A key factor for the success of the project management is the availability of a clear
pre-defined plan, minimizing risks and deviations from the plan, efficient management
of changes (as opposed to process, functional management, service level
management). Using the binomial method to estimate the value of real options, they
proceed from the assumption that the number of links is discrete and known in
advance. The logic of this approach requires that their number correspond to the
frequency of making the most significant decisions for the project. The nodes of the
lattice should be those moments in time in which strategic decisions are made on
reducing, developing, switching business, etc. In general, the use of the real options
method extends the tools to justify decisions in managing an investment projects
Project Appraisal Concepts Methods And Techniques PowerPoint Presentation Sli...SlideTeam
The document discusses concepts and methods for project appraisal and includes sections on project introduction, market feasibility, project particulars, techno-environmental aspects, financial analysis, and project conclusion. It provides editable slides on each of these topics that can be customized for presentations. The slides include templates for organization charts, milestones, demand statistics, competitor comparisons, SWOT analyses, social media plans, project descriptions, proposed services, infrastructure facilities, business models, technical feasibility assessments, and environmental/legal aspects.
This document proposes a feasibility study to identify factors that would impact the growth of the blue economy in Europe. The study would use various analytical tools and research methodologies to examine market size, growth trends, stakeholders, risks, and other economic and environmental factors. The objectives are to identify innovations that could optimize profitability in the sector, strengthen market surveys and risk assessment, identify potential bottlenecks, and ensure the project's alignment with EU legal frameworks. A combination of desk research, stakeholder consultations, surveys, and analytical tools like SWOT and input-output analysis would be used to provide recommendations to maximize sustainable growth in the blue economy.
This document discusses the preparation and identification of projects. It defines a project as a specifically devised work plan to achieve objectives within a specified time period. Projects vary in size, nature, objectives and complexity. The document then classifies projects as quantifiable or non-quantifiable, by sector, and by factors like capital intensity. It describes ways to identify potential projects through observation, publications, exhibitions and more. Project selection involves analyzing economic conditions, markets, profits and more. Key factors in selection include available technology, equipment, investment size, location and marketing potential.
The document discusses the process of project formulation, which involves systematically developing and investigating project ideas to determine if they should be invested in. It involves experts from various fields conducting feasibility analyses from technical, market, financial, and social perspectives. If the analyses show a project is feasible, a detailed project report is created that serves as the work plan for implementation and helps obtain necessary approvals and funding. Project formulation helps decide whether to accept or reject a project idea before significant resources are invested.
The document presents a feasibility study for a Pentagon project. It includes sections on the objectives of feasibility studies, various dimensions of analysis such as market, technical, financial, and economic, as well as summaries of these analyses. A team of 5 students conducted the study to analyze the viability of the proposed Pentagon project across multiple parameters and provide a framework for its potential development.
This document outlines the methodology for project appraisal. It discusses how appraisal involves carefully reviewing project data, assumptions, plans, costs, financing, organization, and viability. It also examines projects from technical, financial, economic, institutional, and social perspectives. The goal of appraisal is to determine if a project is sound and justified from both an individual and economy-wide viewpoint. It describes how different sections analyze technical, financial, economic, and social aspects of a project. Finally, it discusses techniques for appraisal such as discounted and undiscounted cash flows, as well as the importance of considering incremental costs and benefits compared to a base case without the project.
A feasibility study assesses the practicality of a proposed project by examining if it should proceed to a detailed investment proposal. It analyzes three alternatives: proceeding with feasible ideas, abandoning unfeasible ones, or collecting more data for inconclusive ones. A techno-economic feasibility study estimates project demand potential and optimal technology choice based on existing market and technology analysis. A feasibility report for a new or expanding enterprise includes background on the industry, objectives and scope, manufacturing processes, financial implications, and an implementation schedule. Key factors considered are technical, economic, financial, managerial, and implementation feasibility.
Project Appraisal Concepts Methods And Techniques PowerPoint Presentation Sli...SlideTeam
The document discusses concepts and methods for project appraisal and includes sections on project introduction, market feasibility, project particulars, techno-environmental aspects, financial analysis, and project conclusion. It provides editable slides on each of these topics that can be customized for presentations. The slides include templates for organization charts, milestones, demand statistics, competitor comparisons, SWOT analyses, social media plans, project descriptions, proposed services, infrastructure facilities, business models, technical feasibility assessments, and environmental/legal aspects.
This document proposes a feasibility study to identify factors that would impact the growth of the blue economy in Europe. The study would use various analytical tools and research methodologies to examine market size, growth trends, stakeholders, risks, and other economic and environmental factors. The objectives are to identify innovations that could optimize profitability in the sector, strengthen market surveys and risk assessment, identify potential bottlenecks, and ensure the project's alignment with EU legal frameworks. A combination of desk research, stakeholder consultations, surveys, and analytical tools like SWOT and input-output analysis would be used to provide recommendations to maximize sustainable growth in the blue economy.
This document discusses the preparation and identification of projects. It defines a project as a specifically devised work plan to achieve objectives within a specified time period. Projects vary in size, nature, objectives and complexity. The document then classifies projects as quantifiable or non-quantifiable, by sector, and by factors like capital intensity. It describes ways to identify potential projects through observation, publications, exhibitions and more. Project selection involves analyzing economic conditions, markets, profits and more. Key factors in selection include available technology, equipment, investment size, location and marketing potential.
The document discusses the process of project formulation, which involves systematically developing and investigating project ideas to determine if they should be invested in. It involves experts from various fields conducting feasibility analyses from technical, market, financial, and social perspectives. If the analyses show a project is feasible, a detailed project report is created that serves as the work plan for implementation and helps obtain necessary approvals and funding. Project formulation helps decide whether to accept or reject a project idea before significant resources are invested.
The document presents a feasibility study for a Pentagon project. It includes sections on the objectives of feasibility studies, various dimensions of analysis such as market, technical, financial, and economic, as well as summaries of these analyses. A team of 5 students conducted the study to analyze the viability of the proposed Pentagon project across multiple parameters and provide a framework for its potential development.
This document outlines the methodology for project appraisal. It discusses how appraisal involves carefully reviewing project data, assumptions, plans, costs, financing, organization, and viability. It also examines projects from technical, financial, economic, institutional, and social perspectives. The goal of appraisal is to determine if a project is sound and justified from both an individual and economy-wide viewpoint. It describes how different sections analyze technical, financial, economic, and social aspects of a project. Finally, it discusses techniques for appraisal such as discounted and undiscounted cash flows, as well as the importance of considering incremental costs and benefits compared to a base case without the project.
A feasibility study assesses the practicality of a proposed project by examining if it should proceed to a detailed investment proposal. It analyzes three alternatives: proceeding with feasible ideas, abandoning unfeasible ones, or collecting more data for inconclusive ones. A techno-economic feasibility study estimates project demand potential and optimal technology choice based on existing market and technology analysis. A feasibility report for a new or expanding enterprise includes background on the industry, objectives and scope, manufacturing processes, financial implications, and an implementation schedule. Key factors considered are technical, economic, financial, managerial, and implementation feasibility.
The document discusses various aspects of project appraisal, including market appraisal, technical appraisal, financial appraisal, and economic appraisal. It covers topics such as the information required for market analysis, demand forecasting, assessing materials and equipment needs, cost projections, and measuring the costs and benefits of a project. Market appraisal considers factors like future demand, market share, competition, location, and technological changes.
This presentation discusses the relationship between technology and economics (techno-economics). It begins by defining technology as the products and processes created by engineers to meet needs and wants. It then explains that techno-economics deals with how technology impacts the economy and vice versa. The presentation outlines the role technology plays in economic development by introducing new goods, processes, and markets. It also discusses the role of entrepreneurs in spurring economic growth through innovation. The presentation analyzes the benefits technology provides in increasing productivity but also notes potential drawbacks like environmental damage and threats to privacy and family life from overuse of tech.
Project identification and Project selectionAmandaBvera
This presentation covers the topic of project identification and project selection. It sheds light on the meaning of the project, meaning of project identification, classification of projects, types of opportunities, dimensions of project identification, criteria for project selection and constraints involved in project selection. Enjoy learning!
The document outlines the purpose and process of a feasibility study. A feasibility study is conducted after a master plan to determine the most cost-effective strategy for developing facilities to deliver health services. It confirms the need for capital projects, evaluates development options against criteria, and provides a cost estimate and implementation plan. The study assesses the viability of projects financially and recommends a course of action. It analyzes service requirements, develops space plans, reviews sites, and identifies procurement options.
The document discusses steps for project planning and feasibility study, including assessing various types of feasibility for a proposed project. It describes establishing a project team, defining activities and deliverables. Feasibility is assessed through analyzing economic, technical, operational, schedule and legal factors. Benefits and costs, both tangible and intangible, are evaluated. The overall feasibility of a project to establish an apparel manufacturing factory is determined by analyzing these various criteria.
The document discusses various concepts related to project identification and management. It defines project management as the application of knowledge, skills, and tools to meet stakeholder needs and expectations. Project identification is the process of assessing project ideas and selecting those with the highest priority. Some tools used in project identification include situational analysis, SWOT analysis, problem and opportunity studies, and resource analysis. Situational analysis involves understanding how a company relates to its external environment. SWOT analysis is used to analyze strengths, weaknesses, opportunities, and threats. Problem and opportunity studies aim to identify favorable positions or areas for advancement. Resource analysis examines a firm's tangible and intangible assets.
Presenting this set of slides with name - Project Appraisal PowerPoint Presentation Slides . The stages in this process are PROJECT ASSESSMENT, Project Evaluation, Project Appraisal
The document discusses identifying business opportunities and evaluating them. It describes scanning the internal and external environment to identify customer needs and potential opportunities. The process involves screening opportunities based on factors like legal issues, competition, capital requirements and risk. Once opportunities are identified, a business plan is prepared to select the best opportunity. Government policies aim to promote small and medium enterprises by improving access to credit, technology, skills and global markets.
This document discusses project identification and formulation. It outlines the five stages of a project cycle: identification, formulation, appraisal, implementation, and monitoring and evaluation. Identification involves finding potential project ideas from various sources. Formulation includes conducting a feasibility study and market, technical, financial, and economic analyses. Appraisal involves an independent analysis of all project aspects. Implementation has pre-development, development, and operational phases. Monitoring and evaluation track project performance and identify lessons learned. The document also discusses generating project ideas, selecting opportunities, assessing viability through feasibility studies, and obtaining project financing through various capital sources.
The document discusses the key components of a feasibility study, including technical, financial, market, and legal/environmental feasibility. A feasibility study evaluates whether a proposed project is possible in terms of technical requirements, costs, potential market demand, and legal/regulatory factors. It determines if a project is worth pursuing based on these considerations, while a business plan outlines how a project would be implemented if deemed feasible. The document provides details on assessing feasibility from each of these perspectives.
The document discusses various aspects of project appraisal, including market appraisal, technical appraisal, financial appraisal, and economic appraisal. It provides details on steps involved in market and demand analysis, sources of secondary information for feasibility studies, and how to determine a project rating index. Key aspects covered include analyzing aggregate future demand, competition, and pricing options for market appraisal, and evaluating costs, profitability, and risk for financial appraisal.
The document discusses various topics related to project management. It defines what a project and project management are, and notes that project management involves meeting stakeholder needs within constraints of scope, time, cost and quality. It also discusses the impact of human resources, management information systems, finance and production on project management. Finally, it outlines guidelines for generating and screening project ideas, including monitoring the environment, corporate appraisal and using tools like SWOT analysis.
Feasibility study and its importance in context of organizationLalita Shrestha
This document discusses the importance of conducting a feasibility study for an organization. It provides an overview of what a feasibility study is, when it should be conducted, the typical areas it assesses (technical, economic, legal, operational, scheduling), and the general steps involved. The key areas a feasibility study examines include assessing if the proposed plan is practical and has sufficient resources, if it will provide a return on investment, and if it fulfills requirements. Conducting a feasibility study gives an organization focus, identifies opportunities and risks, and enhances the probability of a project's success. It also provides quality information for decision-making.
The document discusses the process of project formulation, which begins with generating and screening project ideas. Ideas are generated through analyzing the economy, conducting surveys and studies, and using tools like SWOT analysis. The environment is also monitored across sectors like economic, governmental, and competition. Corporate strengths and weaknesses are appraised to identify opportunities. Several tools can help identify promising opportunities, such as the life cycle approach and Porter's five forces model. Project ideas are scouted, preliminarily screened based on factors like compatibility and costs, and rated using a project rating index to evaluate their feasibility. Successful entrepreneurs exhibit qualities like leadership, decisiveness, and marketing orientation.
Public enterprises are businesses owned and controlled by the state to serve public interests. They produce goods like steel, chemicals, and transportation equipment. While they may earn profits, their primary goals are economic development, equitable distribution of wealth, and strategic national interests. Financial advisors play an important role in public enterprises by providing financial guidance and oversight. Major capital expenditures require approval from the government according to guidelines evaluating technical, economic, social, and environmental impacts.
There are several types of risks faced by projects including governance, strategic, operational, market, and legal risks. Construction projects face completion risks if the project is not finished on time or on budget. Operational risks for projects include resource/reserve risks and operating risks.
The process of project risk management involves identifying risks, analyzing and prioritizing them, planning risk responses, and then monitoring risks throughout the project. Effectiveness of risk management can be measured by comparing pre-and post-mitigation exposure amounts or by reviewing risk actions along with project progress. Risk response planning determines actions to enhance opportunities and reduce threats through avoidance, transfer, mitigation, or acceptance.
This document provides an introduction and background to the Guide to Practical Project Appraisal. It discusses the original UN Guidelines for Project Evaluation publication that this guide builds upon. The original guidelines emphasized using "shadow prices" that reflect the true value of resources to evaluate projects, as market prices are often distorted. It also stressed evaluating projects' impacts on both efficiency and equity. This guide aims to make the UNIDO methodology more accessible to practitioners by simplifying it and including examples. It will take readers through 5 stages of project evaluation: financial analysis, economic analysis using shadow prices, impacts on savings and investment, income distribution, and social goods. The overall goal is to help analysts and decision makers evaluate projects' total social impacts.
This document outlines the process of generating and screening project ideas. It discusses monitoring the external environment, evaluating corporate strengths and weaknesses, and using tools like Porter's five forces model to identify investment opportunities. Potential project ideas are scouted from various sources and given a preliminary screening based on factors like market potential and costs. Projects are then rated using an index calculated from weighted factors to determine which ideas warrant further evaluation. The sources of positive net present value that make projects profitable are also discussed.
This document provides guidance on preparing a project report for obtaining financial assistance. It outlines 7 key sections that should be included: 1) General information about the entrepreneur and business, 2) A description of the project including site, raw materials, labor, utilities, production process, etc., 3) An analysis of market potential, demand, pricing, and marketing strategy, 4) Estimates of capital costs and proposed sources of financing, 5) An assessment of working capital requirements, 6) Other financial projections like profit/loss, cash flow, and break-even analysis, and 7) Consideration of economic and social impacts like jobs, import substitution, and community development. Preparing a comprehensive project report that addresses all required areas can help
This feasibility study evaluates the potential for a new business venture. It examines the market feasibility by analyzing the target market size, industry trends and competitive landscape. The technical feasibility considers the current technology, new developments, and labor needs. Financial feasibility forecasts whether sufficient profits can be generated to cover costs and provide returns. Organizational feasibility defines the legal structure and backgrounds of the founders/partners. Risks and potential returns are estimated. The conclusion determines if the project is feasible and provides benefits or discusses uncertainty factors and risks.
The document discusses various capital budgeting techniques. It defines net present value and internal rate of return, and discusses how they can sometimes provide contradictory results. It also provides short notes on certainty equivalent approach and sensitivity analysis, explaining how they handle risk in capital budgeting. Social cost benefit analysis is discussed in the context of evaluating industrial projects. The document also covers other topics like project appraisal under inflation, capital rationing, zero date of a project, simulation analysis, and the key contents of a project report.
The document discusses various aspects of project appraisal, including market appraisal, technical appraisal, financial appraisal, and economic appraisal. It covers topics such as the information required for market analysis, demand forecasting, assessing materials and equipment needs, cost projections, and measuring the costs and benefits of a project. Market appraisal considers factors like future demand, market share, competition, location, and technological changes.
This presentation discusses the relationship between technology and economics (techno-economics). It begins by defining technology as the products and processes created by engineers to meet needs and wants. It then explains that techno-economics deals with how technology impacts the economy and vice versa. The presentation outlines the role technology plays in economic development by introducing new goods, processes, and markets. It also discusses the role of entrepreneurs in spurring economic growth through innovation. The presentation analyzes the benefits technology provides in increasing productivity but also notes potential drawbacks like environmental damage and threats to privacy and family life from overuse of tech.
Project identification and Project selectionAmandaBvera
This presentation covers the topic of project identification and project selection. It sheds light on the meaning of the project, meaning of project identification, classification of projects, types of opportunities, dimensions of project identification, criteria for project selection and constraints involved in project selection. Enjoy learning!
The document outlines the purpose and process of a feasibility study. A feasibility study is conducted after a master plan to determine the most cost-effective strategy for developing facilities to deliver health services. It confirms the need for capital projects, evaluates development options against criteria, and provides a cost estimate and implementation plan. The study assesses the viability of projects financially and recommends a course of action. It analyzes service requirements, develops space plans, reviews sites, and identifies procurement options.
The document discusses steps for project planning and feasibility study, including assessing various types of feasibility for a proposed project. It describes establishing a project team, defining activities and deliverables. Feasibility is assessed through analyzing economic, technical, operational, schedule and legal factors. Benefits and costs, both tangible and intangible, are evaluated. The overall feasibility of a project to establish an apparel manufacturing factory is determined by analyzing these various criteria.
The document discusses various concepts related to project identification and management. It defines project management as the application of knowledge, skills, and tools to meet stakeholder needs and expectations. Project identification is the process of assessing project ideas and selecting those with the highest priority. Some tools used in project identification include situational analysis, SWOT analysis, problem and opportunity studies, and resource analysis. Situational analysis involves understanding how a company relates to its external environment. SWOT analysis is used to analyze strengths, weaknesses, opportunities, and threats. Problem and opportunity studies aim to identify favorable positions or areas for advancement. Resource analysis examines a firm's tangible and intangible assets.
Presenting this set of slides with name - Project Appraisal PowerPoint Presentation Slides . The stages in this process are PROJECT ASSESSMENT, Project Evaluation, Project Appraisal
The document discusses identifying business opportunities and evaluating them. It describes scanning the internal and external environment to identify customer needs and potential opportunities. The process involves screening opportunities based on factors like legal issues, competition, capital requirements and risk. Once opportunities are identified, a business plan is prepared to select the best opportunity. Government policies aim to promote small and medium enterprises by improving access to credit, technology, skills and global markets.
This document discusses project identification and formulation. It outlines the five stages of a project cycle: identification, formulation, appraisal, implementation, and monitoring and evaluation. Identification involves finding potential project ideas from various sources. Formulation includes conducting a feasibility study and market, technical, financial, and economic analyses. Appraisal involves an independent analysis of all project aspects. Implementation has pre-development, development, and operational phases. Monitoring and evaluation track project performance and identify lessons learned. The document also discusses generating project ideas, selecting opportunities, assessing viability through feasibility studies, and obtaining project financing through various capital sources.
The document discusses the key components of a feasibility study, including technical, financial, market, and legal/environmental feasibility. A feasibility study evaluates whether a proposed project is possible in terms of technical requirements, costs, potential market demand, and legal/regulatory factors. It determines if a project is worth pursuing based on these considerations, while a business plan outlines how a project would be implemented if deemed feasible. The document provides details on assessing feasibility from each of these perspectives.
The document discusses various aspects of project appraisal, including market appraisal, technical appraisal, financial appraisal, and economic appraisal. It provides details on steps involved in market and demand analysis, sources of secondary information for feasibility studies, and how to determine a project rating index. Key aspects covered include analyzing aggregate future demand, competition, and pricing options for market appraisal, and evaluating costs, profitability, and risk for financial appraisal.
The document discusses various topics related to project management. It defines what a project and project management are, and notes that project management involves meeting stakeholder needs within constraints of scope, time, cost and quality. It also discusses the impact of human resources, management information systems, finance and production on project management. Finally, it outlines guidelines for generating and screening project ideas, including monitoring the environment, corporate appraisal and using tools like SWOT analysis.
Feasibility study and its importance in context of organizationLalita Shrestha
This document discusses the importance of conducting a feasibility study for an organization. It provides an overview of what a feasibility study is, when it should be conducted, the typical areas it assesses (technical, economic, legal, operational, scheduling), and the general steps involved. The key areas a feasibility study examines include assessing if the proposed plan is practical and has sufficient resources, if it will provide a return on investment, and if it fulfills requirements. Conducting a feasibility study gives an organization focus, identifies opportunities and risks, and enhances the probability of a project's success. It also provides quality information for decision-making.
The document discusses the process of project formulation, which begins with generating and screening project ideas. Ideas are generated through analyzing the economy, conducting surveys and studies, and using tools like SWOT analysis. The environment is also monitored across sectors like economic, governmental, and competition. Corporate strengths and weaknesses are appraised to identify opportunities. Several tools can help identify promising opportunities, such as the life cycle approach and Porter's five forces model. Project ideas are scouted, preliminarily screened based on factors like compatibility and costs, and rated using a project rating index to evaluate their feasibility. Successful entrepreneurs exhibit qualities like leadership, decisiveness, and marketing orientation.
Public enterprises are businesses owned and controlled by the state to serve public interests. They produce goods like steel, chemicals, and transportation equipment. While they may earn profits, their primary goals are economic development, equitable distribution of wealth, and strategic national interests. Financial advisors play an important role in public enterprises by providing financial guidance and oversight. Major capital expenditures require approval from the government according to guidelines evaluating technical, economic, social, and environmental impacts.
There are several types of risks faced by projects including governance, strategic, operational, market, and legal risks. Construction projects face completion risks if the project is not finished on time or on budget. Operational risks for projects include resource/reserve risks and operating risks.
The process of project risk management involves identifying risks, analyzing and prioritizing them, planning risk responses, and then monitoring risks throughout the project. Effectiveness of risk management can be measured by comparing pre-and post-mitigation exposure amounts or by reviewing risk actions along with project progress. Risk response planning determines actions to enhance opportunities and reduce threats through avoidance, transfer, mitigation, or acceptance.
This document provides an introduction and background to the Guide to Practical Project Appraisal. It discusses the original UN Guidelines for Project Evaluation publication that this guide builds upon. The original guidelines emphasized using "shadow prices" that reflect the true value of resources to evaluate projects, as market prices are often distorted. It also stressed evaluating projects' impacts on both efficiency and equity. This guide aims to make the UNIDO methodology more accessible to practitioners by simplifying it and including examples. It will take readers through 5 stages of project evaluation: financial analysis, economic analysis using shadow prices, impacts on savings and investment, income distribution, and social goods. The overall goal is to help analysts and decision makers evaluate projects' total social impacts.
This document outlines the process of generating and screening project ideas. It discusses monitoring the external environment, evaluating corporate strengths and weaknesses, and using tools like Porter's five forces model to identify investment opportunities. Potential project ideas are scouted from various sources and given a preliminary screening based on factors like market potential and costs. Projects are then rated using an index calculated from weighted factors to determine which ideas warrant further evaluation. The sources of positive net present value that make projects profitable are also discussed.
This document provides guidance on preparing a project report for obtaining financial assistance. It outlines 7 key sections that should be included: 1) General information about the entrepreneur and business, 2) A description of the project including site, raw materials, labor, utilities, production process, etc., 3) An analysis of market potential, demand, pricing, and marketing strategy, 4) Estimates of capital costs and proposed sources of financing, 5) An assessment of working capital requirements, 6) Other financial projections like profit/loss, cash flow, and break-even analysis, and 7) Consideration of economic and social impacts like jobs, import substitution, and community development. Preparing a comprehensive project report that addresses all required areas can help
This feasibility study evaluates the potential for a new business venture. It examines the market feasibility by analyzing the target market size, industry trends and competitive landscape. The technical feasibility considers the current technology, new developments, and labor needs. Financial feasibility forecasts whether sufficient profits can be generated to cover costs and provide returns. Organizational feasibility defines the legal structure and backgrounds of the founders/partners. Risks and potential returns are estimated. The conclusion determines if the project is feasible and provides benefits or discusses uncertainty factors and risks.
The document discusses various capital budgeting techniques. It defines net present value and internal rate of return, and discusses how they can sometimes provide contradictory results. It also provides short notes on certainty equivalent approach and sensitivity analysis, explaining how they handle risk in capital budgeting. Social cost benefit analysis is discussed in the context of evaluating industrial projects. The document also covers other topics like project appraisal under inflation, capital rationing, zero date of a project, simulation analysis, and the key contents of a project report.
This document outlines the course outline and content for a Building Economics II module at the University of Rwanda's College of Science and Technology. The key topics covered include feasibility studies, financial appraisal methods, cost control, valuation, and financial mathematics for property development. Specific topics within these areas include different types of feasibility studies and appraisal methods, the purpose and importance of cost control, definitions of economic terms, and calculations for present value, interest, and compound interest as they relate to property development. The course is intended to teach students concepts and techniques for evaluating the economic viability and costs of construction and development projects.
Time, Cost, and Quality Trade-off Analysis in Construction ProjectsIRJET Journal
This document summarizes a student paper about analyzing the trade-offs between time, cost, and quality in construction projects. It discusses using a Time-Cost-Quality Tradeoff (TCQT) model to optimize these three objectives. A literature review and questionnaire survey were conducted to identify key factors. Statistical analysis using SPSS and Relative Rank Index was performed on the survey data. A case study was also done to demonstrate applying the TCQT model and analyzing time-cost tradeoffs using Primavera P6 project management software.
IRJET- Optimisation of Risk on Returns by Portfolio AnalysisIRJET Journal
This document analyzes the portfolio of Om Shree Construction to optimize risk and returns on investments. Data on cash inflows and outflows from 2011-2019 across various business segments is collected and analyzed using net present value, benefit-cost ratio, and internal rate of return. The results show a positive net present value, a benefit-cost ratio above 1, and an internal rate of return of 22.75%, indicating the portfolio provides overall profits and is a worthwhile investment. The analysis provides a method for construction firms to evaluate investments and reduce risk while maximizing returns.
Determining the Mathematical ROI of a Project Management Office (PMO) Impleme...Ricardo Viana Vargas
The objective of this paper is to present, discuss and apply a mathematical model based on the use of Monte Carlo simulation in conjunction with researches on project success/failure rates of projects to develop a 10 step model to calculate the mathematical return on investment (ROI) for the Project Office implementation.
Identification of Factors Affecting Construction Cash Flow: A Statistical Ana...IRJET Journal
The document discusses factors affecting construction cash flow based on a statistical analysis. It aims to identify such factors through a literature review and questionnaire survey of contractors. The survey identified factors under 7 categories that impact cash flow forecasting. Results showed the top factors were cost overruns, time overruns, arbitration issues, faulty cash flow models, and changes in clients' financial positions. The research concluded that accurately identifying and prioritizing such factors plays an important role in projecting construction cash flows.
Decisions of investments in operating fixed assets using an indicator arising...irjes
The need for new investments in operating fixed assets is a present reality in the company
environment. Therefore, this article has as its main purpose to demonstrate the application of an evaluating
indicator of investments in operating fixed assets involving methods and techniques arising from investment
analysis, from engineering economics and from the strategy of operations. Departing from the model developed
by Slack and Lewis (2009) for measuring performance goals, a bibliographical review has been elaborated,
where an indicator has been able to be created, here denominated as RLL. Simulations of a new investment have
been done, in which the condition of mutually exclusive projects created some analyses where the conditions
were either producing or alternatively outsourcing. The projects have been analyzed through the method return
on investment (ROI) and net present value (NPV) and eventually through the RLL. The results have been tested
and demonstrated statistical adherence. As a conclusion, the RLL can be used as a complementary indicator in
the analyses of new investments in operating fixed assets, as well as the generation of sectorial benchmarking,
once it uses information from financial demonstrations.
Characteristics of Audit in Construction Organizationsijtsrd
Today, the development of accounting and auditing in Uzbekistan creates an urgent need to analyze it in some segments of the local economy. Improving international auditing and increasing the size of the construction sector requires the constant participation of not only government agencies, but also specialized organizations in shaping the overall legal framework for auditing. The relevance of this article is that the audit of all construction organizations is being reformed at a high rate. This factor stems from the changing objective criteria for the implementation of construction, including the active integration mechanism for solving problems of a global nature, its spread to countries with modern economies and international associations, using innovative technologies. and increasing the performance of international auditing standards. Thus, it can be said that our country needs a modern approach to the essence of the function of accounting and financial management and its main element audit. At the present stage, both domestic and international construction companies are developing very rapidly. There is a significant increase in investment in the construction sector, which encourages the reorganization and reconstruction of various types of facilities. Then the criteria for the quality of accounting financial reports, their reliability and audit activity will be strengthened. Tulovov Erkinjon To'lqin O'g'li "Characteristics of Audit in Construction Organizations" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-6 , October 2021, URL: https://www.ijtsrd.com/papers/ijtsrd47545.pdf Paper URL : https://www.ijtsrd.com/management/accounting-and-finance/47545/characteristics-of-audit-in-construction-organizations/tulovov-erkinjon-to'lqin-o'g'li
Intersectoral linkages represent the economic and organizational interaction
between industries, characterizing the relationship to ensure the production process,
as well as the production and sale of products in the industry based on exchanging
equivalent costs and ensuring the same level of production profitability. Due to the need
to develop branches of the national economy, the authors suggest a methodological
approach to assessing the efficiency of the economic mechanism for establishing and
developing intersectoral linkages
ImportanceUnder the global economic crisis, instability of global financial and commodity markets and increased competition for investment resources, the rational allocation and efficient use of investment, particularly in the development of industries, are of great significance. Object. Due to the crisis phenomena in the world economy, instability of the world financial and commodity markets, rational distribution and efficient use of investments, especially in the development of industries, are becoming increasingly important.
IRJET- A Study on Project Management Techniques to Avoid Project FailureIRJET Journal
This document discusses project management techniques to avoid project failure. It begins with an introduction to project management and definitions of key terms. The literature review then summarizes several academic papers on topics related to project failure such as identifying common causes of failure, project performance measurement, and techniques for scheduling projects with uncertainty. The conclusion reiterates that project management techniques must be tailored to the specific project and region, and that further research is needed to enhance understanding of avoiding project failure.
Project appraisal involves carefully reviewing key project data, assumptions, methodology, work plans, cost estimates, financing, organizational aspects, and viability. It assesses projects from technical, institutional, financial, economic, and viability perspectives. The goal is to determine if projects are sound, justified, and beneficial to the economy. Technical, engineering, commercial, organizational, and managerial aspects are reviewed, as well as financial and economic impacts. Project appraisal techniques include undiscounted methods like payback period and profit/loss accounting, and discounted methods like net present value, benefit-cost ratio, internal rate of return, and sensitivity analysis, which consider the time value of money. Economic viability is judged at a 12% discount rate, while
IRJET-Quality Benchmarking in Construction IndustryIRJET Journal
This document summarizes a research paper that studied differences in project planning quality across different industries. It found that construction and engineering organizations planned projects better than other industries like software, services, and production/maintenance. Construction and engineering organizations also had less cost and schedule overruns, indicating better project success. The study used a Project Management Planning Quality model to evaluate the use of 33 different planning processes and organizational support factors. It analyzed data from 201 project managers across four industries. Key findings were that construction/engineering planned projects best while production/maintenance planned projects worst, and construction/engineering projects succeeded best while production/maintenance projects succeeded worst.
Budget management is important for ensuring the continuity of enterprises and hospitals. The document discusses budget management in businesses and hospitals in Turkey. It defines budgets and budgeting, and explains the importance of budgets for planning, resource allocation, and performance evaluation. Budgets help managers make better decisions and minimize costs. Hospitals in Turkey are largely state-run, so budgets are important for ensuring quality healthcare services while using limited resources efficiently.
This document provides an overview of project management concepts including the meaning of projects, project identification, selection, and reporting. It discusses the need for and contents of project reports, including guidelines from the Planning Commission of India. Enterprise resource planning and its importance to functional areas like marketing, supply chain management, finance, accounting, and human resources are also covered. The document outlines the project appraisal process and different network analysis techniques used in project scheduling, notably the Program Evaluation and Review Technique (PERT) and Critical Path Method (CPM).
This document discusses budget management in public hospitals in Turkey. It begins by defining budgets and budgeting, explaining that budgets are important for ensuring the continuity of enterprises by allowing for the optimal use of limited resources. It then discusses the importance of budget management for hospitals specifically. Hospitals must carefully budget their funds to provide quality healthcare services. The document focuses on budgeting practices in Turkey's state-run public hospitals, which have an important role in the country's healthcare system.
Feasibility Study using the PMBOK® MethodologyIJAEMSJORNAL
In 1969 Martin Barnes opened the debate a lot about what is the best way to describe the fundamental limitations that underpin the success of the project. This paper develops a project integration model "Beyoutiful Esthetics" through the PMBOK® methodology. The objective in this document is to present the case of this model and demonstrate the way to evaluate the project in the delivery of successful results as part of the development of the PMBOK® model, in the area of beauty culture.
IRJET- Controlling and Monitoring the Construction Projects by using Earned V...IRJET Journal
This document discusses controlling and monitoring construction projects using the earned value method. It begins with an introduction to the importance of controlling and monitoring construction projects. It then discusses the methodology of earned value analysis, including defining earned value, variances, and the five steps to set up an earned value system and four steps to use the information generated. Key aspects of earned value discussed include using it as a uniform measure of project progress, its role in cost performance analysis, and how it is calculated based on planned value, earned value, and actual costs.
Similar to BINOMIAL APPROACH TO ASSESSING REAL OPTIONS IN MANAGING AN INVESTMENT PROJECT (20)
Submission Deadline: 30th September 2022
Acceptance Notification: Within Three Days’ time period
Online Publication: Within 24 Hrs. time Period
Expected Date of Dispatch of Printed Journal: 5th October 2022
MODELING AND ANALYSIS OF SURFACE ROUGHNESS AND WHITE LATER THICKNESS IN WIRE-...IAEME Publication
White layer thickness (WLT) formed and surface roughness in wire electric discharge turning (WEDT) of tungsten carbide composite has been made to model through response surface methodology (RSM). A Taguchi’s standard Design of experiments involving five input variables with three levels has been employed to establish a mathematical model between input parameters and responses. Percentage of cobalt content, spindle speed, Pulse on-time, wire feed and pulse off-time were changed during the experimental tests based on the Taguchi’s orthogonal array L27 (3^13). Analysis of variance (ANOVA) revealed that the mathematical models obtained can adequately describe performance within the parameters of the factors considered. There was a good agreement between the experimental and predicted values in this study.
A STUDY ON THE REASONS FOR TRANSGENDER TO BECOME ENTREPRENEURSIAEME Publication
The study explores the reasons for a transgender to become entrepreneurs. In this study transgender entrepreneur was taken as independent variable and reasons to become as dependent variable. Data were collected through a structured questionnaire containing a five point Likert Scale. The study examined the data of 30 transgender entrepreneurs in Salem Municipal Corporation of Tamil Nadu State, India. Simple Random sampling technique was used. Garrett Ranking Technique (Percentile Position, Mean Scores) was used as the analysis for the present study to identify the top 13 stimulus factors for establishment of trans entrepreneurial venture. Economic advancement of a nation is governed upon the upshot of a resolute entrepreneurial doings. The conception of entrepreneurship has stretched and materialized to the socially deflated uncharted sections of transgender community. Presently transgenders have smashed their stereotypes and are making recent headlines of achievements in various fields of our Indian society. The trans-community is gradually being observed in a new light and has been trying to achieve prospective growth in entrepreneurship. The findings of the research revealed that the optimistic changes are taking place to change affirmative societal outlook of the transgender for entrepreneurial ventureship. It also laid emphasis on other transgenders to renovate their traditional living. The paper also highlights that legislators, supervisory body should endorse an impartial canons and reforms in Tamil Nadu Transgender Welfare Board Association.
BROAD UNEXPOSED SKILLS OF TRANSGENDER ENTREPRENEURSIAEME Publication
Since ages gender difference is always a debatable theme whether caused by nature, evolution or environment. The birth of a transgender is dreadful not only for the child but also for their parents. The pain of living in the wrong physique and treated as second class victimized citizen is outrageous and fully harboured with vicious baseless negative scruples. For so long, social exclusion had perpetuated inequality and deprivation experiencing ingrained malign stigma and besieged victims of crime or violence across their life spans. They are pushed into the murky way of life with a source of eternal disgust, bereft sexual potency and perennial fear. Although they are highly visible but very little is known about them. The common public needs to comprehend the ravaged arrogance on these insensitive souls and assist in integrating them into the mainstream by offering equal opportunity, treat with humanity and respect their dignity. Entrepreneurship in the current age is endorsing the gender fairness movement. Unstable careers and economic inadequacy had inclined one of the gender variant people called Transgender to become entrepreneurs. These tiny budding entrepreneurs resulted in economic transition by means of employment, free from the clutches of stereotype jobs, raised standard of living and handful of financial empowerment. Besides all these inhibitions, they were able to witness a platform for skill set development that ignited them to enter into entrepreneurial domain. This paper epitomizes skill sets involved in trans-entrepreneurs of Thoothukudi Municipal Corporation of Tamil Nadu State and is a groundbreaking determination to sightsee various skills incorporated and the impact on entrepreneurship.
DETERMINANTS AFFECTING THE USER'S INTENTION TO USE MOBILE BANKING APPLICATIONSIAEME Publication
The banking and financial services industries are experiencing increased technology penetration. Among them, the banking industry has made technological advancements to better serve the general populace. The economy focused on transforming the banking sector's system into a cashless, paperless, and faceless one. The researcher wants to evaluate the user's intention for utilising a mobile banking application. The study also examines the variables affecting the user's behaviour intention when selecting specific applications for financial transactions. The researcher employed a well-structured questionnaire and a descriptive study methodology to gather the respondents' primary data utilising the snowball sampling technique. The study includes variables like performance expectations, effort expectations, social impact, enabling circumstances, and perceived risk. Each of the aforementioned variables has a major impact on how users utilise mobile banking applications. The outcome will assist the service provider in comprehending the user's history with mobile banking applications.
ANALYSE THE USER PREDILECTION ON GPAY AND PHONEPE FOR DIGITAL TRANSACTIONSIAEME Publication
Technology upgradation in banking sector took the economy to view that payment mode towards online transactions using mobile applications. This system enabled connectivity between banks, Merchant and user in a convenient mode. there are various applications used for online transactions such as Google pay, Paytm, freecharge, mobikiwi, oxygen, phonepe and so on and it also includes mobile banking applications. The study aimed at evaluating the predilection of the user in adopting digital transaction. The study is descriptive in nature. The researcher used random sample techniques to collect the data. The findings reveal that mobile applications differ with the quality of service rendered by Gpay and Phonepe. The researcher suggest the Phonepe application should focus on implementing the application should be user friendly interface and Gpay on motivating the users to feel the importance of request for money and modes of payments in the application.
VOICE BASED ATM FOR VISUALLY IMPAIRED USING ARDUINOIAEME Publication
The prototype of a voice-based ATM for visually impaired using Arduino is to help people who are blind. This uses RFID cards which contain users fingerprint encrypted on it and interacts with the users through voice commands. ATM operates when sensor detects the presence of one person in the cabin. After scanning the RFID card, it will ask to select the mode like –normal or blind. User can select the respective mode through voice input, if blind mode is selected the balance check or cash withdraw can be done through voice input. Normal mode procedure is same as the existing ATM.
IMPACT OF EMOTIONAL INTELLIGENCE ON HUMAN RESOURCE MANAGEMENT PRACTICES AMONG...IAEME Publication
There is increasing acceptability of emotional intelligence as a major factor in personality assessment and effective human resource management. Emotional intelligence as the ability to build capacity, empathize, co-operate, motivate and develop others cannot be divorced from both effective performance and human resource management systems. The human person is crucial in defining organizational leadership and fortunes in terms of challenges and opportunities and walking across both multinational and bilateral relationships. The growing complexity of the business world requires a great deal of self-confidence, integrity, communication, conflict and diversity management to keep the global enterprise within the paths of productivity and sustainability. Using the exploratory research design and 255 participants the result of this original study indicates strong positive correlation between emotional intelligence and effective human resource management. The paper offers suggestions on further studies between emotional intelligence and human capital development and recommends for conflict management as an integral part of effective human resource management.
VISUALISING AGING PARENTS & THEIR CLOSE CARERS LIFE JOURNEY IN AGING ECONOMYIAEME Publication
Our life journey, in general, is closely defined by the way we understand the meaning of why we coexist and deal with its challenges. As we develop the "inspiration economy", we could say that nearly all of the challenges we have faced are opportunities that help us to discover the rest of our journey. In this note paper, we explore how being faced with the opportunity of being a close carer for an aging parent with dementia brought intangible discoveries that changed our insight of the meaning of the rest of our life journey.
A STUDY ON THE IMPACT OF ORGANIZATIONAL CULTURE ON THE EFFECTIVENESS OF PERFO...IAEME Publication
The main objective of this study is to analyze the impact of aspects of Organizational Culture on the Effectiveness of the Performance Management System (PMS) in the Health Care Organization at Thanjavur. Organizational Culture and PMS play a crucial role in present-day organizations in achieving their objectives. PMS needs employees’ cooperation to achieve its intended objectives. Employees' cooperation depends upon the organization’s culture. The present study uses exploratory research to examine the relationship between the Organization's culture and the Effectiveness of the Performance Management System. The study uses a Structured Questionnaire to collect the primary data. For this study, Thirty-six non-clinical employees were selected from twelve randomly selected Health Care organizations at Thanjavur. Thirty-two fully completed questionnaires were received.
Living in 21st century in itself reminds all of us the necessity of police and its administration. As more and more we are entering into the modern society and culture, the more we require the services of the so called ‘Khaki Worthy’ men i.e., the police personnel. Whether we talk of Indian police or the other nation’s police, they all have the same recognition as they have in India. But as already mentioned, their services and requirements are different after the like 26th November, 2008 incidents, where they without saving their own lives has sacrificed themselves without any hitch and without caring about their respective family members and wards. In other words, they are like our heroes and mentors who can guide us from the darkness of fear, militancy, corruption and other dark sides of life and so on. Now the question arises, if Gandhi would have been alive today, what would have been his reaction/opinion to the police and its functioning? Would he have some thing different in his mind now what he had been in his mind before the partition or would he be going to start some Satyagraha in the form of some improvement in the functioning of the police administration? Really these questions or rather night mares can come to any one’s mind, when there is too much confusion is prevailing in our minds, when there is too much corruption in the society and when the polices working is also in the questioning because of one or the other case throughout the India. It is matter of great concern that we have to thing over our administration and our practical approach because the police personals are also like us, they are part and parcel of our society and among one of us, so why we all are pin pointing towards them.
A STUDY ON TALENT MANAGEMENT AND ITS IMPACT ON EMPLOYEE RETENTION IN SELECTED...IAEME Publication
The goal of this study was to see how talent management affected employee retention in the selected IT organizations in Chennai. The fundamental issue was the difficulty to attract, hire, and retain talented personnel who perform well and the gap between supply and demand of talent acquisition and retaining them within the firms. The study's main goals were to determine the impact of talent management on employee retention in IT companies in Chennai, investigate talent management strategies that IT companies could use to improve talent acquisition, performance management, career planning and formulate retention strategies that the IT firms could use. The respondents were given a structured close-ended questionnaire with the 5 Point Likert Scale as part of the study's quantitative research design. The target population consisted of 289 IT professionals. The questionnaires were distributed and collected by the researcher directly. The Statistical Package for Social Sciences (SPSS) was used to collect and analyse the questionnaire responses. Hypotheses that were formulated for the various areas of the study were tested using a variety of statistical tests. The key findings of the study suggested that talent management had an impact on employee retention. The studies also found that there is a clear link between the implementation of talent management and retention measures. Management should provide enough training and development for employees, clarify job responsibilities, provide adequate remuneration packages, and recognise employees for exceptional performance.
ATTRITION IN THE IT INDUSTRY DURING COVID-19 PANDEMIC: LINKING EMOTIONAL INTE...IAEME Publication
Globally, Millions of dollars were spent by the organizations for employing skilled Information Technology (IT) professionals. It is costly to replace unskilled employees with IT professionals possessing technical skills and competencies that aid in interconnecting the business processes. The organization’s employment tactics were forced to alter by globalization along with technological innovations as they consistently diminish to remain lean, outsource to concentrate on core competencies along with restructuring/reallocate personnel to gather efficiency. As other jobs, organizations or professions have become reasonably more appropriate in a shifting employment landscape, the above alterations trigger both involuntary as well as voluntary turnover. The employee view on jobs is also afflicted by the COVID-19 pandemic along with the employee-driven labour market. So, having effective strategies is necessary to tackle the withdrawal rate of employees. By associating Emotional Intelligence (EI) along with Talent Management (TM) in the IT industry, the rise in attrition rate was analyzed in this study. Only 303 respondents were collected out of 350 participants to whom questionnaires were distributed. From the employees of IT organizations located in Bangalore (India), the data were congregated. A simple random sampling methodology was employed to congregate data as of the respondents. Generating the hypothesis along with testing is eventuated. The effect of EI and TM along with regression analysis between TM and EI was analyzed. The outcomes indicated that employee and Organizational Performance (OP) were elevated by effective EI along with TM.
INFLUENCE OF TALENT MANAGEMENT PRACTICES ON ORGANIZATIONAL PERFORMANCE A STUD...IAEME Publication
By implementing talent management strategy, organizations would have the option to retain their skilled professionals while additionally working on their overall performance. It is the course of appropriately utilizing the ideal individuals, setting them up for future top positions, exploring and dealing with their performance, and holding them back from leaving the organization. It is employee performance that determines the success of every organization. The firm quickly obtains an upper hand over its rivals in the event that its employees having particular skills that cannot be duplicated by the competitors. Thus, firms are centred on creating successful talent management practices and processes to deal with the unique human resources. Firms are additionally endeavouring to keep their top/key staff since on the off chance that they leave; the whole store of information leaves the firm's hands. The study's objective was to determine the impact of talent management on organizational performance among the selected IT organizations in Chennai. The study recommends that talent management limitedly affects performance. On the off chance that this talent is appropriately management and implemented properly, organizations might benefit as much as possible from their maintained assets to support development and productivity, both monetarily and non-monetarily.
A STUDY OF VARIOUS TYPES OF LOANS OF SELECTED PUBLIC AND PRIVATE SECTOR BANKS...IAEME Publication
Banking regulations act of India, 1949 defines banking as “acceptance of deposits for the purpose of lending or investment from the public, repayment on demand or otherwise and withdrawable through cheques, drafts order or otherwise”, the major participants of the Indian financial system are commercial banks, the financial institution encompassing term lending institutions. Investments institutions, specialized financial institution and the state level development banks, non banking financial companies (NBFC) and other market intermediaries such has the stock brokers and money lenders are among the oldest of the certain variants of NBFC and the oldest market participants. The asset quality of banks is one of the most important indicators of their financial health. The Indian banking sector has been facing severe problems of increasing Non- Performing Assets (NPAs). The NPAs growth directly and indirectly affects the quality of assets and profitability of banks. It also shows the efficiency of banks credit risk management and the recovery effectiveness. NPA do not generate any income, whereas, the bank is required to make provisions for such as assets that why is a double edge weapon. This paper outlines the concept of quality of bank loans of different types like Housing, Agriculture and MSME loans in state Haryana of selected public and private sector banks. This study is highlighting problems associated with the role of commercial bank in financing Small and Medium Scale Enterprises (SME). The overall objective of the research was to assess the effect of the financing provisions existing for the setting up and operations of MSMEs in the country and to generate recommendations for more robust financing mechanisms for successful operation of the MSMEs, in turn understanding the impact of MSME loans on financial institutions due to NPA. There are many research conducted on the topic of Non- Performing Assets (NPA) Management, concerning particular bank, comparative study of public and private banks etc. In this paper the researcher is considering the aggregate data of selected public sector and private sector banks and attempts to compare the NPA of Housing, Agriculture and MSME loans in state Haryana of public and private sector banks. The tools used in the study are average and Anova test and variance. The findings reveal that NPA is common problem for both public and private sector banks and is associated with all types of loans either that is housing loans, agriculture loans and loans to SMES. NPAs of both public and private sector banks show the increasing trend. In 2010-11 GNPA of public and private sector were at same level it was 2% but after 2010-11 it increased in many fold and at present there is GNPA in some more than 15%. It shows the dark area of Indian banking sector.
EXPERIMENTAL STUDY OF MECHANICAL AND TRIBOLOGICAL RELATION OF NYLON/BaSO4 POL...IAEME Publication
An experiment conducted in this study found that BaSO4 changed Nylon 6's mechanical properties. By changing the weight ratios, BaSO4 was used to make Nylon 6. This Researcher looked into how hard Nylon-6/BaSO4 composites are and how well they wear. Experiments were done based on Taguchi design L9. Nylon-6/BaSO4 composites can be tested for their hardness number using a Rockwell hardness testing apparatus. On Nylon/BaSO4, the wear behavior was measured by a wear monitor, pinon-disc friction by varying reinforcement, sliding speed, and sliding distance, and the microstructure of the crack surfaces was observed by SEM. This study provides significant contributions to ultimate strength by increasing BaSO4 content up to 16% in the composites, and sliding speed contributes 72.45% to the wear rate
ROLE OF SOCIAL ENTREPRENEURSHIP IN RURAL DEVELOPMENT OF INDIA - PROBLEMS AND ...IAEME Publication
The majority of the population in India lives in villages. The village is the back bone of the country. Village or rural industries play an important role in the national economy, particularly in the rural development. Developing the rural economy is one of the key indicators towards a country’s success. Whether it be the need to look after the welfare of the farmers or invest in rural infrastructure, Governments have to ensure that rural development isn’t compromised. The economic development of our country largely depends on the progress of rural areas and the standard of living of rural masses. Village or rural industries play an important role in the national economy, particularly in the rural development. Rural entrepreneurship is based on stimulating local entrepreneurial talent and the subsequent growth of indigenous enterprises. It recognizes opportunity in the rural areas and accelerates a unique blend of resources either inside or outside of agriculture. Rural entrepreneurship brings an economic value to the rural sector by creating new methods of production, new markets, new products and generate employment opportunities thereby ensuring continuous rural development. Social Entrepreneurship has the direct and primary objective of serving the society along with the earning profits. So, social entrepreneurship is different from the economic entrepreneurship as its basic objective is not to earn profits but for providing innovative solutions to meet the society needs which are not taken care by majority of the entrepreneurs as they are in the business for profit making as a sole objective. So, the Social Entrepreneurs have the huge growth potential particularly in the developing countries like India where we have huge societal disparities in terms of the financial positions of the population. Still 22 percent of the Indian population is below the poverty line and also there is disparity among the rural & urban population in terms of families living under BPL. 25.7 percent of the rural population & 13.7 percent of the urban population is under BPL which clearly shows the disparity of the poor people in the rural and urban areas. The need to develop social entrepreneurship in agriculture is dictated by a large number of social problems. Such problems include low living standards, unemployment, and social tension. The reasons that led to the emergence of the practice of social entrepreneurship are the above factors. The research problem lays upon disclosing the importance of role of social entrepreneurship in rural development of India. The paper the tendencies of social entrepreneurship in India, to present successful examples of such business for providing recommendations how to improve situation in rural areas in terms of social entrepreneurship development. Indian government has made some steps towards development of social enterprises, social entrepreneurship, and social in- novation, but a lot remains to be improved.
OPTIMAL RECONFIGURATION OF POWER DISTRIBUTION RADIAL NETWORK USING HYBRID MET...IAEME Publication
Distribution system is a critical link between the electric power distributor and the consumers. Most of the distribution networks commonly used by the electric utility is the radial distribution network. However in this type of network, it has technical issues such as enormous power losses which affect the quality of the supply. Nowadays, the introduction of Distributed Generation (DG) units in the system help improve and support the voltage profile of the network as well as the performance of the system components through power loss mitigation. In this study network reconfiguration was done using two meta-heuristic algorithms Particle Swarm Optimization and Gravitational Search Algorithm (PSO-GSA) to enhance power quality and voltage profile in the system when simultaneously applied with the DG units. Backward/Forward Sweep Method was used in the load flow analysis and simulated using the MATLAB program. Five cases were considered in the Reconfiguration based on the contribution of DG units. The proposed method was tested using IEEE 33 bus system. Based on the results, there was a voltage profile improvement in the system from 0.9038 p.u. to 0.9594 p.u.. The integration of DG in the network also reduced power losses from 210.98 kW to 69.3963 kW. Simulated results are drawn to show the performance of each case.
APPLICATION OF FRUGAL APPROACH FOR PRODUCTIVITY IMPROVEMENT - A CASE STUDY OF...IAEME Publication
Manufacturing industries have witnessed an outburst in productivity. For productivity improvement manufacturing industries are taking various initiatives by using lean tools and techniques. However, in different manufacturing industries, frugal approach is applied in product design and services as a tool for improvement. Frugal approach contributed to prove less is more and seems indirectly contributing to improve productivity. Hence, there is need to understand status of frugal approach application in manufacturing industries. All manufacturing industries are trying hard and putting continuous efforts for competitive existence. For productivity improvements, manufacturing industries are coming up with different effective and efficient solutions in manufacturing processes and operations. To overcome current challenges, manufacturing industries have started using frugal approach in product design and services. For this study, methodology adopted with both primary and secondary sources of data. For primary source interview and observation technique is used and for secondary source review has done based on available literatures in website, printed magazines, manual etc. An attempt has made for understanding application of frugal approach with the study of manufacturing industry project. Manufacturing industry selected for this project study is Mahindra and Mahindra Ltd. This paper will help researcher to find the connections between the two concepts productivity improvement and frugal approach. This paper will help to understand significance of frugal approach for productivity improvement in manufacturing industry. This will also help to understand current scenario of frugal approach in manufacturing industry. In manufacturing industries various process are involved to deliver the final product. In the process of converting input in to output through manufacturing process productivity plays very critical role. Hence this study will help to evolve status of frugal approach in productivity improvement programme. The notion of frugal can be viewed as an approach towards productivity improvement in manufacturing industries.
A MULTIPLE – CHANNEL QUEUING MODELS ON FUZZY ENVIRONMENTIAEME Publication
In this paper, we investigated a queuing model of fuzzy environment-based a multiple channel queuing model (M/M/C) ( /FCFS) and study its performance under realistic conditions. It applies a nonagonal fuzzy number to analyse the relevant performance of a multiple channel queuing model (M/M/C) ( /FCFS). Based on the sub interval average ranking method for nonagonal fuzzy number, we convert fuzzy number to crisp one. Numerical results reveal that the efficiency of this method. Intuitively, the fuzzy environment adapts well to a multiple channel queuing models (M/M/C) ( /FCFS) are very well.
Redefining brain tumor segmentation: a cutting-edge convolutional neural netw...IJECEIAES
Medical image analysis has witnessed significant advancements with deep learning techniques. In the domain of brain tumor segmentation, the ability to
precisely delineate tumor boundaries from magnetic resonance imaging (MRI)
scans holds profound implications for diagnosis. This study presents an ensemble convolutional neural network (CNN) with transfer learning, integrating
the state-of-the-art Deeplabv3+ architecture with the ResNet18 backbone. The
model is rigorously trained and evaluated, exhibiting remarkable performance
metrics, including an impressive global accuracy of 99.286%, a high-class accuracy of 82.191%, a mean intersection over union (IoU) of 79.900%, a weighted
IoU of 98.620%, and a Boundary F1 (BF) score of 83.303%. Notably, a detailed comparative analysis with existing methods showcases the superiority of
our proposed model. These findings underscore the model’s competence in precise brain tumor localization, underscoring its potential to revolutionize medical
image analysis and enhance healthcare outcomes. This research paves the way
for future exploration and optimization of advanced CNN models in medical
imaging, emphasizing addressing false positives and resource efficiency.
Understanding Inductive Bias in Machine LearningSUTEJAS
This presentation explores the concept of inductive bias in machine learning. It explains how algorithms come with built-in assumptions and preferences that guide the learning process. You'll learn about the different types of inductive bias and how they can impact the performance and generalizability of machine learning models.
The presentation also covers the positive and negative aspects of inductive bias, along with strategies for mitigating potential drawbacks. We'll explore examples of how bias manifests in algorithms like neural networks and decision trees.
By understanding inductive bias, you can gain valuable insights into how machine learning models work and make informed decisions when building and deploying them.
Embedded machine learning-based road conditions and driving behavior monitoringIJECEIAES
Car accident rates have increased in recent years, resulting in losses in human lives, properties, and other financial costs. An embedded machine learning-based system is developed to address this critical issue. The system can monitor road conditions, detect driving patterns, and identify aggressive driving behaviors. The system is based on neural networks trained on a comprehensive dataset of driving events, driving styles, and road conditions. The system effectively detects potential risks and helps mitigate the frequency and impact of accidents. The primary goal is to ensure the safety of drivers and vehicles. Collecting data involved gathering information on three key road events: normal street and normal drive, speed bumps, circular yellow speed bumps, and three aggressive driving actions: sudden start, sudden stop, and sudden entry. The gathered data is processed and analyzed using a machine learning system designed for limited power and memory devices. The developed system resulted in 91.9% accuracy, 93.6% precision, and 92% recall. The achieved inference time on an Arduino Nano 33 BLE Sense with a 32-bit CPU running at 64 MHz is 34 ms and requires 2.6 kB peak RAM and 139.9 kB program flash memory, making it suitable for resource-constrained embedded systems.
Using recycled concrete aggregates (RCA) for pavements is crucial to achieving sustainability. Implementing RCA for new pavement can minimize carbon footprint, conserve natural resources, reduce harmful emissions, and lower life cycle costs. Compared to natural aggregate (NA), RCA pavement has fewer comprehensive studies and sustainability assessments.
Optimizing Gradle Builds - Gradle DPE Tour Berlin 2024Sinan KOZAK
Sinan from the Delivery Hero mobile infrastructure engineering team shares a deep dive into performance acceleration with Gradle build cache optimizations. Sinan shares their journey into solving complex build-cache problems that affect Gradle builds. By understanding the challenges and solutions found in our journey, we aim to demonstrate the possibilities for faster builds. The case study reveals how overlapping outputs and cache misconfigurations led to significant increases in build times, especially as the project scaled up with numerous modules using Paparazzi tests. The journey from diagnosing to defeating cache issues offers invaluable lessons on maintaining cache integrity without sacrificing functionality.
Presentation of IEEE Slovenia CIS (Computational Intelligence Society) Chapte...University of Maribor
Slides from talk presenting:
Aleš Zamuda: Presentation of IEEE Slovenia CIS (Computational Intelligence Society) Chapter and Networking.
Presentation at IcETRAN 2024 session:
"Inter-Society Networking Panel GRSS/MTT-S/CIS
Panel Session: Promoting Connection and Cooperation"
IEEE Slovenia GRSS
IEEE Serbia and Montenegro MTT-S
IEEE Slovenia CIS
11TH INTERNATIONAL CONFERENCE ON ELECTRICAL, ELECTRONIC AND COMPUTING ENGINEERING
3-6 June 2024, Niš, Serbia
A review on techniques and modelling methodologies used for checking electrom...nooriasukmaningtyas
The proper function of the integrated circuit (IC) in an inhibiting electromagnetic environment has always been a serious concern throughout the decades of revolution in the world of electronics, from disjunct devices to today’s integrated circuit technology, where billions of transistors are combined on a single chip. The automotive industry and smart vehicles in particular, are confronting design issues such as being prone to electromagnetic interference (EMI). Electronic control devices calculate incorrect outputs because of EMI and sensors give misleading values which can prove fatal in case of automotives. In this paper, the authors have non exhaustively tried to review research work concerned with the investigation of EMI in ICs and prediction of this EMI using various modelling methodologies and measurement setups.
A SYSTEMATIC RISK ASSESSMENT APPROACH FOR SECURING THE SMART IRRIGATION SYSTEMSIJNSA Journal
The smart irrigation system represents an innovative approach to optimize water usage in agricultural and landscaping practices. The integration of cutting-edge technologies, including sensors, actuators, and data analysis, empowers this system to provide accurate monitoring and control of irrigation processes by leveraging real-time environmental conditions. The main objective of a smart irrigation system is to optimize water efficiency, minimize expenses, and foster the adoption of sustainable water management methods. This paper conducts a systematic risk assessment by exploring the key components/assets and their functionalities in the smart irrigation system. The crucial role of sensors in gathering data on soil moisture, weather patterns, and plant well-being is emphasized in this system. These sensors enable intelligent decision-making in irrigation scheduling and water distribution, leading to enhanced water efficiency and sustainable water management practices. Actuators enable automated control of irrigation devices, ensuring precise and targeted water delivery to plants. Additionally, the paper addresses the potential threat and vulnerabilities associated with smart irrigation systems. It discusses limitations of the system, such as power constraints and computational capabilities, and calculates the potential security risks. The paper suggests possible risk treatment methods for effective secure system operation. In conclusion, the paper emphasizes the significant benefits of implementing smart irrigation systems, including improved water conservation, increased crop yield, and reduced environmental impact. Additionally, based on the security analysis conducted, the paper recommends the implementation of countermeasures and security approaches to address vulnerabilities and ensure the integrity and reliability of the system. By incorporating these measures, smart irrigation technology can revolutionize water management practices in agriculture, promoting sustainability, resource efficiency, and safeguarding against potential security threats.
Literature Review Basics and Understanding Reference Management.pptxDr Ramhari Poudyal
Three-day training on academic research focuses on analytical tools at United Technical College, supported by the University Grant Commission, Nepal. 24-26 May 2024
Harnessing WebAssembly for Real-time Stateless Streaming PipelinesChristina Lin
Traditionally, dealing with real-time data pipelines has involved significant overhead, even for straightforward tasks like data transformation or masking. However, in this talk, we’ll venture into the dynamic realm of WebAssembly (WASM) and discover how it can revolutionize the creation of stateless streaming pipelines within a Kafka (Redpanda) broker. These pipelines are adept at managing low-latency, high-data-volume scenarios.
2. Binomial Approach to Assessing Real Options in Managing an Investment Project
http://www.iaeme.com/IJCIET/index.asp 27 editor@iaeme.com
1. INTRODUCTION
Project management – in accordance with the definition of the national ANSI PMBoK
standard [1], it is an area of activity in which clear objectives of the project are defined and
achieved when balancing between the amount of work, resources (such as money, labor,
materials, energy, space, etc.), sometimes, quality and risks. A key factor for the success of
the project management is the availability of a clear pre-defined plan, minimizing risks and
deviations from the plan, efficient management of changes (as opposed to process, functional
management, service level management).
Project products can be products of the company or organization (the results of scientific
and marketing research, design and technological documentation for a new product developed
for the customer) and the solution of various internal production tasks (for example,
improving product quality and efficiency of the organization of work, optimization of
financial flows) [3-5].
At first glance, it may seem that project management is something simple and elemental,
consisting of budget, staff and deadlines for completion. However, it often happens that the
project goes beyond the budget, or unskilled personnel are selected, which entails delaying the
deadlines for the project.
Traditionally, for making decisions in the field of project management, the discounted
cash flow method is used, which is focused mainly on companies operating in stable business
areas and often cannot adequately assess the effectiveness of innovative projects. Therefore,
there is a need to improve the methodological support for the evaluation of innovative
projects with the introduction of the latest methods used in world practice, but have not yet
found wide application. In world practice, when evaluating large investment projects, tools
are used to determine the adjusted value of investments, which will be determined by the
further course of the project. These tools are called real options.
The concept of real options has arisen as a result of the transfer of the created risk
management tools with the help of option contracts from the financial sector to the real
economy [2].
2. METHODS AND CRITERIA FOR EVALUATING THE ECONOMIC
EFFICIENCY OF INVESTMENT PROJECTS
The set of methods and the corresponding criteria used to assess the economic efficiency of
investments and investment projects can be divided into three groups, depending on the
method of taking into account the time factor in the implementation of investment costs and
obtaining return investment flow, as well as a number of other criteria:
1) dynamic (taking into account the time factor) or discount, classical methods - models
of discounted cash flows;
2) static (accounting) or accounting, traditional - models that provide for the use in the
calculations of accounting data on investment costs and incomes without discounting
over time;
3) alternative or non-standard - models that take into account the limitations and
disadvantages of the other two groups of methods.
The figure 1 schematically shows the classification of the most widely used methods for
evaluating investments with regard to their group division.
3. Vitalii Pylypiv, Viktoriya Hotra, Kateryna Kucherenko and Valeriia Drozdova
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Figure 1 Classification of methods for assessing the economic efficiency of investment
We will conduct a comparative description of the methods presented in Figure 1 (Table 1).
Method of
evaluating the
effectiveness of
investments
Rating Indicator
(Criteria)
Advantages Disadvantages
DYNAMIC Accounting rate of
return (ARR) – the
relationship
between the
average value of
the financial result
and the average
estimate of the
assets used to
obtain it.
The APP indicator is
convenient for
embedding it in the
incentive system of the
company's
management
personnel.
The indicator does
not take into account
the change in the
value of money over
time.
This method ignores
differences in the
duration of the
exploitation of
assets created by
investing.
ARR is focused
primarily on
obtaining project
evaluations that are
adequate to the
METHODS FOR ASSESSING THE ECONOMIC EFFICIENCY OF INVESTMENT
DYNAMIC STATIC ALTERNATIVE
Accounting rate of
return / Average rate of
return
(ARR)
Payback Period (PP)
Adjusted Present Value
(APV)
Economic Value Added
(EVA)
Real Options Valuation
(ROV)
Net Present Value (NPV)
Internal Rate of Return
(IRR) / Modified Internal
Rate of Return (MIRR)
Discounted Payback
Period (DPP)
Profitability Index (PI)
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expectations and
requirements of
shareholders and
other individuals
and firms "from the
side"
Payback Period
(PP) – the
minimum time
interval (measured
in months or years)
from the beginning
of the investment
stage to the
achievement of
goals, for which
the investment
costs
The indicator is a
priority in the event
that the investor’s main
investment is the
fastest possible return
on investment,
allowing him to find
out how long it will
take to recover initial
expenses.
The simplicity of
calculations.
Accounting for project
liquidity.
The indicator does
not take into account
the change in the
value of money over
time.
The calculations
ignore the income
received after the
proposed project
payback period.
Therefore, when
the selection of
alternative projects
can be allowed
serious
miscalculations.
The indicator is not
determined for
alternating cash
flows.
The choice of the
barrier value of the
payback period may
be subjective.
Not suitable for
evaluating projects
related to
fundamentally new
products.
STATISTIC Net Present Value
(NPV) – shows the
net effect in the
realization of
investments, the
amount of value
created.
Properly reflects the
relationship between
cash inflows and
outflows over a period
of time.
Has the property of
additivity.
Gives realistic
assumptions about the
rate of reinvestment of
incoming funds.
Allows to judge the
value of the company
as a result of the
project.
Does not determine
the period through
which the
investment will pay
off.
It is difficult to
objectively estimate
the required rate of
return.
It is difficult to
estimate such
uncertain parameters
as the moral and
physical
deterioration of
fixed capital;
changes in the
organization.
Does not adequately
reflect the result
5. Vitalii Pylypiv, Viktoriya Hotra, Kateryna Kucherenko and Valeriia Drozdova
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when comparing
projects: - with
different initial costs
at the same net
present value; - with
a higher net present
value and a long
payback period and
projects with a
lower net present
value and a short
payback period;
May give conflicting
results with other
cash flow indicators.
Discounted
payback period
(DPP) is the
number of periods
(usually years)
during which the
investment will be
refunded or the
time it takes for the
investment to
provide sufficient
cash inflows to
recover the
investment costs,
taking into account
the time value of
money.
Allows to give a rough
estimate of the
liquidity of the project
and approximately
estimate the risk.
Takes into account
the time value of
money
The magnitude and
direction of the
distribution of cash
flows during the
payback period is
not taken into
account: only the
period for covering
expenses as a whole
is considered.
Does not allow
making decisions
focused on
maximizing the
value of the
company.
Profitability rate,
(PI) is a relative
indicator of the
effectiveness of an
investment
product, which
characterizes the
level of return per
unit of costs.
It is very convenient
when choosing one
project from a number
of alternative, having
approximately the
same NPV values, but
different amounts of
investment required.
Indirectly carries
information about the
risk of the project, that
is, about its resistance
to change and initial
parameters
Does not always
provide an
unambiguous
assessment of the
effectiveness of
investments, and the
project with the
highest PI may not
correspond to the
project with the
highest NPV. In
particular, the use of
profitability index
may lead to
erroneous results
when evaluating
mutually exclusive
projects.
ALTERNATIVE Adjusted present
value (APV). The
method is based on
the theory that the
Has the ability to take
into account the
company's capital
structure and economic
The difficulty of
assessing the present
value of various
financial effects (for
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value of an asset is
determined by two
factors: 1) the base
value generated as
a result of
transactions with
the asset; 2) any
additional cost
associated with
financial structures
(primarily with the
interest tax shield).
drivers separately.
The need for an APV
method arises in cases
where the company
plans to make a major
shift in capital
structure.
Allows to divide the
cash flows of an
investment project and
to estimate them by
separate discounting
using appropriate rates.
There is also an
opportunity to analyze
various sources of
company value
creation.
example,
bankruptcy,
guarantees, hedging,
subsidies, etc.), as
well as the need to
prepare additional
information.
Dividing the cost
into too many
components, leading
to unnecessary
complexity and the
inability to verify
whether the parts
constitute a coherent
whole.
Economic value
added (EVA)
represents a
monetary valuation
of value created for
investors for a
certain period of
time by the project
above the expected
rate of return on
investments with a
similar level of
risk.
Applicable as a
measure of efficiency
for certain periods of
activity.
Allows company
managers to make
more informed
decisions on expanding
profitable areas of
activity and, equally
important, it helps to
identify inefficient use
of funds in projects.
Can be considered as a
static measure, which
takes into account the
main features of DCF-
analysis in a stable
state, in the absence of
growth.
In its calculation, it
does not ignore such an
important cost class as
the cost of the
company's own capital.
Allows to track the
implementation of
individual investment
projects, comparing the
actual results with
forecasts that were
used to justify their
effectiveness.
The indicator is
subject to the
influence of the so-
called “erroneous
periodization
effect”, which
consists in the fact
that in accounting
the value of assets is
fixed less
accumulated
depreciation, the
amount of capital
invested in a
separate project
decreases from
over time. At the
same income, this
leads to an increase
in ROIC (NOPAT).
Accounting for
current income only
when assessing
feasibility
Investment in a
particular business,
without taking into
account the potential
for its future growth
Pros and cons of the method of real options will be discussed in more detail in the
example of the application of the method of real options.
7. Vitalii Pylypiv, Viktoriya Hotra, Kateryna Kucherenko and Valeriia Drozdova
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3. APPLICATION OF THE METHOD OF REAL OPTIONS
The development of the theory of the option approach contributed to the creation of several
types of models and methods for assessing the value of real options. They are based on
classical models for estimating the fair price of production financial assets, including:
1) the Black-Scholes model (1973) - an analytical solution obtained by R. Merton for the
stochastic equation for a simple European option per share (Black) Scholes model, BSM);
2) the Koch and Ross assessment model (1976) with the assumption of risk neutrality
(replicating portfolio model);
3) Binomial Cox-Ross-Rubinstein estimation method (1979) (CoxRoss-Rubinstein model).
The main idea of this approach is to simulate the movement of the value of the underlying
asset based on the binomial law. It is assumed that in the considered period of time the
variable can change only in two directions: increase with probability p or decrease with
probability . That is, the stochastic behavior of the asset value over time is modeled -
(u) an increase (1 + relative price increase) or (d) a fall (1 - relative price drop) with given
characteristics. The condition is also necessary, where r is the risk-free
rate of return. If d and u are lower than the risk-free rate, the risk-free asset will always have
higher returns than the risky asset, which conflicts with financial theory. Increasing the
number of time periods, we obtain a graphic figure, called a binomial lattice, or a binomial
tree (Figure 2).
Figure 2 Binomial lattice
Initial conditions of the model: for each period (t) there are only two possibilities for the
asset price to move: up to the value of Su or down to the value of . It is assumed that the
probability of price change is known.
Binomial approach involves the phased implementation of calculations.
First, the underlying asset lattice is created by multiplying its current value by the growth
and decline rates. Further it is necessary to understand what influence these or other decisions
may have on the results of the project. To do this, build an option valuation lattice using the
method of backward induction. In accordance with this approach, the final nodes of the lattice
are evaluated, and then intermediate nodes are evaluated from right to left. At each node, the
most advantageous solution is selected. The difference between the estimated effect of the
project, taking into account the options and the base effect without taking them into account,
is the value of the real options.
There is another option to perform calculations. After the grid asset has been built, the
second grid can be built for the option itself. For this, it is necessary to evaluate the effect
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obtained directly from the option in the lattice nodes, and not from the combination “project +
option”.
The third stage is optional, but it is recommended to perform it to increase the visibility of
the analysis results. It consists in building a lattice called a decision lattice. In its nodes
indicate the most profitable solutions.
Using the binomial method to estimate the value of real options, they proceed from the
assumption that the number of links is discrete and known in advance. The logic of this
approach requires that their number correspond to the frequency of making the most
significant decisions for the project. The nodes of the lattice should be those moments in time
in which strategic decisions are made on reducing, developing, switching business, etc. To
simplify the work, we recommend using software, for example DerivaGem.
Consider a five-month investment project to buy a stock that provides for a one-time
dividend payment of $ 2.15 over the life of the option. The initial share price is $ 35, the
strike price is $ 33, the risk-free interest rate is 10% per annum, the price volatility is 35% per
year, and the dividend payout period is 24 days.
First, we construct a tree to calculate the component S* (Fig. 3), i.e. share prices not
exceeding the present value of future dividends, the payment of which will take place during
the term of the option. At the initial moment of time, the size of the dividend is equal to
Consequently, the initial value of S* is equal to $ 33.00. Assuming that 35% volatility
relates to component S*, we conclude that the binomial tree for its calculation has the form
shown in Fig. 3. (This is explained by the fact that S * has the same initial value and the same
volatility as the share price for which Fig. 3 is built.)
Figure 3 Binomial lattice for investment project
9. Vitalii Pylypiv, Viktoriya Hotra, Kateryna Kucherenko and Valeriia Drozdova
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Adding the current cost of dividends to each of the nodes leads to Fig. 3, which is a
binomial model for calculating the value of S. As in Fig. 3, the probability of growth of the
share price in each node is 0.5143, and the probability of its fall is 0.4857. Carrying out a
reverse round of the binomial tree, we find that the assessed value of the option is 4.0535
dollars. (With 50 time steps, the result is 4.05 dollars, and with 100 steps, 4.0955 dollars.).
4. CONCLUSION
Using the binomial method to estimate the value of real options, they proceed from the
assumption that the number of links is discrete and known in advance. The logic of this
approach requires that their number correspond to the frequency of making the most
significant decisions for the project. The nodes of the lattice should be those moments in time
in which strategic decisions are made on reducing, developing, switching business, etc.
In general, the use of the real options method extends the tools of a venture investor used
by them to justify decisions on investment projects.
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