CONSIDERATION ON RISKS AVOIDANCE THROUGH LEGAL PROVISIONS IN INVESTMENTS (CASE STUDY)
CONSIDERATION ON RISKS AVOIDANCE THROUGH LEGAL PROVISIONS IN INVESTMENTS (CASE STUDY)

Summary/Abstract: The investment goal is to create and develop a tourism infrastructure, for the natural resources capitalization and improvement of tourism services in Fălticeni, Suceava County. Economic and financial analysis of the proposed investment has started from the cost-benefit analysis, taking into account that the new infrastructure leisure activities will be incorporated in the work done by the town of Fălticeni. Operational costs of the new infrastructure will be covered by financial resources of Fălticeni, from sold tickets. The revenue forecast was based on the availability of potential tourists pay for services such. In the economic and financial analysis, cash inflows will use the market prices as a starting point. The leisure structure activity is expected to begin in the first year after the investment. In order to determine the monthly receipts of Fălticeni, we took seasonality into account. During a year, three tourism periods were identified: full - season - for a period of 119 days/year; intermediate season - a period of 106 days/year; off - season - with a duration of 141 days/year. To minimize risks, new landscaped spaces will be provided. Calculation of NPV and IRR indicators was done starting from cash flows generated by the project, to which the change in working capital and residual value were added. Cash flow result was updated and then used to determine the NPV and IRR indicators.

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