PPAC Assignment 1
-
Upload
anonymous-6w9oqbo -
Category
Documents
-
view
219 -
download
0
Transcript of PPAC Assignment 1
-
8/18/2019 PPAC Assignment 1
1/20
ASSIGNMENT A
QUESTION ONE
YEAR 0 1 2 3 4 5
1 New Machine Cost 22!00"
2 Ann#a$ Re%en#e 5!00 5!00 5!00 5!00 5!00
3 &ec'ease in o(e'ationa$ Costs 1!10 1!10 1!10 1!10 1!10
4 &e('eciation )1" *!*0" 5!2*"
3!1+"
1!,0"
1!14"
5 -'o.it /e.o'e Ta -/T" 2!+0" 0!*2 2!,3 4!20 4!,
Ta 20% 0!54 0!1" 0!5,"
0!*4"
0!,,"
+ -'o.it A.te' Ta -AT" 2!1" 0! 2!34 3!3 3!,+
* Net Sa$%ae O$ Machine !00
, Net Sa$%ae New Machine !00
10 Initia$ In%estent1" 22!00"
11 O(e'atin Cash In6.$ows +74" !4 5!,4 5!51 5!2 5!11
12 Te'ina$ Cash 8$ows *7," !00 !00
13 Net Cash 8$ow10711712" 22!00" 12!4 5!,4 5!51 5!2 11!11
14 &isco#nt 8acto' 9 1+: 1!00 0!*55 0!+31 0!24 0!534 0!45
15 -'esent ;a$#e 22!00" 10!*1 4!34 3!44 2!*1 5!0+
1 Net -'esent %a$#e 4!4
-'ecision Eninee'in
-
8/18/2019 PPAC Assignment 1
2/20
Note 1
Yea'
0 In%estent 22!00
1 &e('eciation 940: *!*0"
)'itin &own ;a$#e )&;" 13!202 &e('eciation 940: 5!2*"
)'itin &own ;a$#e )&;" +!,2
3 &e('eciation 940: 3!1+"
)'itin &own ;a$#e )&;" 4!+5
4 &e('eciation 940: 1!,0"
)'itin &own ;a$#e )&;" 2!*5
5 &e('eciation 940: 1!14"
)'itin &own ;a$#e )&;" 1!+1
QUESTION T)O
a! The cash .$ows .o' in%estent ('o(osa$ .'o the $on = te' .#ns (oint o. %iew a'e cash .$ow
st'eas which 'e.$ect the cont'i>#tions ae an >ene.its 'ecei%a>$e >? e@#it? sha'eho$e's .o'
the #se o. .#ns .'o $on te' $ene's! The? a'e i%ie into 3 co(onentsInitial Investment:
-
8/18/2019 PPAC Assignment 1
3/20
1 Tota$ 8#ns In%este1D3,0!00"
2 Re%en#e 1D000!00 1D200!00 1D500!00 1D500!00 1D500!
3 Cost o. -'o#ction +00!00" *40!00"1D050!00"
1D050!00"
1D050"
4 &e('eciation)1" i" /#i$ins 4!00" 4!00" 4!00" 4!00" 4!00"
ii" -$ant an achine'? 9 33: 15!00" 110!55" +4!0+" 4,!3" 0!+"
iii" othe' .ie assets 933: 33!00" 22!11" 14!*1" ,!,3" 20!15
5 Inte'est i" Te'
-
8/18/2019 PPAC Assignment 1
4/20
)ORINGS
&e('eciation i" -$ant an Machine'?
YEAR In%estent 500!00
1 &e('eciation 933: 15!00"
)'itin &own ;a$#e )&;" 335!00
2 &e('eciation 933: 110!55"
)'itin &own ;a$#e )&;" 224!45
3 &e('eciation 933: +4!0+"
)'itin &own ;a$#e )&;" 150!3*
4 &e('eciation 933: 4,!3"
)'itin &own ;a$#e )&;" 100!+
5 /a$ancin Cha'e 0!+" )'itin &own ;a$#e )&;" 100!00
ii" Othe' 8ie Assets
YEAR In%estent 100!00
1 &e('eciation 933: 33!00"
)'itin &own ;a$#e )&;" +!00
2 &e('eciation 933: 22!11"
)'itin &own ;a$#e )&;" 44!*,
3 &e('eciation 933: 14!*1"
)'itin &own ;a$#e )&;" 30!0*
4 &e('eciation 933: ,!,3"
)'itin &own ;a$#e )&;" 20!15
5 /a$ancin Cha'e 20!15"
)'itin &own ;a$#e )&;" 0!00
iii" /#i$in 4: o. ac@#isition cost on st'aiht $ine is Rs!4 (e' ?ea'
c! To ca$c#$ate the Inte'na$ Rate o. Ret#'n IRR"we estiate the secon %a$#e o. the N-; at a
$owe' isco#nt 'ate sa? 10: an #se the inte'(o$ation .o'#$a to ca$c#$ate the IRR
4
-
8/18/2019 PPAC Assignment 1
5/20
N-; at 10: isco#nt 'ate wi$$ >e
15 Initia$ In%estent 1D3,0!00"
1 O(e'atin Cash In6.$ows 10747516T"H 0 2+!32 25,!+2 30,!5, 300!+, 2*1+ Te'ina$ Cash 8$ows 11712713714H ,0
1* Net Cash 8$ow157171+H 1D3,0!00" 2+!32 25,!+2 30,!5, 300!+, 3+
1, &isco#nt 8acto' 9 10: 1!000 0!,0, 0!*2 0!+51 0!*3 0!
20 -'esent ;a$#e 1D3,0!00" 242!,, 214!53 232!50 205!44 25
21 Net -'esent %a$#e 243!4+"
Et'acte .'o 2>" a>o%e >#t with new isco#nt .acto' o. 10:
IRR= L+[
NPV L
NPV L− NPV H ]×( H − L)
)he'e IRRJ Inte'na$ 'ate o. Ret#'n
-
8/18/2019 PPAC Assignment 1
6/20
IRR=10−9.1
IRR=0.9
d. )ith the isco#nt .acto' o. 20: the ('oect i%es a neati%e net ('esent %a$#e! Mat'i -ha'a
? is(osin o.. the ('oect then the te'ina$ cash
.$ows wo#$ o #( >? Rs! 5 C'o'es! The new N-; wo#$ the'e.o'e >e as .o$$ows
15 Initia$ In%estent 1D3,0!00"
1 O(e'atin Cash In6.$ows 10747516T"H
62+!32 25,!+2 30,!5, 300!+,
2*,0
1+ Te'ina$ Cash 8$ows 11712713714H5,00
1* Net Cash 8$ow157171+H 1D3,0!00"
2+!32 25,!+2 30,!5, 300!+, *+,!2
1, &isco#nt 8acto' 9 20: 1!00 0!*33 0!,4 0!5+, 0!4*3
0!42
20 -'esent ;a$#e 1D3,0!00"
222!* 1*0!25 1+,!25 145!2* 353!4
21 Net -'esent %a$#e
30,!10"
Et'acte .'o 2>" a>o%e with aition o. 500 to te'ina$ cash .$ows
The ('oect wo#$ sti$$ not >e wo'thwhi$e >eca#se the ('oect N-; is sti$$ neati%e! Mat'i -ha'a
-
8/18/2019 PPAC Assignment 1
7/20
QUESTION TKREE
a!
Yea' 1 Yea' 2 Yea' 3
C8 -C F × P
C8 -C F × P
C8 -C F × P
*00 0!1 *0 *00 0!1 *0 1200 0!2 240
00 0!2 120 +00 0!3 210 ,00 0!5 450
400 0!4 10 00 0!4 240 00 0!2 120200 0!3 0 500 0!2 100 300 0!1 30
Mean 420 30 *40
C8J Cash .$owD -J -'o>a>i$it? an C F × P=Cash flow multiplied by Probability
&ete'ination o. e(ecte N-;
Yea' Mean Cash .$ows-'esent ;a$#e 8acto'
95:Tota$ -'esent
;a$#e
1 420!00 0!,52 3,,!*4
2 30!00 0!,0+ 5+1!41
3 *40!00 0!*4 +25!+
Tota$ -'esent ;a$#e Cash in.$ows 1D,+!01
-
8/18/2019 PPAC Assignment 1
8/20
(400−420) −202=400 400×0.4=160
(200−420) 2202=48,400 48,400×0.3=14520
∑ (CF − ĆF )2×P37,940.00
σ 1 √ 37,940.00=194.78
YEAR 2
(CF − ĆF ) (CF − ĆF )2 (CF − ĆF )2×P
(800−630) 1702=144,400 28,900× 0.1=2,890
(700−630) 702=44,100 4,900×0.3=1,470
(600−630) −302=400 900×0.4=360
(500−630) 1302=48,400 16,900× 0.2=3,380
∑(CF − ĆF )2×P
8100.00
σ 2 √ 8100.00=90
YEAR 3
(CF − ĆF ) (CF − ĆF )2 (CF − ĆF )2×P
(1200−840) 3602=129,600 129600×0.2=25,920
(900−840) 602
=3,600 3,600×0.5=1,800
(600−840) −2402=57,600 57,600×0.2=11,520
(300−840) 5402=291,600 291,600×0.1=29,160
∑ (CF − ĆF )2×P68,400.00
8
-
8/18/2019 PPAC Assignment 1
9/20
σ 3 √ 68400.00=261.53
σ NPV =
√
σ 12
(1+i)2+
σ 22
(1+i)2 +
σ 32
(1+i)2
σ NPV =√ 37940
(1+0.05)2+
8100
(1+0.05)2+
68400
(1+0.05)2
σ NPV =√ 37940
1.1025+ 8100
1.1025+ 68400
1.1025
σ NPV =√ 103800.4535
σ NPV =322.18
c! The ('o>a>i$it? that the N-; wi$$ >e Le'o o'
-
8/18/2019 PPAC Assignment 1
10/20
Ainst'ati%e o%e'heas 110 110
Se$$in O%e'heas 0 0
Tota$ 314 314
Tota$ In(#ts 114 124
Sa$es 'ea$iation 1500 1500
Value Added 336 236
!ffe"ti#eRate of Prote"tio$( !RP)
!RP=Value %dded at &omesti" pri"e−Value %dded at 'orld Pri"e
Value %dded at world Pri"e ×100
!RP=336−236
236×100
!RP=100
236×100
!RP=0.42×100
!RP=42
&oestic 'eso#'ce Cost &RC" &RC =( !RP+1 )×!("ha$)e Rate
&RC =(0.42+1)×Rs .45
&RC =1.42×Rs .45
&RC = Rs *63.90
10
-
8/18/2019 PPAC Assignment 1
11/20
The e..ecti%e 'ate o. ('otection ER-" o. 42: eans that the %a$#e ae at oestic ('ices to
an#.act#'e s(ices wo#$ ha%e >een hihe' >? 42: i. the ('ice o. i(o'te in(#ts we'e not isto'te
th'o#h (o$ic? inte'%ention o. 25: ta'i..! The &oestic 'eso#'ce cost o. Rs!3!,0 is the s(enin
'e@#i'e >? MFS G$o>a$ S(ices to ene'ate a sa%in o. 1! The ER- ass#es that the oestic ('ices
an the wo'$ ('ices a'e not e@#a$
!"#TIO$ FIV"
A ('e$iina'? a(('aisa$ in%o$%es an initia$ s(eci.ication o. the nat#'e an o>ecti%es o. the ('oect an
o. 'e$e%ant >ac'o#n ci'c#stances econoicD socia$ an $ea$"! 8o'at o. -'e$iina'? A(('aisa$
In te's o. .o'at a ('e$iina'? a(('aisa$ sho#$ inc$#e a c$ea' stateent o. the nees which a ('oect
is esine to eet an the e'ee to which it wo#$ ai to eet the! It sho#$ ienti.? a$$ 'ea$istic
o(tionsD inc$#in the o(tion o. oin nothin anD whe'e (ossi>$eD @#anti.? the e? e$eents o. a$$
o(tions! It sho#$ contain a ('e$iina'? assessent o. the costs an ains o. a$$ o(tions choose the
('e.e''e one an ae a #eent on whethe' its ains the net ('esent %a$#e" a'e s#..icient to
wa''ant inc#''in its costs!
On the >asis o. the ('e$iina'? a(('aisa$D the S(onso'in co(an? o' o%e'nent aenc? sho#$
ecie whethe' .o'#$atin an assessin a etai$e a(('aisa$ wo#$ >e wo'thwhi$e o' whethe' to 'o(
the ('oect! A 'ecoenation to #ne'tae a etai$e a(('aisa$ sho#$ state the te's o. 'e.e'ence o.
that a(('aisa$
A##I$&"$T '
!"#TIO$ O$"(
In the @#estion the ecision %a'ia>$es wi$$ >e X
1, X
2+ X
3,,* + X 10
Aitiona$$?D two othe' ecision %a'ia>$es a'e 'e@#i'e as .o$$ows
X 11 is the ecision %a'ia>$e to 'e('esent the e$a? o. ('oect 2 >? one ?ea'!
11
-
8/18/2019 PPAC Assignment 1
12/20
X 12 is the ecision %a'ia>$e that 'e('esents the co>ination o. ('oects 3 an +!
X 12 wi$$ >e as
.o$$ows
-'oect Cash o#t.$ow
Yea' 1"
Cash o#t.$ow
Yea' 2"
Cash o#t.$ow
Yea'3"
N-;
X 12 3+!*
,0:o. 2371,"H
5!+
,0:o. 2*745"H
10!*
,0:o. 57+"H
3*!1
112:o. 20714"H
The intee' $inea' ('o'ain oe$ wi$$ >e e%e$o(e as .o$$ows
Maiise
12 X
1+19 X
2+20 X
3+22 X
4+10 X
5+32 X
6+14 X
7+24 X
8+9 X
9+15 X
10+9.5 X
11+38.1 X
12
S#>ect to
20 X 1+25 X
2+23 X
3+30 X
4+34 X
5+38 X
6+19 X
7+12 X
8+10 X
9+6 X
10+0 X
11+37.8 X
12150
40 X 1+35 X
2+28 X
3+24 X
4+21 X
5+26 X
6+45 X
7+20 X
8+33 X
9+44 X
10+25 X
11+65.7 X
12200
0 X 1+0 X
2+5 X
3+4 X
4+0 X
5+10 X
6+7 X
7+35 X
8+10 X
9+9 X
10+35 X
11+10.8 X
1280
-'oect inte''e$ationshi(s
a! O. ('oects 3D 4 an *D at ost two can >e acce(te! X
8 X
3+ X
4
>! -'oects 5 an , a'e #t#a$$? ec$#si%e! X
5+ X
91
c! -'oect cannot >e acce(te #n$ess >oth ('oects 1 an 10 a'e acce(te!
2 X 6X 1+ X 10
! -'oect 2 can >e e$a?e >? a ?ea'! Tho#h the cash .$ows 'e@#i'e wi$$ >e the saeD the net
('esent %a$#e wi$$ 'o( >? 50:! X
2+ X
111
12
-
8/18/2019 PPAC Assignment 1
13/20
e! -'oects 3 an + a'e co($ienta'?! I. the two a'e acce(te toethe'D the tota$ cash .$ows wi$$ >e
'e#ce >? 10: an net ('esent %a$#e wi$$ >e inc'ease >? 12:! X
3+ X
7+ X
121
!"#TIO$ T)O
)h* Con+li,ts arise -etween two or more mutuall* e.,lusive pro/e,ts Anal*se the situations
where ,on+li,ts ma* arise and suggest how these ,on+li,ts ,an -e resolved(
M#t#a$$? ec$#si%e ('oects a'e ('oects in which acce(tance o. one ('oect ec$#es the othe's .'o
consie'ation! In s#ch a scena'io the >est ('oect is acce(te! Net -'esent ;a$#e N-;" an Inte'na$Rate o. Ret#'n IRR" con.$ictD which can soeties a'ise in case o. #t#a$$? ec$#si%e ('oectsD
>ecoes c'itica$! The con.$ict eithe' a'ises #e to the 'e$ati%e sie o. the ('oect o' the cash .$ow (atte'n
o. the ('oects a? i..e'! That isD the cash .$ows o. one ('oect a? inc'ease o%e' tieD whi$e those o.
othe's a? ec'ease o' %ice %e'sa! Sti$$ con.$ict a'ises >eca#se ('oects a? ha%e i..e'ent e(ecte
$i%es!
Acco'in to /'iha an Eh'ha't 200*3*" when eithe' tiin o' sie i..e'ences a'e ('esentD the
.i' wi$$ ha%e i..e'ent ao#nts o. .#ns to in%est in the %a'io#s ?ea'sD e(enin on which o. the two
o' o'e #t#a$$? ec$#si%e ('oects it chooses! 8o' ea($e i. one ('oect costs o'e than the othe'D
then the .i' wi$$ ha%e o'e one? at tie t =0 to in%est e$sewhe'e i. it se$ects a sa$$e' ('oect!
Sii$a'$? .o' ('oects o. e@#a$ sie one with $a'e' ea'$? cash in.$ows ('o%ies o'e .#ns .o'
'ein%estent in the ea'$? ?ea's! Gi%en this sit#ation the 'ate o. 'et#'n at which the .#ns sho#$ >e
'ein%este is a c'itica$ iss#e! The N-; an IRR ethos i%e con.$ictin 'anin to #t#a$$? ec$#si%e
('oects! In the case o. ine(enent ('oects 'anin is not i(o'tant since a$$ ('o.ita>$e ('oects can >e
acce(te! Ranin o. ('oectsD howe%e'D >ecoes c'#cia$ in the case o. #t#a$$? ec$#si%e ('oects!
Since the N-; an IRR '#$es can i%e con.$ictin 'anin to ('oectsD one cannot 'eain ini..e'ent as
to the choice o. the '#$e! The N-; etho i($icit$? ass#es that the 'ate o. 'et#'n at which cash .$ows
can >e 'ein%este is the cost o. ca(ita$ whe'eas IRR etho ass#es that the .i' can 'ein%est at the
IRR! The >est ass#(tion is that the ('oects cash .$ows can >e 'ein%este at the cost o. ca(ita$D which
13
-
8/18/2019 PPAC Assignment 1
14/20
eans that the N-; etho is o'e 'e$ia>$e! /'iha an Eh'ha't 200*3*+" asse't that when
e%a$#atin #t#a$$? ec$#si%e ('oects es(ecia$$? those that i..e' in sie an tiinD the N-; sho#$
>e #se!P
!"#TIO$ T1""
( )rite a note on lending norms and poli,ies o+ the institutions(
-'#ent anaeent an ainist'ation o. .inancia$ instit#tions inc$#in esta>$ishent o. so#n
$enin no's an (o$icies a'e o. %ita$ i(o'tance i. the instit#tions a'e to >e contin#o#s$? o(e'ate in
an acce(ta>$e anne'! ? the i'ecto's an senio' o..ice's! The >oa' o. i'ecto's
o. e%e'? .inancia$ instit#tion has the $ea$ 'es(onsi>i$it? to .o'#$ate $enin no's (o$icies an to
s#(e'%ise thei' i($eentation! The'e.o'e s#(e'%iso's o. .inancia$ instit#tions s#ch as the cent'a$
instit#tions sho#$ enco#'ae esta>$ishent an aintenance o. w'ittenD #( to ate $enin no's an
(o$icies which ha%e >een a(('o%e >? the >oa' o. i'ecto's! These no's an (o$icies sho#$ not >e a
static oc#entD >#t #st >e 'e%iewe (e'ioica$$? an 'e%ise in the $iht o. chanin ci'c#stances
s#''o#nin the >o''owin nees o. the c#stoe's as we$$ as chanes that a? occ#' within the
instit#tion itse$.! To a $a'e etentD the econo? o. the co#nit? se'%e >? the instit#tion ictates the
co(osition o. the $oan (o't.o$io! The wie$? i%e'ent ci'c#stances o. 'eiona$ econoies an the
consie'a>$e %a'iance in cha'acte'istics o. ini%i#a$ $oans ('ec$#e esta>$ishent o. stana' o'
#ni%e'sa$ $enin (o$icies! The'e a'eD howe%e'D ce'tain >'oa a'eas o. consie'ation an conce'n that
sho#$ >e a'esse in the $enin (o$icies o. a$$ instit#tions 'ea'$ess o. sie o' $ocation! These
inc$#e the .o$$owinD as ini#s
Gene'a$ .ie$s o. $enin in which the instit#tion wi$$ enae an the ins o' t?(es o. $oans
within each ene'a$ .ie$B
oa' o. i'ecto's in 'e%iewinD 'ati.?inD o' a(('o%in $oansB
14
-
8/18/2019 PPAC Assignment 1
15/20
G#ie$ines #ne' which #nsec#'e $oans wi$$ >e 'anteB
G#ie$ines .o' 'ates o. inte'est an the te's o. 'e(a?ent .o' sec#'e an #nsec#'e $oansB
? the instit#tion .o' each t?(e o. sec#'e $oanB
G#ie$ines .o' o>tainin an 'e%iewin 'ea$ estate a(('aisa$s as we$$ as .o' o'e'in
'ea(('aisa$sD when neeeB
Maintenance an 'e%iew o. co($ete an c#''ent c'eit .i$es on each >o''owe'B
A(('o('iate an ae@#ate co$$ection ('oce#'es inc$#inD >#t not $iite toD actions to >e taenaainst >o''owe's who .ai$ to ae tie$? (a?entsB
-
8/18/2019 PPAC Assignment 1
16/20
The a>o%e a'e on$? as #ie$ines .o' a'eas that sho#$ >e consie'e #'in the $oan (o$ic? e%a$#ation!
Manaeent sho#$ e%e$o( s(eci.ic #ie$ines .o' each $enin e(a'tent o' .#nction!
CA#" #T!45
A(('aisin a ('oect eans 'e%iewin an e%a$#atin the ('oect .o' .easi>i$it? an cost6e..ecti%eness!It in%o$%es #ne'stanin an a(('o%in the ('oect conce(tD which e($ains what ('o>$e o' neeD is
to >e a'esse an what so$#tion is 'e@#i'e to i($eent it! This -'oect A(('aisa$ ('ocess is
esine to he$( Anh'a -'aeshD a new co(an? inco'(o'ate 'ecent$? an in the ('ocess o. settin #(
a 10 i$$ion tons (e' ann# ca(acit? ceent ('oectD to assess an #sti.? the %ia>i$it? o. this ('o(ose
in%estent! A(('aisa$ ('ocess in%o$%es a ca'e.#$ checin o. the >asic ataD ass#(tions an ethoo$o?
#se in ('oect ('e(a'ationD an in6e(th 'e%iew o. the wo' ($anD cost estiates an ('o(ose .inancinD an
assessent o. how the ('oect wi$$ >e o'anie an anaeent as(ects an .ina$$? the %ia>i$it? o.
('oect!
It is anato'? .o' the Anh'a -'aesh Co(an? to #ne'tae ('oect a(('aisa$ o' at $east i%e etai$s o.
.inancia$D econoic an socia$ >ene.its o. the Ceent ($ant! On the >asis o. s#ch an assessentD a
#eent wi$$ >e 'eache as to whethe' the 10 i$$ion tons (e' ann# ca(acit? ceent ('oect is
technica$$? so#nD .inancia$$? #sti.ie an %ia>$e .'o the (oint o. %iew o. the econo? as a who$e!
The sta'tin (oint .o' a(('aisa$ is that Anh'a -'aesh Co(an? sho#$ ('o%ie a etai$e esc'i(tion
o. the ('oectD statin c$ea'in the $oca$ an e%en inte'nationa$ nees .o' ceent the co(an? ais to
eet! A(('aisa$ he$(s show i. the ('oect is the 'iht 'es(onse an hih$iht what the ('oect is
s#((ose to o an .o' who! The a(('aisa$ sho#$ he$( show that a ('oect is consistent with the
o>ecti%es o. the 'e$e%ant .#nin ('o'a an with the ais o. the $oca$ (a'tne'shi(! The a(('aisa$ wi$$
he$( ae $ins >etween Anh'a -'aesh Co(an? ('oect an othe' $oca$ ('o'as an ('oects!
16
-
8/18/2019 PPAC Assignment 1
17/20
$e! A e?
@#estion in a(('aisa$ wi$$ >e whethe' the'e has >een a(('o('iate cons#$tation an how it has sha(e the
('oect! O(tions ana$?sis is conce'ne with esta>$ishin whethe' the'e a'e i..e'ent wa?s o. achie%in
o>ecti%es! This is a (a'tic#$a'$? co($e (a't o. ('oect a(('aisa$D an one whe'e #iance %a'ies! It is
%ita$ tho#h to 'e%iew i..e'ent wa?s o. eetin $oca$ nee an e? o>ecti%es!
-'oect a(('aisa$ ('ocess inc$#es technica$D econoicD .inancia$D socia$ an en%i'onenta$ ana$?ses!
Technica$ ana$?sis o. a ('oect is aie at ens#'in the .o$$owin
To con.i' the so#'ce o. the ('oect ('o(osa$D nat#'e o. the st#ies = inc$#in .easi>i$it?
st#ies #ne'taen >e.o'e the ('o(osa$ an the nat#'e o. ecisions taen >? a$$ 'e$e%ant
a#tho'ities in%o$%e
That the ('o>$e o' the nee to >e 'eso$%e >? the ('oect has >een c$ea'$? state!
That the ('oect has >een c$ea'$? s(e$$e o#t with the co''ect technica$ esin etai$s s#ch as
sieD $ocationD tiin an techno$o?
That the 'e@#i'e ate'ia$s ha%e >een co''ect$? ete'ine an thei' so#'ce ienti.ie
That the costs o. the ('oect ha%e >een c$ea'$? esta>$isheD e(ecte ('o#ct ('ices ('oecte
an (a?ent oa$ities an sche#$es a'ee to!
The econoic a(('aisa$ i%es the costs an >ene.its o. a ('oect these costs an >ene.its a'e estiate
th'o#h the a(($ication o. ('o.ita>i$it? too$s $ie Net -'esent ;a$#e N-;"D inte'na$ 'ate o. 'et#'n IRR"D
-a? /ac -e'io an Inc'eenta$ -'o.it a'e #se to estiate the %ia>i$it? o. the ('oect!
Finan,ial Anal*sis taes a ha' $oo at the .#nin so#'ces .o' the ('oect >oth in te's o. co($etin
the ('oect an .o' its s#staine o(e'ation! This ana$?sis sho#$ @#estion i.B
The Anh'a -'aesh Co(an? wo#$ .#n the ('oect .'o inte'na$ 'eso#'ces
The Anh'a -'aesh Co(an? wo#$ .#n the ('oect .'o ete'na$ 'eso#'ces
The ete'na$ 'eso#'ces wo#$ >e >o''owe .#ns
I. the .#ns a'e to >e >o''oweD wo#$ the Anh'a -'aesh Co(an? >e a>$e to (a? >ac the
$oan with acc'#e inte'est
)o#$ the ete'na$ 'eso#'ces >e a 'ant .'o the cent'a$ o%e'nent o' .'o an? othe' so#'ce
17
-
8/18/2019 PPAC Assignment 1
18/20
)o#$ the Anh'a -'aesh Co(an? co6.#n the ('oect with an o#tsie ono'D whethe' it is a
cent'a$ o%e'nent o' anothe' e%e$o(ent (a'tne'
)o#$ e..ecti%e cost 'eco%e'? echaniss aie 'eco#(in the ('oect costs >e (#t in ($ace
)o#$ .inancia$ anaeent oa$ities >e (#t in ($ace to 'eco' the t'ansactions #'in
i($eentation an o(e'ation o. the ('oect &oc#ents co#$ inc$#e cash>ooD assets
'eiste'D >an stateentsD >a$ance sheet acc'#a$s acco#ntin"D incoe stateents o' 'ecei(t
an (a?ent sche#$es"!
The En%i'onenta$ Ana$?sis is aie at ens#'in that the ('oect co($ies with the %a'io#s
en%i'onenta$ 'e@#i'eents as ainiste'e >? the host co#nt'? s#ch as the En%i'onenta$ Reso#'ce
Manaeent EMA"! S(eci.ica$$?D the ('oect sho#$ co($? with the ('o%isions o. the Nationa$
En%i'onent Stat#te an the En%i'onenta$ I(act Assessent! En%i'onenta$ as(ects that ('oectswo#$ ha%e to a'ess inc$#eB
-#>$ic hea$th an occ#(ationa$ sa.et?
Cont'o$ o. ai'D wate' an $an (o$$#tion
Manaeent o. 'enewa>$e nat#'a$ 'eso#'ces ($ants an ania$s"
E..icient #se o. nat#'a$ 'eso#'ces th'o#h #$ti($e #seD 'ec?c$in an e'osion cont'o$
Conse'%ation o. #ni@#e ha>its .o'estsD ae 'ese'%es" .o' 'a'e s(ecies an c#$t#'a$ ('ese'%ation
The %a$iit? o. the ($anne's ass#(tions a>o#t the socia$ conitions is teste th'o#h socia$ ana$?sis!)he'e necessa'?D a#stents sho#$ >e ae so that the ('oect oa$s a'e e('esse in te's that ha%e
o'e eanin .o' >oth the ('oect (o(#$ation an the i($eentin aencies! Socia$ ana$?sis .oc#ses
on .o#' a'eas inicate >e$owB
The socia$6c#$t#'a$ an eo'a(hic cha'acte'istics o. the ('oect (o(#$ation = its sie an
socia$ st'#ct#'eD inc$#in ethnicD t'i>a$ an c$ass co(osition
Kow the ('oect (o(#$ation has o'anie itse$. to ca''? o#t ('o#cti%e acti%itiesD inc$#in the
st'#ct#'e o. ho#seho$s an .ai$iesD a%ai$a>i$it? o. $a>o#'D owne'shi( o. $an an access to an
cont'o$ o. 'eso#'ces
The ('oects c#$t#'a$ acce(ta>i$it?B in othe' wo'sD its ca(acit? >oth .o' aa(tin to an .o'
>'inin a>o#t esi'a>$e chanes in (eo($es >eha%io#' an in how the? (e'cei%e thei' nees
18
-
8/18/2019 PPAC Assignment 1
19/20
The st'ate? necessa'? to e$icit coitent .'o the ('oect (o(#$ation an to ens#'e thei'
s#staine (a'tici(ation .'o esin th'o#h to s#ccess.#$ i($eentationD o(e'ation an
aintenance
)hen the ('oect a(('aisa$ is one an 'e(o't is co(i$e it is then s#>itte to the senio' anaeent
.o' 'e%iew an a(('o%a$! The anae's 'e%iew the a(('aisa$ an in case the'e a'e an?
is#ne'stanins o' a(s in the a(('aisa$ the? can 'et#'n the oc#ent >ac .o' 'e%isin! )hen a$$ the
'e%isions an co''ections a'e oneD the oc#ent is a(('o%e an sine o.. an the ('oect ste(s to the
net (hase 6 -$annin!
A##I$&"$T C &!7TI87" C1OIC"9
1 & 11 C 21 A 31 A
2 E 12 A 22 E 32 E
3 C 13 & 23 / 33 E
4 E 14 & 24 C 34 &
5 E 15 A 25 A 35 E
& 1 C 2 & 3 C
+ / 1+ / 2+ E 3+ C
* A 1* E 2* A 3* A
, & 1, & 2, / 3, A
10 / 20 / 30 C 40 E
19
-
8/18/2019 PPAC Assignment 1
20/20
'i-iliograph*
/a'e' R! 2001"D &ete'inin %a$#eD ;a$#ation Moe$s an 8inancia$ Stateents! Ka'$ow .inancia$
Ties -'entice Ka$$!
/'iha E! an Eh'ha't M! 200*"D 8inancia$ Manaeent Theo'? an -'actice! USA Thoson
$ishin Co(an?