Abstract: Investment in a constructed facility represents a cost in
the short term that returns benefits only over the long term use of the
facility. Thus, the costs occur earlier than the benefits, and the owners
of facilities must obtain the capital resources to finance the costs of
construction. A project cannot proceed without an adequate
financing, and the cost of providing an adequate financing can be
quite large. For these reasons, the attention to the project finance is an
important aspect of project management. Finance is also a concern to
the other organizations involved in a project such as the general
contractor and material suppliers. Unless an owner immediately and
completely covers the costs incurred by each participant, these
organizations face financing problems of their own. At a more
general level, the project finance is the only one aspect of the general
problem of corporate finance. If numerous projects are considered
and financed together, then the net cash flow requirements constitute
the corporate financing problem for capital investment. Whether
project finance is performed at the project or at the corporate level
does not alter the basic financing problem .In this paper, we will first
consider facility financing from the owner's perspective, with due
consideration for its interaction with other organizations involved in a
project. Later, we discuss the problems of construction financing
which are crucial to the profitability and solvency of construction
contractors. The objective of this paper is to present the steps utilized
to determine the best combination of minimum project financing.
The proposed model considers financing; schedule and maximum net
area .The proposed model is called Project Financing and Schedule
Integration using Genetic Algorithms "PFSIGA". This model
intended to determine more steps (maximum net area) for any project
with a subproject. An illustrative example will demonstrate the
feature of this technique. The model verification and testing are put
into consideration.
Abstract: PT XYZ is a bottled drinking water company. To preserve production resources owned by the company so that the resources could be utilized well, it has implemented maintenance management system, which has important role in company's profitability, and is one of the factors influenced overall company's performance. Yet, up to now the company has never measured maintenance activities' contribution to company's performance. Performance evaluation is done according to adapted Balanced Scorecard model fitted to maintenance function context. This model includes six perspectives: innovation and growth, production, maintenance, environment, costumer, and finance. Actual performance measurement is done through Analytic Hierarchy Process and Objective Matrix. From the research done, we can conclude that the company's maintenance function is categorized in moderate performance. But, there are some indicators which has high priority but low performance, which are: costumers' complain rate, work lateness rate, and Return on Investment.
Abstract: In this paper, the modelling and design of artificial neural network architecture for load forecasting purposes is investigated. The primary pre-requisite for power system planning is to arrive at realistic estimates of future demand of power, which is known as Load Forecasting. Short Term Load Forecasting (STLF) helps in determining the economic, reliable and secure operating strategies for power system. The dependence of load on several factors makes the load forecasting a very challenging job. An over estimation of the load may cause premature investment and unnecessary blocking of the capital where as under estimation of load may result in shortage of equipment and circuits. It is always better to plan the system for the load slightly higher than expected one so that no exigency may arise. In this paper, a load-forecasting model is proposed using a multilayer neural network with an appropriately modified back propagation learning algorithm. Once the neural network model is designed and trained, it can forecast the load of the power system 24 hours ahead on daily basis and can also forecast the cumulative load on daily basis. The real load data that is used for the Artificial Neural Network training was taken from LDC, Gujarat Electricity Board, Jambuva, Gujarat, India. The results show that the load forecasting of the ANN model follows the actual load pattern more accurately throughout the forecasted period.
Abstract: Majority of Business Software Systems (BSS)
Development and Enhancement Projects (D&EP) fail to meet criteria
of their effectiveness, what leads to the considerable financial losses.
One of the fundamental reasons for such projects- exceptionally low
success rate are improperly derived estimates for their costs and time.
In the case of BSS D&EP these attributes are determined by the work
effort, meanwhile reliable and objective effort estimation still appears
to be a great challenge to the software engineering. Thus this paper is
aimed at presenting the most important synthetic conclusions coming
from the author-s own studies concerning the main factors of
effective BSS D&EP work effort estimation. Thanks to the rational
investment decisions made on the basis of reliable and objective
criteria it is possible to reduce losses caused not only by abandoned
projects but also by large scale of overrunning the time and costs of
BSS D&EP execution.
Abstract: The purpose of this paper is to shed light on the
controversial subject of tax incentives to promote regional
development. Although extensive research has been conducted, a
review of the literature gives an inconclusive answer to whether
economic incentives are effective. One reason is the fact that for
some researchers “effective" means the significant location of new
firms in targeted areas, while for others the creation of jobs
regardless if new firms are arriving in a significant fashion. We
present this dichotomy by analyzing a tax incentive program via both
alternatives: location and job creation. The contribution of the paper
is to inform policymakers about the potential opportunities and
pitfalls when designing incentive strategies. This is particularly
relevant, given that both the US and Europe have been promoting
incentives as a tool for regional economic development.
Abstract: The article examines an opportunity of corruption
restriction exercised by international business community in Russia.
Integration of Russian economy into the international business does
not reduce corruption inside the country. Foreign actors investing in
Russia under the condition of obtaining their required rates of returns
will be reluctant to harm their investments by involving into anticorruption
activities. Furthermore, many Russian firms- competitive
advantage could be directly related to their corruption connections. In
this case, foreign investments would only accentuate corrupt
companies- success by supporting them financially
Abstract: R&D risk management has been suggested as one of
the management approaches for accomplishing the goals of public
R&D investment. The investment in basic science and core technology
development is the essential roles of government for securing the
social base needed for continuous economic growth. And, it is also an
important role of the science and technology policy sectors to generate
a positive environment in which the outcomes of public R&D can be
diffused in a stable fashion by controlling the uncertainties and risk
factors in advance that may arise during the application of such
achievements to society and industry. Various policies have already
been implemented to manage uncertainties and variables that may
have negative impact on accomplishing public R& investment goals.
But we may derive new policy measures for complementing the
existing policies and for exploring progress direction by analyzing
them in a policy package from the viewpoint of R&D risk
management.
Abstract: This paper proposes an investment cost recovery
based efficient and fast sequential optimization approach to optimal
allocation of thyristor controlled series compensator (TCSC) in
competitive power market. The optimization technique has been used
with an objective to maximizing the social welfare and minimizing
the device installation cost by suitable location and rating of TCSC in
the system. The effectiveness of proposed approach for location of
TCSC has been compared with some existing methods of TCSC
placement, in terms of its impact on social welfare, TCSC investment
recovery and optimal generation as well as load patterns. The results
have been obtained on modified IEEE 14-bus system.
Abstract: Wireless Mesh Networks (WMNs) are an emerging
technology for last-mile broadband access. In WMNs, similar to ad
hoc networks, each user node operates not only as a host but also as a
router. User packets are forwarded to and from an Internet-connected
gateway in multi-hop fashion. The WMNs can be integrated with
other networking technologies i.e. ad hoc networks, to implement a
smooth network extension. The meshed topology provides good
reliability and scalability, as well as low upfront investments. Despite
the recent start-up surge in WMNs, much research remains to be
done in standardizing the functional parameters of WMNs to fully
exploit their full potential. An edifice of the security concerns of
these networks is authentication of a new client joining an integrated
ad hoc network and such a scenario will require execution of a multihop
authentication technique. Our endeavor in this paper is to
introduce a secure authentication technique, with light over-heads
that can be conveniently implemented for the ad-hoc nodes forming
clients of an integrated WMN, thus facilitating their inter-operability.
Abstract: This paper includes a positive analysis to quantitatively grasp the relationship among vulnerability, information security incidents, and the countermeasures by using data based on a 2007 questionnaire survey for Japanese ISPs (Internet Service Providers). To grasp the relationships, logistic regression analysis is used. The results clarify that there are relationships between information security incidents and the countermeasures. Concretely, there is a positive relationship between information security incidents and the number of information security systems introduced as well as a negative relationship between information security incidents and information security education. It is also pointed out that (especially, local) ISPs do not execute efficient information security countermeasures/ investment concerned with systems, and it is suggested that they should positively execute information security education. In addition, to further heighten the information security level of Japanese telecommunication infrastructure, the necessity and importance of the government to implement policy to support the countermeasures of ISPs is insisted.
Abstract: The study analyzed the risk and returns of commercial-property in Southwestern Nigeria and selected stocksmarket investment between 2000 and 2009; compared the inflation hedging characteristics and diversification potentials of investing in commercial-property and selected stock- market investment. Primary data were collected on characteristics, rental and capital values of commercial- properties from their property managers through the use of questionnaire. Secondary data on stock prices and dividends on banking, insurance and conglomerates sectors were sourced from the Nigerian Stock Exchange (2000-2009). The result showed that average return on all the selected stock- investments was higher than that of commercial-property. As regards risk, commercial-property indicated lower risk, compared to stocks. Also the stock-investment had better inflation hedging capacity than commercial-properties; combination of both had diversification potentials. The study concluded that stock-market investment offered attractive higher return than commercial-property although with higher risk and there could be diversification benefits in combining commercial-property with stock- investment.
Abstract: These This paper looks into frameworks which aim at
furthering the discussion of the role of regenerative design practices
in a city-s historic core and the tool of urban design to achieve urban
revitalization on the island of Cyprus. It also examines the region-s
demographic mix, the effectiveness of its governmental coordination
and the strategies of adaptive reuse and strategic investments in older
areas with existing infrastructure. The two main prongs of
investigation will consider the effect of the existing and proposed
changes in the physical infrastructure and fabric of the city, as well as
the catalytic effect of sustainable urban design practices. Through this
process, the work hopes to integrate the contained potential within
the existing historic core and the contributions and participation of
the migrant and immigrant populations to the local economy. It also
examines ways in which this coupling of factors can bring to the front
the positive effects of this combined effort on an otherwise sluggish
local redevelopment effort. The data for this study is being collected
and organized as part of ongoing urban design and development
student workshop efforts in urban planning and design education.
The work is presented in graphic form and includes data collected
from interviews with study area organizations and the community at
large. Planning work is also based on best practices initiated by the
staff of the Nicosia Master Plan task force, which coordinates holistic
planning efforts for the historic center of the city of Nicosia.
Abstract: The term private equity usually refers to any type of
equity investment in an asset in which the equity is not freely
tradable on a public stock market. Some researchers believe that
private equity contributed to the extent of the crisis and increased
the pace of its spread over the world. We do not agree with this.
On the other hand, we argue that during the economic recession
private equity might become an important source of funds for firms
with special needs (e.g. for firms seeking buyout financing, venture
capital, expansion capital or distress debt financing). However,
over-regulation of private equity in both the European Union and
the US can slow down this specific funding channel to the
economy and deepen credit crunch during global crises.
Abstract: Baltic competitiveness is quite controversial. In a
situation with the rapid structural changes, economy develops in
balance very rarely - in different fields will always be more rapid
changes in another more stagnation.
Analyzing different economic indices developed by international
organizations the situation in three Baltic countries are described
from a different competitiveness positions highlighting strengths and
weaknesses of each country.
Exploring the openness of the economy, it is possible to observe
certain risks included in the reports describing situation of
competitiveness where government policies competing in the tax
system, the rates of labour market policies, investment environment,
etc. This is a very important factor resulting in competitive
advantage.
Baltic countries are still at a weak position from a technological
perspective, and need to borrow the knowledge and technology from
more developed countries.
Abstract: The utilization of renewable energy sources in electric
power systems is increasing quickly because of public apprehensions
for unpleasant environmental impacts and increase in the energy
costs involved with the use of conventional energy sources. Despite
the application of these energy sources can considerably diminish the
system fuel costs, they can also have significant influence on the
system reliability. Therefore an appropriate combination of the
system reliability indices level and capital investment costs of system
is vital. This paper presents a hybrid wind/photovoltaic plant, with
the aim of supplying IEEE reliability test system load pattern while
the plant capital investment costs is minimized by applying a hybrid
particle swarm optimization (PSO) / harmony search (HS) approach,
and the system fulfills the appropriate level of reliability.
Abstract: The present research was focused to investigate the
role of investment in the course of economic growth with reference to
Pakistan. The study analyzed the role of the public and private
investment and impact of the political and macroeconomic
uncertainty on economic growth of Pakistan by using the vector
autoregressive approach (VAR). In long-run both public and private
investment showed a positive impact on economic growth but the
growth was largely driven by private investment as compared to
public investment. Government consumption expenditure, economic
uncertainty and political instability hampered the economic growth of
Pakistan. In short-run the private investment positively influences the
growth but there was negative and insignificant effect of the public
investment and government consumption expenditure on the growth.
There was a positive relationship found between economic
uncertainty (proxy for inflation) and GDP in short run.
Abstract: Real options theory suggests that managerial flexibility embedded within irreversible investments can account for a significant value in project valuation. Although the argument has become the dominant focus of capital investment theory over decades, yet recent survey literature in capital budgeting indicates that corporate practitioners still do not explicitly apply real options in investment decisions. In this paper, we explore how real options decision criteria can be transformed into equivalent capital budgeting criteria under the consideration of uncertainty, assuming that underlying stochastic process follows a geometric Brownian motion (GBM), a mixed diffusion-jump (MX), or a mean-reverting process (MR). These equivalent valuation techniques can be readily decomposed into conventional investment rules and “option impacts", the latter of which describe the impacts on optimal investment rules with the option value considered. Based on numerical analysis and Monte Carlo simulation, three major findings are derived. First, it is shown that real options could be successfully integrated into the mindset of conventional capital budgeting. Second, the inclusion of option impacts tends to delay investment. It is indicated that the delay effect is the most significant under a GBM process and the least significant under a MR process. Third, it is optimal to adopt the new capital budgeting criteria in investment decision-making and adopting a suboptimal investment rule without considering real options could lead to a substantial loss in value.
Abstract: The recurring decimal of rural and urban poverty in
Nigeria, resulting from lack of sustainable livelihood activities by
the people due to non-diversification of the economy, necessitated
this study. One hundred snail farmers were randomly selected in
Akure North and Akure South Local Government areas of Ondo
State, Southwest Nigeria where snail farming is widely practised.
Data collection was through questionnaires administration and onsite
observation of farms. Data obtained were subjected to
descriptive statistics, Student-s t-test and regression analysis. Cost
benefit ratio (CBR) and rate of return on investment (RORI) were
calculated in order to determine the poverty alleviation potentials of
snail farming in the study areas. Although snail farming was
profitable and viable, it was below poverty line. With time and more
knowledge in its farming activities, and with more people taking to
snail production, its poverty alleviation and reduction potentials will
increase.
Abstract: Literature reveals that many investors rely on technical trading rules when making investment decisions. If stock markets are efficient, one cannot achieve superior results by using these trading rules. However, if market inefficiencies are present, profitable opportunities may arise. The aim of this study is to investigate the effectiveness of technical trading rules in 34 emerging stock markets. The performance of the rules is evaluated by utilizing White-s Reality Check and the Superior Predictive Ability test of Hansen, along with an adjustment for transaction costs. These tests are able to evaluate whether the best model performs better than a buy-and-hold benchmark. Further, they provide an answer to data snooping problems, which is essential to obtain unbiased outcomes. Based on our results we conclude that technical trading rules are not able to outperform a naïve buy-and-hold benchmark on a consistent basis. However, we do find significant trading rule profits in 4 of the 34 investigated markets. We also present evidence that technical analysis is more profitable in crisis situations. Nevertheless, this result is relatively weak.
Abstract: A simple mobile engine-driven pneumatic paddy
collector made of locally available materials using local
manufacturing technology was designed, fabricated, and tested for
collecting and bagging of paddy dried on concrete pavement. The
pneumatic paddy collector had the following major components:
radial flat bladed type centrifugal fan, power transmission system,
bagging area, frame and the conveyance system. Results showed
significant differences on the collecting capacity, noise level, and fuel
consumption when rotational speed of the air mover shaft was varied.
Other parameters such as collecting efficiency, air velocity,
augmented cracked grain percentage, and germination rate were not
significantly affected by varying rotational speed of the air mover
shaft. The pneumatic paddy collector had a collecting efficiency of
99.33 % with a collecting capacity of 2685.00 kg/h at maximum
rotational speed of centrifugal fan shaft of about 4200 rpm. The
machine entailed an investment cost of P 62,829.25. The break-even
weight of paddy was 510,606.75 kg/yr at a collecting cost of 0.11
P/kg of paddy. Utilizing the machine for 400 hours per year
generated an income of P 23,887.73. The projected time needed to
recover cost of the machine based on 2685 kg/h collecting capacity
was 2.63 year.