Diketo Analogues and Their Significance

Diketo Analogues and Their Significance INTRODUCTION Medicinal chemistry is the branch of science, which has remarkable value for synthesis of novel drugs with intense therapeutic activity. It concerns with discovery, development, identification and interpretation of mode of action of biologically active compounds at molecular level. The molecular biological revolution and progressive mapping of human ‘genome’ have created a new biochemical and biostructural ‘world order.’1 These developments have provided new challenges and opportunities for drug research in general and drug design in particular. Pure organic compounds, natural or synthetic products are the chief source of agents for the cure, the mitigation or the prevention of disease today. The major objectives of the medicinal chemists are transformation of pathobiochemical and physiological data into a ‘chemical language’ with the aim of designing molecules interacting specifically with the derailed or degenerating processes in the diseased organisms. The development of chemotherapy during past 60 years constitute one of most important therapeutic advances in history of medicine and antimicrobial drugs are the greatest contribution of present century to therapeutics2. Potential therapeutic targets are being disclosed with increasing frequency and the exponential growth will continue during the next decades. In this situation there is a need for rapid and effective target validation and for accelerated lead discovery procedures. Organic chemists are increasingly directing their attention towards synthetic aspects of biomolecules and biologically active compounds, biosynthesized by plants and animals. Many important biochemical compounds and drugs of natural origin contain heterocyclic ring structures. Many of them are employed in treatment of many infectious diseases due to their specific activity, but their use in treatment is attributed to their inherent toxicity to various pathogens. DIKETO ANALOGUES AND THEIR SIGNIFICANCE Antibacterial The quinolones3 are well known synthetic antibacterial agents with di keto moiety some examples are Ciprofloxacin (1) Norfloxacin (2). Boteva4 et al synthesized some Halogen Substituted 4,5-dibenzoyl-1-phenyl-1H-pyrrole-2,3-dione derivatives (2-6) evaluated for Antibacterial Activity. Anti HIV The first report of a class of compounds that inhibit HIV integrase appeared in 1992. Aurin tricarboxylic acids and derivatives were determined to inhibit 3’ processing of viral cDNA with moderate iC50 values of 10-50micromolar. Thus the 1st pharmacophore with integrase inhibitory activity was determined i.e. aromatic rings with multiple hydroxyl substituents positioned on same ring or present close together in a 3D space if rings stack on top of each other. Since then considerable amount of work has been carried out in developing potential inhibitors of integrase taking the above compounds as leads. Presently there is only one FDA approved drug used as integrase inhibitor i.e. Raltegravir or Isentress, (7) approved in 2007. Elvitegravir (8) is another potential integrase inhibitor which is in phase III clinical trial5. THIOPHENE ANALOGS AND THEIR SIGNIFICANCE Thiophene (9) and its derivatives are an important class of heterocyclic compounds possessing broad biological activities, such as anti-inflammatory6, analgesic6, antioxidant7, antitubercular8, antidepressant9, sedative9, antiamoebic10, oral analgesic11, antimetabolite12, and antineoplastic properties13. Antimicrobials Thiophene analogues have been known as antibacterials. In the year 2007 Stephane et al14 reported the synthesis and antibacterial activity of arylbenzothiophenes (10) and diarylthiophenes. (11) (10) (11) In the year 2010 Kavitha P N et al15 reported the antimicrobial activity of 3- amino-2- mercapto-5,6,7,8-tetrahydrobenzo(b)thieno[2,3-d]pyrimidin-4(3H)-ones (12-17) by using B. subtilus, K. pneumonia and A. niger. Desai Akshay et al16 reported the synthesis of 2-thiophene-2- ethylthioureido-4- morpholino-6-(aryl) ureido-s-triazines.(18-23) These analogs were evaluated for their antimicrobial activity using S. typhi, C. albicans. Bhuiyan Md. Mosharef Hossain et al17 reported synthesis of 4-hydrazino-2- mehylthio-5-ethyl-6- methylthieno [2,3-d] pyrimidine (24) which is evaluated as antimicrobial agent by using B.cereus, V.cholerae, A.alternate. (24) Shiradkar M. et al18 reported synthesis of N-[3-(substituted)-7H- [1,2,4] triazolo [3,4-b] [1,3,4] thiadiazine / thiadiazol-4,5,6,7- tetrahydrobenzo[b] thiophenes (25-32) as good antimicrobial agents by using E.coli, S.aureus, A.nigar. Ahmed M. M. et al19 reported synthesis of 4-(substituted)-7-cyano- 6-phenyl aminothieno [3,2-d] pyrimidins (33-34) and evaluated as good antimicrobial agents by using B.subtilis and St.aureus, compared with reference drug Amoxicillin. The 6-methyl-2-phenyl-3-(substituted)-3H-thieno[3,2-d] pyrimidin-4-ones (35-38) has been reported by Chander Mohan et al20 and evaluated for antimicrobial activity by using B. subtilis, E.coli, P.aeruginosa compared with standard drug Ciprofloxacin. Bhuiyan Md. Mosharef Hossain et al21 reported synthesis of thieno[3,2-e] imidazo[1,2-c] pyrimidin-2(3H)ones (39) which was evaluated for antimicrobial activity against B. cereus, S.typhi and A.alternatacompare to reference drugs Ampicillin with Nystatin. (39) Shetty Nitin kumar et al22 reported synthesis of 8,9,10,11-tetrahydro[1]benzothieno[3,2-e] [1,2,4]triazolo [1,5- c]pyrimidine -8-ones (40-42) and evaluated for antibacterial activity against B. subtilis comparable to ampicilin. References : Larsen PK, Liljefors T, Madsen U, editors. Text book of drug design and discovery. 3rd ed. London: Taylor Francis; 2002. Rang HP, Dale MM, Ritter JM Pharmacology, 4th edition Churchill Livingstone, Edinburgh, 1999: 648 Wilson Gisvold, Textbook of Organic Medicinal and Pharmaceutical Chemistry, 10th edition, Lippincott publication Philadelpia 196-203. A.A Boteva, O. P. Krasnykh, S.S.Dubrovina, M. I. Vakhrin, E.B. Babushkina, T.F. Odegova, I.V. Solova, Pharm Chem J , 2008, 42 (8), 12-15. Vincenzo Summa AlessiaPetrocchi, Fabio Bonelli, BenedettaCrescenzi, Monica Donghi, Marco Ferrara, Fabrizio Fiore, Cristina Gardelli, Odalys Gonzalez Paz, Daria J. Hazuda, Philip Jones, Olaf Kinzel, Ralph Laufer, Edith Monteagudo, Ester Muraglia, EmanuelaNizi, Federica Orvieto, Paola Pace, Giovanna Pescatore, Rita Scarpelli, Kara Stillmock, Marc V. Witmer, and Michael Rowley, J. Med. Chem. 2008, 51, 5843–5855. F.M. Moghaddam, H.Z. Boinee, An efficient and facile one-step synthesis of highly substituted thiophenes, Tetrahedron 60 (2004) 6085-6089. K.I. Molvi, M. Mansuri, V. Sudarsanam, et al., Synthesis, anti-inflammatory, analgesic and antioxidant activities of some tetrasubstituted thiophenes, J. Enzyme. Inhib. Med. Chem. 23 (2008) 829-838. M.K. Parai, G. Panda, V. Chaturvedi, Y.K. Manju, S. Sinha, Thiophene containing triarylmethanes as antitubercular agents, Bioorg. Med. Chem. Let. 18 (2008) 289-292. W. Wardakhan, O. Abdel-Salam, G. Elmegeed, Screening for antidepressant, sedative and analgesic activities of novel fused thiophene derivatives, Acta. Pharm. 58 (2008) 1-14. S. Sharma, F. Athar, M.R. Maurya, A. Azam, Copper(II) complexes with substituted thiosemicarbazones of thiophene-2-carboxaldehyde: synthesis, characterization and antiamoebic activity against E. histolytica, Eur. J. Med. Chem. 40 (2005) 1414-1419. O. F. William, Principles of Medicinal Chemistry, 3rd. ed., Lippincott Williams Wilkins Publication, Philadelphia, 1989. A.A. Sagardoy, M. J. Gil, R. Villar, et al., Benzo[b]thiophene-6-carboxamide 1,1-dioxides: Inhibitors of human cancer cell growth at nanomolar concentrations, Bioorg. Med. Chem. 18 (2010) 5701-5707. A.A. Fadda, E. Abdel-Latif, R.E. El-Mekawy, Synthesis and molluscicidal activity of some new thiophene, thiadiazole and pyrazole derivatives, Eur. J. Med. Chem. 44 (2009) 1250-1256. Jeremie Fournier dit Chabert, Beatrice Marquez, Luc Neville, Lionel Joucla, Sylvie Broussous, Pascale Bouhours, Emilie David, Stephane Pellet Rostaing, Bernard Marquet,a Nicole Moreaub and Marc Lemairea, Synthesis and evaluation of new arylbenzo[b]thiophene and diarylthiophene derivatives as inhibitors of the NorA multidrug transporter of Staphylococcus aureus, Bioorganic Medicinal Chemistry 15 (2007) 4482–4497. Kavitha PN, Vijayanthimala P, Saravanan J, Mohan S. Research Journal of Pharma- ceutical, Biological and Chemical Sciences, 2010; 1(2):124-130. Desai A, Mahajan HD, Ind Jour Chem, 2007; 46(B):1169-1173. Ahmed MM, Farha FM; Jordan Journal of Chem, 2008; 3(3):223-232. Shiradker M, Kale R. Ind Jour Chem, 2006; 46(B):1009-1013. Ahmed MM, Farha FM; Jordan Journal of Chem, 2008; 3(3):223-232. Mohan C, Bhargava G, Bedi PMS. J Life Sci, 2009; 1(2):97-101. Bhuiyan MH, Rahman KM. Acta Pharm., 2006; 56: 441-450. Nitinkumar SS, Lamani RS, Khazi IAM. Journal of Chem Sci, 2009; 121(3):301-307.

He tendency for human beings to copy one another is shown in the popularity of fashion and goods Essay

The tendency for human beings to copy one another is shown in the popularity of fashion and goods. Agree or disagree. Agree – Economic urge – Easy to copy Disagree – Not easy to copy due to complicated procedures – Other fields are easier to be copied Fashion and goods are becoming more similar between brands. Some people think that manufacturers are copying ideas of each other in such products while others claim that this is hardly necessarily reflected mostly in fashion and goods. I believe that in any field, people can copy from other and sometimes, fashion and consumer goods are far from easy imitation. First of all, it is thought that copying the style of fashion and goods is easier than other types of imitation. Just a glance at design is sufficient enough to provide other competitive brands to follow and manufacture right after the original item comes into being. Nevertheless, people’s desire is to enjoy products with good appearance and quality at the same time. Despite the copying trend of outstanding appearance, if the quality of products is below expectation of consumers, for instance, short durability and high price, the latter ones will shun away these items soon. Second of all, people mostly need goods in their daily life. The rate of consumption in daily goods adds up to billions of dollars for producers, which motivates them to copy each other. Yet, when it involves the assembly line and advanced technological applications, it is far from easy to follow suit. Technological goods need expertise, significant investment and long-term research. Hence, though goods may look like each other, they are rarely products of pure emulation and mass- consumed. Chinese products, for instance, in spite of being believed to be of lower price and copy others in the world, are still not as attractive as original ones as created in America and Japan due to their unfashionable design and short-time durability. In addition, copying trend is noticeable in other fields. In arts, the musical style of one nation borrows greatly from that of other countries to enrich cultural heritage of each nation while products of high intellectuality such as writing styles are somehow similar to each other. Even in choice of life, when a person has little inkling about what he or she does in life, it is more likely that he or she will travel the same journey as predecessors to be on the safe side. When it comes to work environment where competition is higher, to ingratiate oneself with bosses, employees are possible to copy ideas of others, which actually proves easier than to imitate the complicated business models to generate fashion designs or consumer goods. â €“ written by lena pham-

To What Extent Can Gatsby Be Considered a Tragic Hero

To what extent can Gatsby be considered a tragic hero? Before we can judge if Jay Gatsby is a tragic hero, we should look at the exact deï ¬ nition of a tragic hero. According to the classic deï ¬ nition, a tragic hero is a  «great or virtuous character in a dramatic tragedy who is destined for downfall, suffering, or defeat »1, and Oedipus, from the Greek Legends, is deï ¬ ned as the classic tragic hero. So, is Gatsby then a classic tragic hero, by deï ¬ nition? ! Even if the book itself is called  «Great Gatsby », is Jay really great? From the text, we know that he came from a poor family, and made his fame and money through illegal business, and created a fake world of his own surrounding his reality, because he never accepted reality as it was.†¦show more content†¦Gatsby has created his  «greatness », but has none of his own. So, he is not a hero by classical deï ¬ nition, not quite, just because all that he is, his greatness, is in fact a masterful illusion. ! Is Gatsby destined for downfall? Clues can be found all over the novel, in descriptions of Gatsby, and Nick’s portrayal of him. Firstly, Nick realises straight away that Gastby is lying about his past and his trips to India, which suggests that Gatsby isn’t that much of a good liar, and Gatsby doesn’t realise this, because he has made all his dreams reality. Also, the description o f Gatsby in chapter 6 gives us suggestions on why Gatsby can never be satisï ¬ ed with his life:  «...these reveries provided an outlet for his imagination; they were a satisfactory hint of the unreality of reality, a promise that the rock of the world was founded securely on a fairy’s wing »2. This quote is a perfect illustration of how Gastby views life. The fairy mentioned is has a slightly sarcastic feel, it’s almost as if Gastby’s mind is of a child - that everything around him is perfect, and nothing can inï ¬â€šuence him. But, such an oblivious approach to life cannot be secure or everlasting. Every dream changes, and every lie comes through sometime. Gatsby has to understand that he cannot live in his own fantasy, and that otherShow MoreRelatedTo What Extent Can Gatsby Be Considered a Tragic Hero?1023 Words   |  5 PagesTo what extent can Gatsby be considered a tragic hero? Before we can judge if Jay Gatsby is a tragic hero, we should look at the exact deï ¬ nition of a tragic hero. According to the classic deï ¬ nition, a tragic hero is a  «great or virtuous character in a dramatic tragedy who is destined for downfall, suffering, or defeat »1, and Oedipus, from the Greek Legends, is deï ¬ ned as the classic tragic hero. So, is Gatsby then a classic tragic hero, by deï ¬ nition? ! Even if the book itself is called  «Great Gatsby »Read MoreEssay Prompts4057 Words   |  17 PagesQUESTIONS 2004 (Form A): Critic Roland Barthes has said, â€Å"Literature is the question minus the answer.† Choose a novel or play and, considering Barthes’ Observation, write an essay in which you analyze a central question the work raises and the extent to which it offers any answers. Explain how the author’s treatment of this question affects your understanding of the work as a whole. Avoid mere plot summary. You may select a work from the list below or another novel or play of comparable literaryRead MoreANALIZ TEXT INTERPRETATION AND ANALYSIS28843 Words   |  116 Pageslinguistic commentary in which the reader explains what the text reveals under close examination. Any literary work is unique. It is created by the author in accordance with his vision and is permeated with his idea of the world. The reader’s interpretation is also highly individual and depends to a great extent on his knowledge and personal experience. That’s why one cannot lay down a fixed â€Å"model† for a piece of critical appreciation. Nevertheless, one can give information and suggestions that may prove

Becoming A Psychologist And Studying Psychology - 1468 Words

My first and most set career I am planning on pursuing in the future is a psychologist. For the longest time, I have had my mind set on becoming a psychologist and studying psychology as much as I can in the future. For those who don’t know or aren’t very informed on it, a psychologist is someone that evaluates and studies human behavior and all mental processes, such as emotional, cognitive, and social processes. Usually, they study this through observing and recording how individuals relate to one another and their environments. Psychologists don’t only study single people at a time, but groups of people as well. There is not only one type of psychologist, but about 56 divisions of psychology and psychologists. The most well known branches of psychology, which are ones I am interested in entering, are clinical psychologists and/or counseling psychologists, which study and diagnose mental disorders on people. As stated there are others, such as army psychologist s, children psychologists, health psychologist, etc. which are all seemingly self explanatory, but this doesn’t go for every branch. On average, though, last checked in May of 2012, the median pay for psychologists is about $69,280 dollars a year, earning them about $33.31 dollars an hour. Although depending on how well known, who you work for, and what branch of psychology you are in, this could change; this is just an average of what most do earn. In the United States, we have about 170,200 psychologist jobs,Show MoreRelatedReflection Paper On Psychology And Psychology1135 Words   |  5 Pagesmy final project, I interviewed a professional with PhD in Psychology. However, the person I interviewed did not pursue a psychology job afterwards. Instead, he decided to pursue a job in the IT technological field. Throughout the interview, I asked questions about the hardships and dedication towards the Psychology field. Before summarizing the interview, I also decided to ask my Au nt, who graduated with her Bachelor s degree in Psychology in Minnesota State University, Mankato. During the interviewRead MoreMy Paper On Is Educational Psychology1545 Words   |  7 Pages The topic pertinent to psychology that i chose to do my paper on is educational psychology. Educational psychology is the study of how humans learn and retain knowledge, primarily in educational settings like classrooms. This branch not only involves just the learning process of early childhood and adolescence but it also involves the social, emotional, and cognitive learning processes that are involved in humans throughout their entire lifespan. Educational psychology combines numerous amountsRead MorePsychologist B.F. Skinner was born March 20, 1904 and passed away August 18, 1990. Raised in a1100 Words   |  5 Pages Psychologist B.F. Skinner was born March 20, 1904 and passed away August 18, 1990. 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The role of a school psychologist includes workingRead MoreReporting Studying senior social science subjects was the most influential factor which provided a1600 Words   |  7 PagesReporting Studying senior social science subjects was the most influential factor which provided a wonderful opportunity to discover my abilities and develop skills and confidence in critical thinking and systematic research processes. Especially, getting an A+ for a psychology report assignment and genuinely enjoying the process have given me a sense of competence in performing similar tasks such as planning and conducting experiments, analysing results, and evaluating research processes. After

Kill A Mockingbird By Harper Lee - 3038 Words

Through the Glass What does it mean to tear apart our past for the sake of a new beginning? The answer is simple, really. It means to look through a new pair of glasses, ones that are not scratched and foggy, in order to see the world clearly. Abandon the wrongs that have plagued society and strive instead for peace and equality. The novel To Kill A Mockingbird, written by Harper Lee, took place during the Civil Rights Movement In the 1930’s. At the time, a lot of racism and prejudice was integrated into life as blacks became segregated from whites. Various stereotypes were formed, such as saying that blacks were dangerous, liars, and perverts, lusting for white women. In addition, they had entirely separate drinking fountains, restrooms,†¦show more content†¦Both Jem and Scout question these narrow mindsets of the people in Maycomb and whether or not it is acceptable to judge people right from the start. Slowly, Jem and Scout choose to adapt to their father, Atticus’s, noble wa ys of thinking to not judge people on rumors and appearances. In To Kill a Mockingbird, Harper Lee, addresses the social inequity by showing the readers that it is important to look past differences in race, reputation, and isolation and look at one another through pure, fair, and understanding eyes; only then can we finally realize what makes us equal to each other in our hearts. We should see each other for who we really are instead of believing rumors and by doing this, create a more fair society to overcome prejudice. During chapter 12 of the story, Scout and Jem go to an African American church for the first time with their maid Calpurnia. Calpurnia lives with the Finch family at home and often acts as an influence for Scout and Jem to be more open-minded as they become more exposed to racism. When they leave the church later that day, Scout asks Calpurnia why she acts so polite around whites but talks in â€Å"her nigger-talk† when she is around other colored people. Calpurnia explains to them that often times, racism inhibits black people from expressing their true emotions: Suppose you and Scout talked

Ricky Watt’s Marketing Plan Free Essays

1. Evaluate the promotion objectives Rick Wyatt should include in his plan: These following promotion objectives below should include in Rick’s plan: . To increase the number of volunteers to give back to communities . We will write a custom essay sample on Ricky Watt’s Marketing Plan or any similar topic only for you Order Now To create an enjoyable working environment to keep the volunteer serving the communities longer . To have extensive diversified trainings so volunteers and members can be aware of what they’re doing . To let the volunteers know they’re respected and are recognized and are safe 2. What promotion methods should he use to achieve those objectives? In order to achieve these objectives, Rick should do the following steps below: . To put ads in the local papers, banner/signs, radio broadcasts, flyers, posters, word of mouth, or walk house to house to advertise the volunteer are always welcome and needed . To have a short 10 minute videorun on the county public safety cable channel that will show the many operations provided by volunteers plus a video to show that what the Fire Department work and give back to communities . To do fund-raisings to bring capitals so the Fire Department can use these capitals to expand the Department and to award the volunteers . Don’t restrict volunteers to be firefighters. Volunteer can do in different levels of medical response/support; rehab roles; and support roles. This method allows the Fire Department to bring on a wider range of people, and they all fill a vital role . Develop and use a formal awards program such as certificates, dinner coupon to let the volunteers know their works are recognized and are respected    . A clear communication keeps firefighters  feeling as though they are important to the organization and the service’s mission . To have a department-wide picnic in the summer or holiday dinner to bring volunteer and their families together . To connect and offer introductory class with Red Cross meetings or classes, blood drives, food banks, and basic community service places to find the best candidates . To have gym, coffee rooms, entertainment areas in the Fire Department that can bring all members together, to keep members in shape, to create an enjoyable working environment How to cite Ricky Watt’s Marketing Plan, Papers

Sustainable and Strategic Accounting - MyAssignmenthelp.com

Questions: 1. Discuss aboutthe Strategic and Knowledge Management. 2. Discuss about the Product Mix. 3. Discuss about the Linear Programming. Answers: Answer 1 This question has tried to recognise and explain the environmental and the social concerns that are in relation to the operational activities of Premier Investment. Premier Investment is a retail organization which concentrates on providing the exclusive garments to their customers in the countries where they operate. Each and every organization has their own strategies and every one of them constructs their social and environmental strategies with respect to the concerns that are associated with them. Premier Investment have identified that environmental concerns has been looking at the environment of the country and eco-system where the organization operates. The other environmental issue has been proper utilisation and incineration of the wastes that have been obtained from the manufacturing process of Premier Investment (Home - Premier Investments 2017). The social concerns that the company has tried to recognise has been gaining knowledge about the changing trends and the tastes and preferences of the consumers. The organization needs to analyse the market from time to time so that the changes in the market can be understood and several strategies can be undertaken in order to mitigate the social concerns. In relation to the operational activities of the company, the three objectives that are associated with the business sustainability commitments of Premier Investment has been to look at the looking at the people associated with the organization. There are a variety of individuals who are related to the operational functions of the company as an employee, stakeholder or as a customer and therefore effective measures can be taken in order keep them satisfied and happy so that they remain associated with the company for a long time (Crane, Matten 2014). The next business sustainability objective has been to understand and look after the communities that are related to Premier Investment organizations. The company tries to look into the communities in order to gain knowledge about their desires and then looks to develop plans and strategies that would be influential for the manufacturing of the products desired by the communities and assisting in the development of the organization and the community (Grob, Benn 2014). The third objective has been looking at the environment of the area where the company thereby understanding the problems that are prevalent so that effective performance measures can be taken in order to rectify the matter. The three objectives that are related to ethical sourcing of Premier Investment has been developing the sourcing framework and models that would be constructed in accordance to the policies and the principles. The next ethical objective has been framing the assurance and promoting them to among the employees and the environment where the company operates so that ethical processes are maintained (Perry et al., 2015). The third objective has been establishment of the ethical raw material procurement so that the products produced and the raw materials used are of ethical and are of good quality so that the customers feel satisfied. The two measures that could be made in order to measure the progress of the organizations for the accomplishment of the objectives has been given below with the help of the table. Dimension Objective Possible Performance Measures Business Sustainability 1.People 1. Initiatives for retention and attraction of the existing and potential employees and customers. 2. Measuring the workplace security and keeping personnel to manage and supervise the workplace environment 2.Community 1.Keeping relationship with the Smiggle Community Partnerships 2.Maintaining relationship with PAW JUSTICE 3.Environment 1.Looking after the waste and recycling of the wastes generated during the process manufacturing 2. Making sure that the energy is used effectively. Ethical Sourcing 1. Constructing sourcing models with the help of policies and principles 1. Assessing the effectiveness of the models with the help of survey from the stakeholders and the customers. 2. Assessing the models and comparing with the ethics constructed internationally. 2. Establishing and promoting the assurance 1.Comparing the assurance with the assurance set by the rival companies 2. Frequent analysis and the review of the assurance so that changes can be undertaken 3. Ethical Raw Material procurement 1.Checking the raw material before purchasing 2. Establishing good relation with the supplier. Answer 2 Particulars Amount Particulars With Spare Capacity Without Spare Capacity Direct Material per kg. $10 Transfer Price $24.70 $40 Direct Labour per kg. $5 Variable Overhead per kg. $3 Fixed Overhead per kg. $1 Total Cost per kg. $19 Add: Mark-Up 30% Transfer Price per kg. $24.70 Answer 3 Period Particulars 0 1 2 3 4 5 6 7 Initial Investment ($1,650,000) Annual Cash Flow: Service Charges per customer $0 $35 $35 $35 $35 $35 $35 $35 Nos. of Customers 0 35000 38500 42350 46585 51244 56368 62005 Service Revenue $0 $1,225,000 $1,347,500 $1,482,250 $1,630,475 $1,793,523 $1,972,875 $2,170,162 Increase in Sales of Jeans $0 $550,000 $616,000 $689,920 $772,710 $865,436 $969,288 $1,085,602 Total Incremental Revenue $0 $1,775,000 $1,963,500 $2,172,170 $2,403,185 $2,658,958 $2,942,163 $3,255,765 Cost of Sales of Jeans $0 ($330,000) ($369,600) ($413,952) ($463,626) ($519,261) ($581,573) ($651,361) Staff Costs $0 ($900,000) ($954,000) ($1,011,240) ($1,071,914) ($1,136,229) ($1,204,403) ($1,276,667) Material Costs $0 ($210,000) ($222,600) ($235,956) ($250,113) ($265,120) ($281,027) ($297,889) Marketing Costs $0 ($46,000) ($48,760) ($51,686) ($54,787) ($58,074) ($61,558) ($65,252) Other Costs $0 ($25,000) ($26,500) ($28,090) ($29,775) ($31,562) ($33,456) ($35,463) Depreciation Expenses $0 ($235,714) ($235,714) ($235,714) ($235,714) ($235,714) ($235,714) ($235,714) Net Profit before Tax $0 $28,286 $106,326 $195,532 $297,255 $412,997 $544,431 $693,418 Less: Tax Expenses $0 ($8,486) ($31,898) ($58,660) ($89,176) ($123,899) ($163,329) ($208,025) Annual after Tax Profit $0 $19,800 $74,428 $136,872 $208,078 $289,098 $381,102 $485,393 Add: Depreciation Expenses $0 $235,714 $235,714 $235,714 $235,714 $235,714 $235,714 $235,714 Annual after Tax Cash Flow $0 $255,514 $310,142 $372,587 $443,793 $524,812 $616,816 $721,107 Net Cash Flow ($1,650,000) $255,514 $310,142 $372,587 $443,793 $524,812 $616,816 $721,107 Cumulative Cash Flow ($1,650,000) ($1,394,486) ($1,084,343) ($711,757) ($267,964) $256,848 $873,665 $1,594,771 Payback Period 4.51 Discount Rate 20% 20% 20% 20% 20% 20% 20% 20% Discounted Cash Flow ($1,650,000) $212,929 $215,377 $215,617 $214,020 $210,910 $206,570 $201,248 Net Present Value ($173,329) IRR 16.729% Average Annual after Tax Profit $463,539 ARR 28.09% Required Rate of Return Particulars 12% 16% 20% NPV $309,102 $42,747 ($173,329) Payback Period 4.51 4.51 4.51 ARR 28.09% 28.09% 28.09% The recommendation that can be given to Just Jeans is that they should go on with the proposal and the new recommendation has various aspects that would reduce the level of sensitivity with respect to the financial impact of the new capital investment. 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