Project appraisal and Prompt Payment Code: Difference between pages

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imported>Doug Williamson
(Typo correction. Definitions. Worthwhile.)
 
imported>Doug Williamson
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1. ''Cash flows - discounted cash flow analysis.''
(PPC).


The evaluation and selection of projects which are most likely to maximise shareholders' wealth, by the comparative analysis of their expected cashflows.
Prompt payment of suppliers is encouraged or required by a number of initiatives.  


Examples include the UK’s voluntary Prompt Payment Code and the EU’s mandatory Late Payment Directive 2011/7.


2.  ''Cash flows - discounted cash flow analysis - qualitative & strategic analysis - real options.''


Similar evaluation techniques taking account of additional factors and considerations - as well as the expected project cashflows - including for example the existence of real options.
As an example, signatories to the UK Prompt Payment Code undertake to pay suppliers within a maximum of 60 days (in line with late payment legislation requirements), to work towards adopting 30 days as the norm, and to avoid any practices that adversely affect the supply chain.


The UK Prompt Payment Code is administered by the Chartered Institute of Credit Management (CICM).


Also known as ''Project analysis.''


 
Similar codes and legislation have been implemented in a number of jurisdictions.
'''Points to note'''
 
Note for both definitions above that ''projects'' are anything involving expenditures for which the benefits, or some of them, occur at a different time from that of the expenditure or some it.
 
As well as capital expenditure, included are, for example, acquisitions and disposals, marketing expenditure, advertising, staff training or buying a new coffee pot for a staff refreshment station.
 
It is only worthwhile devoting time and effort in formal project appraisal for projects involving material amounts of expenditure.




== See also ==
== See also ==
* [[5Ps of marketing]]
*[[Chartered Institute of Credit Management]]
* [[Discounted cash flow]]
*[[Credit]]
* [[Influencing skills]]
* [[Norm]]
* [[Payback]]
*[[Open account]]
* [[Real option]]
*[[Payment practices reporting]]
* [[Real options valuation]]
*[[PPC Compliance Board]]
* [[Sunk costs]]
*[[Small Business Commissioner]]




=== Other resources ===
==External link==
* [[Media:2015_07_July_-_Hidden_treasure.pdf| Hidden treasure - knowing our options, The Treasurer]]
*[https://www.smallbusinesscommissioner.gov.uk/ppc/ Prompt Payment Code - Small Business Commissioner]


[[Category:Financial_management]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:Planning_and_projects]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Cash_management]]
[[Category:Manage_risks]]
[[Category:Liquidity_management]]

Revision as of 02:53, 25 December 2021

(PPC).

Prompt payment of suppliers is encouraged or required by a number of initiatives.

Examples include the UK’s voluntary Prompt Payment Code and the EU’s mandatory Late Payment Directive 2011/7.


As an example, signatories to the UK Prompt Payment Code undertake to pay suppliers within a maximum of 60 days (in line with late payment legislation requirements), to work towards adopting 30 days as the norm, and to avoid any practices that adversely affect the supply chain.

The UK Prompt Payment Code is administered by the Chartered Institute of Credit Management (CICM).


Similar codes and legislation have been implemented in a number of jurisdictions.


See also


External link