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The aim of this paper is to propose a model of external evaluation of investments in tourism with a focus on process and sustainability, since today it is a requirement for the development of tourist destinations to improve the decision making process that will lead to the approval of investments. The relevant aspect of this proposal is the integration of three processes that in theory and practice they usually appeared in separated form: the external evaluation ex-before, while (investment) and ex-post, as well as the system of tools and techniques used for the evaluation. The model was designed based on the study of different models presented in the literature studied, the consultation to experts in the field, as well as the experience gained by the authors in the research process in Cuba and Cape Verde. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to identify current practice in respect of the appraisal of both information communication technology (ICT) and non-ICT capital investments, and to elicit the opinions of senior executives on the various issues concerning such investment practices. Design/methodology/approach – Empirical research based on data from a postal questionnaire, designed around a factual and attitudinal survey. Findings – This research presents evidence of the financial and risk assessment models used by practitioners in the appraisal of both ICT and non-ICT capital projects. It shows that there was no significant difference between ICT and non-ICT appraisals in this respect. It does, however, show that there are significant differences between the two types of projects in respect to other important appraisal/evaluation issues. It also uncovers important issues regarding ICT globalisation, project champions, post audits and appraisal teams. Research limitations/implications – This research does not identify the approach adopted, or the models used, to appraise strategic issues. This is an area for future research. Practical implications – This research presents data that will assist both practitioners and academics in a greater understanding of the appraisal of both ICT and non-ICT projects, which will pave the way to better decision making in the future. Originality/value – It is believed that this is possibly the only survey to simultaneously address the appraisal issues concerning both ICT and non-ICT projects. [ABSTRACT FROM AUTHOR]

Abstract: The study assessed the economic efficiency of different strategies for the control of post-weaning multi-systemic wasting syndrome (PMWS) and porcine circovirus type 2 subclinical infection (PCV2SI), which have a major economic impact on the pig farming industry worldwide. The control strategies investigated consisted on the combination of up to 5 different control measures. The control measures considered were: (1) PCV2 vaccination of piglets (vac); (2) ensuring age adjusted diet for growers (diets); (3) reduction of stocking density (stock); (4) improvement of biosecurity measures (bios); and (5) total depopulation and repopulation of the farm for the elimination of other major pathogens (DPRP). A model was developed to simulate 5 years production of a pig farm with a 3-weekly batch system and with 100 sows. A PMWS/PCV2SI disease and economic model, based on PMWS severity scores, was linked to the production model in order to assess disease losses. This PMWS severity scores depends on the combination post-weaning mortality, PMWS morbidity in younger pigs and proportion of PCV2 infected pigs observed on farms. The economic analysis investigated eleven different farm scenarios, depending on the number of risk factors present before the intervention. For each strategy, an investment appraisal assessed the extra costs and benefits of reducing a given PMWS severity score to the average score of a slightly affected farm. The net present value obtained for each strategy was then multiplied by the corresponding probability of success to obtain an expected value. A stochastic simulation was performed to account for uncertainty and variability. For moderately affected farms PCV2 vaccination alone was the most cost-efficient strategy, but for highly affected farms it was either PCV2 vaccination alone or in combination with biosecurity measures, with the marginal profitability between ‘vac’ and ‘vac+bios’ being small. Other strategies such as ‘diets’, ‘vac+diets’ and ‘bios+diets’ were frequently identified as the second or third best strategy. The mean expected values of the best strategy for a moderately and a highly affected farm were £14,739 and £57,648 after 5 years, respectively. This is the first study to compare economic efficiency of control strategies for PMWS and PCV2SI. The results demonstrate the economic value of PCV2 vaccination, and highlight that on highly affected farms biosecurity measures are required to achieve optimal profitability. The model developed has potential as a farm-level decision support tool for the control of this economically important syndrome. [Copyright &y& Elsevier]

For fruits, establishing intensive apple-orchards requires the highest amount of investment cost, while the returns depend on many factors. Based on farm and bibliography data we appraised an investment in a model in some variations that are the most used in practice (100% owner's capital and 55% owner's capital +45%o subsidies). The profitability of the investment has been analysed using the methods of NPV (Net Present Value) and DPP (Dynamic Payback Period). The essence of our analysis is a sensitivity analysis with the optimistic, pessimistic and realistic combinations of the yield and the market price. Plantation establishment financed by only own (corporate's) sources turns into profitable over 7-10 years in average and favourable cases, but the opposite is the case in unfavourable circumstances. By subsidy of 45% for investments, it is highly possible to return by the fifth or sixth year after the year of establishment, but it can return by the twelfth year even in unfavourable case.

Roadmapping provides a visual canvas upon which a depiction of business strategy can be articulated and shared both within and between organizations. In this regard, roadmaps can be considered as boundary objects because they are used to forge the links between the differing stakeholders and communicate their shared viewpoints. Typically, the format of the roadmap is that of a skeletal structure consisting of a time-based axis against layers of functional perspectives (e.g., market, product, technology). However, in the later stages of the strategic planning and development activity, there is a need to clearly represent the options identified and embed the associated quantitative measures in the roadmap so as to provide greater assistance in the decision-making process. This is critical since options embody flexibility. From a program management perspective such flexibility is typically manifested through making decisions as to whether to defer, abandon, switch, expand/contract different project elements; for instance, choosing to terminate specific R&D, design or procurement activities. Such decisions are made upon evolving market, product and technology conditions. For example, customer needs, operational requirements, product functionalities and performance levels, technology availability and maturity. In order to visually represent options in terms of decision-point timing and size of investment, this paper presents an initial set of visual objects that could be overlaid on the canvas of a roadmap. To illustrate their use, a real-world case study is presented. A fully populated options-based roadmap, containing a set of alternative futures, is described. It is intended that this roadmap acts as a graphical prototype form for visually depicting options and associated investment appraisal information. [ABSTRACT FROM AUTHOR]

Abstract: In this study, investment appraisal techniques and risk analysis methods are evaluated and a new simulation-based computer program developed for helping investment appraisal applications for natural building stone deposits is introduced. Finally, case study and its results are presented. The study proved that simulation programs can be used for decision making concerning potential investments in NBS deposits. [Copyright &y& Elsevier]

Abstract: Serbian government has recently introduced the system of feed-in tariffs for electricity generated from renewable sources. The proposed feed-in tariff for photovoltaic electricity is set to 0.23€/kWh paid for 12 years, with the PV electricity produced after the first 12 years being sold at the grid electricity market price for the rest of the plant lifetime. Although such FIT could have been justified by the small, average retail grid electricity price of just 0.054€/kWh for Serbian households, the investment appraisal of a real case of 2.82kWp PV power plant in two Serbian cities of Zlatibor and Negotin, clearly illustrates that the proposed FIT framework is not sufficient to attract investments into PV in Serbia. In the second part of the paper, we have analyzed alternative, more reasonable feed-in tarrif frameworks, with the goal of selecting those able to sustain the PV adoption and diffusion in Serbia. [Copyright &y& Elsevier]

The rainfed Pothwar area of Pakistan is one of the most eroded areas where 20% of the total land is affected by soil erosion and 4.2 billion cubic meter of water is lost from surface runoff annually. Soil erosion, along with arid climate, erratic rainfall and undulating topography makes land productivity very low and the livelihood of rural people even hard. Soil and water conservation under such an environment could provide the foundation for agricultural and natural resource development. To develop appropriate technologies for increasing land productivity through soil and water conservation, applied research has been carried out during 2001-07 in the rainfed Pothwar area. Low cost soil and water conservation structures were developed and demonstrated in the area. The investment appraisal based on the cost incurred and benefits realized by the farmers recorded through assessment survey revealed that the technology had a short payback period along with internal rate of return varying in the range of 25-37% under rainfed conditions and positive net present value. The farmers' perceptions revealed that the technology can solve the erosion problem along with 10-35% increase in crop yield and save repair and maintenance cost incurred on eroded lands. The technology is compatible with farmers' resources and practices along with availability of the raw material and technical skills for its adoption. The results from the assessment and financial evaluation of the technology provide logical base for investment in up scaling the technology. [ABSTRACT FROM AUTHOR]

Abstract: The Capital Asset Pricing Model (CAPM) is a useful tool in the estimation of the equity cost in the cost of capital computation. This work proposes a method to limit problems arising from the CAPM assumptions. The main tools are the possibilistic mean and the possibilistic variance/covariance of fuzzy numbers as they are introduced by Carlsson and Fullér (2001) . The results of this method are a possibilistic CAPM beta value and a possibilistic value for the market premium. These values lead to a possibilistic set-up of CAPM and then to the computation of the after tax Weighted Average Cost of Capital (WACC). The data for this work is fuzzy and derives from experts in investments and specialists in “deciphering” the information flowing from financial markets. Finally, a computational algorithm of five steps and a numerical example are presented for thorough comprehension of the proposed method. [Copyright &y& Elsevier]

Purpose – The purpose of this paper is to investigate equity appraisal techniques employed by non-professional investors from the Central European emerging stock market (CEESM) of Poland. The paper examines investment decision-making processes in the context of the current financial crisis in a pioneering attempt to shed some light on crisis-induced changes in investment strategies. In addition, the study tests the usefulness and predictive abilities of analytical tools employed by non-professional investors when faced with unstable stock-market conditions. Design/methodology/approach – Questionnaires and experiments conducted with a large group of Polish investors – trading equities in their home market – in order to gain information on the most commonly used investment strategies. Their views are contrasted with similarly obtained opinions expressed by UK non-professional investors to highlight differences in approaches to investments. Finally, a series of semi-structured interviews was conducted to discuss how the current financial crisis has affected investment strategies among Polish and UK investors. Findings – Technical analysis (TA) is the preferred tool utilized by non-professional investors in Poland. However, the current financial crisis caused the majority of Polish practitioners to adopt fundamental analysis which, in this case, is undertaken to support initial conclusions derived from TA. At this point, investees' financial statements coupled with analyses of the main macroeconomic indicators for CEESMs became the main source of decision-influencing information. Practical implications – The paper addresses an area which is gaining in importance and is of interest to both practitioners and service providers for non-professional investors. Further investigation is recommended of nascent challenges to investing in CEESMs with practical implications for policy makers and investors. Originality/value – The current paper refers to the global financial crisis which occurred in the years 2008-2010. To date, there are no previous studies devoted to an investigation of how investors' trading strategies were influenced by the international financial crisis. Moreover, there are relatively few studies which target practitioners from CEESMs. The paper focuses on the non-professionals, as this group of investors seems to be relatively under-researched. Therefore, a number of important implications can be drawn from the current paper with regard to investment strategies tailored to overcome a financial crisis. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to examine empirically the impact of human capital development in organizations. It is based on some conceptual aspects of human resource accounting and considers how investments in the development of human capital can be measured in order to investigate the financial returns for organizations. Design/methodology/approach – The study is exploratory in nature as this is the first of its kind in the Pakistani manufacturing sector. The technique of convenience sampling was used to collect the data due to time and resource limitations. The sample comprises of 30 leading companies in the Pakistani textile sector. A self-administered postal questionnaire was designed for the research survey. The results focus on the benefits derived by using the capital investment appraisal techniques of human resource accounting including: return on investment, benefit to cost ratio, weighted average cost of capital, and bottom line evaluations. Findings – The results provide evidence of an association between investment in the development of human capital and the benefits, which organizations can reap from such investments. It further finds that the organizations investing in training and development programs provide high employee productivity that ultimately contributes towards high-organizational performance. Research limitations/implications – Owing to the research design, the results may exhibit a lack of generalizability to other sectors. As the results cannot be applied to other organizations, further research can be done by using the same techniques. Originality/value – This paper is a groundbreaking work in Pakistan and thereby an addition to the existing global literature on human resource accounting. This research provides new directions for the literature in this area, by encouraging a debate about the importance of investing in the development of human capital. [ABSTRACT FROM AUTHOR]

Abstract: PPP contracts most often have durations of between 20 and 35 years, but in some cases even longer. The main reason for this is the wish of the Public side to minimize its financial contribution, by including in the contract many years of revenue generation by the project to help cover the investment contribution of the private partner. Implicit however is the need to fully amortize the initial investment, which in many countries is even included in the relevant legislation. PPP contracts are normally framed around the delivery of a range of services during the lifetime of the contract, those services requiring the initial construction or recovery of an expensive infrastructure. The specification of the financial clauses of the contract requires the estimation of demand for those services over the period of the contract and this is usually taken as the major incidence of uncertainty in the contract. Indeed, experience shows that demand forecasts often fail substantially, in many cases by more than 20%, mostly by excess, as State side project promoters (and the bidding private partners) tend to be excessively optimistic about the development of such demand. But when we consider the nature of these contracts we should recognize the existence of at least two other very important types of uncertainty: first, the socially desirable scope and specification of the services to be offered as technology and social preferences evolve; and second, the policy guidelines relative to the total quantity and the social distribution of those services, as that quantity may be causing congestion in other parts of the system, or it may become important to (positively or negatively) discriminate some user segments. In both cases, it is almost impossible to foresee at the time of writing the initial contract if, when and in what direction such types of socially beneficial changes in the provision of the services would intervene, but this rigidness may bear a great loss of social welfare in relation to a more adjustable framework. This criticism affects not only PPPs but all kinds of concession contracts with long duration, so it is not the “partnership” element that must be questioned but rather the duration of the contract. An alternative way is relatively straightforward: abandon the assumption that these contracts must provide full amortization of the infrastructure, which allows adoption of contracts with a shorter life, and the use of multiple such contracts over the lifecycle of the infrastructure. The first generation contract would still have to face the full cost of the construction, but the private partner would receive the unamortized part at the end of that contract, to be paid by the State, directly from the public budget if no more private participation is wanted, or indirectly through the acquisition fee for the contract to be paid by the partner to the second life segment. But, crucially, the State recovers the right to re-specify the terms of the service to be provided without the need for any indemnity, and also the uncertainty associated with the evolution of demand in that period will be much smaller, as this will be my then a mature system in operation. This may seem to increase the transaction costs for the State as more contracts (although of a similar type, especially from the second onwards) may have to be negotiated and signed. But if we take into consideration the difficulties of the frequently needed renegotiations of long duration contracts and the conditions of asymmetry of information in which the State normally finds itself in such cases, we will conclude that, besides avoiding the loss of welfare due to the poor fit of the contract after 20 years or so, this solution after all may also reduce the transaction costs associated with negotiations over the duration of the traditional contracts. [Copyright &y& Elsevier]

Purpose -- The purpose of this paper is to develop a dynamic, stochastic, mechanistic simulation model of a dairy business to evaluate the cost and benefit streams coinciding with technology investments. The model was constructed to embody the biological and economical complexities of a dairy farm system within a partial budgeting framework. A primary objective was to establish a flexible, user-friendly, farm-specific, decision-making tool for dairy producers or their advisers and technology manufacturers. Design/methodology/approach -- The basic deterministic model was created in Microsoft Excel (Microsoft, Seattle, Washington). The @Risk add-in (Palisade Corporation, Ithaca, New York) for Excel was employed to account for the stochastic nature of key variables within a Monte Carlo simulation. Net present value was the primary metric used to assess the economic profitability of investments. The model was composed of a series of modules, which synergistically provide the necessary inputs for profitability analysis. Estimates of biological relationships within the model were obtained from the literature in an attempt to represent an average or typical US dairy. Technology benefits were appraised from the resulting impact on disease incidence, disease impact, and reproductive performance. In this paper, the model structure and methodology were described in detail. Findings -- Examples of the utility of examining the influence of stochastic input and output prices on the costs of culling, days open, and disease were examined. Each of these parameters was highly sensitive to stochastic prices and deterministic inputs. Originality/value -- Decision support tools, such as this one, that are designed to investigate dairy business decisions may benefit dairy producers. [ABSTRACT FROM AUTHOR]

The article discusses the conditions necessary to foster photovoltaic (PV) technologies deployment within the UK electricity sector. It explores the incentives to invest in PV technologies by assessing the financial viability of PV system investments in the UK. The analysis focuses on a set of target PV technologies and applications for the domestic sector. First, it provides a picture of profitability and incentives to invest in the targeted PV systems under current UK market, technical, and regulatory conditions. Then, the analysis looks at the role of policy and potential future technological development by exploring the impact of alternative policy instruments and technology cost reductions on the financial viability of investing in PV. The analysis shows that domestic PV investments are generally not profitable under current cost, market, and regulatory conditions. The initial capital costs are too high and the current policy framework is not enough to make PV systems financially viable. The introduction of high-enough feed-in tariffs, as well as the achievement of target cost reductions, would make PV systems financially attractive and would likely increase PV deployment in the UK. [ABSTRACT FROM AUTHOR]

Purpose - The purpose of this paper is to discuss a multiscale pricing model for the French stock market by combining wavelet analysis and Fama-French three-factor model. The objective is to examine the relationship between stock returns and Fama-French risk factors at different time-scales. Design/methodology/approach - Exploiting the scale separation property inherent to the maximal overlap discrete wavelet transform, the data set are decomposed into components associated with different time-scales. This wavelet-based decomposition scheme allows the three Fama-French models to be tested over different investments periods. Findings - The obtained results show that the explanatory power of the Fama-French three-factor model becomes stronger as the wavelet scale increases. Besides, the relationship between the portfolio returns and the risk factors (i.e. the market, size and value factors) depends significantly upon the. considered time-horizon. Practical implications - The proposed methodology offers investors the opportunity to construct dynamic portfolio management strategies by taking into account the multiscale nature of risk and return. Moreover, it gives a new insight to fund rating and fund selection issues in relation to - heterogeneous investments periods. Originality/value - The paper uses wavelets as a relatively new and powerful tool for statistical analysis that allows a new understanding of pricing models. The paper will be of interest not only for academics in the field of asset pricing but also for fund managers and financial market investors. [ABSTRACT FROM AUTHOR]

Purpose - Corporate risk management is one of the critical concerns of managers when they make investment allocation decisions among multiple projects. The purpose of this paper is to address corporate investment issues illustrated by target-beating in capital budgeting, and further discuss their applications in financial management, especially in venture capital finance. Design/methodology/approach - Value-at-risk, a typical down-side risk measure which is considered more appropriate for economic agents, is applied to the analysis. Probability theory and optimal control methodologies are used to derive analytical solutions. Findings - By maximizing the probability of beating a pre-determined target, an analytical optimal corporate investment allocation strategy is presented, and the corresponding probability and expected earliest time of success derived. Research limitations/implications - Various types of utility functions of economic agents and other dynamic downside risk measures can be considered in future research along this line. Practical implications - This paper paves the road for applications of continuous-time downside risk in making corporate investment decisions, especially in the field of new venture finance. Originality/value - As one of the early studies investigating optimal investment decisions in continuous-time downside risk-based capital budgeting system, this project sheds light on corporate risk management, and provides risk-averse decision makers with an effective tool. [ABSTRACT FROM AUTHOR]

We analyse the factors involved in the selection of a development site to secure the economic feasibility and profitability of a public development real estate project through a comparative analysis with private development projects. Logistic regression was used as the analysis method. In the case of public development projects, whether or not the investment screening passed was used as a dependent variable, and in the case of private development projects, the successful bid rate was used as a dependent variable. Independent variables were selected based on prior research on variables suitable for the purpose and situation of the project. The results show that the greater the total development costs of a public development project and the greater the size of a private development project, the greater the rate of approval and bidding success. For public projects, the rate of approval decreases when there are several subways, train stations, and supermarkets; however, this is not the case for private projects, owing to differences in development methods and project purposes. From a public standpoint, the balanced regional development, revitalisation of old city centres, and implementation of social overhead capital projects in neighbourhoods lacking infrastructure have a strong influence. From a private sector perspective, the mobile/resident population, modification in extra demand, and feasibility analysis have a strong influence. In sum, if the private sector avoids large-scale supermarket projects, they can be conducted as public development projects to enhance residents' quality of life and revitalise the regional economy. Researchers should examine what could be benchmarked in the private sector in the operational stage and explore ways to maximise profitability and reduce financial burden. [ABSTRACT FROM AUTHOR]

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A survey was conducted to compare hotel capital budgeting practices employed within and outside the hotel sector it was found that the propensity to inflate investment cash inflow projections outweighs the propensity to deflate cash inflow estimates, and the tendency to inflate projected cash inflows is less in the hotel industry. Hotels exhibit a lower level of development with respect to reviewing required rates of return and also applying postcompletion audits. Also, net present value and internal rate of return, which are based on discounting approaches, are used to a relatively low degree in the hotel industry, and more than half the hotels surveyed either exclusively use the payback method (36%) or use no financial investment appraisal method at all (17%). Consistent with prior findings in other industrial sectors, there appears to be a positive relationship between organizational size and use of financial investment appraisal techniques. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to assess how investment, financing and dividend policies may affect firm value. Design/methodology/approach – The paper develops a system dynamics-based model by using "financial management approach," "capital structure approach," "resource-based approach," and "sustainable growth approach" to identify investment, financing and dividend policies that may help maximize the firm value. Findings – Adequate investment in productive assets is the first step to achieve value maximization objective. Low debt capital structure plays a dominant role to maximize the firm value, contrary to the suggestions generally found in corporate finance literature. Rather insignificant role of firm's short-term financing policy is observed. A consistently stable dividend policy is also a prerequisite of firm value maximization. Research limitations/implications – The limitations of this study include: the competitors' actions are not modeled; human resources and other intangible resources are not modeled; instead of market debt, debt is assumed to be bank debt. Future studies may bring in the competitors' actions, intangible assets including human resources, and may also consider to model debt as market debt. Practical implications – The firms operating in favorable product market conditions should keep their operating and financial risks low which will also maximize their firm value. On the other hand, the firms facing unfavorable product market conditions have to make a trade-off to minimize operating risk vs financial risk. Originality/value – Usually the studies test one policy in isolation. However, this may probably be the first study that simultaneously tests various combinations of investment, financing and dividend policies that may help maximize the firm value. [ABSTRACT FROM AUTHOR]

The article presents the research based on economic feasibility evaluation of model KAMIS developed for paving of gravel roads. The model is built for Lithuanian climatic, economic and technological conditions, but it could be adopted in other regions, especially regions with ‘freezing and thawing climates’. After 8 years of model application for appraisal of Lithuanian Gravel Roads Paving Programme it was estimated that consequences after the presented Lithuanian Gravel Roads Conditions Research and KAMIS model application have accumulated 1,09 billion LTL (316 million €) gain for Lithuanian society. Conclusions and findings of the Analysis of Lithuanian Gravel Roads Paving Programme implementation from 1998 to 2005 are presented at the end of the article. [ABSTRACT FROM AUTHOR]

This paper assesses business investment appraisal techniques and expectations formation. The paper begins with a comparative analysis of the links between fixed asset investment theories and real world investment appraisal techniques, focusing on the underlying assumptions about rationality and expectations. In the empirical sections, these ideas are tested via an analysis of business behaviour based upon survey evidence from a sample of Cambridgeshire manufacturing firms. The statistical analysis focuses on hypothesis testing, ordered probit estimations and simulations. The evidence presented reveals that whilst conventional production function analysis does provide some explanatory power in describing the objective determinants of firm investment activity, subjective and behavioural factors are also important. [ABSTRACT FROM AUTHOR]

Illiquidity, volatile returns and lack of information are sources of the high risk that characterise the investments made by venture capitalists (VCs). Despite the importance of such investments in the contemporary business and technological environment, and the associated risk-related difficulties, little Australian research has been conducted into the decision-making processes of VCs. This study investigates both the investment process and some of the strategies used by VCs for reducing selected risks. The specific source of risk examined is information asymmetry, which is caused by lack of information on the part of the VCs, and which can lead to the added risks of adverse selection and moral hazard. Four Australian VC firms were surveyed using a comprehensive open-ended questionnaire. A manual content analysis was employed to analyse the questionnaire responses. Consistent with prior research, the Australian VCs sampled are found to employ Berger and Udell's three steps of investment: selection, contracting and monitoring. Furthermore, the semi-formal selection step of the investment process is found to consist of three distinct stages: deal sourcing, screening and evaluation. A number of techniques are used to minimise the risks of information asymmetry during the screening and evaluation stages, as well as during the later steps of contracting and monitoring. [ABSTRACT FROM AUTHOR]

This paper presents a cost–benefit analysis approach devised to conduct project evaluation in conditions of limited analyst time, research budget and data availability. The emphasis is on discarding economically viable from unviable projects rather than on arriving at a precise estimate of project return. The paper starts by setting out the theoretical background for identifying and measuring project benefits. It then presents a practical approach to measure such benefits in projects involving the expansion of passenger capacity and, subsequently, those aimed at expanding aircraft capacity. Projects in the freight market and the estimation of airport costs are treated in turn. A practical application is included as an appendix. [Copyright &y& Elsevier]

Benefits Analysis has been evolving over the past decade from roots in multi-criteria analysis, causal mapping and multi-methodology. It has now reached a level of maturity such that it deserves to be treated as a method in its own right, and this paper seeks to document the method and provide guidance on its use. Benefits Analysis is a systematic method for formulating complex, multi-factor investment appraisal problems where decision-makers seek to realize non-financial benefits. Such decision problems abound in military OR, particularly the management of equipment capability and research. Benefits Analysis connects qualitative and quantitative OR methods and facilitates robust assessment, including multi-methodology. This paper describes the principles of Benefits Analysis and discusses its application to a variety of real problems, including research management, capability management, balance of investment, business case development and benefit quantification strategies. [ABSTRACT FROM AUTHOR]

Previous work has shown that while most conventional investment appraisal techniques appear ill-suited for use in the water industry of England and Wales, the Balanced Scorecard (BSC) offers considerable potential as an investment decision making tool. This study accounts for much of the criticism of the BSC technique, proposing methodological changes to overcome these difficulties. A more comprehensive treatment of the modified methodology, illustrated by BSC development and application flowcharts, demonstrates how this technique might operate in practice. [ABSTRACT FROM AUTHOR]

Privatization has increased the number of players in the decision-making process for major transport investment decisions. The main argument of this paper is that this fragmentation is creating opportunities for strategic decision-making by each actor and that this is particularly obvious in the context of demand forecasting. This paper explores some of the specific causes and consequences of this new situation, including the perverse incentives, linked to the diversity of the objectives across the actors and to the risk allocation induced by the regulatory regime. It illustrates the issues and possible solutions from a wide range of modal and country experiences. In particular, it discusses the role of the newly independent sector regulators in reconciling these diverse goals and their limitations in view of the major information asymmetries problems they face. [Copyright &y& Elsevier]

Investment appraisal concerned with investments in fire safety systems is discussed. Particular attention is directed at evaluating, in terms of the Bayesian decision theory, the risk reduction that investment in a fire safety system involves. It is shown how the monetary value of the change from a building design without any specific fire protection system to one including such a system can be estimated by use of quantitative risk analysis, the results of which are expressed in terms of a Risk-adjusted net present value. This represents the intrinsic monetary value of investing in the fire safety system. The method suggested is exemplified by a case study performed in an Avesta Sheffield factory. [Copyright &y& Elsevier]

Outlines the case for the harmonisation of European investment valuation standards. Specific attention focuses upon the national valuation standards within Sweden, The Netherlands, Germany and France with a view to assessing the prospects for uniformly accepted European investment valuation standards. Current practice and perceptions from interviews with 110 valuers are analysed. Educational background and professional training are shown to be influential in decisions upon whether to use national standards, TEGOVA standards or the RICS Red Book. The advent of property performance index series is shown to be a major factor influencing the harmonisation of valuation methods and standards. Conclusions reflect upon the variation between the four countries and the limited progress on the adoption of harmonised standards in Europe. [ABSTRACT FROM AUTHOR]

Probably more surveys have been undertaken on the use of capital budgeting techniques than on any other accounting and finance topic. Despite the many surveys a number of issues remain unresolved. The surveys have consisted of a sample of either very large or very small companies and observations relating to the impact of company size have been derived from comparing the responses from different surveys undertaken at different points in time. The aim of this paper is to provide additional empirical evidence relating to some of the unresolved issues and to examine the impact of company size on the use of financial appraisal techniques. In particular, the paper concentrates on the treatment of inflation, the appraisal of advanced manufacturing technologies and examines whether the empirical evidence supports the claim that many companies use excessive discount rates. [ABSTRACT FROM AUTHOR]