Projects Chp1
Projects Chp1
Projects Chp1
Part 1: Planning
Chapter 1: Overview
Chapter 2: Capital Allocation Framework
Chapter 3: Generating and Screening of Project Ideas
Part V: Financing
Chapter 18: Financing of Projects
Projects
Planning, Analysis, Financing, Implementation and Review
Part 1: Planning
Chapter 1: Overview
Chapter 2: Capital Allocation Framework
Chapter 3: Generating and Screening of Project Ideas
Overview
1.1 Capital Investments: Importance and Difficulties
Importance:
Long Term Effects
Irreversibility
Substantial Outlays
Difficulties:
Measurement Problems
Uncertainty
Temporal Spread
Overview
1.2 Types of Capital Investments
Planning
Analysis
Selection
Financing
Implementation
Review
Overview
1.3 Phases of Capital Budgeting
Planning
Analysis
Selection
Selection
Accounting Rate ARR > target rate ARR < target rate
of Return
Net Present Value NPV > 0 NPV < 0
Internal Rate of IRR > cost of capital IRR < cost of capital
Return
Benefit Cost Ratio BCR > 1 BCR < 1
Overview
1.3 Phases of Capital Budgeting
Financing
Implementation
Review
Overview
1.4 Levels of Decision Making
Market analysis
Technical Analysis
Financial Analysis
Economic Analysis
Ecological Analysis
Overview
1.4 Facets of Project Analysis
Key Issues in Project Analysis
Potential Market
Market Analysis
Market Share
Technical Viability
Technical Analysis
Sensible Choices
Risk
Financial Analysis
Return
Benefits and Costs in Shadow Prices
Economic Analysis
Other Impacts
Environmental Damage
Ecological Analysis
Restoration Damage
Overview
1.5 Feasibility Study: A Schematic Diagram
Generation of Ideas
Initial Screening
Alternatives
Other Concerns of the Business
Basic Considerations: Risk and Return
Overview
1.8 Common Weaknesses in Capital Budgeting