly criticized the ruthlessness with which Columbus and his successors treated the Amerindians. * Michel de Montaigne * Giovanni Bernini * Francisco Pizarro: Francisco Pizarro conquered the Inca Empire in 1533. He used the encomienda system which was a disguised form of slavery. * Ferdinand Magellan: In 1519 Magellan proves the world round and the world is a lot bigger than expected by circumnavig ating the globe. He convinces the Spanish to give up gaining power in the spice trade. Vasco da Gama: Vasco da Gama reaches Calicut, India in 1498 and launches the Portuguese military expansion. His motives for his journey to India were â€Å"Christians and spices. † * Fuggers: Fuggers were on of the banking families like the Medicis who used usury, change in high interests, to gain money and power. Later, the Fuggers were replaced by state banks in Holland. Terms and Events * Columbian Exchange: Both Europe and the New world were transformed as a result of the Age of Exploration and the exchanges that occurred between tow regions. For Europeans, the Columbian exchange resulted in improved diet, increased wealth, and the rise of global empires. * Conquistadors * Encomienda: Encomienda system was a system in which the Amerindians worked for an owner for certain number of days per week. Spain’s ability to forcibly utilize Amerindian labor was a major reason why the Spanish Empire imported few slaves form Africa. * Joint-stock company: Joint stock companies allowed investors to pool resources for a common purpose. One successful example is the Dutch E. India Company. Price Revolution: The price revolution occurred due to population growth, increase in volume of money, and the influx of gold and silver from New World. The middle class (merchant, bankers, etc) benefited from the price revolution and prospered. * Treaty of Tordesillas: The treaty divided the New World between Spain and Portugal. It gave Spain the exclusive right to the African slave trade (asiento). * Mercantilism: Nations sought a self-suffic ient economy by creating a favorable balance of trade where one’s country exported far more than it imported. Triangular trade: The rianglular trade developed form the Columbian Exchange that links Africa, the New World, and Europe by trade. Both Europe and the New world were transformed as a result of the Age of Exploration and the exchanges that occurred. * Middle Passage * Malleus Maleficarum * Dutch East India Company: The Company, founded in 1602, founded settlement in South Africa, took over many Portuguese trading posts, and seized Malaca in 1641. It was one of the first joint stock companies and was the beginning of capitalism. Bank of Amsterdam: * London Stock Exchange: * â€Å"Old Imperialism†: The old imperialism is characterized by establishing posts and forts on coastal regions but not penetrating inland to conquer entire regions or subjugate their populations. It benefited the mother countries in Europe because the colonies provided raw materials which co uld be manufacture and sold for profit. * Entrepreneur * Commercial Revolution: The commercial revolution is a five century economic transition from feudalism to industrial capitalism. Major aspects were commercialization of industry, new capitalistic ventures, and mercantilism. * Putting Out System * Usury: Usury is where a banking family puts extremely high interest on loans to gain money. However, usury was abolished when individual banks were replaced by state banks. Part II Review Quesitons 1. Why did Europeans begin to embark on voyages of discovery and expansion at the end of the fifteenth century? Europeans began to embark on voyages of discovery and expansion for political, economic, and religious reasons. One of the primary motives was the Turkish dominance of Mediterranean because Turks controlled the trade material price. Another reason was Portugal’s curiosity about the unknown and the eagerness to find the Ethiopian kingdom of Prester John. As the phrase â€Å"God, glory, and gold† states, the main reasons were to conquest Muslims, find gold and silver, and glorify oneself. 2. How did Portugal and Spain acquire their overseas empires, and how did their empires differ? 3. How did European expansion affect both the conquerors and the conquered? . What was mercantilism, and what was its relationship to colonial empires? In mercantilism, nations sought a self-sufficient economy by creating a favorable balance of trade where one’s country exported far more than it imported. The mother nations used the colonies to acquire raw materials and used the raw materials and produced manufactured goods. The mother nations benefited from the colonies hrough raw materials, gol d, and much more. The colonies also served as markets for finished goods where the mother nations gained profit. 5. What was the relationship between European overseas expansion and political, economic, and social developments in Europe? 6. What was the social status of women between 1560-1648, and what do the witch hunts tell us about social attitudes toward women? 7. What is skepticism? Why did faith and religious certainty begin to come to an end in the first part of the seventeenth century? 8. You read "New Directions – Exploration, Expansion, Society, and the Arts" in category "Essay examples" Explain how advances in learning and technology influenced fifteenth and sixteenth century European exploration and trade. Advances in learning and technology allowed European exploration and trade to happen without many troubles. Caravels that had triangular lateen sails and the sternpost rudder and used wind speed to move allowed the Europeans to travel through the Atlantic Ocean. With less human labor, more cargo space opened up for trade goods to be shipped. Astrolabe, the use of stars or the sun to travel, explorers were able to know the approximate location of their ship in the middle of ocean. Cartography and learning Atlantic wind patterns enhanced the easiness and accuracy of the journey. 9. Explain the reasons for the rise of the Netherlands as a leading commercial power in the period 1550-1650. Two political reasons for the rise of the Netherlands as a leading commercial power are the support from merchant oligarchies of autonomous provinces and the Iberian neglect of domestic economy. Because Spain didn’t expand its manufacturing industries, Spain had to give all its gold and silver to pay for their imports. On the other hand, Netherlands developed its service industries such as manufacturing and banking which enhanced the economy. Netherlands had the largest merchant marine in Europe that could protect the ships with goods from attacks by pirates and other nations. Because Netherlands was the haven for religious exiles, the Calvinist Protestant work Ethic spread. 10. Describe the causes of the â€Å"price revolution† and the effect of this period of inflation upon European society. Price revolution was the period of gradual inflation due to population growth, increase in volume of money, and influx of gold and silver from the New World. As the population increased, the demand for goods also increased, which led to increasing prices. Nobles who had fixed income were negatively affected by the price revolution. However, the middle class (bourgeoisie) who acquired much of their wealth from trading and manufacturing increased their social and political status. The peasants or the poor who didn’t have enough income suffered the most from the inflation and increasing prices of goods. 11. Describe the differences between Spanish and Portuguese exploration in the sixteenth century and English and Dutch exploration in the seventeenth century. 12. Describe the reasons behind King Charles I’s decision to begin the African slave trade. Las Casas who criticized the encomienda system urged Spanish crown to find a new source of labor other than the natives. The sugarcane plantations in the Caribbean and South Africa required a backbreaking labor supply. In 1518, Charles I authorized first shipment of Africans to the New World in order to increase labor for sugarcane plantations. For King Charles, slaves were the only source of labor that could work and bring profit to his country. 13. Using at least two specific pieces of art, describe Baroque art. Who supported its development, and how was it both similar to and different from previous styles of art? 14. What are the defining characteristics of the Commercial Revolution? Three major aspects of the Commercial Revolution are commercialization of industry, new capitalistic ventures, and mercantilism. The commercialization of the cottage industry supported by national monarchs began to usurp the economic power held by guild and propel transition of the economy to industrial capitalism. The development of state/national banks, stock markets, and joint stock companies describe how people were interested in investment for profit. During the commercial revolution, new industries such as mining, shipbuilding, artillery, and printing developed. 5. What are the three factors that caused the further development of the Commercial Revolution during the early modern age? Three factors that furthered the growth of the Commercial revolution are opening of the Atlantic, population growth, and price revolution. The opening of the Atlantic allowed for greater trade and a global trade for the first time. Population growth during the 16th century meant increased productio n and increased profit. The price revolution which led to inflation decreased the power of nobilities and increased the power and status of bourgeoisies. Part III Chronological Awareness 1. Sack of Antwerp by Alexander Farnese 2. Vasco da Gama lands at Calicut in India 3. Dutch found New Amsterdam 4. Dutch seize Malacca from Portuguese 5. Portuguese capture Malacca from Muslims 6. English settlement at Jamestown 7. African slave trade begins 8. Treaty of Tordesillas 9. Pizarro defeats Incas in Peru 10. Opening of the Potosi mines Part IV Multiple Choice Practice 1. Which of the following is true about the commercial revolution in Europe? a. Most of the money used for overseas commercial venture came from European governments. b. Joint-stock companies provided the means for individual investor to profit from overseas commercial ventures. c. European nations willingly cooperated to prevent commercial rivalries in the New World. d. Private banking houses continued to be the standard financial institutions of the age of exploration. e. Most nations saw a reduction in tariffs and trade restrictions during the commercial revolution. 2. Which of the following is the underlying premise of mercantilism? a. Agriculture should be the backbone of the economy. b. Government intervention in the economy is detrimental to its prosperity. c. There is a limited amount of bullion in the world, and the nation that controls the most will dominate politically and economically. d. Colonies are a waste of resources, and the money could be better spent on public transportation projects. e. Governments should work hard to prevent monopolies. 3. The Treaty of Tordesillas a. Set boundaries that divided New World colonization between the English and the French. b. Set boundaries that divided New World colonization between the Portuguese and the Spanish. c. Set boundaries that divided West Indian trade routes between the Dutch and the Portuguese. d. Banned the Catholic Church from missionary activity in China. e. Banned the Catholic Church from missionary activity in Japan. 4. All of the following were goals of Prince Henry the Navigator EXCEPT f. Seeking a Christian kingdom as an ally against the Muslims. g. Finding new trade opportunities for Portugal. h. Extending Christianity to the newly discovered regions. i. Buying slaves to ship to the New World. j. Wanting to explore the coast of Africa for Portugal. 5. Overseas trade and settlement in the seventeenth century was most clearly dominated by k. The Dutch. l. Portugal. m. Spain. n. England. o. France. 6. Which of the following is a TRUE statement about the means of overseas expansion during the age of exploration? p. The nations most heavily involved in overseas trade were those that had dominated trade during the medieval and Renaissance periods. q. Ptolemy’s world map quickly led explorers astray, and it wasn’t until Mercator made his famous map that sailors were able to venture to the New World. r. The invention of the quadrant allowed sailors to safely sail below the equator. s. In the late fifteenth century, most educated Europeans still thought the earth was flat and feared sailing until Columbus returned from his first voyage. . The growth of centralized monarchies during the Renaissance created governments that had the means to support overseas expansion. 7. Why did the English, Dutch, and French governments fail to begin colonization of the Americas and direct trade with the Orient until more than 100 years after Columbus â€Å"discovered† America? u. Th eir geographical positions put them at a disadvantage for trans-oceanic movement. v. The northern countries lacked suitable ships and the advanced technology to make long voyages. w. Domestic troubles and religious controversies delayed organized action. x. Western European bankers refused to loan monarchs money for such ventures. y. The northerners were slow to abandon their traditional Mediterranean trade routes. 8. All of the following statements regarding the â€Å"Price Revolution† begun in Europe during the sixteenth century are true EXCEPT z. Workers’ wages increased to equal the rising standard of living. {. A steady rise in population added to consumer demand. |. Imports of gold and silver increased the money supply. }. The policies of the new monarchies included steady hikes in taxes. ~. The availability of bank credit increased business expansion and production. . Couples in early modern Europe generally put off marriage until they were, on average, in their mid- to late twenties because a. sexual maturation was delayed until the mid-twenties because of poor nutrition. b. they were concerned about scarcity of housing. c. they needed to acquire land or learn a trade before they could support a family. d. the cust oms and mores of a society dominated by religion promoted sexual restraint. e. laws prohibited marriage without parental permission before the age of majority. 10. Why did African slavery grow quickly in the Caribbean and South America in the sixteenth century? . As Europeans came to love tobacco, tobacco plantations demanded more slave labor. b. European realized that African slaved worked well with European slaves and, therefore, produced more cotton. c. The Spanish conquered the Dutch colonies in the New World and began to use African slaves to cultivate coffee. d. Because rice was a staple in diets around the world, Europeans realized that they needed more slaves to produce larger quantities of it. e. Because of the European appetite for sugar, natures shipped African slaves in large numbers to the New World to work on sugar cane plantations. How to cite New Directions – Exploration, Expansion, Society, and the Arts, Essay examples

Millegan Creek Apartments

Millegan Creek Apartments- Financial Analysis Essay The Millegan Creek Apartment case is an example of a commercial loan. The parties involved in the commercial loan are JP Multifamily Inc. and Fleet Bank. Real Estate group at Fleet Bank want to find out whether or not to accept JPI’s proposed $15,715,000 loan for a 390-unit apartment project in Austin, Texas. The details about the each party, market and financial analysis of the project is outlined below. THE BORROWER -JP MULTIFAMILY INC. The Development Expertise JPI Multifamily Inc. (JPI) was founded in 1989 by John Carpenter and Frank Miller, who had worked together at Southland Financial. JPI, a first class developer, was known as a â€Å"merchant builder† meaning that they developed properties with the intention of selling rather than owning them. JPI had begun seriously investigate in Austin market in 1991. They purchased their first site in early 1992, which was a â€Å"trophy property†, 210-unit project, located in the Southwest part of Austin. The second property JPI purchased in Austin was located in the North Central Area which was a 342-unit project. And, finally the third apartment development in the Austin for JPI would be a 390 unit the Millegan Creek Apartments project. The investment Strategy JPI tried to achieve at least a 150 basis point spread between the initial yield and the current market capitalization rates. JPI was seeking development opportunities which provide a going-in cap rate (or cash on cash return) of at least 10% on the total project cost. They had developed approximately 2800 apartment units and 1,640 apartments. This record was in line their investment strategy of targeting a â€Å"holding period for development projects of two to three years. In 1994, they had eight properties with 2,700 units under construction, four of which were under agreement to be sold upon completion. THE LENDER-FLEET BANK Fleet Bank is being considered as a lender of the project. The Austin Market is a new market for Fleet Bank. Fleet wants to diversify its loan portfolio out of Northeast. Tom Hayden’s (a vice president in Commercial Real Estate at Fleet Bank) assignment was to seek financial opportunities in real estate in the State of Texas. Based on Tom’s research, JPI was an active developer who had survived the Texas real estate crash built a large number of apartments. SALIENT FACTS of MILLEGAN CREEK APARTMENTS PROJECT The Description of the Product: Jefferson at Millegan Creek Apartment would be a typical JPI luxury apartment complex. The apartment would target renters with high discretionary incomes who could probably afford a single-family home, but made a lifestyle choice to live in rental apartments. Site amenities included two swimming pools, a clubhouse, fitness center with sauna and steam rooms, and the laundry facilities. Standard features in each apartment included nine-foot ceilings, a security system, crown molding and upgrade white on white appliances. Location: The Millegan Creek site was located in Williamson County, adjacent to the city of limits of Austin and approximately 11 miles northwest of the central business district. The site was an irregular, rectangular shape consisting of about 21. 5 acres, with 904 feet of frontage along McNeil Road. Near Highways: Parmer Lane had recently been expanded from a two lane to a six-lane road and provided excellent north-south access. McNeil Road brought about 15,000 cars in an east west direction past the site each day and had recently been upgraded from a two lane to a five-lane road. In addition, McNeil Road was being extended three miles to connect to Wells Branch Parkway. Construction financing:The loan was being reviewed by Fleet Bank because the volume of deals JPI doing, their existing lenders (NationsBank, Guaranty Federal Savings Bank (in Dallas), BankOne, General Electric Credit Corporation had reached the limit of the exposure they wanted with any borrower. Construction problem:The site was level with no significant subsurface rocks, which would not create construction problem. Property Taxes :The site was outside the City of Austin which can provide lower property taxes and easy zoning approval. Total Project Cost: $19,644,000 Loan Amount: $15,715,000 Land Cost: $1,425,000 The holding period: Target holding period is two to three years MARKET ANALYSIS Regional Economic Drivers Austin housing market holds a comparative advantage and this advantage exists because; -it’s ranked sixth in the nation as a preferred location for a new manufacturing facility, Austin economy had always been universities and government as the state capital. Austin had a government workforce of over 110,000 including state, country and city employees and plus recently added 3,000 government sector jobs, -The location of project was close to many of Austin’s high tech companies. Texas Instruments had a big campus located across the street. Others in the area included: Abbott Laboratories, Tandem Computers, 3M, and State Farm Insurance. Apple Computers had also announced plans to build a new, $28 million, 300,000square foot facility to house its U. S. Customer support Service The other strength of Austin is that the city is filled with good universities. Companies were attractive to Austin economy by the presence of university –based research and its very desirable climate. Market demand Austin had experienced significant population growth and local economists expected these trends to continue. The average family size would continue to be about 2. 43 people per household. Job Growth Since the strength of the apartment market heavily dependent upon continued growth in the local market, local job market figures as follows; -As of September 1993, Austin’s employment totaled 425,800 and its unemployment rate was at 4. %. Austin added almost 30,000 jobs in the 1992-1993 periods. -The Texas Comptroller of Public Accounts projected job growth for the next two years to continue in the 3% to 3. 2% range. INVESTMENT DECISION I recommend Fleet Bank to approve the loan based on the market analysis outlined above and the attached financial analysis. The highlights of ratios listed in Exhibit 1 as follows; Cash on cash return 13. 70% , IRRe 5YR Hold 26. 48%, IRRo 5 YR Hold 16. 62% and Cap Rate (in) 10. 67%. In the loan calculations the interest rates is taken as 8%. Considering that nstitutional buyers in the region were paying cap rates in the 8% to 9% for the new apartments, JPI can achieve its investment strategy of obtaining at least 150 basis point for its investments. The debt service coverage ratio (DSCR) in commercial real estate finance refers to the primary measure to determine if a property will be able to sustain its debt based on cash flow. Typically most commercial banks require the ratio of 1. 15-1. 35 times (net operating income or NOI/annual debt service) to ensure cash flow sufficient to cover loan payments is on an ongoing basis. Building and planning a new club house EssayThe net investment in the property is the cost of the property minus the amount borrowed. One way to understand the ratio is to compare it to a return on a certificate of deposit. If the bank pays you an annual return of, say 5%, the 5% is the Cash on Cash return on the deposit. However, unless the property is owned free and clear, this is not a totally true comparison. The return you get is AFTER the mortgage and all other expenses have been paid. It can therefore fluctuate wildly. Whereas, if you put $200,000 in the bank in a CD you can be certain that you will get the return you expected. Please note that the Cash on Cash return does not include property appreciation which is a non-cash flow item until the year of sale. Therefore, if you are evaluating a property on a long-term basis, you need to focus more on the annual cash flow as it relates to your investment and focus less on property appreciation. CAPITALIZATION RATE (CAP RATE) The Cap Rate is a ratio that places a value on a property based on the net operating income (NOI) it generates which allows for a comparison of properties with different Fair Market Values (FMV). The Cap Rate is computed by taking the rental NOI and dividing it by the propertys FMV. The higher the Cap Rate, the better the property is said to be performing. Note that the Cap Rate is not a computation of an investment return but rather a way of understanding how a property will generate NOI so it can be compared to other properties. Cap Rate Practical Use #1 You can use the Cap Rate to value your property. Lets say that your property generates $30,000 of annual net operating income. Your real estate agent tells you that the Capitalization Rate in your area is approximately 10%. That would mean that the approximate fair market value of your property is $300,000 ($30,000 ? .10). Cap Rate Practical Use #2 Assume that you are comparing two properties. The first property has a projected NOI of $20,000 and an asking price of $500,000. The second property has a NOI of only $10,000 with an asking price of $110,000. Which one would the Cap Rate suggest is a better investment? The Cap Rate would suggest that the second property is a better investment since the Cap Rate is 9% ($10,000 ? $110,000) versus 4% ($20,000 ? $500,000). LOAN TO VALUE RATIO (LTV or LVR) The Loan-to-Value Ratio is the amount of a secured loan or mortgage divided by the fair market value of the property. For example, if your property is worth $100,000 and you have a mortgage balance of $50,000, the Loan-to-Value ratio on your home would be 50%. The LVR helps you quickly determine how leveraged your property is based on the fair market value of the property versus your cost. You can also use the LVR to determine the amount of your equity. If you have more than one loan secured against your property, add together the outstanding value of each loan in order to calculate the Loan-to-Value ratio. For example, if your home is worth $100,000 and you have a mortgage balance of $50,000, the Loan-to-Value ratio on your home would be 50%. However, if you also have a second secured loan on your home for $25,000, the Loan-to-Value ratio on your home would be 75% ((50,000 + 25,000) divided by 100,000). GROSS RENT MULTIPLIER (GRM) The Gross Rent Multiplier (GRM) is another way to value and compare properties. Used mostly in the apartment industry, the GRM is much like the Capitalization Rate except the gross rental income rather than the net operating income (NOI) is used to determine the value of a property. The GRM is calculated by dividing the fair market value of the property by the monthly gross rental income. EXAMPLE: If the sales price for a property is $200,000 and the monthly gross rental income for a property is $2,500, the GRM is equal to 80 ($200,000 ? $2,500). INTERNAL RATE OF RETURN (IRR) When an investment creates differing amounts of annual cash flow, a rate of return can be determined by calculating the Internal Rate of Return (IRR). The formula for computing the IRR is very complicated but essentially an IRR is the rate needed to convert (or discount) the future uneven cash flow to equal your initial investment or down payment. EXAMPLE: Assume a cash flow of $100 in the second year. Also, assume that in order to generate that $100, you had to invest $500. In this example, you have an outflow of $500 the first year and an inflow of $600 in the second year ($100 earnings plus the $500 return of your initial investment). To convert or discount the $600 back to todays dollars to equal your initial investment of $500, a discount rate of 20% is required. Thus, your IRR is 20%. In other words, IRR is the discount rate at which the net present value of all future cash flow is zero (discounted future cash flows = starting investment amount). The net meaning you subtract your initial investment. Leveraged vs. Unleveraged IRR When you use debt to purchase a property, you are using leverage. The program computes your IRR based on how debt impacts your cash flow. As a result, you can compare the leveraged and unleveraged IRR to determine how debt is helping or hurting your investment results. MODIFIED INTERNAL RATE OF RETURN (MIRR) The Modified Internal Rate of Return (MIRR) is used to correct a significant inherent problem with the IRR calculation. The IRR formula   assumes that you are reinvesting the annual cash flow at the same rate as calculated by the IRR. As a result, when you have a property that generates significant cash flow, the calculated IRR will overstate the likely financial return of the property. The MIRR allows you to enter a different rate that is applied to the propertys annual cash flow. Using the MIRR will more closely mimic the real rate of return since operating cash flow is rarely invested at a higher rate than a bank savings rate. The finance rate is the annual interest rate paid to borrow money during years the property experiences a negative cash flow. The reinvestment rate is the rate of return earned on the excess cash flow that is generated by the property.