Cost-Benefit Analysis of Discounting for Time and Risk in Energy Policy
Added on 2019-11-26
26 Pages7549 Words255 ViewsType: 255
FinanceMaterials Science and EngineeringEnvironmental SciencePolitical Science
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Running head: VENTURE PROJECT ECONOMICS AND FINANCE Venture Projects Economics and FinanceName of the Student: Name of the University: Author’s Note:
1VENTURE PROJECT ECONOMICS AND FINANCETable of ContentsIntroduction................................................................................................................................2Project Background....................................................................................................................2Project Objectives and Justification...........................................................................................3Assumptions, Constraints and Expected Outcomes...................................................................4Literature Review.......................................................................................................................5Overview of Project Economical Analysis Techniques and Tools............................................6Uniform Annual Cash Flow.......................................................................................................9Net Present Value (Present Worth)..........................................................................................13Internal Rate of Return (IRR)..................................................................................................13Modified IRR...........................................................................................................................13Cost Benefit Analysis...............................................................................................................13Other Decision Making Models - Multi-Attribute Decision-Making Model...........................18MCDM in Financial Decision Making for Projects.................................................................18MADM.....................................................................................................................................19Analytical Hierarchy Process (AHP).......................................................................................20Best Practices for Business Growth.........................................................................................20Business Growth Strategies......................................................................................................22Profitability Index....................................................................................................................23Recommendation......................................................................................................................23Reference List and Bibliography.............................................................................................25
2VENTURE PROJECT ECONOMICS AND FINANCEIntroduction With the development of innovation and science there has been construction ofvarious projects throughout the world keeping in mind the main objective of to enhance theoperational and financial structure of the world. It has been viewed that there are differentprojects that have been built with a specific end goal to fabricate new structures andinnovative products that would improve the way of life of the people residing globally(Marglin, 2014). This paper hence has been established so as to embrace a critical assessment of asustainable venture that is performing in the country of Australia so that a lucid idearegarding the project background and the aims and goals of the project can be conceived. Theevaluation of the economic assessment and techniques and equipments would even beexplained and the cost benefit analysis in relation to the project can even be understood withregards to the goal in order to obtain a clear idea. The project is about the incident of creatinga busi9ness in Australia and hence the team members are said to construct the cost benefit aswell as the economic analysis. The project has been constructed by assessing the literaturereview where the economic as well as the cost benefit analysis has been portrayed. This paperhas considered Smart Watch project in Australia that has been functioning from the year 2012and has still been going on in order to gain precise knowledge about the costs and theeconomic tools used for the establishment of the same. Project Background This venture has been undertaken by computing numerous researches within themarket of Australia and thereafter establishing the review of literature. With the developmentof science and technology there has been introduction of various new products that arebecoming useful in our daily life as well (Nas, 2016). The concept of Smart Watch has been
3VENTURE PROJECT ECONOMICS AND FINANCEin the mind of the developers for a very long time as they had a desire of providing a varietyof features within a watch which would lower the burden of carrying various articles for ahuman being. The project in relation to the development of Smart Watch has been initiallyundertaken by the private sector organizations that are functioning in the country and theyhave the idea of developing new and improved features within the watch that would look intoour personal as well as fitness life. It has been observed that Australia has a market that is avibrant and a free democracy and has been rising ever since. The economy of the country hada set back during the initial period of the establishment of the project but as the years havepassed there has been a rapid development and this has motivated the investors as well as thestakeholders to undertake further investments in such innovative projects (Mishan, 2015).The idea of the project has been sustainable addition of new and improved features thatwould be useful to mankind and therefore this project has still been going on with variousresearches taking place each and every day in order to bring out the best possible product forthe same. The delivery of such product in the market would mean enhancement of the lifestyleof mankind and in that manner development of the economy as a whole (Griffin, 2016). Thisproject is a private sector venture and Technocrat is the organization who is liable for thedesign and, maintenance, financing and operational activities that are common for thedeliverance of the project. This project would enhance the value for money property andwould lead to rise in quality products in the Australian market. Project Objectives and Justification The development of the project has been to improve the lifestyle of the consumers ofthe country and enhancing the confidence and the satisfaction level of the communal societieswith the help of a variety of other features that reduce the level of reoffending.
4VENTURE PROJECT ECONOMICS AND FINANCEThe venture has shown a significant level of investment in the manufacturing and the servicesof the Smart Watch with the assistance of Technocrat, which would lead to deliverance ofinnovative and improve products. The project is fundamental in giving economic benefits andraising the level of employment within the country as there are scope of employment ofaround 800 employees during the initial stages of the development of the product and later onan additional of 100 employees would be essential for the sales, promotion and marketing ofthe product in the economy of Australia. The objective of the venture has hence beendiscussed below: Provide added capacity in the technological industryProvide added features to the consumers of the country Provide supplementary capability in order to lower the level of reoffending Motivate in procedures and practices that are innovative in nature and efficientoperations that would raise the value for moneyThe justification for the undertaking of the project has been to improve the lifestyle of theconsumers and to make a healthy and a happy environment for the existence of the society. Assumptions, Constraints and Expected Outcomes The construction of the project has been possible by looking at the assumptions andthe financial capability. The assumptions of the venture has been gaining knowledge aboutthe financial scenario of the organization undertaking the venture and the number of memberswho are functioning in the development of the product that would be helpful in delivering theproject within the stipulated time period. There are several challenges and risks associated with the venture as well like thechallenges with respect to the planning of the venture, gaining various permits and approvalsfor the initiation of the project etc (Keohane, & Olmstead 2016). The other risks involve the
5VENTURE PROJECT ECONOMICS AND FINANCErisks related to the design and the financial and the activity based risks that can be veryharmful for completing the Smart Watch project. The anticipated outcome would be that theexpansion in the market of smart watches would act as drivers for the organizations toestablish smart watches more for selling them in the Australian market. It has beenanticipated that this business would even be reaching the breakeven point within certain yearsafter its initiation of their operations and would then look to create profits for them. Literature Review The review of literature would contain the different information with respect to theequipments and devices that have been utilized by the venture on request to decide theiroperational exercises and to construct the economic assessment and the cost benefitassessment of the Smart Watch project. This area of the paper would give a broad researchand assessment of the present worth, cash flows, internal rate of return alongside theprofitability index and techniques of business development and their appropriate procedureswith the goal that the venture can be finished up accurately. The utilization of the MADMand MCDM financial assessment process would be powerful to understand the procedure thatwould be utilized as a part of request to comprehend the present financial and the economicscenario of Smart Watches in Australia. The venture clarifies about the review of the literature and the clarification withrespect to the economic investigation and the cost benefit examination of the Smart WatchProject. A small outline of the model of risk evaluation of Smart Watch project in Australiawill be talked about in this area. The procedure of economic investigation are characterizedas the scientific and measurements and designs. The economic analysis depends on thedifferent strategies for the sensitivity of the economy and keeping in mind the end goal to
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