PPAC Assignment 1

8/18/2019 PPAC Assignment 1

1/20

ASSIGNMENT A

QUESTION ONE

YEAR 0 1 2 3 4 5

1 New Machine Cost 22!00"

2 Ann#a$ Re%en#e 5!00 5!00 5!00 5!00 5!00

3 &ec'ease in o(e'ationa$ Costs 1!10 1!10 1!10 1!10 1!10

4 &e('eciation )1" *!*0" 5!2*"

3!1+"

1!,0"

1!14"

5 -'o.it /e.o'e Ta -/T" 2!+0" 0!*2 2!,3 4!20 4!,

Ta 20% 0!54 0!1" 0!5,"

0!*4"

0!,,"

+ -'o.it A.te' Ta -AT" 2!1" 0! 2!34 3!3 3!,+

* Net Sa$%ae O$ Machine !00

, Net Sa$%ae New Machine !00

10 Initia$ In%estent1" 22!00"

11 O(e'atin Cash In6.$ows +74" !4 5!,4 5!51 5!2 5!11

12 Te'ina$ Cash 8$ows *7," !00 !00

13 Net Cash 8$ow10711712" 22!00" 12!4 5!,4 5!51 5!2 11!11

14 &isco#nt 8acto' 9 1+: 1!00 0!*55 0!+31 0!24 0!534 0!45

15 -'esent ;a$#e 22!00" 10!*1 4!34 3!44 2!*1 5!0+

1 Net -'esent %a$#e 4!4

-'ecision Eninee'in


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Note 1

Yea'

0 In%estent 22!00

1 &e('eciation 940: *!*0"

)'itin &own ;a$#e )&;" 13!202 &e('eciation 940: 5!2*"

)'itin &own ;a$#e )&;" +!,2

3 &e('eciation 940: 3!1+"

)'itin &own ;a$#e )&;" 4!+5

4 &e('eciation 940: 1!,0"

)'itin &own ;a$#e )&;" 2!*5

5 &e('eciation 940: 1!14"

)'itin &own ;a$#e )&;" 1!+1

QUESTION T)O

a! The cash .$ows .o' in%estent ('o(osa$ .'o the $on = te' .#ns (oint o. %iew a'e cash .$ow

st'eas which 'e.$ect the cont'i>#tions ae an >ene.its 'ecei%a>$e >? e@#it? sha'eho$e's .o'

the #se o. .#ns .'o $on te' $ene's! The? a'e i%ie into 3 co(onentsInitial Investment:


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1 Tota$ 8#ns In%este1D3,0!00"

2 Re%en#e 1D000!00 1D200!00 1D500!00 1D500!00 1D500!

3 Cost o. -'o#ction +00!00" *40!00"1D050!00"

1D050!00"

1D050"

4 &e('eciation)1" i" /#i$ins 4!00" 4!00" 4!00" 4!00" 4!00"

ii" -$ant an achine'? 9 33: 15!00" 110!55" +4!0+" 4,!3" 0!+"

iii" othe' .ie assets 933: 33!00" 22!11" 14!*1" ,!,3" 20!15

5 Inte'est i" Te'


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)ORINGS

&e('eciation i" -$ant an Machine'?

YEAR In%estent 500!00

1 &e('eciation 933: 15!00"

)'itin &own ;a$#e )&;" 335!00

2 &e('eciation 933: 110!55"

)'itin &own ;a$#e )&;" 224!45

3 &e('eciation 933: +4!0+"

)'itin &own ;a$#e )&;" 150!3*

4 &e('eciation 933: 4,!3"

)'itin &own ;a$#e )&;" 100!+

5 /a$ancin Cha'e 0!+" )'itin &own ;a$#e )&;" 100!00

ii" Othe' 8ie Assets

YEAR In%estent 100!00

1 &e('eciation 933: 33!00"

)'itin &own ;a$#e )&;" +!00

2 &e('eciation 933: 22!11"

)'itin &own ;a$#e )&;" 44!*,

3 &e('eciation 933: 14!*1"

)'itin &own ;a$#e )&;" 30!0*

4 &e('eciation 933: ,!,3"

)'itin &own ;a$#e )&;" 20!15

5 /a$ancin Cha'e 20!15"

)'itin &own ;a$#e )&;" 0!00

iii" /#i$in 4: o. ac@#isition cost on st'aiht $ine is Rs!4 (e' ?ea'

c! To ca$c#$ate the Inte'na$ Rate o. Ret#'n IRR"we estiate the secon %a$#e o. the N-; at a

$owe' isco#nt 'ate sa? 10: an #se the inte'(o$ation .o'#$a to ca$c#$ate the IRR

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N-; at 10: isco#nt 'ate wi$$ >e

15 Initia$ In%estent 1D3,0!00"

1 O(e'atin Cash In6.$ows 10747516T"H 0 2+!32 25,!+2 30,!5, 300!+, 2*1+ Te'ina$ Cash 8$ows 11712713714H ,0

1* Net Cash 8$ow157171+H 1D3,0!00" 2+!32 25,!+2 30,!5, 300!+, 3+

1, &isco#nt 8acto' 9 10: 1!000 0!,0, 0!*2 0!+51 0!*3 0!

20 -'esent ;a$#e 1D3,0!00" 242!,, 214!53 232!50 205!44 25

21 Net -'esent %a$#e 243!4+"

Et'acte .'o 2>" a>o%e >#t with new isco#nt .acto' o. 10:

IRR= L+[

NPV L

NPV L− NPV H ]×( H − L)

)he'e IRRJ Inte'na$ 'ate o. Ret#'n


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IRR=10−9.1

IRR=0.9

d. )ith the isco#nt .acto' o. 20: the ('oect i%es a neati%e net ('esent %a$#e! Mat'i -ha'a

? is(osin o.. the ('oect then the te'ina$ cash

.$ows wo#$ o #( >? Rs! 5 C'o'es! The new N-; wo#$ the'e.o'e >e as .o$$ows

15 Initia$ In%estent 1D3,0!00"

1 O(e'atin Cash In6.$ows 10747516T"H

62+!32 25,!+2 30,!5, 300!+,

2*,0

1+ Te'ina$ Cash 8$ows 11712713714H5,00

1* Net Cash 8$ow157171+H 1D3,0!00"

2+!32 25,!+2 30,!5, 300!+, *+,!2

1, &isco#nt 8acto' 9 20: 1!00 0!*33 0!,4 0!5+, 0!4*3

0!42

20 -'esent ;a$#e 1D3,0!00"

222!* 1*0!25 1+,!25 145!2* 353!4

21 Net -'esent %a$#e

30,!10"

Et'acte .'o 2>" a>o%e with aition o. 500 to te'ina$ cash .$ows

The ('oect wo#$ sti$$ not >e wo'thwhi$e >eca#se the ('oect N-; is sti$$ neati%e! Mat'i -ha'a


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QUESTION TKREE

a!

Yea' 1 Yea' 2 Yea' 3

C8 -C F × P

C8 -C F × P

C8 -C F × P

*00 0!1 *0 *00 0!1 *0 1200 0!2 240

00 0!2 120 +00 0!3 210 ,00 0!5 450

400 0!4 10 00 0!4 240 00 0!2 120200 0!3 0 500 0!2 100 300 0!1 30

Mean 420 30 *40

C8J Cash .$owD -J -'o>a>i$it? an C F × P=Cash flow multiplied by Probability

&ete'ination o. e(ecte N-;

Yea' Mean Cash .$ows-'esent ;a$#e 8acto'

95:Tota$ -'esent

;a$#e

1 420!00 0!,52 3,,!*4

2 30!00 0!,0+ 5+1!41

3 *40!00 0!*4 +25!+

Tota$ -'esent ;a$#e Cash in.$ows 1D,+!01


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(400−420) −202=400 400×0.4=160

(200−420) 2202=48,400 48,400×0.3=14520

∑ (CF − ĆF )2×P37,940.00

σ 1 √ 37,940.00=194.78

YEAR 2

(CF − ĆF ) (CF − ĆF )2 (CF − ĆF )2×P

(800−630) 1702=144,400 28,900× 0.1=2,890

(700−630) 702=44,100 4,900×0.3=1,470

(600−630) −302=400 900×0.4=360

(500−630) 1302=48,400 16,900× 0.2=3,380

∑(CF − ĆF )2×P

8100.00

σ 2 √ 8100.00=90

YEAR 3

(CF − ĆF ) (CF − ĆF )2 (CF − ĆF )2×P

(1200−840) 3602=129,600 129600×0.2=25,920

(900−840) 602

=3,600 3,600×0.5=1,800

(600−840) −2402=57,600 57,600×0.2=11,520

(300−840) 5402=291,600 291,600×0.1=29,160

∑ (CF − ĆF )2×P68,400.00

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σ 3 √ 68400.00=261.53

σ NPV =

√

σ 12

(1+i)2+

σ 22

(1+i)2 +

σ 32

(1+i)2

σ NPV =√ 37940

(1+0.05)2+

8100

(1+0.05)2+

68400

(1+0.05)2

σ NPV =√ 37940

1.1025+ 8100

1.1025+ 68400

1.1025

σ NPV =√ 103800.4535

σ NPV =322.18

c! The ('o>a>i$it? that the N-; wi$$ >e Le'o o'


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Ainst'ati%e o%e'heas 110 110

Se$$in O%e'heas 0 0

Tota$ 314 314

Tota$ In(#ts 114 124

Sa$es 'ea$iation 1500 1500

Value Added 336 236

!ffe"ti#eRate of Prote"tio$( !RP)

!RP=Value %dded at &omesti" pri"e−Value %dded at 'orld Pri"e

Value %dded at world Pri"e ×100

!RP=336−236

236×100

!RP=100

236×100

!RP=0.42×100

!RP=42

&oestic 'eso#'ce Cost &RC" &RC =( !RP+1 )×!("ha$)e Rate

&RC =(0.42+1)×Rs .45

&RC =1.42×Rs .45

&RC = Rs *63.90

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The e..ecti%e 'ate o. ('otection ER-" o. 42: eans that the %a$#e ae at oestic ('ices to

an#.act#'e s(ices wo#$ ha%e >een hihe' >? 42: i. the ('ice o. i(o'te in(#ts we'e not isto'te

th'o#h (o$ic? inte'%ention o. 25: ta'i..! The &oestic 'eso#'ce cost o. Rs!3!,0 is the s(enin

'e@#i'e >? MFS G$o>a$ S(ices to ene'ate a sa%in o. 1! The ER- ass#es that the oestic ('ices

an the wo'$ ('ices a'e not e@#a$

!"#TIO$ FIV"

A ('e$iina'? a(('aisa$ in%o$%es an initia$ s(eci.ication o. the nat#'e an o>ecti%es o. the ('oect an

o. 'e$e%ant >ac'o#n ci'c#stances econoicD socia$ an $ea$"! 8o'at o. -'e$iina'? A(('aisa$

In te's o. .o'at a ('e$iina'? a(('aisa$ sho#$ inc$#e a c$ea' stateent o. the nees which a ('oect

is esine to eet an the e'ee to which it wo#$ ai to eet the! It sho#$ ienti.? a$$ 'ea$istic

o(tionsD inc$#in the o(tion o. oin nothin anD whe'e (ossi>$eD @#anti.? the e? e$eents o. a$$

o(tions! It sho#$ contain a ('e$iina'? assessent o. the costs an ains o. a$$ o(tions choose the

('e.e''e one an ae a #eent on whethe' its ains the net ('esent %a$#e" a'e s#..icient to

wa''ant inc#''in its costs!

On the >asis o. the ('e$iina'? a(('aisa$D the S(onso'in co(an? o' o%e'nent aenc? sho#$

ecie whethe' .o'#$atin an assessin a etai$e a(('aisa$ wo#$ >e wo'thwhi$e o' whethe' to 'o(

the ('oect! A 'ecoenation to #ne'tae a etai$e a(('aisa$ sho#$ state the te's o. 'e.e'ence o.

that a(('aisa$

A##I$&"$T '

!"#TIO$ O$"(

In the @#estion the ecision %a'ia>$es wi$$ >e X

1, X

2+ X

3,,* + X 10

Aitiona$$?D two othe' ecision %a'ia>$es a'e 'e@#i'e as .o$$ows

X 11 is the ecision %a'ia>$e to 'e('esent the e$a? o. ('oect 2 >? one ?ea'!

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X 12 is the ecision %a'ia>$e that 'e('esents the co>ination o. ('oects 3 an +!

X 12 wi$$ >e as

.o$$ows

-'oect Cash o#t.$ow

Yea' 1"

Cash o#t.$ow

Yea' 2"

Cash o#t.$ow

Yea'3"

N-;

X 12 3+!*

,0:o. 2371,"H

5!+

,0:o. 2*745"H

10!*

,0:o. 57+"H

3*!1

112:o. 20714"H

The intee' $inea' ('o'ain oe$ wi$$ >e e%e$o(e as .o$$ows

Maiise

12 X

1+19 X

2+20 X

3+22 X

4+10 X

5+32 X

6+14 X

7+24 X

8+9 X

9+15 X

10+9.5 X

11+38.1 X

12

S#>ect to

20 X 1+25 X

2+23 X

3+30 X

4+34 X

5+38 X

6+19 X

7+12 X

8+10 X

9+6 X

10+0 X

11+37.8 X

12150

40 X 1+35 X

2+28 X

3+24 X

4+21 X

5+26 X

6+45 X

7+20 X

8+33 X

9+44 X

10+25 X

11+65.7 X

12200

0 X 1+0 X

2+5 X

3+4 X

4+0 X

5+10 X

6+7 X

7+35 X

8+10 X

9+9 X

10+35 X

11+10.8 X

1280

-'oect inte''e$ationshi(s

a! O. ('oects 3D 4 an *D at ost two can >e acce(te! X

8 X

3+ X

4

>! -'oects 5 an , a'e #t#a$$? ec$#si%e! X

5+ X

91

c! -'oect cannot >e acce(te #n$ess >oth ('oects 1 an 10 a'e acce(te!

2 X 6X 1+ X 10

! -'oect 2 can >e e$a?e >? a ?ea'! Tho#h the cash .$ows 'e@#i'e wi$$ >e the saeD the net

('esent %a$#e wi$$ 'o( >? 50:! X

2+ X

111

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e! -'oects 3 an + a'e co($ienta'?! I. the two a'e acce(te toethe'D the tota$ cash .$ows wi$$ >e

'e#ce >? 10: an net ('esent %a$#e wi$$ >e inc'ease >? 12:! X

3+ X

7+ X

121

!"#TIO$ T)O

)h* Con+li,ts arise -etween two or more mutuall* e.,lusive pro/e,ts Anal*se the situations

where ,on+li,ts ma* arise and suggest how these ,on+li,ts ,an -e resolved(

M#t#a$$? ec$#si%e ('oects a'e ('oects in which acce(tance o. one ('oect ec$#es the othe's .'o

consie'ation! In s#ch a scena'io the >est ('oect is acce(te! Net -'esent ;a$#e N-;" an Inte'na$Rate o. Ret#'n IRR" con.$ictD which can soeties a'ise in case o. #t#a$$? ec$#si%e ('oectsD

>ecoes c'itica$! The con.$ict eithe' a'ises #e to the 'e$ati%e sie o. the ('oect o' the cash .$ow (atte'n

o. the ('oects a? i..e'! That isD the cash .$ows o. one ('oect a? inc'ease o%e' tieD whi$e those o.

othe's a? ec'ease o' %ice %e'sa! Sti$$ con.$ict a'ises >eca#se ('oects a? ha%e i..e'ent e(ecte

$i%es!

Acco'in to /'iha an Eh'ha't 200*3*" when eithe' tiin o' sie i..e'ences a'e ('esentD the

.i' wi$$ ha%e i..e'ent ao#nts o. .#ns to in%est in the %a'io#s ?ea'sD e(enin on which o. the two

o' o'e #t#a$$? ec$#si%e ('oects it chooses! 8o' ea($e i. one ('oect costs o'e than the othe'D

then the .i' wi$$ ha%e o'e one? at tie t =0 to in%est e$sewhe'e i. it se$ects a sa$$e' ('oect!

Sii$a'$? .o' ('oects o. e@#a$ sie one with $a'e' ea'$? cash in.$ows ('o%ies o'e .#ns .o'

'ein%estent in the ea'$? ?ea's! Gi%en this sit#ation the 'ate o. 'et#'n at which the .#ns sho#$ >e

'ein%este is a c'itica$ iss#e! The N-; an IRR ethos i%e con.$ictin 'anin to #t#a$$? ec$#si%e

('oects! In the case o. ine(enent ('oects 'anin is not i(o'tant since a$$ ('o.ita>$e ('oects can >e

acce(te! Ranin o. ('oectsD howe%e'D >ecoes c'#cia$ in the case o. #t#a$$? ec$#si%e ('oects!

Since the N-; an IRR '#$es can i%e con.$ictin 'anin to ('oectsD one cannot 'eain ini..e'ent as

to the choice o. the '#$e! The N-; etho i($icit$? ass#es that the 'ate o. 'et#'n at which cash .$ows

can >e 'ein%este is the cost o. ca(ita$ whe'eas IRR etho ass#es that the .i' can 'ein%est at the

IRR! The >est ass#(tion is that the ('oects cash .$ows can >e 'ein%este at the cost o. ca(ita$D which

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eans that the N-; etho is o'e 'e$ia>$e! /'iha an Eh'ha't 200*3*+" asse't that when

e%a$#atin #t#a$$? ec$#si%e ('oects es(ecia$$? those that i..e' in sie an tiinD the N-; sho#$

>e #se!P

!"#TIO$ T1""

( )rite a note on lending norms and poli,ies o+ the institutions(

-'#ent anaeent an ainist'ation o. .inancia$ instit#tions inc$#in esta>$ishent o. so#n

$enin no's an (o$icies a'e o. %ita$ i(o'tance i. the instit#tions a'e to >e contin#o#s$? o(e'ate in

an acce(ta>$e anne'! ? the i'ecto's an senio' o..ice's! The >oa' o. i'ecto's

o. e%e'? .inancia$ instit#tion has the $ea$ 'es(onsi>i$it? to .o'#$ate $enin no's (o$icies an to

s#(e'%ise thei' i($eentation! The'e.o'e s#(e'%iso's o. .inancia$ instit#tions s#ch as the cent'a$

instit#tions sho#$ enco#'ae esta>$ishent an aintenance o. w'ittenD #( to ate $enin no's an

(o$icies which ha%e >een a(('o%e >? the >oa' o. i'ecto's! These no's an (o$icies sho#$ not >e a

static oc#entD >#t #st >e 'e%iewe (e'ioica$$? an 'e%ise in the $iht o. chanin ci'c#stances

s#''o#nin the >o''owin nees o. the c#stoe's as we$$ as chanes that a? occ#' within the

instit#tion itse$.! To a $a'e etentD the econo? o. the co#nit? se'%e >? the instit#tion ictates the

co(osition o. the $oan (o't.o$io! The wie$? i%e'ent ci'c#stances o. 'eiona$ econoies an the

consie'a>$e %a'iance in cha'acte'istics o. ini%i#a$ $oans ('ec$#e esta>$ishent o. stana' o'

#ni%e'sa$ $enin (o$icies! The'e a'eD howe%e'D ce'tain >'oa a'eas o. consie'ation an conce'n that

sho#$ >e a'esse in the $enin (o$icies o. a$$ instit#tions 'ea'$ess o. sie o' $ocation! These

inc$#e the .o$$owinD as ini#s

Gene'a$ .ie$s o. $enin in which the instit#tion wi$$ enae an the ins o' t?(es o. $oans

within each ene'a$ .ie$B

oa' o. i'ecto's in 'e%iewinD 'ati.?inD o' a(('o%in $oansB

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G#ie$ines #ne' which #nsec#'e $oans wi$$ >e 'anteB

G#ie$ines .o' 'ates o. inte'est an the te's o. 'e(a?ent .o' sec#'e an #nsec#'e $oansB

? the instit#tion .o' each t?(e o. sec#'e $oanB

G#ie$ines .o' o>tainin an 'e%iewin 'ea$ estate a(('aisa$s as we$$ as .o' o'e'in

'ea(('aisa$sD when neeeB

Maintenance an 'e%iew o. co($ete an c#''ent c'eit .i$es on each >o''owe'B

A(('o('iate an ae@#ate co$$ection ('oce#'es inc$#inD >#t not $iite toD actions to >e taenaainst >o''owe's who .ai$ to ae tie$? (a?entsB


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The a>o%e a'e on$? as #ie$ines .o' a'eas that sho#$ >e consie'e #'in the $oan (o$ic? e%a$#ation!

Manaeent sho#$ e%e$o( s(eci.ic #ie$ines .o' each $enin e(a'tent o' .#nction!

CA#" #T!45

A(('aisin a ('oect eans 'e%iewin an e%a$#atin the ('oect .o' .easi>i$it? an cost6e..ecti%eness!It in%o$%es #ne'stanin an a(('o%in the ('oect conce(tD which e($ains what ('o>$e o' neeD is

to >e a'esse an what so$#tion is 'e@#i'e to i($eent it! This -'oect A(('aisa$ ('ocess is

esine to he$( Anh'a -'aeshD a new co(an? inco'(o'ate 'ecent$? an in the ('ocess o. settin #(

a 10 i$$ion tons (e' ann# ca(acit? ceent ('oectD to assess an #sti.? the %ia>i$it? o. this ('o(ose

in%estent! A(('aisa$ ('ocess in%o$%es a ca'e.#$ checin o. the >asic ataD ass#(tions an ethoo$o?

#se in ('oect ('e(a'ationD an in6e(th 'e%iew o. the wo' ($anD cost estiates an ('o(ose .inancinD an

assessent o. how the ('oect wi$$ >e o'anie an anaeent as(ects an .ina$$? the %ia>i$it? o.

('oect!

It is anato'? .o' the Anh'a -'aesh Co(an? to #ne'tae ('oect a(('aisa$ o' at $east i%e etai$s o.

.inancia$D econoic an socia$ >ene.its o. the Ceent ($ant! On the >asis o. s#ch an assessentD a

#eent wi$$ >e 'eache as to whethe' the 10 i$$ion tons (e' ann# ca(acit? ceent ('oect is

technica$$? so#nD .inancia$$? #sti.ie an %ia>$e .'o the (oint o. %iew o. the econo? as a who$e!

The sta'tin (oint .o' a(('aisa$ is that Anh'a -'aesh Co(an? sho#$ ('o%ie a etai$e esc'i(tion

o. the ('oectD statin c$ea'in the $oca$ an e%en inte'nationa$ nees .o' ceent the co(an? ais to

eet! A(('aisa$ he$(s show i. the ('oect is the 'iht 'es(onse an hih$iht what the ('oect is

s#((ose to o an .o' who! The a(('aisa$ sho#$ he$( show that a ('oect is consistent with the

o>ecti%es o. the 'e$e%ant .#nin ('o'a an with the ais o. the $oca$ (a'tne'shi(! The a(('aisa$ wi$$

he$( ae $ins >etween Anh'a -'aesh Co(an? ('oect an othe' $oca$ ('o'as an ('oects!

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$e! A e?

@#estion in a(('aisa$ wi$$ >e whethe' the'e has >een a(('o('iate cons#$tation an how it has sha(e the

('oect! O(tions ana$?sis is conce'ne with esta>$ishin whethe' the'e a'e i..e'ent wa?s o. achie%in

o>ecti%es! This is a (a'tic#$a'$? co($e (a't o. ('oect a(('aisa$D an one whe'e #iance %a'ies! It is

%ita$ tho#h to 'e%iew i..e'ent wa?s o. eetin $oca$ nee an e? o>ecti%es!

-'oect a(('aisa$ ('ocess inc$#es technica$D econoicD .inancia$D socia$ an en%i'onenta$ ana$?ses!

Technica$ ana$?sis o. a ('oect is aie at ens#'in the .o$$owin

To con.i' the so#'ce o. the ('oect ('o(osa$D nat#'e o. the st#ies = inc$#in .easi>i$it?

st#ies #ne'taen >e.o'e the ('o(osa$ an the nat#'e o. ecisions taen >? a$$ 'e$e%ant

a#tho'ities in%o$%e

That the ('o>$e o' the nee to >e 'eso$%e >? the ('oect has >een c$ea'$? state!

That the ('oect has >een c$ea'$? s(e$$e o#t with the co''ect technica$ esin etai$s s#ch as

sieD $ocationD tiin an techno$o?

That the 'e@#i'e ate'ia$s ha%e >een co''ect$? ete'ine an thei' so#'ce ienti.ie

That the costs o. the ('oect ha%e >een c$ea'$? esta>$isheD e(ecte ('o#ct ('ices ('oecte

an (a?ent oa$ities an sche#$es a'ee to!

The econoic a(('aisa$ i%es the costs an >ene.its o. a ('oect these costs an >ene.its a'e estiate

th'o#h the a(($ication o. ('o.ita>i$it? too$s $ie Net -'esent ;a$#e N-;"D inte'na$ 'ate o. 'et#'n IRR"D

-a? /ac -e'io an Inc'eenta$ -'o.it a'e #se to estiate the %ia>i$it? o. the ('oect!

Finan,ial Anal*sis taes a ha' $oo at the .#nin so#'ces .o' the ('oect >oth in te's o. co($etin

the ('oect an .o' its s#staine o(e'ation! This ana$?sis sho#$ @#estion i.B

The Anh'a -'aesh Co(an? wo#$ .#n the ('oect .'o inte'na$ 'eso#'ces

The Anh'a -'aesh Co(an? wo#$ .#n the ('oect .'o ete'na$ 'eso#'ces

The ete'na$ 'eso#'ces wo#$ >e >o''owe .#ns

I. the .#ns a'e to >e >o''oweD wo#$ the Anh'a -'aesh Co(an? >e a>$e to (a? >ac the

$oan with acc'#e inte'est

)o#$ the ete'na$ 'eso#'ces >e a 'ant .'o the cent'a$ o%e'nent o' .'o an? othe' so#'ce

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)o#$ the Anh'a -'aesh Co(an? co6.#n the ('oect with an o#tsie ono'D whethe' it is a

cent'a$ o%e'nent o' anothe' e%e$o(ent (a'tne'

)o#$ e..ecti%e cost 'eco%e'? echaniss aie 'eco#(in the ('oect costs >e (#t in ($ace

)o#$ .inancia$ anaeent oa$ities >e (#t in ($ace to 'eco' the t'ansactions #'in

i($eentation an o(e'ation o. the ('oect &oc#ents co#$ inc$#e cash>ooD assets

'eiste'D >an stateentsD >a$ance sheet acc'#a$s acco#ntin"D incoe stateents o' 'ecei(t

an (a?ent sche#$es"!

The En%i'onenta$ Ana$?sis is aie at ens#'in that the ('oect co($ies with the %a'io#s

en%i'onenta$ 'e@#i'eents as ainiste'e >? the host co#nt'? s#ch as the En%i'onenta$ Reso#'ce

Manaeent EMA"! S(eci.ica$$?D the ('oect sho#$ co($? with the ('o%isions o. the Nationa$

En%i'onent Stat#te an the En%i'onenta$ I(act Assessent! En%i'onenta$ as(ects that ('oectswo#$ ha%e to a'ess inc$#eB

-#>$ic hea$th an occ#(ationa$ sa.et?

Cont'o$ o. ai'D wate' an $an (o$$#tion

Manaeent o. 'enewa>$e nat#'a$ 'eso#'ces ($ants an ania$s"

E..icient #se o. nat#'a$ 'eso#'ces th'o#h #$ti($e #seD 'ec?c$in an e'osion cont'o$

Conse'%ation o. #ni@#e ha>its .o'estsD ae 'ese'%es" .o' 'a'e s(ecies an c#$t#'a$ ('ese'%ation

The %a$iit? o. the ($anne's ass#(tions a>o#t the socia$ conitions is teste th'o#h socia$ ana$?sis!)he'e necessa'?D a#stents sho#$ >e ae so that the ('oect oa$s a'e e('esse in te's that ha%e

o'e eanin .o' >oth the ('oect (o(#$ation an the i($eentin aencies! Socia$ ana$?sis .oc#ses

on .o#' a'eas inicate >e$owB

The socia$6c#$t#'a$ an eo'a(hic cha'acte'istics o. the ('oect (o(#$ation = its sie an

socia$ st'#ct#'eD inc$#in ethnicD t'i>a$ an c$ass co(osition

Kow the ('oect (o(#$ation has o'anie itse$. to ca''? o#t ('o#cti%e acti%itiesD inc$#in the

st'#ct#'e o. ho#seho$s an .ai$iesD a%ai$a>i$it? o. $a>o#'D owne'shi( o. $an an access to an

cont'o$ o. 'eso#'ces

The ('oects c#$t#'a$ acce(ta>i$it?B in othe' wo'sD its ca(acit? >oth .o' aa(tin to an .o'

>'inin a>o#t esi'a>$e chanes in (eo($es >eha%io#' an in how the? (e'cei%e thei' nees

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The st'ate? necessa'? to e$icit coitent .'o the ('oect (o(#$ation an to ens#'e thei'

s#staine (a'tici(ation .'o esin th'o#h to s#ccess.#$ i($eentationD o(e'ation an

aintenance

)hen the ('oect a(('aisa$ is one an 'e(o't is co(i$e it is then s#>itte to the senio' anaeent

.o' 'e%iew an a(('o%a$! The anae's 'e%iew the a(('aisa$ an in case the'e a'e an?

is#ne'stanins o' a(s in the a(('aisa$ the? can 'et#'n the oc#ent >ac .o' 'e%isin! )hen a$$ the

'e%isions an co''ections a'e oneD the oc#ent is a(('o%e an sine o.. an the ('oect ste(s to the

net (hase 6 -$annin!

A##I$&"$T C &!7TI87" C1OIC"9

1 & 11 C 21 A 31 A

2 E 12 A 22 E 32 E

3 C 13 & 23 / 33 E

4 E 14 & 24 C 34 &

5 E 15 A 25 A 35 E

& 1 C 2 & 3 C

+ / 1+ / 2+ E 3+ C

* A 1* E 2* A 3* A

, & 1, & 2, / 3, A

10 / 20 / 30 C 40 E

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'i-iliograph*

/a'e' R! 2001"D &ete'inin %a$#eD ;a$#ation Moe$s an 8inancia$ Stateents! Ka'$ow .inancia$

Ties -'entice Ka$$!

/'iha E! an Eh'ha't M! 200*"D 8inancia$ Manaeent Theo'? an -'actice! USA Thoson

$ishin Co(an?

PPAC Assignment 1

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