The financing sources and their effect on the profitability of bisuness project

Abstract

Furthermore, ion istudying ieach iand ievery ievaluation icriterion ipresented iin ithis iresearch, iwe ifind ithat ialthough ithey iare ieasy iand isimple ito iuse, ithey iare ivery ihelpful ito iasses iany iproject iand ievery idecision imaker ieven iif ione iwho ihas inot ia ibit iof iknowledge iin ifinance ican ieasily iunderstand iand iapply ithose icriteria, iplus, iwe ishowed ithat ithe iwide iapplication iof ithose icriteria i(Banks, icompanies, iFinancial iinstitutions, iLease iinstitutions iand iour icase ia iGuarantee ifunded.) In iaccordance iwith ithese ifindings, iwe ican iconfirm iour isecond ihypothesis, iwhich ipostulates ithat iThe ifinancial ievaluation imethods i(NPV, iIRR, iPI…) iare isufficient ifor ichoosing ioptimal ifunding isources. iAlthough ithey ihave isome iadvantages iand isometimes ithey igive iopposite iresults ithey iremain ithe imost iused icriteria iworldwide. iThis iconfirmation icomes ialso ito ianswer iour isecond isub iquestions iwhich iconsists ion idetermining ithe icriteria iused ito ievaluate ian iinvestment. i Finally, ion ithe ieconomic ilevel, ithe istudy iof ithe iimpact iof ifinancial ievaluation ion ichoosing ifunding isources iin iour icase ideciding iwhether ithe iproject iis iguarantee iworthy ior inot, iwe ifound iafter idiscussions iwith ithe ifinancial ianalysts iin icharge ithat ieven ithough ithe imain iobjective iof iany ibusiness iis ito icreate ivalue iwhich iis itranslated iin imoney icreation iand iproviding imore ifinancial iresources ifor iupcoming iinvestment ibut iit iis inot ithe ionly icriteria ithat iacceptance ior irejection iof ia iclient ifile, ialso, ithe icompanies ipolicy ifirst iobjective iis ito ipromote iinvestments, iwhich ileads ito ieconomic idevelopment itherefore iin iorder ifor ia ipromoter ito iget ia iconfirmation, ithe iproject imust ihave ian ieconomic iimpact, iwhich iwill ipromote ibusiness iand icreate inew isources iof ifinance. The iproject iin icase, iwhich iis ia ian iextension iproject iby iacquisition iof ia inew iproduction iline idesigned ito imanufacture ia ivery ispecial itype iof itube i(Steel ispiral itube i) ithat iis itotally iimported, ipresent ithe ifollowing ievaluation icriteria, ia ipositive iNet iPresent iValue iof i102312.16 iKDA iwhich imakes ithis iproject ivery iprofitable, ialso ian iinternal irate iof irevenue iof i16,20 i% iwhich iaccording ito ithe ipromoter iis ivery isufficient ifor ihis icompany, ia iProfitability iindex iof i3,73, iand iafter icalculating ithe iPayback iPeriod iwe ifound ithat ithis iproject iis iexpected ito i irecover iits iinitial iexpenditure iwithin i3 iyears i+ i7 imonths i+ i17 idays. The iguarantee icertificate iwas igiven ito iTECHNITUBE, inot ionly ibased ion ithe iresults iof ithe ifinancial ievaluation ipresented iwhich ishows ithat ithe iproject iis iprofitable ibut ialso ibased ion iits ieconomic iimpact, iafter ianalyzing ithis iproject, iwe ifound ithat iThe ieconomic iimpact iof ithe iproject iis ivery isignificant ibecause:1. It ioffers ia iproduct inecessary ifor ithe idevelopment iof iagriculture. 2. It ioffers ia iproduct inecessary ifor idrinking iwater iand igas isupply ias iwell ias ifor iits iwastewater inetwork 3. For iindustry iby ioffering ipiping ito ithe itransport iof iprocess iproducts i(compressed iair, igas, iliquid, iand ieven isolid) 4. The iproject iwill ieliminate iforeign iexchange idepreciation ito ithe iextent ithat iit iproduces ia iproduct ithat iis icurrently iimported. iIt imay ieven icontribute iin ithe inear ifuture ito ithe iexport iof iproducts. 5. It icreates iemployment iopportunities i(project irequires i8 iemployee) In iview iof ithese ifindings, iwe ican iconfirm ithe ithird ihypothesis iInvestments ihave ian ieconomic iimpact. iWhich imatch iperfectly iour ithird isub iquestion i3. iWhat iis ithe ieconomic iimpact iof ian iinvestment? Based ion ithe iresults iof iour istudy, ias iwell ias iour ifindings iin ithe ifield, iwe ihave icompiled ia ilist iof irecommendations ion ivarious ipoints, iincluding: 1. Given ithe iimportant irole iof iFinancial ievaluation, ialthough iits itools iare isufficient, iInvestors ishould ifind ia inew imethods iand itools ito iachieve ia ibetter ievaluation, ithis ilatter iwould iprovide ithem ibetter ivision ion ithe iinvestment ifuture. 2. Given ithe iimportance iof ifunding isources, iit iwould ibe iinteresting ito istudy iall ithe iimpacts ia iprojects ican ihave iand inot irelying ionly ion iFinancial ievaluation i(In iour icase, istudying ithe ieconomic iimpact). iBanks iand ifinancial iinstitutions ishould ialso itake iinto iconsideration ithe ieconomic iimpact ibefore igranting iany iloan.