What happens when corporate financing/investment decisions are made in contexts dominated by strong uncertainty and particular risk? This chapter aims to answer this research question by adopting the following structure: firstly, we will briefly clarify the concepts of uncertainty and risk in the managerial context to highlight the way in which financial strategy …
This document discusses the process of chemical plant design and construction. It covers various stages of the process from initial feasibility studies and cost estimation, to preliminary design, contracting with engineering firms, detailed design, procurement, construction, commissioning and handover to the client. The stages involve tasks such as process design and optimization, …
The Project Management Guidelines of the International Project Management Association (IPMA) place a lot of emphasis on risk management as one of the most important elements of project management. In addition to the elements mentioned, IPMA focuses on project margins, residual risk, strategies and plans to respond to threats and opportunities, SWOT analysis, scenario …
gas treatment plant on the North Slope, 800 miles of pipeline and the liquefaction plant and shipping Source: PFC Energy Pre-construction spending for a typical large LNG project might involve just 6 percent of the overall capital expenditures, with the other 94 percent of spending coming after the final investment decision,
Labor attraction is a predominant issue for construction firms, affecting both skilled and unskilled positions. 11 Securing onsite labor has been particularly challenging, and it is hard to recruit skilled workers. 12 The current landscape is further complicated by the construction of data centers, semiconductor manufacturing facilities, and ...
Abstract Managing risk associated with plant location decisions is a growing concern as companies seek to reassure investors about the robustness of their strategies. However, little attention has been paid to the systematic evaluation of risk associated with new plants. This paper investigates risk management practices in plant investment decisions …
Any financial decisions are closely related to the choice of sources of funds for the operating and investment activities of the company, and their ultimate goal will be to raise capital on adequate terms. These decisions relate to the use of profits, the attraction of borrowed funds and the repayment of loans, as well as the creation of an optimal capital structure.
Facility investment decisions represent major commitments of corporate resources and have serious consequences on the profitability and financial stability of a corporation. ... An example is the cost of property damage caused by air pollution from a new plant. In any case, the measurement of external costs is extremely difficult and somewhat ...
In the economics sense, investment means the net additions to the economy's capital stock which consists of goods and services that are used in the production of other goods and services. Investment in the sense implies the formation of new and productive capital in the form of new constructions, plant and machinery, inventories etc.
In this article we will discuss about:- 1. Meaning of Investment Decisions 2. Categories of Investment Decisions 3. Need 4. Factors. Meaning of Investment Decisions: In the terminology of financial management, the investment decision means capital budgeting. Investment decision and capital budgeting are not considered different acts in business world. In investment decision, …
Construction engineering and management (CEM) involves multiple stakeholders, complex interest relationships, and conflicts. All stakeholders must comprehensively consider the interests relating to a project to make decisions. Appropriate multi-agent decision-making can effectively coordinate and integrate the needs or expectations of all stakeholders, which can …
The third step for making a capital investment decision is to establish baseline criteria for alternatives. Which of the following would not be an acceptable baseline criterion? ... Bahwat Company plans to deposit a lump sum of $100,000 for the construction of a solar farm in 4 years. D. NYC Industries leases a car for 4 yearly annual lease ...
Investment decisions are the decisions taken in respect of the big capital expenditure projects. Such expenditures may involve investment in plant and machinery, vehicles, etc. ... Sanjay Borad, Founder of eFinanceManagement, is a Management Consultant with 7 years of MNC experience and 11 years in Consultancy. He caters to clients with ...
FM-Unit 2_Long Term Investment Decision.pptx - Download as a PDF or view online for free ... . Capital budgeting is the process a business undertakes to evaluate potential major projects or investments. Construction of a new plant or a big investment in an outside venture are examples ... It is easier to understand by management and other non ...
We model sequential, corporate investment decisions with time-to-build delays, operating scale mode switching, operating constraints, and path dependencies. We also account for stochastic salvage (abandonment) values that are utilization (path) dependent. Our results highlight a key link between economic depreciation, stochastic salvage values and operational …
An investment decision is categorized as a long-term and short-term investment decision. Financial Management is concerned with the management of the flow of funds and involves decisions related to the acquisition and application of funds in long-term and short-term assets. ... plant, machinery, building, land, furniture, equipment, etc. These ...