Thesis (M.M. (Finance & Investment)--University of the Witwatersrand, Faculty of Commerce, Law and Management, Wits Business School, 2017. / This study researches the capital budgeting techniques employed by decisionmakers in state-owned enterprises (SOEs) in Africa. A literature review revealed that limited previous research was performed on the specific topic, although capital budgeting techniques of private companies were extensively researched. Based on these shortcomings, a knowledge gap was identified. The research performed will seek to address this gap to some extent, by collecting and discussing primary data from African SOEs. The results revealed that a substantial number of African SOEs make use of DCF techniques such as NPV (44 percent) and IRR (33 percent) in investment evaluation. Project implementation was highlighted as being the most important (67 percent) and also the most complex (56 percent) step in the capital budgeting process of African SOEs. The majority of respondents (89 percent) indicated that they do consider the assessment of risk in capital project budgeting and that scenario analyses is preferred by 78 percent of respondents. Qualitative (non-financial) factors are always a consideration in the capital budgeting process of African SOEs with environmental factors and service delivery being rated the highest. It was observed that employment creation was almost never a consideration in 44 percent of responses. The most important take-away from the study is that decision makers in African SOEs do make use of sophisticated capital budgeting techniques. It is however of concern that non-DCF techniques are used, especially in smaller organisations. For future research, it is recommended that a larger sample number of African SOEs are included. Also consider including the state-owned institutions that provide funding for capital investment in Africa. / GR2018

In recent years, several new theories have been developedrelating the value of the firm to its capital structure, or explainingwhy firms issue debt securities. However, empirical testing ofthe varying predictions of these theories has not kept pace. Moreover,most investigations have been done on regulated utilities because ofalleged risk homogeneity. The results are ambiguous and cannot begeneralized due to regulatory treatment of taxes.The present investigation is carried out on a broad crosssectionof industrial firms and takes explicit account of businessrisk variations as well as dealing with other econometric problemsignored in previous studies. The results are consistent with Miller's(1977) hypothesis that the value of the firm is independent of leveragein the absence of bankruptcy costs. However, the results are alsoconsistent with the existence of significant leverage-related costswhich vary directly with business risk. / L'etude de l1incidence du levier financier d'une firme sur sa valeurde marche ainsi que des. differentes raisons pour lesquelles une firmeferait appel au marche des obligations pour assurer son financement asuscite ces dernieres annees le developpement de nouvelles approchestheoriques du probleme. Le travail de verification empirique, toutefois,n'a guere suivi et, en particulier, seules les compagnies etroitementsoumises au controle gouvernemental ont fait l'objet d'une etudeapprofondie, du fait sans doute de leur appartenance presumee a lameme classe de risque et ce, en depit du traitement fiscal particulierdont beneficient ces compagnies. De ce fait, les resultats empiriquesactuellement disponibles ne sont pas depourvus d'ambiguite et ne sauraientetre generalises.[...]

Discounted cash flow (DCF) techniques for capital investment appraisal perform very crucial and important roles that relate to issues ranging from financial to technical, policy and socio-economic environments. Analyses need to be carried out when an organization undertakes capital expenditure on projects and programs. Capital budgets coordinate the development of the organization's long-term capital expenditure projections based on its long-term strategic plans. This dissertation is a result of a descriptive study conducted in the Iringa diocese of the Evangelical Lutheran Church in Tanzania located in Iringa district. The purposes of this study were the following: > To undertake descriptive research to understand the practice of DCF capital· budgeting by key heads of programs and projects of the ELCT Iringa diocese. >To identify key problem areas pertaining to capital budgeting that led to the deterioration of finances in the diocese of Iringa. >To provide recommendations on the alleviation of those identified problems. The study used various forms of data including, the ELCT statistical reports, financial guidelines, a library literature review and a long questionnaire that was distributed to the heads of the particular program/project. The study established the following: > The diocese of Iringa has strategic plans some of which extend to a period of three years. > The heads of programs do not have the necessary skills to pursue DCF Capital budgeting techniques for cash flows estimates falling within the estimated time frame. > The available guidelines issued by the ELCT head office that are currently used do not include the discounting rates and the time value of money when analyzing and evaluating projects and programs. > Since 1997 there has been a decrease in the income that ELCT Iringa diocese is receiving. > There is a need for ELCT Iringa to concentrate more on public relations exercises to attract key donors who could support the running of its programs and projects. In order to reduce the degree of vulnerability and improve her financial viability, it is recommended that ELCT Iringa diocese employ DCF capital budgeting techniques by developing new and better guidelines for capital budgets. Program and project heads also need to be trained in the use of newly developed guidelines. The ELCT Iringa diocese is also advised to improve its handling of finances in order to inspire confidence from its donors. / Thesis (MBA)-University of Natal, 2003. / German Ecumenical Agency.

Thesis (M.H.A.)--University of Michigan, 1979.

Thesis (M.H.A.)--University of Michigan, 1979.

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)

Kylbehovet i fastigheter spås öka i framtiden till följd av en ökad användning av elektroniskutrustning, ökade krav på inomhuskomfort samt en global uppvärmning som enligt forskarekommer att höja medeltemperaturen på jorden. För att möta efterfrågan på kyla genomför BorlängeEnergi tillsammans med teknikkonsultfirman INTEC utredningar om etablering av fjärrkyla iBorlänge.För att etableringen av ett fjärrkylnät ska vara aktuellt krävs att affären blir lönsam för BorlängeEnergi samtidigt som de potentiella kunderna ser erbjudandet som attraktivt. Syftet med studien äratt i samarbete med INTEC och Borlänge Energi göra ett beräkningsprogram i kalkylprogrammetExcel som kan ge underlag för beslutsfattande kring utformningen av ett fjärrkylnät i Framtidsdaleni Borlänge. För att påvisa beräkningsprogrammets användbarhet har lönsamhetsberäkningar och enkänslighetsanalys genomförts på ett förslag till etablering av fjärrkylnätet som tagits fram avuppdragsgivare.Studien utfördes genom att bearbeta litteratur om funktionen för ett fjärrkylnät samt metoder förinvesteringskalkylering. Detta gjordes genom att söka relevant information på databaser samtrekommendationer och riktlinjer från myndigheter. Även annan väsentlig litteratur i bokformanvändes. Beräkningsprogrammet utvecklades i kalkylprogrammet Excel och beräkningar gjordesbaserat på givna förutsättningar.Siffrorna i studien ska inte ses som slutgiltiga och bör betraktas som en indikator för om det finnsanledning att gå vidare med en djupare utredning. Resultaten visar att det nätt och jämnt finnsekonomisk lönsamhet för Borlänge Energi i en investering i ett småskaligt fjärrkylnät utan att tahänsyn till mjuka parametrar i kalkylen. För kunderna blir det mer ekonomiskt lönsamt över enlängre tidshorisont att ansluta sig till fjärrkyla i jämförelse med att investera i en enskild kylcentral.Resultaten förutsätter dock att driftskostnaden för absorptionskylmaskinen hålls låg och är beroendeav en större anslutningsavgift från en av kunderna. Driftskostnaden för absorptionskylmaskinen ären osäkerhetsfaktor då produktionskostnaden i framtiden kan komma att höjas på grund av enminskad tillgång till industriell restvärme. / The cooling demand is projected to grow in the future due to an increase in use of electrical equipment, increased requirements regarding indoor comfort as well as global warming, which according to scientists will raise the average air temperature on earth. To meet the cooling demand, Borlänge Energi, together with the technology consulting firm INTEC, is conducting investigations into the establishment of district cooling in Borlänge.For the establishment of a district cooling network to be relevant, it is required that the deal becomes profitable for Borlänge Energi at the same time as the potential customers see the offer as attractive. The purpose of the study is to, in collaboration with INTEC and Borlänge Energi, make a calculation program in Excel which can provide a basis for decision-making regarding the design of a district cooling network in Framtidsdalen in Borlänge. To demonstrate the usefulness of the calculation program, profitability calculations and a sensitivity analysis have been carried out on a proposal for the expansion of the district cooling network developed by INTEC.The study was carried out by processing literature on the function of a district cooling network and methods for investment calculation. This was done by searching for relevant information in databases as well as recommendations and guidelines from authorities. Other essential books on the given topic were also used. Profitability calculations were performed using the developed calculation tool in Excel and were based on given assumptions.Although the figures in the study should not be seen as definitive and should be regarded as an indicator of whether there is reason to proceed with a deeper investigation, the results show that there is only just economic profitability for Borlänge Energi to invest in a small-scale district cooling network without taking consideration of soft parameters. For customers, it will be more economically profitable over a longer time horizon to join district cooling in comparison with investing in an individual cooling system. The results assume, however, that the operating cost of the absorption cooling machine is kept low and is dependent on a larger connection fee from one of the customers. The operating cost of the absorption cooling machine is an uncertainty factor as the production cost may increase in the future due to a reduced supply of industrial waste heat.

No description available.

A budget allocation and planning algorithm was developed for the economic evaluation of interdependent projects. Projects may be characterized by discrete point estimates or by continuous functions. The unique approach of this algorithm is that, if continuous functions are used, the analyst may specify a functional relationship between costs and returns. Budget planning techniques were incorporated into the algorithm to aid the decision maker in planning for future budgetary needs and in influencing the budget determination process. The algorithm utilizes a future worth of net return criterion in conducting the analyses. All projects under consideration need not have the same life; unequal-lived projects may be considered. The algorithm was coded in BASIC on an IBM Personal Computer. Two versions of the algorithm were developed; one which utilizes discrete point estimates to characterize projects, and one which utilizes continuous functions. The algorithm identifies the optimal combination of projects, given a budget profile and various project interdependencies. After the optimal portfolio of projects is identified, four sensitivity analyses may be run to analyze the effect of any uncertainty in the decision environment. An example is provided to illustrate the capabilities and limitations of the algorithm. / M.S.

The capital budgeting process is conducted in a dynamic, uncertain environment. In each period of the process, a manager has only estimated values for system parameters, project costs, and project returns. The manager must consider project firm's capital among interdependencies the available in allocating the projects. After completing the allocation process in one period, the chosen projects are funded until the end of the next period. These projects are then considered along with new projects and the process is repeated again. The capital budgeting decision in one period is therefore only one of a long sequence of such decisions, all of which are made in a dynamic, uncertain environment. The algorithm presented in this study models the dynamic environment of uncertainty. The algorithm utilizes a future worth of net return criterion in conducting the decision. Available projects may be estimated as discrete point estimates or as combinations of continuous functions. All projects under consideration need not have the same life; unequal-lived projects may be considered. After the optimal combination of projects is identified, four sensitivity analyses may be run to analyze the effect of any uncertainty in that period. The dynamic environment may then be analyzed by simulating the environment which would be faced when the decision is made .again at the end of the next period. Any of the system parameters and estimates of the continuing projects may be altered in that period to reflect the changes in the last period's estimates. An example is provided to illustrate the workings of the algorithm. / M.S.