dc.contributor.advisor | Akdeniz, Levent | |
dc.contributor.author | Topçu, Mustafa Kemal | |
dc.date.accessioned | 2016-07-01T10:55:34Z | |
dc.date.available | 2016-07-01T10:55:34Z | |
dc.date.issued | 2002 | |
dc.identifier.uri | http://hdl.handle.net/11693/29201 | |
dc.description | Cataloged from PDF version of article. | en_US |
dc.description.abstract | A study of existing and potential markets and of the technical and economical
feasibility of a project, as well as sound finance planning, are indispensable.
Economic profitability is the obvious and most important criteria for industrial
project evaluation.The choice of interest rates in project management is the purpose
of the thesis.
The rate of interest should be adopted as discount rate in project evaluation.
Because, the rate of interest reflects time preference and the opportunity cost of the
possible alternative use of the capital invested. The interest rate is assumed to be
constant during the project life in project evaluation techniques. In order to overcome
this inability the constant rate should be replaced by time varying interest rates.
iv
Several forecast models aid project management to predict the valid interest
rates in the evaluation. The thesis employs the expected-change forecast model to
obtain interest rates for each year during the life cycle. An application of the model
to one of the large-scale projects in the Armed Forces, namely modern self-propelled
direct support artillery gun- SP2000, is presented in the thesis. Comparison of two
alternative uses of interest rates in the calculation of net present value of the project
is discussed. It is concluded that the constant interest rate use overstates the costs and
it is suggested that the time varying interest rates should be adopted as the optimal
discount rates in project management. | en_US |
dc.description.statementofresponsibility | Topçu, Mustafa Kemal | en_US |
dc.format.extent | x, 40 leaves, tables | en_US |
dc.language.iso | English | en_US |
dc.rights | info:eu-repo/semantics/openAccess | en_US |
dc.subject | Project | en_US |
dc.subject | Defense Industry | en_US |
dc.subject | Interest Rate | en_US |
dc.subject | Forecast Models | en_US |
dc.subject.lcc | HD69.P75 T67 2002 | en_US |
dc.subject.lcsh | Industrial project management. | en_US |
dc.title | The choice of interest rates in project management : the case of time varying interest rates | en_US |
dc.type | Thesis | en_US |
dc.department | Department of Management | en_US |
dc.publisher | Bilkent University | en_US |
dc.description.degree | M.B.A | en_US |
dc.identifier.itemid | BILKUTUPB067709 | |