Financial Tools For Effective Investment Decision-Making

Literature Review

`With the increasing ramified economic changes and complexity of finance, each and every organization are using project economic and using systematic and rational approach for analysing the different alternatives available for a project. This approach will help investors to evaluate particular project and select the one project out of the given level of projects by using various financial tools such as capital budgeting, IRR and NPV. In this paper, various parts have been described on the use of financial tools and how investors could use this information’s to make effective investment decisions. In the starting of this paper literature review has been given. Afterward, research methodologies and key factors of financial tools such as NPV, cash flow statement analysis and IRR have been described in research methodologies part, in the end conditions of loans and bifurcations of the same have been described in determined approach.

As per the perception of  Arbabi, et al. 2017 it is evaluated that capital budgeting is the financial tools which are deployed by investors to evaluate which investment options would give better return for their investment. There are several tools to gauge the investment return such as use of NPV, IRR, project economic analysis, cash flow statement analysis and weighted average cost of capital, allocation of resources.

It is the analysis which helps investors to assess the sustainability of the project and also assist in enhancing the sustainability and effectiveness of the project selected. This project economic analysis is accompanied with the following steps which are given as below.

Step-1

Collection of Relevant Information

In this step, all the required information such as interest rate, project investment initial amount, annual cost and installment and net present value of investment are collected. It is considered that if investors could collect this information then it would increase the overall effectiveness

Step-2

Recognition and Define Feasible Alternatives

There are several feasible alternatives which should be accepted by organization to make effective use of resource. It is considered that investors should undertake the best possible options which could give high amount of return to investors.

 Step-3

Cash Flow and Other Estimates

This step will provide the clear about the amount of cash which investor would get from the invested amount. It is observed that investors would select the investment project which gives the highest net present value to investors.

Step-4

Measure of Worth Criteria

It is evaluated that company should evaluate all the associated factors and associated business options which investors should evaluate to measure the business activities.

Step-5

Engineering Economic Analysis

In this step time value of the invested amount is computed buying proper present value factors. This present value factors are based on various economic factors such as budget, purchasing power of investors and potential earning capacity. This analysis reflects that if money is collected earlier than the expected time then it will have higher return as compared to future value.

Step-6

Best Alternative Selection

This step reflects the various use of financial tools such as Net present value, economic analysis, Internal rate of return, Attractive Rate of Return (MARR), Benefit/Cost Ratio (B/C), Future Worth average rate of return, profitability return and other options. With the help of these available options, investors could evaluate the best possible options which could be undertaken by the investors while selecting the best investment option from the alternatives.

Project Economic Analysis

Step-7

Implementation and Monitoring

This step is accompanied with the use of these resources which could be undertaken by the investors to evaluate the investment decisions. This step is related to using best possible course of actions to identify the possible negative outcomes in the selected investment options (Arbabi, et al. 2017).

Capital Finance and Allocation

It is the part of the capital budgeting process in which all the funds will be invested in the different parts with a view to create value in the investment. Capital financing is related to raising funds from the different sources and at the same time considering the cost of capital associated with the same. Capital could be raised from internal and external sources. However, internal source of funds are ideally cheaper than the external sources of funds. Allocation of capital in different parts of investment options is accompanied by planning, evaluating and implementing financial policies for the betterment of organization.

There are several sources of funds which could be used by company or investors to raise finance from the market. However, company mostly uses debt capital and equity capital funding.

Debt Capital

As stated by Jenkinson et al. 2016, it is the amount of capital which includes borrowed funds or long term and short term debts. Company could raise debt capital by taking loans and advances from banks and financial institutions.  Nonetheless, if company fails to pay interest amount or debt amount on the due date then these banks and financial institution may take company in the liquidation and winding up process. Debt capital has high risk but it is available to the investors at really low cost. The amount of interest is charge on the company which is deducted from the profit and loss account and reduces the tax payment of company.

Equity Capital

As per the views of Rossi, 2014 it is reflected that it is accompanied with reserve, surplus, net profit and share capital issued by company in market. However, retained earnings and profit earned by company is internal source of finance which is used by investors and company to raise funds at very cheap rate. In this case, company plug back its capital in organization. However, company could raise funds by issuing equity capital but it is associated with the several demerits such as high cost of capital, dilution in ownership and losing control over the company’s decisions.

Company uses various options of raising funds from the market. However, weighted average cost of capital helps organizations to evaluate the best project source of options which company could use while selecting the best possible source of finance. With the help of weighted average cost of capital, company could give weighted to each and every part of finance capital and associated cost. Eventually, company could use this weighted average cost of capital to determine the overall cost of capital of company (Jenkinson et al. 2016).

Lease could be defined as right obtained by persons to use assets and capital for some specified period of time. This decision is based on the advantage and disadvantage of leasing options.

Capital and Budgeting Process

However, lease decision is mainly based upon cost associated and time involved in particular leased assets. It would be better if taken lease provides less cost as compared to buying assets in organization (Mohagheghi et al. 2016).

This process is related to evaluation of capital expenditure decision making process. It is accompanied with the planning, analyzing and management of capital projects. Allocation of capital resources should be based on the return dragged from the investment process. It is considered that allocation of capital should be based on the limner program, use of Capital assets pricing model and using other various models (Huang & Zhao, 2014).

There are several methodologies which could be used by researchers to implement economic analysis of the Smart house construction projects.  However, there are several steps which should be followed for developing effective methodologies (Mohagheghi,  Mousavi, & Vahdani, 2015).

Step-1

Collection of Information and Data

In this process, all the relevant information such as cost associated with the finance, Net present value, profitability index and raise finance and deployment of same would be taken into consideration (Rossi, 2014).

Step-2

Recognize and Define Feasible Alternatives

Investors should evaluate and undertake the best possible options which could give high amount of return to investors.

Step-3

Cash Flow Analysis

In this process of evaluating Smart house construction projects, company needs to identify the total value of cash inflow and outflow from the business. It is evaluated that if Smart house construction projects has higher present value of cash inflow as compared to total value of cash outflow then this project should be accepted, provided that company has implement present value factors analysis (R?biasz, Gawe? & Skalna, 2017).

Step-4

Financial Analysis

This analysis is accompanied by use of various financial tools such as NPV, IRR, payback period, cost ratio analysis and future worth.

Sensitivity Analysis

It is evaluated that after implementation of financial analysis company should use sensitivity analysis to identify how much changes company could have in its planned investment project plan. This sensitivity analysis will reflects all the possible impact of internal and external factors on the organization.

Step-5

Other Non-Financial Decision Making

In this process, all the associated factors and problems faced by company in the financial decision making will be evaluated to identify the best possible options (Sari & Kahraman, 2015).

Step-6

Selection of Best Alternatives

After implementation of all these activities, company needs to select the option which will give high return as compared to others.

After evaluating the literature review and associated factors of this paper, it is in considered that equity capital and debt funds both are associated with various merits and demerits. However, if company wants to be risk averse then it should raise capital by issues of equity capital and for taking more risk and keeping cost of capital low, company should raise fund by issue of debts in market (Larson & Gray, 2013).

Conclusion

There are several factors which impact the finance raising decision of investor. However, by using different financing tools such as of NPV, IRR, project economic analysis, cash flow statement analysis and weighted average cost of capital, allocation of Resources Company could reduce overall cost of capital and funds in market.

Weighted Average Cost of Capital

This model is used to determine financial model in smart home constructions industry. The main purpose of this report is to apply various tools and analysis to gauge the constraints related to economical project management (Burns & Walker, 2015). There are various models and part which are used to determine the feasibility of project parts. Financial models help to determine the project feasibility in qualitative terms and identifying the assets which could give maximum return to investors in home construction project. There are several budgets which are prepared such as direct material budget, direct labor budget, cost budget and cash flow statement budget. In this report, income statement and profit and loss accounts have been prepared to evaluate the overall profit and return earned by project manager in their home constructions business. In addition to this, cash flow statement, capital structure tree is prepared to evaluate the direct and indirect inflow of cash flow in the business. This prepared cash flow will reflect the five year cash inflow and outflow in the business. However, present value of cash flow is determined on the basis of using cost of capital of the funds. This will give fair idea about the value of future cash flow in the present. In addition to this, weighted average cost of capital is used to bifurcate the % of cost associated with the particular source of finance. This will provide overall cost of capital in home construction of business (Guerra, Magni & Stefanini, 2017).  The main project model is related to use of net present value, profitability index, weighted average cost of capital.  Net present value method will provide the present value of cash inflow and present value of cash outflow. In home construction business, positive present value of cash flow will be taken as best possible project selection method. In addition to this, Profitability index will reflect the relation between cash inflow and outflow of business. IF the project maker has same initial value, and same flow of cash then in this case life of project will be evaluated by using IRR and Profitability index, irrespective of net present value of cash (Petkovi?, 2015).

This financial analysis is used to examine existing project as well as proposed projects. Financial reports are prepared to evaluate present and proposed project. It is further observed that financial statements such as profit and loss, income statement, balance sheet and other details should be analyzed by stakeholder while making investment decisions. These all details are taken by implementing secondary research program and source of revenue are taken on the basis of market research. There are various details and data have been collected from various primary and secondary sources such as advertisement, observation, questionnaire and evaluating financial statements.  This research is based on the detail market research and implementation of financial analysis tools (Jenkinson, et al. 2016).

The main purpose of this project is to forecast the feasibility of the project and identifying the present value of budgeted and forecasted flow of cash. Feasibility of project is prepared on the basis of financial analysis and implementation of various tools such as income statement, cash flow statement, weighted average cost of capital and profitability index. This will give clear about the selected project and return offered in smart home constructions. This analysis is made by evaluating stakeholder’s interest like stakeholder, investors and creditors. The best possible project selection is done on the basis by using profitability index and weighted average cost of capital (Pasqual, Padilla & Jadotte, 2013).

Leasing Decisions

Risk analysis is used to evaluate the risk associated with forecasted project. The most common risk is associated with available time, budget and resources, of the forecasted project. The main risk in this project is related to the assumptions taken and identifying the true value of investment. In addition to this, with the help of capital assets pricing model, risk analysis have been done in determined approach (Asquith & Weiss, 2016).

	Present details of the project	Future projected amount
	2017		2018		2019		2020		2021
Particulars	Project A	Project B	Project A	Project B	Project A	Project B	Project A	Project B	Project A	Project B
Units Produced	95000	74000	88875	79250	100000	103000	97500	90600	85670	89000
Average Units	110	150	146	175	125	186	221	196	136	166
Projected Revenue	10450000	11100000	12975750	13868750	12500000	19158000	21547500	17757600	11651120	14774000
Less : Profit Margin	935000	2400000	1151575	3029687.5	1125000	43245000	1933750	394940	1029112	3693500
Cost of goods sold	9515000	8700000	11824175	10839062.5	11375000	-24087000	19613750	17362660	10622008	11080500
Material	520000	529000	4250000	801000	7854000	9023450	8245600	1187960	5500650	2387650
Labor	1400000	4000000	1675400	1769800	289765	1214538	1987000	4567900	387900	2435670
Overhead	900000	545000	823570	435600	210560	458760	1342800	876500	1345670	92000
Other Overhead	6695000	3626000	5075205	7832662.5	3020675	-34783748	8038350	10730300	3387788	6165180

Projected material cost
Particulars	2017	2018	2019
	Amount	Amount	Amount
Installation and system cost	3078690	3098700	2546789
Boxing and other expenses	648700	664000	757890
Alibiing and Swathing cost	215456	225645	235642
Motor and contractors expenses	1453760	1567890	1897600
Push Bottom and wrong expenses	754790	880000	1287650
Valve and switches cost	80000	900000	1000000
Racks and accessories	1289760	2987600	2345670
Variable speed drives	455000	760000	786500
Outdoor equipment	6574890	7698700	8765400
Overall Projected cost	14551046	18782535	19623141
Projected Material Cost	13855590	17396890	18237499

2017	2018	2019
Amount	Amount	Amount
557800	757800	621700
530700	456000	500000
120000	350000	221340
135000	121900	100560
1343500	1685700	1443600

Particulars	2017	2018	2019
	Amount	Amount	Amount
Advertisement	449000	625000	725700
Delivery system	125000	135000	165400
Packing cost	44000	45000	49870
Delivery cost	18000	21350	19100
	636000	826350	960070
Projected Selling Expenses
Particulars	2017	2018	2019
	Amount	Amount	Amount
Administering cost	768900	825000	867000
Depreciation cost	425670	325000	274642
General cost	245300	294000	262631
Stationary	122900	155400	196973
Projected Administrative Cost	1562770	1599400	1601246

	2017	2018	2019	2020	2021
Particulars	Project A	Project B	Project A	Project B	Project A	Project B	Project A	Project B	Project A	Project B
Sales Revenue:	$10,350,000	$10,600,000	$12,515,750	$13,118,750	$12,250,000	$18,298,000	$20,337,500	$16,797,600	$11,291,120	$15,774,000
Total Income from Revenue	$10,350,000	$10,600,000	$12,515,750	$13,118,750	$12,250,000	$18,298,000	$20,337,500	$16,797,600	$11,291,120	$15,774,000
Cost of Goods Sold:	$6,600,000	$4,529,000	$5,925,400	$2,570,800	$8,143,765	$10,237,988	$10,232,600	$5,755,860	$5,888,550	$4,823,320
Direct Material	$5,200,000	$529,000	$4,250,000	$801,000	$7,854,000	$9,023,450	$8,245,600	$1,187,960	$5,500,650	$2,387,650
Direct Labor	$1,400,000	$4,000,000	$1,675,400	$1,769,800	$289,765	$1,214,538	$1,987,000	$4,567,900	$387,900	$2,435,670
Gross Profit	$3,750,000	$6,071,000	$6,590,350	$10,547,950	$4,106,235	$8,060,012	$10,104,900	$11,041,740	$5,402,570	$10,950,680
Other Operating Expenses:
Overhead Expenses	($1,000,000)	($645,000)	($923,570)	($535,600)	($310,560)	($558,760)	($1,442,800)	($976,500)	($1,445,670)	($1,020,000)
Selling Expenses	($2,000,000)	($324,000)	($398,765)	($178,950)	($457,800)	($360,570)	($4,568,000)	($4,987,600)	($498,000)	($138,900)
Administration Expenses	($3,500,000)	($800,000)	($598,600)	($743,299)	($325,400)	($678,900)	($6,548,000)	($1,345,000)	($786,000)	($1,486,500)
Net Operating Income before Interest &Tax	$10,250,000	$7,840,000	$8,511,285	$12,005,799	$5,199,995	$9,658,242	$22,663,700	$18,350,840	$8,132,240	$13,596,080
Less : Finance Cost	-900000	($1,250,000)	-900000	($1,250,000)	-900000	($1,250,000)	-900000	($1,250,000)	-900000	($1,250,000)
Net Operating Income before Interest	$11,150,000	$9,090,000	$9,411,285	$13,255,799	$6,099,995	$10,908,242	$23,563,700	$19,600,840	$9,032,240	$14,846,080
Less: Tax Payable @30%	$3,345,000	$2,727,000	$2,823,386	$3,976,740	$1,829,999	$3,272,473	$7,069,110	$5,880,252	$2,709,672	$4,453,824
Net Profit After Tax & Interest	$7,805,000	$6,363,000	$6,587,900	$9,279,059	$4,269,997	$7,635,769	$16,494,590	$13,720,588	$6,322,568	$10,392,256
Net Profit Margin	$3,345,000	$2,727,000	$2,823,386	$3,976,740	$1,829,999	$3,272,473	$7,069,110	$5,880,252	$2,709,672	$4,453,824

Projected Cash flow statement
	2017		2018		2019		2020		2021
Particulars	Project A	Project B	Project A	Project B	Project A	Project B	Project A	Project B	Project A	Project B
Cash Flow from Operating Activities:-
Net Operating Profit Before Interest & Tax	1400000	2105600	3869415	8708000	2212475	5661782	79586100	29320640	1872900	7505280
Add : Depreciation	350000	456000	198790	510000	210000	395600	225000	420000	145670	413900
Less : Tax Expenses	-280000	-226680	-860824.5	-2207400	-363742.5	-1293534.5	-2330430	-474792	-261870	-1846584
Net Cash flow from Operating Activities	1330000	1876280	4531449.5	10405400	2366217.5	6559716.5	81691530	29375432	1989100	8937964
Cash Flow from Investing Activities:-
Purchase of Building	-400000	-500000		0		0		0	1600000	1400000
Purchase of Other Assets	-1600000	-270000		0		-1700000	-1300000	0	1800000	610000
Sale Proceeds from Capital Assets
Net Cash flow from Investing Activities	-2000000	-770000	0	0	0	-1700000	-1300000	0	3400000	2010000
Cash Flow from Financing Activities:-
Loan from Bank	1400000	2500000
Issue of Bond	1400000
Issue of Shares	4200000	2500000
Finance Cost	-900000	-1250000	-900000	-1250000	-172500	-1250000	-900000	-1250000	-900000	-1250000
Dividend Paid	-65400	-214500	-60000	-250000	-82000	-420000	-96500	-426700	-142300	-499000
Net Cash flow from Financing Activities	6034600	3535500	-960000	-1500000	-254500	-1670000	-996500	-1676700	-1042300	-1749000
Net Cash Inflow during the year	7364600	5411780	3571449.5	8905400	2111717.5	4889716.5	80695030	27698732	946800	7188964
Add : Opening Cash Balance	0	0	180000	3500000	670000	5234500	400000	700000	1200000	2667900
Closing Cash Balance	7364600	5411780	3751449.5	12405400	2781717.5	10124216.5	81095030	28398732	2146800	9856864

New Weighted Average Cost for Project A:-
Particulars	Amount	Weight	Cost	Tax Rate	Weighted Cost
Equity	5200000	0.6	0.115		0.069
Total Equity	5200000	0.6	0.115		0.069
Bonds	1500000	0.5	0.045		0.0225
Loan from Bank	1500000	0.5	0.08		0.04
Total Debt	3000000	1	0.125	0	0.0625
Total Capital	16400000	1		0.3	0.11275

Particulars	Amount	Weight	Cost	Tax Rate	Weighted Cost
Equity	2500000	50%	6.75%		3.375%
Total Equity	2500000	50%	6.75%		3.375%
Loan from Bank	2500000	100.00%	7.5%		7.5%
Total Debt	2500000	50%			7.5%
Total Capital	50000000	100%		30%	8.625%

New Weighted Average Cost for Project B:-
Particulars	Amount	Weight	Cost	Tax Rate	Weighted Cost
Equity	3500000	0.6	0.0675		0.03375
Total Equity	3500000	0.4	0.0675		0.03375
Loan from Bank	3500000	1	0.075		0.075
Total Debt	3500000	0.5			0.075
Total Capital	14000000	1		0.3	0.08625

Particulars	Year 0	Year 1	Year 2	Year 3	Year 4	Year 5
Cash Flow from Operating Activities		1400000	8945966	2958733	86480670	1156725
Sale of Property		0	0		0
Investment in Capital Assets				-1600000		120000
Net Cash Flow from Operating Activities		1400000	8945966	4558733	86480670	1036725
WACC 1	0.11275	0.0446	0.0446	0.0446	0.0446	0.0446
Discounting Factor		0.957276739	0.91638	0.877228	0.83975	0.803873164
Discounted Cash Flow	-70000000	59772.35958	365626	178357.5	3238948	37169.43511
Total Discounted Cash Flow 1		72698261.93
Initial Investment		82698261
Net Present Value 1		9999999.067
Profitability Index 1		1.137554858

NPV for Project B:- NPV for Project B:-
Particulars	Year 0	Year 1	Year 2	Year 3	Year 4	Year 5
Cash Flow from Operating Activities		2334920	7910600	5663847.5	29265848	6072596
Sale of Property		0	0		0	1900000
Investment in Capital Assets				($1,400,000)
Net Cash Flow from Operating Activities		2334920	7910600	$7,063,848	$29,265,848	4172596
WACC 1	8.63%	11.60%	11.60%	11.60%	11.60%	11.60%
Discounting Factor		0.896057348	0.80292	0.719461264	0.644678552	0.577668953
Discounted Cash Flow	-30000000	2001895.6	5548650	2348210	18222370	4547751
Total Discounted Cash Flow 1		32668876
Initial Investment		40000000

This report reflects the financial analysis for both the projects named Project A and Project B.  This projected analysis is done by evaluating projected cash flow, weighted average cost, computing net present value, profitability index.  It is observed that project A has initial investment- $ 4, 00, 00, 000 and 3, 00, 00,000. It is observed that both projects have several incomes and benefits for the project manager.  It is evaluated that the benefits of having less capital requirement is related to management of business with less cost of capital. It is considered that project B 3, 00,00,000 Capital requirements.  Project B has main benefits such as less cash outflow as compared to B. higher cash inflow throughout the time, and positive net cash present value. In addition to this, both projects have positive net present value. Project B adopted has more positive net present value than project A.  If investors want to create value on his investment then he should adopt project which gives higher net present value. Banks and financial institutions will be more inclined towards providing cash outflow which offer positive cash inflow and accompanied with less capital requirement (Malek, et al. 2017).

There are several terms and conditions which should be fulfilled by  Smart home constructions for raising finance and loans (Oehmke, 2017)

This Smart home construction should be affiliated with the collages having programs of networking engineering.

Smart home constructions should also finance the research and development department and its equipment’s from Banks and financial institutions.

Australian Banks and financial institutions will offer various terms facility to manufacturing company.

It is the required testimony or set records provided on papers and online in favor of stakeholders’ interest. These documents reduce the risk of uncertainty and security problems between borrowers and lenders. These processes increase the transparency and create underlying assets of borrowers for lenders. It also removes the fears and confusions being faced by lenders while lending money to investor’s (Borenstein, 2017).

There are several requirements and terms which should be fulfilled by Smart home constructions while complying with the rules and regulations for raising finance.

Smart home constructions should submit its annual report with the banks and financial institution while raising loans.

Smart home constructions will also create charge on the assets by the banks with a view to secure its debts and term loan.

Banks and financial institutions should consider brand image or goodwill of Smart home constructions while grating loan and debts.

Smart home constructions  needs to submit know your customers forms while applying for debts from the banks.

All the terms and conditions set up by Banks should be complied by Smart home constructions ( Leyman & Vanhoucke, 2017)

There are several financial sources which could be used Smart home constructions for raising finance such as equity finance, debt funds, creating charge and taking credit facilities. Equity finance is the method which is used by company to raise funds from the capital by diluting ownership of company.  This will increase the overall cost of capital but also reduce the financial leverage in determined approach.  Each and every company should consider their debt to equity structure while raising funds from the market. It is observed that if company has low level of financial risk then it should raise funds by issue of debentures and raising loans on the other hand, if company has high capital risk then it should issues share capital in the market.  If company has high profit earing capacity then company should issues debentures. It is clear to understand that interest amount paid to debenture holders or banks is the charge on the profit. In case if company has no adequate profit to satisfy the interest charge amount then these persons may take the company in liquidation.  Project B has capital requirement of 14000000 which is equally  divided into four parts such as 3,50,00,000 for each parts named equity, dentures, loans and other funding. On the other hand, project A has requirement of 5,00,00,000. This has also been raised from the different funding of projects. However, company needs to adopt the capital structure which has low level of cost of capital (All, et al. 2017).

It is evaluated that raising finance through equity finance, debt funds, creating charge and taking credit facilities are the major source of finance. Equity finance increase the overall cost of capital but also reduce the financial leverage in determined approach. Company needs to consider their debt to equity structure while raising funds from the market. It is observed that if company has low level of financial risk then it should raise funds by issue of debentures and raising loans. Financial risk of the company could be determined by using financial leverage computation and debt to equity ratio.  Project A has capital requirement of 16400000 to effectively running the project. On the other hand, project B has total capital value 14000000 in its business. It is observed that if project manager will chose the project A then he will have project net present value of 9999999.067 which is very high and mark determined approach. This project has shown positive profitability index 1.13 which reflects the effective nexus between cash inflow and outflow amount of this project A. Further observed that, project B has net present value of 7331124 which is very low as compared to project A. In addition to this, profitability index of project B is .10 points as compared to Project A. This profitability index states the relationship between cost and benefits. It will also help user to determine the overall feasibility of report (Ciolkosz, et al. 2017).

 After evaluating all the details and information given in this report, it is observed that company needs to evaluate all the associate factors and Net present value, economic analysis, Internal rate of return, Attractive Rate of Return (MARR), Benefit/Cost Ratio (B/C), Future Worth average rate of return, profitability return and other options before selecting any options. In this report, project A has positive factors and provide information that project A should be selected by the project manager in his investment decisions (Arbabi, et al. 2017).

References

Arbabi, P., Abbassi, A., Mansoori, Z., & Seyfi, M. (2017). Joint numerical-technical analysis and economical evaluation of applying small internal combustion engines in combined heat and power (CHP). Applied Thermal Engineering, 113, 694-704.

Asquith, P., & Weiss, L. A. (2016). The Time Value of Money: Discounting and Net Present Values. Lessons in Corporate Finance: A Case Studies Approach to Financial Tools, Financial Policies, and Valuation, 287-302.

Borenstein, S. (2017). Private Net Benefits of Residential Solar PV: The Role of Electricity Tariffs, Tax Incentives, and Rebates. Journal of the Association of Environmental and Resource Economists, 4(S1), S85-S122.

Burns, R., & Walker, J. (2015). Capital budgeting surveys: the future is now.

Ciolkosz, D., Jacobson, M., Heil, N., & Brandau, W. (2017). An assessment of farm scale biomass pelleting in the Northeast. Renewable Energy, 108, 85-91.

Guerra, M. L., Magni, C. A., & Stefanini, L. (2017). Average internal rate of return with interval arithmetic.

Huang, X., & Zhao, T. (2014). Project selection and scheduling with uncertain net income and investment cost. Applied Mathematics and Computation, 247, 61-71.

Jenkinson, T., Landsman, W. R., Rountree, B., & Soonawalla, K. Z. (2016). Private equity net asset values and future cash flows.

Jenkinson, T., Landsman, W. R., Rountree, B., & Soonawalla, K. Z. (2016). Private equity net asset values and future cash flows.

Lal, P., Wolde, B., Masozera, M., Burli, P., Alavalapati, J., Ranjan, A., … & Mugabo, R. (2017). Valuing visitor services and access to protected areas: The case of Nyungwe National Park in Rwanda. Tourism Management, 61, 141-151.

Larson, E. W., & Gray, C. (2013). Project Management: The Managerial Process with MS Project. McGraw-Hill.

Leyman, P., & Vanhoucke, M. (2017). Capital-and resource-constrained project scheduling with net present value optimization. European Journal of Operational Research, 256(3), 757-776.

Malek, A. A., Hasanuzzaman, M., Rahim, N. A., & Al Turki, Y. A. (2017). Techno-economic analysis and environmental impact assessment of a 10 MW biomass-based power plant in Malaysia. Journal of Cleaner Production, 141, 502-513.

Mohagheghi, V., Mousavi, S. M., & Vahdani, B. (2015). A new optimization model for project portfolio selection under interval-valued fuzzy environment. Arabian Journal for Science and Engineering, 40(11), 3351-3361.

Mohagheghi, V., Mousavi, S. M., Vahdani, B., & Shahriari, M. R. (2016). R&D project evaluation and project portfolio selection by a new interval type-2 fuzzy optimization approach. Neural Computing and Applications, 1-20.

Oehmke, J. F. (2017). Re-Examining the Reported Rates of Return to Food and Agricultural Research and Development: Comment. American Journal of Agricultural Economics, 99(3), 818-826.

Pasqual, J., Padilla, E., & Jadotte, E. (2013). Equivalence of different profitability criteria with the net present value. International Journal of Production Economics, 142(1), 205-210.

Petkovi?, D. (2015). Adaptive neuro-fuzzy optimization of the net present value and internal rate of return of a wind farm project under wake effect.

R?biasz, B., Gawe, B., & Skalna, I. (2017). Hybrid framework for investment project portfolio selection. In Advances in Business ICT: New Ideas from Ongoing Research (pp. 87-104). Springer International Publishing.

Rossi, M. (2014). Capital budgeting in Europe: confronting theory with practice. International Journal of Managerial and Financial Accounting, 6(4), 341-356.

Sari, I. U., & Kahraman, C. (2015). Interval type-2 fuzzy capital budgeting. International Journal of Fuzzy Systems, 17(4), 635-646.