Investment Project Design
A Guide to Financial and Economic Analysis with Constraints
Published on 18. February 2011
480 pages
978-1-118-01513-1 (ISBN)
Description
Make more informed project investment decisions by knowing whatissues to examine in the planning process and how to analyze theirimpacts
Poor or insufficient planning is primarily responsible for theinordinate number of idle and rusting capital facilities around theworld, with investment decisions often made on the basis of eitherintuition or inadequate analysis. Investment Project Design: AGuide to Financial and Economic Analysis with Constraintsalerts potential investors and other stakeholders to precipitouschanges in the investment milieu as a result of constraints onresources and infrastructure, economic and political turmoil, andpopulation growth. The guide
* Includes descriptions of specific methods of financial andeconomic analysis for new investments and for expansion of anexisting enterprise
* Covers project risk assessment, mitigation and avoidance
* Provides real-life case studies, adapted for presentation, andaddresses the design of projects large and small, as well as thosein both private and public sectors
* Features spreadsheet layouts and computations
Investment Project Design is the ultimate resource in themethods of designing and appraising investment projects
Poor or insufficient planning is primarily responsible for theinordinate number of idle and rusting capital facilities around theworld, with investment decisions often made on the basis of eitherintuition or inadequate analysis. Investment Project Design: AGuide to Financial and Economic Analysis with Constraintsalerts potential investors and other stakeholders to precipitouschanges in the investment milieu as a result of constraints onresources and infrastructure, economic and political turmoil, andpopulation growth. The guide
* Includes descriptions of specific methods of financial andeconomic analysis for new investments and for expansion of anexisting enterprise
* Covers project risk assessment, mitigation and avoidance
* Provides real-life case studies, adapted for presentation, andaddresses the design of projects large and small, as well as thosein both private and public sectors
* Features spreadsheet layouts and computations
Investment Project Design is the ultimate resource in themethods of designing and appraising investment projects
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L. Kurowski
Investment Project Design - A Guide to Financial and Economic Analysis with Constraints + Web Site
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11/2011
Wiley
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Lech Kurowski | David Sussman
Investment Project Design
A Guide to Financial and Economic Analysis with Constraints
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04/2011
Wiley
€79.00
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Persons
Lech Kurowski is an economist with over twenty-five years ofexperience in investment projects analysis. Currently a professorof economic analysis at the Wroclaw University of Economics inWroclaw, Poland, he has performed investment studies and hasserved as analyst for investment proposals prepared by consultingcompanies for governments and private investors in over fortycountries in Europe, Asia, and Africa.
David Sussman is an industrial engineer who has served asconsultant to medium and small-scale enterprises and has conductedworkshops and seminars throughout the world, particularly in LatinAmerica. He was responsible for most of the important systemsdesign and developed many of the concepts used in the investmentproject analysis program of the U.N. Industrial DevelopmentOrganization. He has designed financial management systems in boththe public and private sectors.
David Sussman is an industrial engineer who has served asconsultant to medium and small-scale enterprises and has conductedworkshops and seminars throughout the world, particularly in LatinAmerica. He was responsible for most of the important systemsdesign and developed many of the concepts used in the investmentproject analysis program of the U.N. Industrial DevelopmentOrganization. He has designed financial management systems in boththe public and private sectors.
Content
Acknowledgments.
Symbols and Most Frequently Used Acronyms.
Introduction.
Chapter 1: Investment Environment.
Systematic Project Analysis.
Project Environment and Strategy.
Project Development Process (PDP).
Planning Horizon and Project Life.
Project Scope.
Pre-Investment Studies.
Investment Planning Infrastructure.
Appendix 1.1: Elements of Commercial and Wider Domains.
Appendix 1.2: Outline of Business Plan for a ManufacturingEnterprise.
Appendix 1.3: Outline of Design/Study Report.
Appendix 1.4: Information flow details.
Notes.
References.
Chapter 2: Preparing Pro-Forma Financial Statements.
Accounting System.
Process of Financial Analysis.
Financial Costs and Benefits.
Investment Costs.
Production Cost.
Operating, Factory Cost and Cost of Product Sold.
Financial Statements.
Appendix 2.1: Depreciation methods.
Appendix 2.2: Starting Inventory Balance.
Notes.
Chapter 3: Financial Indicators and Criteria.
Static Indicators.
Types of Static Indicators.
Financial Criteria for Investment Decisions.
Analysis of Joint Ventures.
Project of an Ongoing Enterprise.
Notes.
References.
Chapter 4: Financing the Project.
Capital structure.
Cost of Capital.
Notes.
References.
Chapter 5: the Economic Perspective.
Private sector.
Public sector.
General rationale for economic evaluation - who needsit?
Macroeconomic View - Impact on the National Economy.
Price Distortions.
Applicability and Scope.
Economic Pricing Principles¯20.
Shadow Prices of Primary Resources (National Parameters).
Conversion and Adjustment Factors.
Appendix 5.1: Costs and Benefits of 'Revenue Projects'.
Appendix 5.2: Global Pricing Framework - Importable InputForegone.
Notes.
References.
Chapter 6: Economic Cost - Benefit Analysis.
Adjustments for the wider domain.
Valuation at market prices.
Define the accounting unit (AU).
Value Added (VA).
Supplementary Indicators.
Notes.
References.
Chapter 7: Investment Decision under Uncertainty andRisk.
Forecasting.
Risk - Dealing with Uncertainty.
Quantitative Risk Assessment.
Qualitative Risk Assessment.
Risk Management.
Risk Immunization for Financiers.
International Investors and Risk.
Appendix 7.1: Discrete probability analysis -multivariate.
Notes.
References.
Chapter 8: Project Appraisal.
Macro-Micro Appraisal.
SWOT Analysis.
Stakeholder Perspectives.
Appraisal Report.
Caveats for the Appraiser.
Notes.
References.
Chapter 9: Implementation Planning and Budgeting.
Implementation Planning.
Project Management.
Conducting the Implementation Project.
Implementation Budget.
Appendix 9.1 Sample responsibility matrix for portion ofproject.
Appendix 9.2 Checklist of project implementation costs.
Notes.
About the Authors.
Index.
Symbols and Most Frequently Used Acronyms.
Introduction.
Chapter 1: Investment Environment.
Systematic Project Analysis.
Project Environment and Strategy.
Project Development Process (PDP).
Planning Horizon and Project Life.
Project Scope.
Pre-Investment Studies.
Investment Planning Infrastructure.
Appendix 1.1: Elements of Commercial and Wider Domains.
Appendix 1.2: Outline of Business Plan for a ManufacturingEnterprise.
Appendix 1.3: Outline of Design/Study Report.
Appendix 1.4: Information flow details.
Notes.
References.
Chapter 2: Preparing Pro-Forma Financial Statements.
Accounting System.
Process of Financial Analysis.
Financial Costs and Benefits.
Investment Costs.
Production Cost.
Operating, Factory Cost and Cost of Product Sold.
Financial Statements.
Appendix 2.1: Depreciation methods.
Appendix 2.2: Starting Inventory Balance.
Notes.
Chapter 3: Financial Indicators and Criteria.
Static Indicators.
Types of Static Indicators.
Financial Criteria for Investment Decisions.
Analysis of Joint Ventures.
Project of an Ongoing Enterprise.
Notes.
References.
Chapter 4: Financing the Project.
Capital structure.
Cost of Capital.
Notes.
References.
Chapter 5: the Economic Perspective.
Private sector.
Public sector.
General rationale for economic evaluation - who needsit?
Macroeconomic View - Impact on the National Economy.
Price Distortions.
Applicability and Scope.
Economic Pricing Principles¯20.
Shadow Prices of Primary Resources (National Parameters).
Conversion and Adjustment Factors.
Appendix 5.1: Costs and Benefits of 'Revenue Projects'.
Appendix 5.2: Global Pricing Framework - Importable InputForegone.
Notes.
References.
Chapter 6: Economic Cost - Benefit Analysis.
Adjustments for the wider domain.
Valuation at market prices.
Define the accounting unit (AU).
Value Added (VA).
Supplementary Indicators.
Notes.
References.
Chapter 7: Investment Decision under Uncertainty andRisk.
Forecasting.
Risk - Dealing with Uncertainty.
Quantitative Risk Assessment.
Qualitative Risk Assessment.
Risk Management.
Risk Immunization for Financiers.
International Investors and Risk.
Appendix 7.1: Discrete probability analysis -multivariate.
Notes.
References.
Chapter 8: Project Appraisal.
Macro-Micro Appraisal.
SWOT Analysis.
Stakeholder Perspectives.
Appraisal Report.
Caveats for the Appraiser.
Notes.
References.
Chapter 9: Implementation Planning and Budgeting.
Implementation Planning.
Project Management.
Conducting the Implementation Project.
Implementation Budget.
Appendix 9.1 Sample responsibility matrix for portion ofproject.
Appendix 9.2 Checklist of project implementation costs.
Notes.
About the Authors.
Index.
