essential formulae in project appraisal

... of finance The amount, direction and timing of cash flows, and relevant interest rates, must be carefully specified Knowledge of financial formulae is essential for project evaluation 16 Essential ... calculations in capital budgeting usually assume that interest is annually compounded  ‘Money’ in investment projects is known as ‘cash flows’: the symbol is:  C Cash flow at end of period t t  × Financial ... can create a difference in money value over time It is NOT the time value of money It is a decline in monetary purchasing power  Moving Money Through Time Investment projects are long lived,...

Ngày tải lên: 16/03/2014, 01:20

... backward in time is ‘discounted’ Financial Calculations  Time value calculations in capital budgeting usually assume that interest is annually compounded   ‘Money’ in investment projects is ... decline at a constant rate in perpetuity PV(B) = B1/ (1-g), if i>g 31 Long-Lived Projects and Terminal Values It is generally assumed that projects have finite economic Life For projects with infinite ... The Internal Rate of Return Criterion (Cont’d) Fourth difficulty: Same project but started at different times Project A: Investment costs = 1,000 in year Benefits = 1,500 in year Project B: Investment...

Ngày tải lên: 04/10/2015, 19:59

... of finance The amount, direction and timing of cash flows, and relevant interest rates, must be carefully specified Knowledge of financial formulae is essential for project evaluation 23 Essential ... occurring after the payback period 14 Evaluation of Project Cash Flows     15 Cash flows occurring within investment projects are assumed to occur regularly, at the end of each year Since ... Understand the financial mathematics involved in the discounted cash flow techniques (such as NPV and IRR) and mortgage loans Apply the relevant annuity formulae for project appraisal Internal rate...

Ngày tải lên: 04/10/2015, 19:59

... line 32 with line 34 Note that line 33 is the same as line 18 There is no difference between line 32 and line 34 Again, note that the value of the equity E in line 31 to line 34 includes the present ... 20.00% (27) As expected, the WACC in line 27 is equal to the WACC in line 18 and the value of ρ in line Using the value of WACC, we can find the PV of the CFS-TIP in year = 1,250 = 1,041.67 + 20% ... construction of the income statement, the interest deduction will be included in order to determine the correct tax liability Method 1: Excluding the tax shield and using CFS-AEPV Line 31 and line 32 show...

Ngày tải lên: 24/01/2014, 00:20

... Consider two projects, A and B Each costs $100 in year Project A returns nothing in year 1, and $121 in final year Project B returns $115 in final year 1, and nothing thereafter Project A Project ... Consider two projects, A and B Each costs $100 in year Project A returns nothing in year 1, and $121 in final year Project B returns $115 in final year 1, and nothing thereafter Project A Project ... projects, A and B Each costs $100 in year Project A returns nothing in year 1, and $121 in final year Project B returns $115 in final year 1, and nothing thereafter Project A Project B Year −$100 −$100...

Ngày tải lên: 04/10/2015, 19:54

Ngày tải lên: 03/10/2012, 15:18

... a project management training and consulting firm based in Seattle, Washington His company trains thousands of professionals every year in the proven principles of project management including ... choose which projects to invest in and to oversee existing projects Consistent project management methods so that each project is using reliable techniques for planning and managing A project management ... existing project management discipline Today, however, executives are taking an active interest in projects and project management What has changed is not only that more people are working on projects,...

Ngày tải lên: 07/02/2013, 09:32

... INTRODUCTION President Project A Project B Manufacturing Manufacturing Marketing Marketing Finance Finance Engineering Engineering FIGURE 2.9 Project- oriented organization developing customer service ... TEAM LinG - Live, Informative, Non-cost and Genuine ! ix CONTENTS CHAPTER 9—BALANCING THE PROJECT Introduction Three Levels of Balancing a Project Balancing at the Project Level Balancing at ... The project life cycle is industry-independent, because project management theory is industry-independent Defining these differences further: 24 TEAM LinG - Live, Informative, Non-cost and Genuine...

Ngày tải lên: 07/02/2013, 09:32

... Project Financing 2.2 Parties Involved in Project Financing 2.3 Project Financing Structures 4 ii 2.4 Risks Involved in Project Financing 2.5 Managing Project Risks 10 Chapter 13 11 Methodology ... Financing Structures Every project finance has its own special features Accordingly, there are many kinds of financing structures Since most of the project financing in private sector in Vietnam involves ... needs for project financing, the increasing private investment and the risk exposure of the lenders necessitate researches in risk mitigation in project financing in Vietnam, particularly in private...

Ngày tải lên: 12/04/2013, 21:39

... have in mind: to be considering, to be thinking (S) o I don't want to see a movie now I have in mind going to the park o It's up to you what we eat tonight Do you have anything in mind? to keep in ... part in: to be involved in, to participate in (also: to be in on) o Martin was sick and could not take part in the meeting yesterday o I didn't want to be in on their argument, so I remained ... wanted to bring the scheduling problem up at the club meeting, but finally she decided against doing so o One of the students brought up an interesting point related to the subject in our textbook...

Ngày tải lên: 17/08/2013, 10:40

Ngày tải lên: 04/09/2013, 19:25

... have in mind: to be considering, to be thinking (S) o I don't want to see a movie now I have in mind going to the park o It's up to you what we eat tonight Do you have anything in mind? to keep in ... part in: to be involved in, to participate in (also: to be in on) o Martin was sick and could not take part in the meeting yesterday o I didn't want to be in on their argument, so I remained ... wanted to bring the scheduling problem up at the club meeting, but finally she decided against doing so o One of the students brought up an interesting point related to the subject in our textbook...

Ngày tải lên: 04/09/2013, 19:57

... up to (something): to be doing something; to be planning or plotting something, scheming The first definition usually takes the form of a question • Hi, Jake I haven’t seen you in a long time ... saying that you shouldn’t drive quickly in bad weather • That he will gain weight if he continues to eat and drink so much goes without saying to put (someone) on: to mislead by joking or tricking ... fill (someone) in: to inform, to give background information to (also: to clue in) (S) This idiom is often followed by the preposition on and a noun phrase containing the pertinent information •...

Ngày tải lên: 25/10/2013, 06:20

... Teaching Program, 2004-2005 The Appraisal of Development Expenditures Project appraisal and risk management for the public sector II STAGES IN PROJECT APPRAISAL AND APPROVAL Why should a project ... Should maintain same quality of information across all variables Whenever possible should use secondary information Biased information better than mean values KEY QUESTION a Is this project financially ... ENGINEERING MODULE A study of input requirements for investment and operations and their costs In this module, secondary information can’t be used very effectively need to a void conflict of interest...

Ngày tải lên: 20/12/2013, 18:15

Ngày tải lên: 21/12/2013, 03:17

... Getting Started in Online Personal Finance by Brad Hill Getting Started in 401(k) Investing by Paul Katzeff Getting Started in Security Analysis by Peter J Klein Getting Started in Global Investing ... Bertrand Getting Started in Internet Auctions by Alan Elliott Getting Started in Stocks by Alvin D Hall Getting Started in Mutual Funds by Alvin D Hall Getting Started in Estate Planning by Kerry ... a project If you want to continue doing what you’ve done in the past, you are working in a business process Business processes are managed using process management Projects are managed using project...

Ngày tải lên: 18/01/2014, 06:20

Ngày tải lên: 24/01/2014, 07:20

Ngày tải lên: 24/01/2014, 08:20

... up to (something): to be doing something; to be planning or plotting something, scheming The first definition usually takes the form of a question • Hi, Jake I haven’t seen you in a long time ... saying that you shouldn’t drive quickly in bad weather • That he will gain weight if he continues to eat and drink so much goes without saying to put (someone) on: to mislead by joking or tricking ... fill (someone) in: to inform, to give background information to (also: to clue in) (S) This idiom is often followed by the preposition on and a noun phrase containing the pertinent information •...

Ngày tải lên: 24/01/2014, 08:20