Project Evaluation Methods Research Articles

Capital Budgeting Methods and Practices: Evidence from Privately Owned Firms in Pakistan

The aim of this research paper is to study the degree of using capital budgeting methods on choosing the appropriate project for investment by privately owned firms in Pakistan. We surveyed 58 chief executive officers (CEOs) of privately owned firms. Our survey contained fifteen questions to explore capital budgeting and cost of capital. The study covers the period from September, 2018 to May, 2019. Firms rely heavily on IRR as a project evaluation method. According to cost of capital methods, average historical rate of return on common stock is mostly used by the firms. The regression test showed significant relationship between firm characteristics with respective to the use of capital budgeting techniques and cost of capital methods.

Comparative Study on Economic Benefit Evaluation Methods for Power Transmission and Transformation Construction Projects Under DB Mode

By introducing and comparing the commonly used economic benefit evaluation methods for power transmission and transformation construction projects under the Design and Build(DB) mode, the paper investigates which method should be used for different purposes of economic benefit evaluation. On this basis, the advantages and disadvantages of these methods and their application conditions have been discussed in depth so as to provide useful references for the economic evaluation work.

Research on Quality Evaluation Methods of Land Development and Consolidation Projects

Research on Quality Evaluation Methods of Land Development and Consolidation Projects

Project Management: An Objective Assessment of Activity Duration

We propose and test an improved method for project evaluation and review. This method would reduce the subjectivity and uncertainty regarding the anticipated start time of the proposed activity. This is accomplished by running the threetime estimate through a normality test. The accuracy and objectivity of activity time estimation would both be enhanced by this technique. Nevertheless, the results of the proposed PERT approach for activity and project durations, variances, and project duration probability were similar to those of classic PERT when multiple project networks were studied. Eliminating uncertainty in activity time estimations from project evaluation review techniques is the aim of this paper. All three of the time estimates are shown to be regularly distributed by the data. This work’s novel approach is the first to resolve un- certainty in activity time estimation.

Research on the optimal model for the evaluation of new power system investment projects based on the cloud model–DS evidence theory–TOPSIS method

AbstractConsidering that the traditional investment project evaluation system can no longer fully adapt to the characteristics of the new power system under the investment environment of the new power system, this study constructed a new power system investment project evaluation and optimization method based on the combination of the cloud model, evidence theory and the TOPSIS method. First, 16 evaluation indexes were considered based on four dimensions, namely green and low‐carbon, safe and reliable, flexible and intelligent, and economical and efficient, and the optimal evaluation index system of new power system investment projects was designed. Second, the normal cloud model was used to obtain the evaluation membership distribution of each index and turn it into evidence. Considering the conflicts between indicators and the combinational contradictions of traditional evidence theories, an improved DS evidence theory based on a game weight coefficient discount to reduce conflicting evidence was used to fuse the membership information of multiple indicators. On the basis of the evaluation results of each scheme, this study used the TOPSIS method to sort the advantages and disadvantages of each scheme. Finally, the project of planning and putting this model into operation in the 14th Five‐Year project database of a power grid enterprise was selected as an example to carry out empirical analysis, and the effectiveness and superiority of the proposed model were verified.

Research on the Methods of Investment Project Evaluation: Comparison of NPV, IRR and MIRR

Which one of Net Present Value and Internal Rate of Return is better to use in different fields is the focus of current research. This paper analyzes the limitations and uniqueness of the use of NPV and IRR based on current research. The research topic of this paper is the relationship and difference between NPV and IRR. The research method of this paper is as follows: firstly, through the description of NPV and IRR respectively, then collect the data and examples used by NPV and IRR, secondly analyze the data and examples, and finally, this study found that in different situations, the use of IRR and NPV also has different advantages and disadvantages, and there is still a gap in the comparative analysis of the use of NPV and IRR in different situations. Therefore, this paper will supplement the gaps in the comparison of NPV, IRR and MIRR with an analysis.

A Comprehensive Asset Evaluation Method for Oil and Gas Projects

The rapid and accurate evaluation of oil and gas assets, specifically for new development projects, poses a significant challenge due to the various project types, limited data availability, brief periods for assessment and decision making, and constraints arising from varying contractual and taxation conditions, political stability, and societal factors. This study leverages the grading standards of the evaluation index system for new oil and gas field development projects, along with relevant mathematical theories and methods for project evaluation and optimization. We developed an asset evaluation approach for new oil and gas projects by analyzing the assets of six new oil and gas field development projects in Brazil. This analysis resulted in the grading and ranking of new projects, and we tested and demonstrated four asset optimization techniques. After a comparative analysis with conventional evaluation results, we established an oil and gas project asset optimization approach centered on the cloud model comprehensive evaluation and linear weighted ranking, exhibiting Kendall’s tau coefficient of 0.8667 with conventional methods. The findings suggest that the combination of the cloud model comprehensive evaluation method with the linear weighted ranking method can facilitate asset optimization for oil and gas field development projects, meeting the practical needs for fast selection among various new projects. Furthermore, this research offers a technical and theoretical foundation for rapid evaluation and decision making regarding new assets.

The CGIAR needs a revolution

The CGIAR is a unique scientific organization that seeks to improve food security for low-income people. It should be leading efforts to generate sustainable productivity gains in agriculture, especially in sub-Saharan Africa where productivity lags. However, its current ill-adapted priorities and structure, its obsession with re-organizations, and its unproductive ventures into local development projects have reduced its impact and rendered it unable to respond to the challenge of food security under climate change. The system's efforts have become too diffuse and ineffective while attempts to revive impact through repeated re-organizations have failed. The CGIAR has unique strengths: access to plant germplasm, know-how to improve germplasm and agronomic practices, global networks of experimental sites and research collaborators, and excellent staff. The CGIAR's scientists are highly motivated, but leaders and funders of the system have failed to support them with a simple, focused, and better funded operational environment needed to succeed in their research – and have greater impact from it. This can be corrected. We propose a scientific and problem-driven focus on fewer global and regional research priorities, supported by adequate long-term funding, rigorous methods of project evaluation, and management that stimulates innovation and seeks verifiable results. These supports do not exist today and we do not see that the current One CGIAR system will provide them in the foreseeable future.

A Study on the Smart City Project Evaluation Method based on Demand for Proptech Technology using Fuzzy Measurement

This study established an evaluation system for preliminary evaluation of projects combined with smart city based on demand for proptech technology, and suggested a customized evaluation method that can be used for future regional projects. As the main result, first, the evaluation system was established by dividing it into three areas for the establishment of the evaluation system: proptech technology field, smart city living lab field, and smart city business plan field. In addition, the analysis results for this were presented as 0.609 for the internal evaluation field in the proptech technology field, 0.420 for the evaluation field of participation factors in the smart city living lab field, and 0.410 for sustainability in the smart city business planning field. Finally, a customized evaluation system was proposed with an emphasis on methodological application and provision of alternatives, and its utilization method was verified.

The Linkage between Renewable Energy and Project Management: What Do We Already Know, and What Are the Future Directions of Research?

Although the development and the implementation of Renewable Energy (RE) solutions are crucial for the transformation of countries towards sustainability, Project Management (PM) may help companies to introduce these solutions, although no study analyzes and synthetizes previous research on the interplay between PM and RE. The article aims to fill this gap by presenting an analysis of publications that address the analyzed issue and are indexed in the Scopus database. The article utilizes bibliometric analysis, network analyses, and in-depth qualitative studies published before 2023. The first method examines research productivity in the context of authors, institutions, and designations. The second method examines the authors’ and keywords’ networks. The third is more comprehensive and focuses on contributions to both project management and the technological domain provided by articles, which constitute H (Hirsch)-Core in this research field. Based on the bibliometric analysis, it can be concluded that the scientific structure of the “project management–renewable energy” (PM-RE) field consists of 335 documents, which were published, in total, by 672 authors and in 135 journals. There are four keyword clusters, with blurred boundaries between them. In the PM area, organizational issues, focusing on project effectiveness, cooperation with stakeholders, and project evaluation methods were discussed. In the RE area, the main focus was on wind energy, technological issues, and the implementation of technologies in the end-to-end communication architecture for smart grids, photovoltaic systems, biomass projects, or the exploitation of geothermal resources. The article directly indicates the areas that should be addressed in future research. This study is the first literature review that explores the PM–RE research field. It provides knowledge that can be the subject of improving technologies and project management issues in the energy industry.

Reassessing the cost of hydropower for multi-function hydropower bases: A case study from Sichuan

Hydropower is an essential resource for the future clean energy transition, in which an accurate assessment of the hydropower cost is vital for promoting its share in the energy market. The purpose of this paper is to comprehensively reassess the cost of hydropower from a new perspective, in which the total static investment cost of a hydropower base is allocated among multiple functions. An allocation coefficient is proposed based on indicators of economic value and physical volume of multi-function hydropower bases. The economic value of each function is evaluated using approaches including the shadow project, market valuation, and emergy evaluation methods. Meanwhile, the physical volume is obtained through a multi-objective optimization of cascade reservoir operation considering an ecological constraint. Four main functions consisting of hydropower generation, flood control, agricultural irrigation, and residential water supply of hydropower bases in Sichuan are investigated. The results show that the allocation coefficients under both economic and physical indicators vary significantly among hydropower bases, and change slightly over the years. The average comprehensive allocation coefficient of hydropower is 57.26% (range from 29.83% to 77.41%), and the hydropower cost can be reduced by 59% from the current level. The reassessed hydropower cost can lay a solid foundation for market pricing. Attention should be paid to the multi-functionality characteristics of hydropower bases to achieve fair sharing of cost and benefit.

A Study of carbon efficiency in the Yangtze River Economic Belt using the synthetic control method

In order to analyze the impact of policy effect on carbon efficiency in the Yangtze River Economic Belt, an experimental group, including 11 regions possessing the features of the Yangtze River Economic Belt, was constructed using the synthetic control method for project evaluation with the single-factor carbon efficiency value as the core study variable in this paper. Several regions were selected from the control group as synthetic objects through a data-driven approach to construct synthetic regions that meet basic requirements before the implementation of the policy by weight ratio and evaluate the policy’s impact on the implementation of carbon efficiency in the Yangtze River Economic Belt. The study shows that the single-factor carbon efficiency is relatively robust. But since 2013, the tail of the Yangtze River Economic Belt has seen an improvement. Sichuan, Hunan, Chongqing and Hubei have exceeded other provinces and cities in the growth of carbon efficiency and Shanghai has also witnessed a significant increase. Upon the inception of the synthetic Yangtze River Economic Belt, there’s a discernible divergence between the curves of the real and the synthetic Yangtze River Economic Belt. Specifically, policy interventions in the Yangtze River Economic Belt didn’t work well in earlier years and even restrained the economic growth of the whole region.

A Study on Improvement Plans for a Local Financial Investment Project Evaluation System

This study aimed to summarize previous research on local financial investment reviews and the project evaluation method for rational investment decisions related appraising local financial investment projects. Measures were developed to quantify qualitative reviews, and new indicators were created. Lastly, academic and practical implications were considered, and a new evaluation system and sub-system for divisional investment projects were proposed based on these considerations. The results include a score table for each grade, with perfect scores set at 10 points for each element. A proposal for a new division was also made based on the classification of basic, intermediate, and optional investment projects. Taking the current division system into account, the proposal suggested the basic investment division, the intermediate investment first division, the intermediate investment second division, and the optional investment division. With this study, it is expected that investment screening can be conducted from a more objective and consistent standpoint, because it provides basic data for solving problems related to subjective screening standards, which have been seen as problematic.

Project Successful Deployment

In this paper, we present a method for evaluating the success of digitalization projects, namely the Project Successful Deployment (PSD). With the term digitalization, we mean the use of digital technologies and digitized information to create value in new ways and to benefit from them. The existing methods for project evaluation emphasize the capability of a project to deliver its results by respecting times and costs. The method we propose, instead, suggests evaluating projects by means of its external dimensions, namely the functionalities and quality of the deliverables. These external project dimensions are reflected on the project scope, and thus evaluate the requirements of the deliverables, and the degree to which the deliverable meet their quality objectives The method is composed of a set of matrixes, and it uses a structured procedure to define and refine its items and their weights, by means of a panel of experts. It has been applied to a practical case study, a digitalization project of a network of research and teaching laboratories. The method allowed a structured project evaluation, and the practical case study showed strengths and weaknesses of the PSD model, which proved to be robust and effective, in providing a timely evaluation of the project.

Features of the assessment of socio-economic effects arising from the construction of lines of freight maglev transport

Background: Transport is a sector of the economy that is subject to general economic laws, including with regard to issues related to investing in real assets, developing means of production, and ensuring expanded reproduction. Along with this, transport is a strategic sector at the state level, ensuring the functioning of the economy as a whole. In this regard, there are certain contradictions associated with the assessment of the effectiveness of investments in transport infrastructure. In most cases, investments in transport infrastructure are valued similarly to investments in a business project. After the issuance of Decree of the Government of the Russian Federation No. 1512 dated November 26, 2019, the approach to evaluating the effectiveness of investments with state participation has expanded, but it does not fully cover the issues of project effectiveness for the state. Along with this, the classical methods for evaluating the effectiveness of investment projects are subject to great subjectivity in relation to the calculation of social effects, as a result of which their applicability to projects at the national economic level is ineffective.
 Aim: to consider the list of effects arising from the construction of transport infrastructure and determine the methodology for calculating the effects for the state.
 Materials and methods: the research methodology is based on the analysis of methods for financial and economic evaluation of investment projects, as well as macroeconomic methods. The information base of the study is based on the official legal and methodological information of the authorities of the Russian Federation.
 Results: as a result of the study, a list of effects for the state arising from the implementation of transport infrastructure development projects was determined, and the procedure for their calculation was substantiated.
 Conclusion: the study confirms that the currently used methods for evaluating the effectiveness of investments in infrastructure projects for the state do not fully and objectively reflect economic realities. The proposed approach to the assessment will make it possible to carry out a comprehensive assessment of the socio-economic effects from the construction of cargo maglev transport lines and improve the quality of management decisions in the transport sector.

Экономическая оценка проектов разработки месторождений углеводородного сырья в условиях северных районов добычи с применением бинарного и реверсированного дисконтирования.

The conversion from the development of large deposits to unconventional, small and Arctic deposits of hydrocarbon raw materials in the Russian requires oil and gas companies improving the quality of the economic justification of projects, including cost-effectively recoverable reserves. For this reason, the development of the discounted cash flow (DCF) method for economic evaluation of oil and gas projects is required. The purpose of the study was to develop a methodological approach to the economic evaluation of oil and gas projects. The disadvantages of the DCF model in the economic evaluation of oil and gas field development projects are analyzed, a comparative analysis of project evaluation methods through the use of binary and reverting discounting models is performed. The authors justified the choice of a risk-free discount rate for project outflows and dynamically changing values of discount rates for project cash inflows for the evaluation of oil and gas projects, taking into account their identified features. The application of the developed methodological approach, both at the pre-project phase and during the operation of the field, will allow oil and gas companies to justify the magnitude of commercially exploitable reserves and indicators of the economic efficiency of the project due to more correct risk accounting. The developed methodological approach has been approved on the example of the Novoportovskoye field development project.

Decision-Making Evaluation of the Pilot Project of Comprehensive Land Consolidation from the Perspective of Farmers and Social Investors: A Case Study of the Project Applied in Xianning City, Hubei Province, in 2020

Comprehensive land consolidation is an important means to implement the rural revitalization strategy. The decision-making of comprehensive land consolidation projects is the basis of scientifically selecting land consolidation projects, ensuring the quality of project, and making the project advance in an orderly manner. Compared with the traditional land consolidation project, the overall land consolidation project has a large demand for funds, and the participation of social capital has become an important way to solve the project funding problem. From the perspective of farmers and social investors, this research constructs a comprehensive land consolidation project decision-making evaluation index system and evaluation method from five aspects, including agricultural land consolidation, construction land consolidation, rural ecological protection and restoration, rural historical and cultural protection, and rural industrial development goals. The results show that there is a big difference in the evaluation results from the perspective of farmers and social investors. Considering the urgency of farmers’ needs and the investment willingness of social investors in comprehensive land consolidation, the evaluation results are basically consistent with the actual project approval. The index system and evaluation method established in this study are helpful to scientifically select pilot projects of comprehensive land consolidation and invest limited government financial funds into the consolidation contents that are both urgently needed by farmers and willing to be invested by social investors.

Geo-economic Feasibility of Apple Orchards Across Physiographic Divisions in Kashmir Valley, India

Financial investments in apple cultivation in Kashmir valley are increasingly recognized as key drivers of economic growth and employment creation. This paper presents a comprehensive economic analysis across physiographic divisions using precise economic indices that include cost-benefit analysis, project evaluation method and other socio-economic determinants. It relies on a primary survey of 866 farm-households selected across four physiographic divisions of the Kashmir valley viz- valley floor, karewas, foothills and side valleys. Results reveal that the karewas fetch the highest returns from an investment owing to its ideal geographical conditions. On contrary, the non-karewas belt was found to be trailing in one or more economic indices although the financial feasibility of investment in apple cultivation was still found satisfactory. The study affirms that agricultural land-use decisions at the micro-scale should be determined by the site-specific attributes and that economic indices are largely dictated by physical characteristics of land itself. While demonstrating the utility of land-use decisions in light of geographical factors, our results can assist both farmers and policy-makers to design a more adapted land use strategy for fostering financial investments in apple cultivation in the valley.

Simulation Model for Biogas Project Efficiency Maximization

A simulation method (SM), linear programming method (LPM), project evaluation methods (PEMs), and whole farm modeling (WFM) were applied to analyze the investment appeal of a biogas project on a Russian farm. The biogas project was evaluated for constant input parameters. The project efficiency evaluation procedure was elaborated to evaluate and maximize biogas investment project efficiency. The procedure to evaluate the project efficiency includes defining the optimal state of the farm for the situations “with project” and “without project.” The main elements for optimization are the equipment for anaerobic digestion, substrate blend structure, fertilizing plan, cost plan, and farm production structure. The optimization was fulfilled by simulation modeling (SM) and LPM. The situations “with project” and “without project” were compared by using PEMs, the main indicators of project efficiency: net present value (NPV), internal rate of return (IRR), payback period (PBP), and profitability index (PI). The optimal substrate blend structure was defined by the direct search method (DSM) to select the probe providing the highest NPV afterward. The procedure to maximize biogas project efficiency was applied to justify the benefits of biogas production on the farm under corresponding conditions and to work out the recommendations for businesses and municipalities.

"Economic Feasibility of Capsicum Cultivation Under Greenhouse Condition – A Case Study"

"Greenhouse cultivation is one of the most promising emerging technologies in vegetable or flower crops, ensuring high quality and quantity. It also ensures year-round production of vegetables with high value in the market, particularly during the off-season. However, cost is the major concern in this technology. The present study focuses on the economic viability of capsicum cultivation under a naturally ventilated medium-cost greenhouse equipped with drip facility. The study was undertaken in the semi-arid region, a village called Saidapur of Sangareddy district near Hyderabad. The primary data were collected directly from the farmer through personal interview. The detailed data required for further evaluation were generated by the cost-accounting method. The feasibility of production under greenhouse was examined with the help of project evaluation methods such as Pay Back Period (PBP), Net Present Worth (NPW), Benefit-Cost Ratio (BCR), and Internal Rate of Returns (IRR). The actual worth of economic inputs with subsidy component (75%) provided by the Government was considered for detailed evaluation purposes. The capsicum cultivation under the greenhouse by availing above said subsidy was found highly feasible as indicated from shorter pay-back period, larger net-present worth, benefit-cost ratio of more than unity and IRR more than usual rate of interest of bank loans. However, the results also indicated that capsicum cultivation under a greenhouse without subsidy is not feasible economically."