In researching Capital Budgeting, special emphasis is employed to the Decision Making proposal presented by Maintenance Management. This study attempts to reveal the Capital Budgeting Techniques used by Toyota South Africa's Maintenance Departments. It interrogates if these techniques are correctly administered, and whether or not an appropriate decision is made. An indepth study of Capital Budgeting theory is done where among others, the following topics are discussed: The Capital Budgeting Process; The Techniques used in Capital Budgeting; Types of Projects; Funding and Risk. The detail of the theory is intended to be as an educator to those oblivious to the standards set out by scholars on these relevant topics. A questionnaire type survey was conducted, where the respondents answered pertinent questions, that adds value to this study. The unique feature of this study is that the sample size of thirty-five, is equivalent to the population of respondents within the company. A holistic picture of only the relevant information is gathered and interpreted, where both graphical and tabular representation is used to explain the findings. What is evident from the survey is that there is a lack of knowledge in the Maintenance Departments with regards to the usage of Capital Budgeting Techniques. The results prove that much guesswork goes into the proposal, as Gut-Feel and Discretion are key components of the decision. This anomaly is due to the finding that the Maintenance Management has not received relevant type training for this facet of their jobs. The recommendation to Management is that training and education be made available to these relevant people. Furthermore, it is proposed that the human resource department maps out the future career path opportunity and expectations that the employer has from the employee. In doing this type of succession planning, the company is assured of the best quality management at all times. / Thesis (MBA)-University of KwaZulu-Natal, 2006.

Thesis (M.A.)--Memorial University of Newfoundland, 1995. / Typescript. Bibliography: leaves 109-112. Also available online.

Stewart C. Myers and Saman Majd. / "May 1983, revised August 1983." / Bibliography: p. 35-38.

Read the abstract in the section 00front of this document. / Dissertation (MEng (Environmental Engineering))--University of Pretoria, 2006. / Chemical Engineering / unrestricted

A research report submitted to the Faculty of Engineering and Built Environment, University of the Witwatersrand, in fulfilment of the requirements for the degree of Master of Science in Engineering specialising in Mineral Economics, Johannesburg 2018 / South Africa‘s economic growth has been declining since 2009. Mining contributes to economic growth in various ways, including foreign earnings and taxes. It contributes to the economy through direct, indirect and quasi taxes. Quasi taxes are near taxes that are imposed on mining projects in the national interests of protecting the environment and the social, cultural and economic needs of local communities. They have implications on tax design, they are often significant and are regulated by various Acts. They include contribution to local communities, foreign exchange control, environmental taxes, performance bonds and government equity in mining projects. Because of their implication on tax design and related aspects, the research was conducted to assess the extent which they contribute to the economic growth of South Africa, to assess how the country can enhance the effectiveness of quasi taxes on economic growth, to assess whether the country has a good mining tax regime, to assess their impact on mining investments decisions and planning. The research involved a literature survey for qualitative and quantitative data from various sources. These were various books, journals and others publications. It used an internet-based method of data collection and hard copies from various institutions, including libraries. Annual reports of three mining companies that are mining in South Africa and are listed on the Johannesburg Stock Exchange, were randomly sampled and assessed, to gain an understanding of the manner in which these taxes contribute to economic growth. The work also used a Discounted Cash Flow model to assess the impacts of quasi taxes on mine planning and mine investments. It further assessed the extent to which quasi taxes can be applied to the determinants of economic growth. The findings are that quasi taxes contributed 0,77 percent (%) in terms of mining exports earnings per unit of GDP created, between the years 2007 to 2016 and R2 billion to community development in the year 2015. It was found that transparency and lack of clarity are some of the impediments to the contribution of quasi taxes to economic growth. A good mining tax regime is required in order to reap maximum benefit from these taxes. The country must also use Community Engagement Plans to manage expectations, to explain the level of benefit from mining, for clarity and transparency between interested and affected parties. Quasi taxes affect mine planning and investment decisions. Quasi taxes must also be used for clustered and sustainable projects in the form of the Public Private Partnership approach, in line with the determinants of economic growth. / XL2019

A product portfolio approach is used in this dissertation to develop a model permitting capital budgeting to be modeled interactively with aggregate production planning, in light of market supply and demand functions. Primary emphasis is on the maximization of profit, but other goals are also addressed. These are maximization of the rate of return, maximization of market share, and minimization of the cost of excess capacity. A linear mixed integer programming model is developed for each of these objectives. Then, a single goal programming model that combines all four objectives is formulated. Costs are not allocated to products. Accordingly, the notion of cash flows per product (or per project) is not used. Instead, cost is incurred as a result of the demand that a product portfolio places on resources. All costs are considered to be incurred in the acquisition and utilization (in the form of activities) of resources. Four distinct levels of activities are considered: unit, batch, product sustaining, and facility sustaining. The demand for each resource is aggregated over all levels of variability and over all the products in the product portfolio. The direct cash outflow or inflow as a result of changing resource capacity is continuously traded off against the eventual cost or benefit of changing the capacity (in the form of changed revenues and as a function of both time and market supply and demand). Capital structure and capital investment decisions are considered simultaneously for a given set of assumptions. Different sources of funds are utilized for different costs of capital. Lending and borrowing are simultaneously incorporated without the solutions becoming inconsistent due to incorrect or inappropriate discount factors. This is mainly attributable to the fact that the organization, as a single entity that manufactures a product portfolio, demands capital, and invests excess funds. The net present value of the organization (not of projects or products) is maximized. Also, the output of each project is modeled specifically. This alleviates the practical problem of fractional acceptance of projects. Variable market supply and demand functions are also included and modeled explicitly. Finally, it is shown that the developed model contains several elements of aggregate production planning. The main conclusions from this research are: 1) Better capital budgeting results can be obtained if costs are not allocated to projects (or products) when resources are shared among different projects or products; 2) Financing and investment decisions can be made interactively (with the developed model) without the solutions becoming inconsistent due to unknown discount rates; 3) Resource acquisition and resource consumption should be modeled explicitly in capital budgeting; and 4) The model yields an improvement over existing capital budgeting techniques for a given set of assumptions. Some recommendations are presented for further research to extend these conclusions. / Ph. D.

Various authors have scrutinised the sole utilisation of quantifiable (financial) appraisal criteria in capital investment appraisal. They argue that the appraisal of capital investment proposals must concentrate on the capital investment process as a whole and not only on the selection phase. These authors suggest that capital investment opportunities and proposals must be sought within the parameters set by strategy. Therefore, the purpose of this study was to explore and to describe how decision-makers in the platinum industry experience the influence of competitive strategy on the capital investment process. Semi-structured interviews were held with strategic capital investment decision-makers within a major role player in the platinum industry. Respondents were selected according to the snowball sampling method. An analysis of the results indicates that competitive strategy does influence the capital investment process. This influence is particularly observable with regard to the initiation of capital investment ideas, the capital budget allocation and the strategic appraisal criteria utilised by decision-makers to screen capital investment proposals. The strategic capital investment process constitutes much more than just the selection of capital investment proposals. Therefore, the findings of this study signify the importance of considering the influence of competitive strategy on the capital investment process. / Business Management / M. Tech. (Business Administration)

Thesis (MBA)--Stellenbosch University, 2001. / ENGLISH ABSTRACT: "Imagine improving the value of a capital project by 30%, or increasing the throughput of an organisation with 20% less capital expenditure!" The normal reaction to this sort of statement is that it is impossible and only looks good on paper. However, by applying proper principles and techniques, an organisation or project team can embark on a journey which will allow them to creatively apply those skills and knowledge in order to maximise the value of the organisation, project or venture. It will allow business to evaluate and extract value by analysing business cases, process- and engineering design issues, project development and implementation plans. Too frequently project teams find themselves tied up with the nitty gritty issues of projects, causing them to loose sight of the bigger picture. The existence hereof of this is often indicated by too much focus on actions to reduce capital expenditure and too little on the impact thereof on operational cost and value adding potential, destroying overall value of the venture in the process. This aim with this document is to provide the reader with an overview of tools, techniques and principles to aid organisations to enhance the value of capital projects. It is not intended as a handbook or manual to enable the reader to become a skilled practitioner in this field, but rather to give the interested novice, general manager or project leader a background overview of, and insight into, the steps, tools, techniques and principles available, to improve the value of a project. The basic fundamentals are not rocket science, but it is the process of becoming involved in applying lateral thinking to each phase of a project, or existing operation that unlocks the true value. This document firstly gives background on the reasons why value adding potential usually exists in capital projects, and identifies tell tale indicators of hidden value opportunities in projects. Basic fundamentals are discussed to familiarise the reader with general concepts used in later chapters. Subsequently, the steps for execution of a value improving intervention are discussed, to give the reader a thorough background and understanding of the value improving processes involved. / AFRIKAANSE OPSOMMING: "Verbeter die waarde van 'n kapitaal projek met 30%, of verhoog die deurset van 'n organisasie met 20% minder kapitaal spandering!" Die verwagte reaksie op hierdie tipe stellings is dat dit onmoontlik is en net goed lyk op papier. Die aanwending van toepaslike beginsels en tegnieke kan 'n organisasie egter in staat stel om daardie vaardighede en kennis, waaroor hulle reeds beskik, te benut om die waarde van die organisasie of projek te maksimeer. Dit kan besighede toelaat om waarde te evalueer en te ontsluit deur besigheidsplanne, proses- en ontwerp aangeleenthede, projek ontwikkeling en implementeringsplanne te analiseer, te verstaan en te verbeter. Te dikwels bemoei projekspanne hulle met die detail van projekte, wat veroorsaak dat hulle die groter prentjie uit die oog verloor. Die teenwoordigheid hiervan word veral aangedui deur te veel fokus op aksies om kapitaal spandering te verminder, en te min op resulterende bedryfskoste en waarde skeppende potensiaal te konsentreer. Hierdeur word die algehele waarde waartoe die projek instaat is ondermyn. Die doel met hierdie dokument is om 'n oorsig te gee na die gereedskap, tegnieke en beginsels wat beskikbaar is ter ondersteuning van organisasies wat die waarde van kapitaalprojekte wil verbeter. Dit is nie bedoel om 'n handboek of voorskrif te wees om die leser instaat te stel om 'n vaardige verbeteringspraktisyn te word nie, maar eerder om aan die geinteresseerde leek, projekbestuurder of algemene bestuurder agtergrond en insig te gee oor die stappe, gereedskap, tegnieke en beginsels wat beskikbaar is om die waarde van 'n projek te verhoog. Die grondbeginsels is nie kwantumfisika nie, maar behels 'n proses om betrokke te raak in die toepassing van laterale denke en kreatiwiteit in elke fase van 'n projek of besigheid, om die werklike waarde te ontsluit. Hierdie dokument gee eerstens agtergrond oor die redes waarom potensiaal vir waarde toevoeging in kapitaalprojekte bestaan, en identifiseer 'n aantal indikators van die teenwoordigheid van verskuilde waarde aan. Grondbeginsels wat in verdere hoofstukke gebruik word, word bespreek en toegelig. Daarna word die stappe ter uitvoering van 'n waarde verhogingsintervensie bespreek, om 'n deeglike agtergrond te verkry van die betrokke proses.

Thesis (MBA)--Stellenbosch University, 1980. / VOORWOORD: Die rekenaarisering van die kontantvloei-model van Strauss (1979) het die potensiaal van die model as 'n beplannigshulpmiddel uitgebeeld. In die werkstuk word die effek wat enkele faktore op die brutoinkomste-persentasie uitoefen ondersoek om uiteindelik 'n geïntegreerde model te vorm, wat vir die bepaling van 'n brutoinkomste-persentasie onder sekere doelstellings gebruik kan word.

A research report submitted to the Wits Business School, University of the Witwatersrand, in partial fulfilment of the requirements for the degree of Master of Management in Finance and Investment, 2016 / This research investigated the application of capital budgeting and risk analysis techniques and their effect on company performance in the South African mining industry. Studies internationally and locally have reported an improved application of capital budgeting techniques— away from the naïve, non-discounted cash flow techniques of the Payback Period (PBP) to the more appropriate discounted cash flow methods of Net Present Value (NPV) and Internal Rate of Return (IRR). In a survey distributed to the Finance Managers, Officers and Directors of mining companies in South Africa, we confirmed the increased sophistication in capital budgeting— the results suggest that 83.3% prefer NPV, 61.5% always use IRR and only 58.3% use PBP. On the other hand, and in contrast to capital budgeting, risk analysis is still comparatively naïve; with sensitivity analysis being the dominant technique used in the mining industry. The sophisticated methods of scenario testing and real option analysis (ROV) are rarely employed. An empirical analysis on the effects of capital budgeting and risk analysis on company performance has yielded results in contradiction with the theory of capital budgeting. The finding of the study is a negative and/or insignificant relation of capital budgeting and risk analysis sophistication to company performance as measured by return of assets (ROA). Although this finding is counterintuitive and contradicts theory, it is, however, consistent with international studies of this nature. / XL2018