Investment decision making

Innovation financial management offers an alternative to these methods by identifying, tracking, and updating key assumptions, and linking the verification of these assumptions to the investment decision-making process. 

How the decision making related to the project can reflect the strategic plans of the company and, most importantly, vice versa, that is, how to take into account the strategic plan of the company at the level of project or investment decision making ... 

Andrew, J. H. Stefan, H. Elisabeth, B. 2008. A multi-objective model for investment decision making. Computer Oper. Research, 35(1), 253-266. 

From these results, the other variable values for the investment decision-making were able to be estimated six rams as initial number and 40,863 m of land area required. 

Based on the results obtained, applying a GA the investment decision-making could increase the profitability of a sheep farming project. 

Investment Decision Making Expectations for each party s share of investments and returns... 

Incorporating Public Perceptions of Risk into Safety Investment Decision Making... 

In earlier years, engineers concentrated on the technical side of projects and left the financial smdies to the economist. In effect, engineers involved in making estimates of the capital and operating costs had often left the overall economic analysis and investment decision-making to others. This approach is no longer acceptable. 

Jianer H., (1987) Application of Grey Statistics to Investment Decision Making of Forestry , Journal of Economic Problems of Forestry, Vol. 2, pp. 44-51... 

Ojala, M Hallikas, J. (2006) Investment decision-making in supplier networks Management of risks. In Journal of Production Economics, 104(1), 201-213. 

There has been extensive recent rethinking of the role of fees and fines as means of influencing industrial decision making with regard to investment in pollution control equipment and pollution-free processes. In their new roles, fees and fines take the form of tax write-offs and credits for polluhon control investment taxes on the sulfur and lead content of fuels continuing fines based on the pollution emission rate and effluent fees on the same basis. Tax write-offs and credits tend to be resisted by treasury officials because they diminish tax income. Air pollution control agencies tend to look with favor on such write-offs and credits because they result in air pollution control with minimal effort on the part of their staffs and with minimal effect on their budget. 

Life cycle cost (LCC) calculations are made to make sure that both the purchase price and the operating costs for life cycle are considered in investment decisions. In the chapter the basic calculation methods and sensitivity analysis are introduced. Examples of calculation results and references to LCC information sources are given. 

Even when the time comes to make a purchasing decision, an energy-efficient motor purchase is not a certainty. Sometimes an energy-efficient motor will be the economically efficient choice at other times, not. The capital investment decision is based on the cost in relation to performance, efficiency and reliability. Moreover, the decision depends on the application and the amount of time the motor is in operation. It can be the major component of a product (drill or mixer), or a minor component (computer disk drive) it can be the major component cost of a product (fan), or it can be a minor component cost (stereo tape deck) it can run almost constantly (fan, pump, and machinery), or only a few minutes a day (vacuums and power tools). For example, contractors purchase circular saws almost solely based on performance and reliability. Time is money, and since the saw is operating only a few minutes a day and the contractor is often not responsible for the electricity costs to run the motor, energy efficiency is not a consideration performance and reliability are what matter most. On the other hand, an industrial user, who runs huge electric motors twenty-four hours a day to work pumps, machinery, and ventilation equipment, is very concerned tvitli energy efficiency as well as performance and reliability. 

The organizational format, however, is only one of the factors that determine the level of independence of an organization. An executive department can also be highly independent in terms of decision-making if it is invested by law with fiall authority. The TGA of Australia is an example of such an executive department. 

Making major investment decisions in the face of the uncertainties that will undoubtedly exist about plant performance, costs, the market, government policy, and the world economic situation, is a difficult and complex task (if not an impossible task) and in a large design organisation the evaluation would be done by a specialist group. 

Having developed estimates of benefits as well as costs, these values must be compared. Since costs and benefits are not necessarily experienced in the same time frames, the same financial analysis methods used by the firm to make its other capital investment decisions must be used to justify the LIMS acquisition. The LIMS which is desirable from the technical and operational viewpoint can then be shown to be a truly beneficial capital investment and not just another corporate overhead expense. 

For such major system acquisitions, a more thorough analysis of the system s economics will probably be required. In such a case it is best if those responsible for exploring and/or securing the benefits of LIMS technology, understand the financial decision making process that goes on in the firm and can assess for themselves the value of anticipated benefits and the investment which such benefits would justify. Not only will this insure a judicious system acquisition, but it will develop, in advance, the specific data that the financial decision makers require and which proves the value of the system not just to the labs, but to corporate organization as a whole. 

Surveys and interviews show that the attention paid to energy-efficiency investments in companies, public administrations and private households is often very low and heavily influenced by the priorities of those responsible for decision making (Ramesohl, 2000 Schmid, 2004 Stern, 1992). In other cases, project-based economic evaluations do not consider the relatively high transaction costs of the investor and also the substantial risks involved in the case of long-term investments both aspects may be decisive for small efficiency investments (Ostertag, 2003). 

These three cases make clear that when central production is considered, gaseous and liquid distribution are both plausible, and that the actual investment decision for one or the other may be decided by local market conditions, such as the (anticipated) retail density, and practical considerations such as the spatial and safety requirements for gaseous and liquid storage. All three cases come out significantly cheaper than on-site reforming or electrolysis. 

Indeed, the need for capital investment in a CMO may not have been originally anticipated or planned for and may impact on the whole decision making process. Additional costs and time need to be set aside for training and equipment validation, e.g. PQ/IQ/OQ (process qualification/ installation qualification/ operational qualification), and if this includes equipment with radically different operating principles than currently available on site then additional costs will be required for equipment-specific operating personnel and training. 

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