The Missing costs and benefits:
Almost, private projects concentrate on monetary profits, they rarely think of social ones. Monetary profits are not good measures of net social benefits. Here, it is important to understand that future costs and benefits are the base for the future decisions; which are based on a clear appraisal.
Social Values and Shadow Prices:
The purpose of social-benefit analysis is to use a hypothetical rather than predicted price when evaluating project. A shadow price is an important characteristic of social-benefit analysis; here, the discount rate, which arrives at the present social value (PSV) is different from the market rate of interest. The shadow prices reflect better real costs and benefits to society than do actual prices; some consider them UN real, because they do not reflect current prices, but they match more closely to realities.
Types of costs that are to be held by users
Cooperative schemes deal with different types of costs. Some of them are:
Land Cost:
Cost of land is the main cost considered by the people; the cost forced them to buy land which is little far away from the city. However , it is not surprising that no feasibility report is prepared; The committee decided to buy the land based upon prices , which means that there was no chance for any social analysis.
Construction and Services Costs:
The construction cost is the future responsibility of members; but, they have to bear other costs before construction: They have to pave roads, sewage costs, electricity, water pipes and water tanks.
Maintenance Cost:
Maintenance cost does not exist at this stage, since most of the buildings do not exist yet. Whereas, in the long run maintaining cost shall include preservation of finishes a...
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...al benefits for every private project.
Works Cited
Little, I. M. D. and Mirrlees, J, A, (1977), Project Appraisal and Planning for Developing Countries, (1977 ), Heiniman Educational Books, London, P.3
Stone, P. A. ( 1975 ), Building Design Evaluation, Cost-in-use, ESFN, SPON, London, p.10
Little, I. M. D. and Mirrlees, J, Project Appraisal and Planning for Developing Countries, p.11
Ibid. p.32
Ibid. p.36
6 Stone, P. A. ( 1975 ), Building Design Evaluation, Cost-in-use, ESFN, SPON, London, p.71
7 Ibid. P.72
Little, I. M. D. and Mirrlees, J, Project Appraisal and Planning for Developing Countries, p.129
Ibid. P.133FF
Russel. J. ( 1974 ) Economic Aspects of Public Housing, Volume 8, Sage Library of Social Research, London, P.70
Ibid. P.143
Ibid. Passim
Stone, P. A. ( 1975 ), Building Design Evaluation, Cost-in-use, ESFN, SPON, London, p.142
Gray, C., Larson, E. (2008). Project Management: The managerial Process. New York, NY: The McGraw-Hill Companies Inc.
Project Management Institute, 2008. A Guide to the Project Management Body of Knowledge. 4th ed. Newton Square, Pa.
S. Keoki Sears, Richard Hudson Clough, Glenn A. Sears (2008), Construction Project Management: A Practical Guide to Field Construction Management
Although senior level governments have started to invest in affordable housing in the City, however, their role has been limited and unpredictable (Mah, 2009). It is also well-known that most of the financial burden for housing production have been transferred on to the local governments (Mah, 2009; Evans 2009). Also, local governments are facing many different challenges, from social and cultural issues to environmental and transportation issues (Evans,
Public housing is a program, introduced at the federal level in 1937, which provides for low-cost housing through public financing by means of publicly owned and managed multi-family developments. Several cities began providing publicly funded housing prior to the introduction of the 1937 Housing Act through local programs of their own. Additionally, it was these kinds of local programs that helped mold the model for the federal program. Although there are multiple themes and topics related to public housing this paper will solely focus on 6 themes that are critical in understanding the history and development of public housing. These themes are in regards to the population it was aimed for, financing, federal public housing authority, local public housing authorities, design, and urban renewal.
Jugdev, K. (2012). Learning from Lessons Learned: Project Management Research Program. American Journal of Economics and Business Administration , 4(1), 13-22.
In valuing the developable land at Canary Wharf, there are several factors to take into account. Namely, it is crucial to decide on an appropriate rate at which to discount the projected cash flows for the property. The developable properties of Canary Wharf come with considerable risk. For example, the London office market downturn, as well as significant market hits for the large financial services tenants of Canary Wharf, presents serious tenant lease up and lease covenant negotiation risks. How long will it take to attract quality tenants to the buildings, especially as financial services tenants are currently stressed? Additionally, the requirement for further planning consent on the buildings indicates that construction on three of the sites can not commence for a number of years. How can one accurately predict the market in the future? Will the London Office market significantly improve or continue to decline? What will interest rates look like? Songbird must consider the risk of valuing such sites several years into the future. Further, Songbird must consider the weighty transportation risk. If the Crossrail project does not come to fruition in a timely manner with necessary approvals, development will not proceed as planned, causing cost overruns and heavy construction delays. Assuming that Canary Wharf is able to get the necessary transportation approvals, Canary Wharf's projected cash flows should be discounted at 12.5% in order to mitigate risks to be faced. Given this discount rate, as well as considering all taxes, debt obligations, rents and rent-free periods, and all construction costs, an appropriate bid on the developable sites at Canary Wharf is ₤809,000 (the Net Present Value of the cash flows, discounted at 12.5%). Please see Exhibit 1 for a detailed pro forma of all projected cash flows.
Kezner, H. Project Management: A Systems Approach to Planning, Scheduling, and Controlling. 6th. New York: John Wiley and Sons, Inc, 1998. Print.
Whether your project involves new construction or renovation, there are big payoffs on more than one level. There are the obvious things like increased efficiencies in terms of space usage, equipment storage, and safety, sanitation and security. Looking at it from a larger perspective, your designs and many of the products you buy or specify for the project will last well beyond the careers of the people who first use them.
Sen, A, (1988), .The Concept of Development., in Hollis Chenery and Thirukodikaval N. Srinivasan (eds), Handbook of Development Economics, Vol.1, North Holland: Elsevier Science Publishers, pp. 10.26.
Being the present manager and being appointed by the government at the feasibility stage I am asked to write a report in order to outline the activities required to successfully manage this major project and to ensure that it is completed on time and within budget.
Most projects, whether big or small, are undertaken either to create a new structure, such as a plant, an airport, an Olympic stadium, a bridge, a new product, etc., or to modify an existing structure, such as a plant expansion, adding a new production line, expanding a highway, etc. In most cases, the late completion of the project, such as finishing the Olympic stadium two weeks after the opening of the Olympics, or having a new airports' opening delayed until after the elections, etc., generally carries with it some significant negative ramifications for the project owner. At the same time, there are many cases where the early completion of the project will provide the project owner with significant positive ramifications, such as the market share gained by preempting the competitions' launching of a new product, or the increase in sales achieved by bringing the plants productive capabilities on-line sooner, etc.
When planning a new project, how the project will be managed is one of the most important factors. The importance of a managers will determine the success of the project. The success of the project will be determined by how well it is managed. Project management is referred to as the discipline that entails the processes of carefully planning, organizing, controlling, and motivating the organization resources so as to foster and facilitate the achievement of specific established and desired goals and meet the specific criteria of success required in the organization (Larson, 2014). Over the course of this paper I will be discussing and analyzing the importance of project management.
...ovartis Foundation for Sustainable Development (2013). Project Management Handbook A Working Tool for Project Managers. [ONLINE] Available at: http://www.novartisfoundation.org/platform/apps/Publication/getfmfile.asp?id=613&el=808&se=1800744&doc=44&dse=4. [Last Accessed 20 April 2014].
Explain why in practise other methods of evaluating investment projects have proved to be more popular with decision-makers than the net present value method. (Please compare at least three (3) methods)