TY - JOUR
T1 - COST-BENEFIT METHODOLOGY IN PUBLIC INVESTMENT IN THE PERUVIAN EDUCATIONAL SECTOR OF INVIERTE.PE. A PRACTICAL CASE
AU - Rodríguez-Limachi, Omar Moisés
AU - Incacutipa-Limachi, Duverly Joao
AU - Ticona-Carrizales, Lucio
AU - Velázquez-Sagua, Héctor Luciano
AU - Puma-Llanqui, Javier Santos
AU - Avila-Choque, Ronald Paul
AU - Apaza-Cruz, Jorge Luis
AU - Mantari-Condemayta, Manuel Augusto
AU - Tintaya-Choquehuanca, Olimpia
AU - Mamani-Flores, Adderly
N1 - Publisher Copyright:
© 2024 ANPAD - Associacao Nacional de Pos-Graduacao e Pesquisa em Administracao. All rights reserved.
PY - 2024
Y1 - 2024
N2 - Objective: The purpose of the research is to show a specific process to perform the cost/benefit analysis in the social evaluation of public investment projects in the education sector, applying the net present value (NPV) and internal rate of return (IRR) profitability indicators, taking into account that the approach of the National System of Multiannual Programming and Investment Management (Invierte.pe) applies a different methodology as the cost/efficiency analysis, where it uses criteria such as the Present Value of Costs (PVC) and the Cost Efficiency Indicator (CEI). Theoretical framework: In order to present our proposal, we used as a theoretical framework, mainly the directives, instructions, procedures, and methodological guides proposed by the Ministry of Economy and Finance of Peru, which can be improved by considering the results of investment in education. Method: The research proposes a technique to evaluate investment projects in the education sector through the cost/benefit methodology instead of the cost/effectiveness methodology. Within the materials and methods, an education sector investment project approved by Invierte.pe was used, and we added cost/benefit analysis to estimate the profitability indicators NPV and IRR to carry out the social evaluation of the project. Results: The results show that the education project has a net present value of S/. 794,874.30 at social prices, and an internal rate of social return of 9.56%. Finishing the research, it can be concluded based on the results obtained that it is possible to incorporate the cost/benefit methodology in the formulation and evaluation of standard, simplified technical sheets and studies at the profile level of public investment projects in the education sector. Conclusions: It can be concluded that it is feasible the social evaluation of investment projects in the educational sector of the Peruvian state, through the cost/benefit methodology in the region and the country, by means of the profitability indicators NPV and IRR, obtaining a higher internal rate of return.
AB - Objective: The purpose of the research is to show a specific process to perform the cost/benefit analysis in the social evaluation of public investment projects in the education sector, applying the net present value (NPV) and internal rate of return (IRR) profitability indicators, taking into account that the approach of the National System of Multiannual Programming and Investment Management (Invierte.pe) applies a different methodology as the cost/efficiency analysis, where it uses criteria such as the Present Value of Costs (PVC) and the Cost Efficiency Indicator (CEI). Theoretical framework: In order to present our proposal, we used as a theoretical framework, mainly the directives, instructions, procedures, and methodological guides proposed by the Ministry of Economy and Finance of Peru, which can be improved by considering the results of investment in education. Method: The research proposes a technique to evaluate investment projects in the education sector through the cost/benefit methodology instead of the cost/effectiveness methodology. Within the materials and methods, an education sector investment project approved by Invierte.pe was used, and we added cost/benefit analysis to estimate the profitability indicators NPV and IRR to carry out the social evaluation of the project. Results: The results show that the education project has a net present value of S/. 794,874.30 at social prices, and an internal rate of social return of 9.56%. Finishing the research, it can be concluded based on the results obtained that it is possible to incorporate the cost/benefit methodology in the formulation and evaluation of standard, simplified technical sheets and studies at the profile level of public investment projects in the education sector. Conclusions: It can be concluded that it is feasible the social evaluation of investment projects in the educational sector of the Peruvian state, through the cost/benefit methodology in the region and the country, by means of the profitability indicators NPV and IRR, obtaining a higher internal rate of return.
KW - Cost/Benefit Methodology
KW - Education Sector
KW - Public Investment
UR - https://www.scopus.com/pages/publications/85193724461
U2 - 10.24857/rgsa.v18n8-042
DO - 10.24857/rgsa.v18n8-042
M3 - Artículo
AN - SCOPUS:85193724461
SN - 1981-982X
VL - 18
JO - Revista de Gestao Social e Ambiental
JF - Revista de Gestao Social e Ambiental
IS - 8
M1 - e04320
ER -