Running head: VENTURE PROJECT ECONOMICS AND FINANCE Venture Projects Economics and Finance Name of the Student: Name of the University: Author’s Note:
1VENTURE PROJECT ECONOMICS AND FINANCE Table of Contents 1.Introduction..............................................................................................................................3 1.1Project Background...........................................................................................................3 1.2Project Objectives and Justification..................................................................................4 1.3Assumptions and Constraints............................................................................................6 2.Literature Review....................................................................................................................6 2.1.Overview of Project Economical Analysis Techniques and Tools...................................7 2.1.1.Equivalent Uniform Annual Cash Flow..................................................................10 2.1.2.Present worth (Net Present Value)..........................................................................12 2.1.3.Internal Rate of Return............................................................................................12 2.1.4.Modified IRR...........................................................................................................13 2.1.5.Cost-Benefit Analysis..............................................................................................13 2.2Other Decision Making Models - Multi-Attribute Decision-Making Model.................15 2.2.1MCDM in Financial Decision Making for Projects...............................................16 2.2.2MADM....................................................................................................................16 2.2.3Analytical Hierarchy Process (AHP).......................................................................17 2.2.4Best Practices for Business Growth.........................................................................17 2.2.5.Business Growth Strategies.....................................................................................19 2.2.6Profitability Index..................................................................................................20 3.Recommendations for case project financial model or plan..................................................21
2VENTURE PROJECT ECONOMICS AND FINANCE Reference List and Bibliography...................................................................................................22
3VENTURE PROJECT ECONOMICS AND FINANCE 1.Introduction With the advent of science and technology there have been various venture projects that have been developing all over the globe in order to improve the economic and the operational structure of the world. It has been observed that there are various projects that have been constructed in order to build new buildings and artifacts that would enhance the lifestyle of the human beings living in this world(Schaper, 2016). This paper therefore is being constructed in order to undertake a fundamental analysis of on ongoing project that is functioning in Melbourne so that a clear idea about the background of the project along with its objectives can be understood. The assessment of the economic analysis and tools and techniques would even be discussed and the cost benefit analysis of the project can even be understood so that a clear cut idea about the project can be taken into consideration. This paper therefore has considered Ravenhall Prison Project that has been operating from the year 2014 and still continuing so that precise knowledge about project and the cost associated with it can be gained. 1.1Project Background The Ravenhall Prison Project is being constructed in order to provide a new medium-security prison facility in order to provide accommodations to around 1000 prisoners and this project has been predicted to be completed by the end of 2017.In the year 2014 on 15thSeptember, the Victorian state made a contract with GEO consortium in order to build, finance, design, operate and maintain a new medium-security prison for men, which would be situated in Ravenhall, in the west of Melbourne(Treasury and Finance - Ravenhall Prison - Project Summary 2017). Ravenhall has been a key part of the prison expansion program of Victoria. The prison even has
4VENTURE PROJECT ECONOMICS AND FINANCE the ability to expand in future in order to accommodate around 1300 prisoners if deemed necessary. The new prison that is under construction would deliver the infrastructure and prison beds in order to aid in explaining for the correctional services that have been demanded in Victoria. The prison has been constructed on the existing Crown land at Ravenhall that is contiguous to the Metropolitan Remand Centre and the dame Phyllis Frost Centre. The land is specifically flat in nature and comprises of open paddocks that consists of vestige native grassland patches and few trees that are scattered. The required planning along with the cultural heritage and environmental approvals for this area are in place. This project has been a joint venture of the public private partnership in which the private sector is accountable for constructing, financing, operations, design and maintenance that are custodial in nature. This project would provide increased value for money with respect to the correctional services and even provide increased quality. GEO Consortium was appointed to deliver the project after the completion of a tender process and a contract was signed in the year 2014 in September. GEO Consortiu, consists of John Holland Group, Capella Capital, Honeywell and GEO Group Australia. The essential alliance partners are inclusive of the Gathering Place and Melbourne City Mission, Kangan Institute and YMCA who would deliver services and programs in both post-release and the prisoners under custody(Treasury and Finance - Ravenhall Prison - Project Summary 2017). The health services within the prison would be given by Correct Care Australasia and the forensic services of mental health at the prison would be given by Forensicare.
5VENTURE PROJECT ECONOMICS AND FINANCE 1.2Project Objectives and Justification The construction of the project has been undertaken in order to improve the safety of the society by humanely and securely preserving the prisoners and giving them with services and programs that have been constructed in order to decrease the extent of reoffending. This project reveals a key investment in the infrastructure and services of the prison with the help of which GEO Consortium would deliver an innovative facility that would perform a key role in the correctional system of Victoria. This project would be influential for generating economic advantages as well as increasing employment with the establishment of 700 jobs during the period of peak construction and ongoing jobs that would be more than 600. The construction of the project would lead to development of new jobs in that area and thereby increasing the employment rate and in a way benefit the economy(Burchardt et al., 2016). The objectives of the project and the area of the focus has been explained as follows: Provide added capacity in the prison system of Victoria Provide added forensic metal health services to the prisoners Provide supplementary capability in order to lower the reoffending Encourage practices that are innovative in nature and effective operations that would assist the value for money The justification for the construction of the research project has been in order to secure and safeguard the communal harmony and to maintain the prisoners in the prison cell in an effective manner. The construction of a prison that would consist of various innovative amenities would boost the confidence of the prisoners and would help them in turning over a new leaf and start their life effectively(Gatti, 2013). The project construction is done in order to focus on various aspects like targeted approach for the prisoners who are having
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