Project Investment

Investment includes not only monetary investments but also personnel and intellectual investments held by enterprises. Increase in corporate cash flow does not occur spontaneously. No change occurs in cash flow without any investment activity.

Investment is the origin that generates a project. Investment in projects is an act to collect investment by ensuring profits as deliverables of projects. Project investment enables direct or indirect involvement with project activities. It is an investment activity that has an authority to control project activities to some extent.

Concerning how to recognize a project, there are two perspectives: orderer of a project (business investor) and contractor of a project. As shown in Figure 4-1-9, they are only different in the position from the viewpoint of financial domains, and a project can be seen principally as an object of investment from both sides. They both have periods of investment and collection of investment. They only differ in phases of investment and investment collection and from where investment is collected.

Relationship between Investment and Project

Relationship between Investment and Project

Investment in project activities (equity, debts, PF)

Investment in business activities (equity, debts, PF)

Investment in project activities (equity, debts, PF)

Investment in business activities (equity, debts, PF)

Order receiving activities

Project implementation

Operation re o in

Investment In order receiving (equity, debts)

Investment in project implementation (equity, debts)

Investment In order receiving (equity, debts)

Investment in project implementation (equity, debts)

re o in

Investment period

PF : Project Finance

Investment period

Collection period

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