...Ministry of Finance and Economic Planning National Development Planning Directorate Public Investment Technical Team Unit Capacity Building to Support the Rwanda Public Investment Program Investment Appraisal Training Manual for Government Staff Prepared by Sulaiman Kyambadde P.O. Box 1851 Kigali, Rwanda Tel: +250 255114413 (office) October 2011 The purpose of this Training Manual is to help PITT implement the use of international best practices of Investment Appraisal techniques in its programming of public sector investments. It describes how public sector investments should be assessed at conception or programming stage. The modules introduce the basic concepts behind the appraisal techniques and their applicability in the Rwandan context. It describes the DCF methodology, the shadow pricing methodology and performance measures and decision criteria, together with financial and economic analysis techniques. By their very nature, public projects involve benefits and costs to society over a number of years into the future, unfortunately, market prices and investment outcomes cannot be predicted with certainty. The manual also introduces qualitative analysis concepts of investments. Author Mr. Sulaiman Kyambadde, is an economist, and a business and development consultant working with PPM Consulting Limited. PPM Consulting is a local management and development consulting firm with headquarters in Kigali, the nation’s capital. In addition, officials from the Ministry...
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...IFAC Board Exposure Draft November 2012 Comments due: February 28, 2013 Professional Accountants in Business International Good Practice Guidance Project and Investment Appraisal for Sustainable Value Creation IFAC’s mission is to serve the public interest by: contributing to the development of high-quality standards and guidance; facilitating the adoption and implementation of high-quality standards and guidance; contributing to the development of strong professional accountancy organizations and accounting firms and to high-quality practices by professional accountants, and promoting the value of professional accountants worldwide; and speaking out on public interest issues. The PAIB Committee serves IFAC member bodies and professional accountants worldwide who work in commerce, industry, financial services, education, and the public and not-for-profit sectors. Its aim is to promote and contribute to the value of professional accountants in business. To achieve this objective, its activities focus on: increasing awareness of the important roles professional accountants play in creating, enabling, preserving, and reporting value for organizations and their stakeholders; and supporting member organizations in enhancing the competence of their members through development and sharing of good practices and ideas. Copyright © November 2012 by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please see page...
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...is the investment appraisal process so important? ……….......................1 (b) What is the payback period of each project? If AP Ltd imposes a 3year maximum payback period which of these projects should be accepted? ………………………………………………….……..............1 (c) What are the criticisms of the payback period? ................................................2 (d) Determine the NPV for each of these projects? Should they be accepted? Explain why? ……………..…………...….…………………….…2 (e) Describe the logic behind the NPV approach?......……..……………………...3 (f) What would happen to the NPV if: (1) The cost of capital increased? (2) The cost of capital decreased? …………………………………………....3 (g) Determine the IRR for each project. Should they be accepted? ...…………...4 (h) How does a change in the cost of capital affect the project’s IRR? ………….6 (i) Why is the NPV method often regarded to be superior to the IRR method? …6 (j) References ……………………………………………………………….............7 Student Name: Pyae Thu Aung Student ID: B0340LSTH0412 Accounting and Decision Making Techniques (a) Why is the investment appraisal process so important? Decisions on investment, which take time to mature, have to be based on the returns that investment will make. If the investment is unprofitable in the long run, it is unwise to invest in it now. Investments are made to quantitatively or qualitatively change the production and sales capacity of a company to achieve higher profits or lower costs. The purpose of an investment appraisal...
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...CAPITAL BUDGETING ANALYSIS REPORT TO LAM REGARDING POTENTIAL INVESTMENT OPPORTUNITY APARTMENT COMPLEX 830 S. Westlake Avenue Los Angeles CA 90057 Presented by: GRETA BANYTE April 14th, 2010 Well maintained apartment building, built in 1964, located at 830 S. Westlake Avenue, in Los Angeles, is listed at the price of $5,700,000. The building is close to the 10, 110 and 101 freeways, as well as it is 1 mile from Mid Wilshire, 1.2 miles from Downtown, 2.6 miles from Dodger Stadium, and 7.5 miles from Hollywood. The size of the lot is 30,013 square foot. This 34,722 square foot apartment building includes 60 units: • 4 bachelor units, • 25 singles, and • 31 one bedroom, one bathroom (1+1) units. Most of the units feature laminate wood flooring and balconies. Recently remodeled units include new tile floors in the bathrooms and kitchen, as well as tiled countertops. There is also on-site laundry and parking with 60 available spaces. Currently the price of the rent is: • $460-$700 for “Bachelor unit” for a total of $2,384 for 4 units per month • $523-$850 for “Single” for a total of $18,617 for 25 units per month • $560-$1000 for “1+1” for a total of $24,463 for 31 units per month Current Annual Operating Data: Percentage of Gross Income Gross Income $553,980 $545,580 from rent and $8,400 from laundry Vacancy Rate Reserve ($16,367) 3% Gross Operating Income $537,613 Expenses: ($206,116) 37.2%...
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...ROBERT GORDON BUSINESS SCHOOL Investment Appraisal for Zest Spa India A financial analysis 1411742 06.01.2015 Words: 2420 + 500 Appendix Table of contents 1. Company overview and appraisal ....................................................................................................... 1 2. Background .......................................................................................................................................... 1 2.1 Porter´s analysis ............................................................................................................................ 2 2.2. Indian government ....................................................................................................................... 2 3. Investment Thesis................................................................................................................................ 3 4. Valuation ............................................................................................................................................. 5 4.1 ARR ................................................................................................................................................ 6 4.2 IRR.................................................................................................................................................. 6 4.3 Limitations ...............................................................................................................
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...Gap Analysis: Riordan Manufacturing University of Phoenix Human Capital Development MBA 530 Mar 18, 2007 Gap Analysis: Riordan Manufacturing This analysis looks at situations, challenging issues and opportunities facing Riordan Manufacturing, a global plastics maker headquartered in San Jose, California. Through this analysis, problems will be identified that Riordan Manufacturing would have to resolve in order to be successful. By resolving their problems and realizing their opportunities, Riordan will improve their human resource practices, which will give them a competitive advantage. Situation Analysis Issue and Opportunity Identification Riordan Manufacturing has annual revenue of $46 million with 550 employees. The company is a subsidiary of Riordan Industries, which is a fortune 1000 company with revenue over one billion dollars. Production is divided among three plants: plastic beverages containers located in Albany, Georgia; custom plastics parts located in Pontiac, Michigan; and plastic fan parts located in Hang Zhou, China. Research and development is handled in San Jose, California. Riordan’s major customers are automotive parts manufactures, aircraft manufacturers, beverage bottlers, appliance manufacturers, and the Department of Defense. Recently, Michael Riordan, President and Chief Executive Officer (CEO) made strategic changes in their manufacturing and marketing of their products. Their declining sales and profits over the last couple of...
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...facilities managers, health care professionals, and operational executives in their customers' organizations (University of Phoenix, n.d). In addition to performance management, career management is a critical tool that will be applied to provide employees with a life long, self-monitored process of career planning that involves setting personal goals and formulating strategies for achieving them. The development of a performance and career management program will explain the employee feedback process, manager’s assistance with helping employee’s reach a higher level of performance, opportunities for advancement, flexible schedules, adaptation to team diversity, and program costs and benefits. Individual Performance Appraisal System With the implementation of the new sales model, new sales employees will be placed on a 60 day probation period, which serves to formally evaluate their learning curve and to determine if he or she will be a good long-term fit for the organization....
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...Human Resource Management Analysis of an Appraisal System Submitted to Professor Kaushik Choudhury By Aravind Mahendran, Mansi Makhijani, Nakul Paruthi, Nikhil Abhishek Mishra, Shishir Kumar 3.04.2015 Gautam Budh Nagar, U.P., 201314 ABSTRACT Appraisal is a continuous yearly exercise done by the HRD department of any organisation to evaluate the performance of the employees. It is a very important tool which can motivate employees to perform better and gain respect in an organisation. This project tries to find out the effectiveness of an appraisal system in today’s corporate culture and also tries to find out the loopholes in it which causes its failure. INTRODUCTION When a company makes any investment it evaluates...
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...ask what performance appraisals are. They are “The identification, measurement and management of human performances within an organization.” (GOMEZ-MEJIA, 2010) Performace appraisals are popular and used world wide to measure personal and team performace. Performance management has increased with the gripping economy and having less to do more. Managers have always thought of optimal performance, yet a poorly written performce appraisal has a devistating impact on the employee, the manager, and the company. Today we will discuss the negative affects of a poorly written appraisal and the positive affects of an effective written appraisal. We will cover the steps to take, the information to include, and the expected end results of the appraisal. Covering the core competencies is critical, they include: Inclusiveness, Stewardship, Problem solving and Decision Making, Strategic Planning and Organizing, Communication, Quality Improvement, Leadership, Service Focus, and Teamwork. So, are apprasials needed? Absolutly…the appraisal system identifies and ensures we retain the best employees. It gives an outlook of who can best do what, and where best to utilize them. It ensures they reach their highest potential within the company. It allows managers to provide coaching and feedback to the employees so they can improve performace levels in identified areas. Affective appraisals inhibit improvement and...
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...TEGA INDUSTRIES LTD. Human Resource Management Performance Management – Appraisal System Parthapratim Chakraborty 11/1/2011 PART – 1 : Performance Appraisal System Introduction : Performance Appraisal is an objective system to judge the ability of an individual employee to perform his tasks. A good performance appraisal system should focus on the individual and his development, besides helping him to achieve the desired performance. This means that while the results are important the organization should also examine and prepare its human capital to achieve this result. This holds true even for new inductees. There is a strong linkage between induction, training and appraisal. In a large number of firms worldwide, a new recruit is expected to discuss his schedule of work in achieving his induction objective. This schedule of work becomes a part of his job for the next few months. Objectives of Appraisal Almost all organizations practice performance appraisal in one form or another to achieve certain objectives. These objectives may vary from organization to organization or even within the same organization from time to time. It has been found that there are two primary objectives behind the use of this methodology. One is to use it as an evaluation system and second, to use it as a feedback system. The aim of the evaluation system is to identify the performance gap. This means that it helps determine the gap between the actual performance of the employee and that...
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...JetBlue, Cases in Advanced Human Resource Management Jet Blue case study Western Governors University Abstract This paper includes discussions of the processes JetBlue initially utilized to staff their start-up airline, and the challenges faced in obtaining the desired employees to achieve the five core values which are: Safety; Caring; Integrity; Fun; and Passion. Company leadership and human resources began by working together to establish the company values in order to identify the traits desired for employees. Descriptive discussion of the recruiting efforts used, laws that needed to be considered; selection processes; appraisal systems; compensation; and benefits, are included within. When staffing the new airline began research needed to be done in advance of any recruitment efforts could starting. Hours of work were invested prior to the first interview in order to prepare to find the ideal candidates. National employment laws and statutes had to be identified in order to comply with the requirements of each. Three examples of such laws are The Equal Pay Act of 1963; The Age Discrimination in Employment act; and the 1990 Act of Americans with Disabilities (ADA). The first National Employment law that we will discuss is the “Equal Pay Act of 1963” (Mondy, 2008, p. 59). This law forbids the employer from paying employees of opposite genders different amounts, if the same job is performed; they have equal skills and...
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...EFFICIENCY OF EXISTING PERFORMANCE APPRAISAL SYSTEM FOR OFFICERS IN SRI LANKA NAVY BY LCdr (ASW) TR DANIEL PGD in Defence Management Naval and Maritime Academy (Accredited to General Sir John Kotelawala Defence University) DECLARATION I declare that this dissertation contains no material which has been accepted for the award of any other degree or diploma in any university or equivalent institution, and that to the best of my knowledge and belief, contains no material previously submitted or written by any other person, except where due reference is made in the text of this Dissertation. I carried out the work described in this under the supervision of Captain (ND) KJ Kularathne, RSP,Psc,MSc(D&SS) ........................................................ Date:.......................... TR DANIEL 7001 COMMENTS OF THE SUPERVISOR ..................................................... Date ........................................ KJ KULARATHNE,RSP,Psc,MSc(D&SS) Captain (ND) Sri Lanka Navy ABSTRACT Sri Lanka Navy is one of the largest organization in Sri Lanka with nearly 55000 men & women are working to date .SLN is not only one of the largest, but also diverse as more than 20 major professions are cohesion to form this organisation. Officers form the backbone of this large organisation; SLN and better performance of officers is a necessity to achieve organisational...
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...Performance management: Performance management is the integration of performance appraisal systems with broader human resource systems as a means of aligning employees work behaviors with the organization’s goals. This performance management guidance relates to the management of employee performance (i.e., planning, developing, monitoring, rating, and rewarding employee contributions), rather than performance-based or performance-oriented approaches to managing, measuring, and accounting for agency program performance. While these concepts can and should be linked and integrated, they remain distinct in some respects, particularly with regard to establishing individual accountability and dealing with poor performers. Performance Appraisal: Performance Appraisal is the part of the performance assessment and management process in which an employee’s contribution to the organization during a specified period of time is assessed. Performance feedback lets employees know how well they have performed in comparison with the standards of the organization. Delivering and receiving performance feedback can be an emotionally laden process that dramatically affects employees attitudes toward the organization and themselves. Performance management is the systematic process by which an agency involves its employees, as individuals and members of a group, in improving organizational effectiveness in the accomplishment of agency mission and goals. Employee performance management includes: ...
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...360-Degree Feedback Scenario Name Institution 360-Degree Feedback Scenario 360-degree feedback also known as multi-rater feedback is a performance evaluation test where employees get anonymous feedback from their co-workers. Employees can recognize their strengths and weaknesses though this method of assessment. The paper will look at the mistakes that people make in formulating a 360-degree feedback and appropriate use of the 360-degree performance evaluation test. Scenario 1 For a 360-degree feedback to be effective and efficient as a performance appraisal test, managers should be able to invest time in the development process of the assessment, analysis of data collected (Campion, Campion, & Campion, 2015). In this scenario, the manager makes a mistake of substituting the survey with a 360-degree feedback test. There is no time investment in the assessment. At that first point where the manager rejected the test, that is the ideal time that they were to formulate a better 360-degree performance evaluation test. The results of the tests were invalid because the manager made mistakes that one is not supposed to make the use of Multi-rater performance test. According to Wilson, 2014, committing an error in the process of formulating a 360-degree feedback can lead to inadequate or unclear results. Such mistakes include substituting another method with a 360-degree feedback, case in point, the manager substituted the survey questionnaire for using a 360-degree...
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...actions. Performance appraisal is the ongoing process of evaluating and managing both the behavior and outcomes in the organization (Carrell, Elbert & Hatfield, 2008). It is not a process that happens once a year or every six months, but one that happens every day. Stripped to its essentials, performance appraisal always involves setting work standards, assessing the employees’ actual performance relative to those standards, and providing feedback to the employees with the aim of motivating him or her to eliminate performance deficiencies or to continue to perform above par (Dessler, 2011). Indeed, performance appraisals are widely used for administrating wages and salaries, giving performance feedback, and identifying individual employee strengths and weaknesses (Mathis & Jackson, 2011). Definition of Performance Appraisal P erformance appraisal is the process of evaluating the behavior of the employees in the work place (Maxwell, 1992). This process assumes that the employees are aware of their performance standards, and that the supervisor also provides the employees with the feedback, development, and incentives required to help the person eliminate performance deficiencies. Basically, performance appraisal is intended to engage, align, and coalesce individual and group effort to continually improve overall organizational mission accomplishment (Vance, 2006). According to Dessler (2012, p. 332), “Performance appraisal means evaluating an...
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