Index

Accounting rate of return (ARR), 45–47

as accounting measure, 47

Adjusted payback period (PBP Adj.), 55

AirAsia, 84

Appraisal techniques, 33

comparison of various, 62–67

Aster DM Healthcare, 38–39

Benefit–Cost Ratio (BCR), 50–53

BOOT Model, 23

Boston Globe, 9

Break-even level calculation, 32

Bright Motor Company (BMC), 39–40

Cairn India, 8

Capital cost, 4

Capital rationing, 67–70

Cash flows estimation, 33, 34–36, 43

Certainty equivalent coefficient, 77

Commercial appraisal, 8, 17

Compounding, 49

Contingent projects, 7

Cost of capital, 46

Cost of production, ascertain, 30

Deficit. See Surplus

Demand forecast, 27

Depreciation, 34

Discounted cash flows methods, 48–50

Discounting, 49

Economic and tax factors analysis, 16

Economic appraisal, 17

Economic rate of return (ERR), 44

EMC, 24

Environment scanning, 15

Expected values approach, 75

Feasibility Report, 16

Fernandes, Tony, 84

Finances, guiding factors for finalizing, 32

Financial analysis, assignment for, 88

Gantt Charts, 19

Geothermal power plant at Tattapani, 8

Gulf Cooperation Council (GCC) countries, 38

Hathway Cable and Datacom Ltd, 9

Hennes and Mauritz AB (H&M), 20–21

Hewlett Packard, 24

HIsmelt technology plant, 40–41

Human resources, as soul of project, 27

Human Resources Development (HRD) Ministry, 23

Independent projects, 7, 67–70

Indira Gandhi International (IGI) Airport, 8

Inflation, 78

InterContinental Hotels Group (IHG), 9

Internal rate of return (IRR), 53–54

interpolation formula, 54–55

situation of multiple, 65–67

Jindal Steel and Power Ltd (JSPL), 40–41

Kochi Port, terminal development, 22

Macquarie Infrastructure and Real Assets (MIRA), 37

Mahindra stake in Ssangyong unit, 36–37

Modified internal rate of return (MIRR), 56

Multiple IRR, 65

Municipal Corporation of a Western State, 59–60

Mutually exclusive projects, 70–75

National Rural Employment Guarantee Act (NREGA), 5

National Rural Employment Program (NREP), 5

Net present value (NPV), 50–53

versus IRR, 62–65

ONGC versus Rajasthan State Government, 10

Paltana Power Project in Tripura, 10–11

Payback period (PBP), 47–48

Plaza Cables Ltd (PCL), 39

Price-level changes, 78–79

Private agency, roles of, 33

Profit (or loss), 31

Profit after tax (PAT), 34

Profitability Index (PI), 50–53

Project appraisal

accounting rate of return (ARR), 45–47

as accounting measure, 47

adjusted payback period (PBP Adj.), 55

case studies, 59–60

discounted cash flows methods, 48–50

illustrations, 56–58

internal rate of return (IRR), 53–54

interpolation formula, 54–55

modified internal rate of return (MIRR), 56

net present value (NPV), 50–53

payback period (PBP), 47–48

ranking by inspection, 45

social cost–benefit analysis for, 79–81

two-step exercise, 43–44

Project Categorization, 6–7

Project cost, principles for, 28–30

Project formulation, 25–26

case studies, 37–41

cash flows estimation, 34–36

commercial aspects, 27–31

economic aspects, 33

financial aspects, 31–33

instances for discussion, 36–37

managerial aspects, 27

technical aspects, 26

Project life cycle, 14

case studies, 21–24

instances for discussion, 20–21

overview, 13–15

project appraisal, 16–17

project evaluation, 20

project formulation, 16

project identification, 15–16

project implementation, 18–20

project selection, 18

Project management, 3–4

categorization, 6–8

examples, 11–12

examples, 1–2

instances for discussion, 8–11

meaning, 2–3

overview, 1

significance, 5

Project Management Body of Knowledge (PMBOK), 3–4

Project Management Institute’s (PMI), 3

Project manager, responsibilities of, 4

Project Plan (PP) documents, 18–19

Project planning, 78–79

Project rationale, 27

Project revenues, estimate, 31

Projects

definition of, 2

with equal lives, 71–72

investment and risk, 73–75

with unequal lives, 72–73, 82

Ranking by inspection, 45

Reliance Sibur Elastomers, 9

Reinvestment Rate, 68

Risk-adjusted discount rate, 75–77

Sanad Hospital, 38

Saudi Arabia General Investment Authority (SAGIA), 38

Sensitivity analysis, 77

Slow–rapid–slow progress, pattern of, 13–14

Social cost–benefit analysis

assignment for, 88

case exercise, 83–84

for project appraisal, 79–81

Solar power backup, India Post planned to provide, 21

State Electricity Board, 87

Supply, 27

Surplus, 31

Swings and roundabout principle, 75

Tata Chemicals Ltd, 37–38

Tata Group, 12, 84

Tata Sampann, 37

Telestra Tradeplace Pvt Ltd, 85