| Title |
A Study on Actual Conditions and Alternative Methods about FeasibilityStudy of Architectural Development Projects |
| Authors |
Lee Seong-Soo ; Kang Kyung-In |
| Keywords |
Architectural Development Project ; Feasibility Study ; Financial Analysis ; Cash-flow Analysis ; Ordinary Profit |
| Abstract |
The importance of the feasibility study on architectural development projects is more and more increasing. However, there are differences between theories and actualities about feasibility studies because scientific and actual verification about them has not been performed. The purposes of this study are to provide the analysis on differences between theories and actual cases, and to propose alternative methods about feasibility study. The results of this research are followed below.
1) To analyze business earnings and expenses, it is desirable to use the table of business earnings and cash flow, which is made suitable for architectural development projects.
2) In the standard of judgement, it is relevant to apply ordinary profit rate calculated by the accounting rate of return among the non-discounted cash flow method.
3) The probabilistic method is required to manage uncertainties and to do decision makings more systematically in architectural development projects.
This study lays the ground work of organic arrangement about architectural development projects and their feasibility study, and provides the analysis of the differences between theories and actualities about feasibility study. |