Paper on Venture Projects Economics and Finance

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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
1.1 Project Background...........................................................................................................3
1.2 Project Objectives and Justification..................................................................................4
1.3 Assumptions 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
2.2 Other Decision Making Models - Multi-Attribute Decision-Making Model.................15
2.2.1 MCDM in Financial Decision Making for Projects...............................................16
2.2.2 MADM....................................................................................................................16
2.2.3 Analytical Hierarchy Process (AHP).......................................................................17
2.2.4 Best Practices for Business Growth.........................................................................17
2.2.5. Business Growth Strategies.....................................................................................19
2.2.6 Profitability 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.
1.1 Project 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 15th September, 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
1.2 Project 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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