M.Sc.

Financial Mathematics/2015

MFM 5038 Proposal

Evaluation of investment projects in catering management: Case study

Nimali Group
Introduction
In 1995 Nimali Group started as a catering service which is cater only for functions.
Later it expands to renting festival goods and supplying lighting for out-door
functions. In modern world we are looking for new investment project to expand
business by building a banquet hall (reception hall with A/C) or portable air
condition marquee tent which can be seated for 400 people.
In modern world project evaluation is core activity before we choose which project
that we have to invest. Most frequently use methods are NPV and IRR in evaluation
of investment projects based on discounted cash flows.
In the literature, Throughout the design, construction, operation, and end-of-lifecycle processes that make up a buildings life, the built environment of which it is a
part exerts both positive and negative impacts on the earth, its resources, the
people that live on it, and their communities. As part of the effort to reduce these
negative environmental impacts and maximize benefits, the concept of
sustainability has gained widespread acceptance over the past twenty years,
encompassing ecological, economic and social aspects of the built environment
(Ahn & Pearce 2007).
Objectives
In retrospect of the literature, a number of hypotheses also support the existence of
a causal relation between stock prices and exchange rates. The main objective of
this study to analyze two investment project proposals that management has
decide to increase their profit. The study also examines which project strategy they
have to follow to gain more profit . And also which investment strategy takes how
long to get the initial cost back (discounted payback period).

Methodology
In literature, construction kinds of projects are evaluated using (NPV), IRR, Payback
period, PI techniques. This study will compare and discuss the initial cost analyses
for two strategies separately also it will examine the outcomes of theses
methodologies in the literature and will discuss the results of each project strategies
separately. Finally this study determines forecasting an income statement using
Monte-Carlo simulation technique for each strategy. [Add more if you can]
References