1.INTRODUCTION This document sets out the guidelin Research Paper Essay

1.INTRODUCTION This document sets out the guidelin Research Paper Essay

Question: Apply at least two appraisal methods to the analysis of a real-life project. Background In this module, you have learned three appraisal tools, including the NPV approach, the Monte Carlo Simulation, and real options analysis. In this term project, you are required to apply at least two of them to the analysis of a real-life project. Requirements Choose and apply at least two of the three appraisal tools in your analysis. If you decide to apply all of them, you might get up to 10% bonus marks if the analysis is soundly conducted. Review the literature associated with the application of two or three appraisal tools employed in your analysis (preferably, 3-5 academic journal papers for each approach). Justify the choice for your project. (i.e., whether you have chosen the right appraisal techniques for the project of your interest.). The project can be ongoing or finished. It can be in any country. It can be of any type. However, an energy project would be more interesting to investigate. Clearly explain the assumptions you make in the estimation of project cash flows. For example, if you estimate revenue on the basis of a constant growth rate, you have to explain why the rate is not expected to change over time. It can be justified through an analysis of market competition conditions by using, say, Michael Porter s five forces model or SWOP. Clearly explain how you choose the project discount rate in the analysis of project NPV and IRR. Clearly explain the other assumptions you make in the application of ROA or/and the simulation approach. Compare the results obtained from different approaches. If there is any disparity between them, explain the reason and assess which result is more reliable. (Bonus mark) I will be impressed if you can conduct interviews to elicit experts view on the assumptions you make in the analysis and on the plausibility of your appraisal results. You are also encouraged to compare your results with those from your peers. But remember you still need to demonstrate why it is beneficial to make comparisons with others results. In other words, you need to explain why there are extra insights to be gained. Useful information sources/references ?? Your literature review is expected to cover important papers published by the leading journals in the field of project/construction management: ASCE Journal of Construction Engineering and Management International Journal of Project Management Construction Management and Economics ASCE Journal of Management in Engineering Building Research and Information


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