{"product_id":"investment-project-design-isbn-9780470913895","title":"Investment Project Design","description":"Make more informed project investment decisions by knowing what issues to examine in the planning process and how to analyze their impacts  \u003cp\u003ePoor or insufficient planning is primarily responsible for the inordinate number of idle and rusting capital facilities around the world, with investment decisions often made on the basis of either intuition or inadequate analysis. \u003ci\u003eInvestment Project Design: A Guide to Financial and Economic Analysis with Constraints\u003c\/i\u003e alerts potential investors and other stakeholders to precipitous changes in the investment milieu as a result of constraints on resources and infrastructure, economic and political turmoil, and population growth. The guide\u003c\/p\u003e \u003cul\u003e \u003cli\u003e \u003cdiv\u003eIncludes descriptions of specific methods of financial and economic analysis for new investments and for expansion of an existing enterprise\u003c\/div\u003e \u003c\/li\u003e \u003cli\u003e \u003cdiv\u003eCovers project risk assessment, mitigation and avoidance\u003c\/div\u003e \u003c\/li\u003e \u003cli\u003e \u003cdiv\u003eProvides real-life case studies, adapted for presentation, and addresses the design of projects large and small, as well as those in both private and public sectors\u003c\/div\u003e \u003c\/li\u003e \u003cli\u003e \u003cdiv\u003eFeatures spreadsheet layouts and computations\u003c\/div\u003e \u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003e\u003ci\u003eInvestment Project Design\u003c\/i\u003e is the ultimate resource in the methods of designing and appraising investment projects\u003c\/p\u003e \u003cp\u003eAcknowledgments xi\u003c\/p\u003e \u003cp\u003eSymbols and Most Frequently Used Acronyms xiii\u003c\/p\u003e \u003cp\u003eIntroduction 1\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 1 Investment Environment 9\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSystematic Project Analysis 10\u003c\/p\u003e \u003cp\u003eProject Environment and Strategy 11\u003c\/p\u003e \u003cp\u003eProject Development Process 33\u003c\/p\u003e \u003cp\u003ePlanning Horizon and Project Life 43\u003c\/p\u003e \u003cp\u003eProject Scope 44\u003c\/p\u003e \u003cp\u003ePreinvestment Studies 46\u003c\/p\u003e \u003cp\u003eInvestment Planning Infrastructure 58\u003c\/p\u003e \u003cp\u003eAppendix 1.1: Elements of Commercial and Wider Domains 60\u003c\/p\u003e \u003cp\u003eAppendix 1.2: Outline of Business Plan for a Manufacturing Enterprise 62\u003c\/p\u003e \u003cp\u003eAppendix 1.3: Outline of Design\/Study Report 63\u003c\/p\u003e \u003cp\u003eAppendix 1.4: Information Flow Details 67\u003c\/p\u003e \u003cp\u003eNotes 69\u003c\/p\u003e \u003cp\u003eReferences 74\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 2 Preparing Pro-Forma Financial Statements 75\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAccounting System 77\u003c\/p\u003e \u003cp\u003eProcess of Financial Analysis 81\u003c\/p\u003e \u003cp\u003eFinancial Costs and Benefits 84\u003c\/p\u003e \u003cp\u003eInvestment Costs 87\u003c\/p\u003e \u003cp\u003eProduction Cost 116\u003c\/p\u003e \u003cp\u003eOperating Cost, Factory Cost, and Cost of Product Sold 122\u003c\/p\u003e \u003cp\u003eFinancial Statements 127\u003c\/p\u003e \u003cp\u003eAppendix 2.1: Depreciation Methods 142\u003c\/p\u003e \u003cp\u003eAppendix 2.2: Starting Inventory Balance 148\u003c\/p\u003e \u003cp\u003eNotes 150\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 3 Financial Indicators and Criteria 155\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eStatic Indicators 155\u003c\/p\u003e \u003cp\u003eTypes of Static Indicators 156\u003c\/p\u003e \u003cp\u003eDynamic Indicators 169\u003c\/p\u003e \u003cp\u003eFinancial Criteria for Investment Decisions 188\u003c\/p\u003e \u003cp\u003eAnalysis of Joint Ventures 203\u003c\/p\u003e \u003cp\u003eProject of an Ongoing Enterprise 206\u003c\/p\u003e \u003cp\u003eAppendix 3.1: Example of Cost of Capital Calculations 219\u003c\/p\u003e \u003cp\u003eNotes 225\u003c\/p\u003e \u003cp\u003eReferences 228\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 4 Financing the Project 231\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCapital Structure 232\u003c\/p\u003e \u003cp\u003eCost of Capital 249\u003c\/p\u003e \u003cp\u003eNotes 255\u003c\/p\u003e \u003cp\u003eReferences 256\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 5 The Economic Perspective 257\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePrivate Sector 259\u003c\/p\u003e \u003cp\u003ePublic Sector 259\u003c\/p\u003e \u003cp\u003eGeneral Rationale for Economic Evaluation—Who Needs It? 260\u003c\/p\u003e \u003cp\u003eMacroeconomic View—Impact on the National Economy 262\u003c\/p\u003e \u003cp\u003ePrice Distortions 266\u003c\/p\u003e \u003cp\u003eApplicability and Scope 272\u003c\/p\u003e \u003cp\u003eEconomic Pricing Principles 278\u003c\/p\u003e \u003cp\u003eShadow Prices of Primary Resources (National Parameters) 292\u003c\/p\u003e \u003cp\u003eConversion and Adjustment Factors 297\u003c\/p\u003e \u003cp\u003eAppendix 5.1: Costs and Benefits of Revenue Projects 299\u003c\/p\u003e \u003cp\u003eAppendix 5.2: Global Pricing Framework—Importable Input Forgone 301\u003c\/p\u003e \u003cp\u003eNotes 303\u003c\/p\u003e \u003cp\u003eReferences 307\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 6 Economic Cost\/Benefit Analysis 309\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAdjustments for the Wider Domain 311\u003c\/p\u003e \u003cp\u003eValuation at Market Prices 311\u003c\/p\u003e \u003cp\u003eDefine the Accounting Unit 317\u003c\/p\u003e \u003cp\u003eValue-Added 343\u003c\/p\u003e \u003cp\u003eNotes 354\u003c\/p\u003e \u003cp\u003eReferences 358\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 7 Investment Decisions under Uncertainty and Risk 359\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eForecasting 359\u003c\/p\u003e \u003cp\u003eRisk—Dealing with Uncertainty 364\u003c\/p\u003e \u003cp\u003eQuantitative Risk Assessment 369\u003c\/p\u003e \u003cp\u003eQualitative Risk Assessment 380\u003c\/p\u003e \u003cp\u003eRisk Management 380\u003c\/p\u003e \u003cp\u003eRisk Immunization for Financiers 383\u003c\/p\u003e \u003cp\u003eInternational Investors and Risk 385\u003c\/p\u003e \u003cp\u003eAppendix 7.1: Discrete Probability Analysis—Multivariate 386\u003c\/p\u003e \u003cp\u003eNotes 387\u003c\/p\u003e \u003cp\u003eReferences 390\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 8 Project Appraisal 391\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMacro-Micro Appraisal 392\u003c\/p\u003e \u003cp\u003eSWOT Analysis 393\u003c\/p\u003e \u003cp\u003eStakeholder Perspectives 396\u003c\/p\u003e \u003cp\u003eAppraisal Report 399\u003c\/p\u003e \u003cp\u003eCaveats for the Appraiser 406\u003c\/p\u003e \u003cp\u003eNotes 407\u003c\/p\u003e \u003cp\u003eReferences 408\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 9 Implementation Planning and Budgeting 409\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eImplementation Planning 410\u003c\/p\u003e \u003cp\u003eProject Management 412\u003c\/p\u003e \u003cp\u003eConducting the Implementation Project 416\u003c\/p\u003e \u003cp\u003eImplementation Budget 437\u003c\/p\u003e \u003cp\u003eAppendix 9.1: Sample Responsibility Matrix for a Portion of a Project 438\u003c\/p\u003e \u003cp\u003eAppendix 9.2: Checklist of Project Implementation Costs 438\u003c\/p\u003e \u003cp\u003eNotes 442\u003c\/p\u003e \u003cp\u003eReferences 443\u003c\/p\u003e \u003cp\u003eAbout the Authors 445\u003c\/p\u003e \u003cp\u003eIndex 447\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eLECH KUROWSKI\u003c\/b\u003e is an economist with over twenty-five years of experience in investment projects analysis. Currently a professor of economic analysis at the Wroclaw University of Economics in Wroclaw, Poland, he has performed investment studies and has served as analyst for investment proposals prepared by consulting companies for governments and private investors in over forty countries in Europe, Asia, and Africa. \u003c\/p\u003e\u003cp\u003e\u003cb\u003eDAVID SUSSMAN\u003c\/b\u003e is an industrial engineer who has served as consultant to medium and small-scale enterprises and has conducted workshops and seminars throughout the world, particularly in Latin America. He was responsible for most of the important systems design and developed many of the concepts used in the investment project analysis program of the U.N. Industrial Development Organization. He has designed financial management systems in both the public and private sectors. \u003c\/p\u003e\u003cp\u003ePlease visit the companion website for case descriptions, spread sheets, and supplementary discussion of markets and other topics. \u003cb\u003ewww.wiley.com\/go\/investmentprojectdesign\u003c\/b\u003e    \u003c\/p\u003e\u003cp\u003eAccumulating and deploying capital assets to provide future benefits is a practice that dates back thousands of years. Yet, even today, how capital resources are applied—decisions about when, where, and how they should be committed—presents its challenges and does not always produce expected results. Aside from uncontrollable external factors such as political and economic upheavals, one of the main deficiencies in project planning is that there is usually not enough of it, with decisions often based on anything from intuition to inadequate analysis. In \u003ci\u003eInvestment Project Design,\u003c\/i\u003e internationally known experts Lech Kurowski and David Sussman offer a complete guide for investors and other stakeholders in methods of successfully designing and appraising investment projects in private and public sectors. \u003c\/p\u003e\u003cp\u003eThey present a comprehensive framework of analysis for any project involving capital investment—one that clears up a number of important misconceptions about financial aspects of design and appraisal, and that aligns the project more compatibly with features of its operating environment. Through this holistic view of the business environment, the investment project becomes part of the economic, social, and ecological system within which it is intended to function and prosper. \u003c\/p\u003e\u003cp\u003eThe approaches that the authors provide for designing, analyzing, and appraising the project will increase confidence in the investment decision despite the minefield of the contemporary investment environment—and vastly improve chances for a successful outcome.\t   \u003c\/p\u003e\u003cp\u003e\u003ci\u003e Praise for \u003c\/i\u003e\u003cb\u003eInvestment Project Design\u003c\/b\u003e  \u003c\/p\u003e\u003cp\u003eAccumulating and deploying capital assets to provide future benefits is a practice that dates back thousands of years. Yet, even today, how capital resources are applied—decisions about when, where, and how they should be committed—presents its challenges and does not always produce expected results. Aside from uncontrollable external factors such as political and economic upheavals, one of the main deficiencies in project planning is that there is usually not enough of it, with decisions often based on anything from intuition to inadequate analysis. In \u003ci\u003eInvestment Project Design,\u003c\/i\u003e internationally known experts Lech Kurowski and David Sussman offer a complete guide for investors and other stakeholders in methods of successfully designing and appraising investment projects in private and public sectors. \u003c\/p\u003e\u003cp\u003eThey present a comprehensive framework of analysis for any project involving capital investment—one that clears up a number of important misconceptions about financial aspects of design and appraisal, and that aligns the project more compatibly with features of its operating environment. Through this holistic view of the business environment, the investment project becomes part of the economic, social, and ecological system within which it is intended to function and prosper. \u003c\/p\u003e\u003cp\u003eThe approaches that the authors provide for designing, analyzing, and appraising the project will increase confidence in the investment decision despite the minefield of the contemporary investment environment—and vastly improve chances for a successful outcome.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989475148005,"sku":"NP9780470913895","price":85.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470913895.jpg?v=1761784249","url":"https:\/\/k12savings.com\/es\/products\/investment-project-design-isbn-9780470913895","provider":"K12savings","version":"1.0","type":"link"}