Energy Storage System Investment Decision Based on Internal Rate of Return

2019 ◽  
pp. 149-160
Author(s):  
Jincheng Wu ◽  
Shufeng Dong ◽  
Chengsi Xu ◽  
Ronglei Liu ◽  
Wenbo Wang ◽  
...  
Keyword(s):  
Energy Storage ◽  
Investment Decision ◽  
Storage System ◽  
Energy Storage System ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Internal Rate

Economic feasibility through the optimal capacity calculation model of an energy storage system connected to solar power generator

2019 ◽  
Vol 31 (5) ◽  
pp. 860-869 ◽  
Author(s):  
Min-Su Kang ◽  
Young-Kwon Park ◽  
Kyung-Tae Kim
Keyword(s):  
Power Generation ◽  
Renewable Energy ◽  
Energy Storage ◽  
Economic Analysis ◽  
Economic Efficiency ◽  
Storage System ◽  
Energy Storage System ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Optimal Capacity

In this study, the optimal capacity of a battery and power conditioning system (PCS) of energy storage system were calculated. In addition, economic analysis was conducted to determine the optimal equipment standard, taking the government support plan into account. In addition, the changes in the power generation pattern were examined when the energy storage system and photovoltaic (PV) were connected to verify the power peak management efficiency of the energy storage system. Moreover, the effect of the energy storage system support policy was assessed by comparing the economic efficiency of single-PV equipment and energy storage system-connected equipment by the internal rate of return. Internal rate of return was analyzed by the change in cost of energy storage system equipment and the price of system marginal price/renewable energy certificate, which was a sales factor, and used for economic forecasting of the energy storage system. To accomplish this, the 2015 power generation output data (daily average 3.69 h power generation) of LG Hausys Ulsan station were converted to small-scale (3 MW) and large-scale (10 MW) solar power and a model that calculated the factor capacity of battery and the PCS capacity of the energy storage system was then constructed. Furthermore, the selected battery capacity and PCS capacity were analyzed separately by economic analysis to propose an energy storage system equipment standard, which could guarantee the optimal economic efficiency. Finally, based on the “Guideline for Management and Operation of Mandatory Supply for New and Renewable Energy” established by the Ministry of Commerce Industry and Energy, the profit model applied to the economic analysis was limited to an energy storage system charged from 10:00 to 16:00.

scholarly journals A Study of Life Internal Rate of Return

2021 ◽  
Vol 20 ◽  
pp. 122-133
Author(s):  
Sorrawee Roenganan ◽  
Masnita Misran ◽  
Nattakorn Phewchean
Keyword(s):  
Life Insurance ◽  
Investment Decision ◽  
Lapse Rate ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Life Plan ◽  
Retirement Plan ◽  
Internal Rate ◽  
Different Types ◽  
Rate Of Returns

Life insurance, not included as a part of the legal obligation in some countries, is one of the investment approaches that might not stand high in the public favor for some people since this is a type of investments that the investor cannot know beforehand the exact return, and the returns completely depend on uncertainty of the policy specification in some circumstances. Similar to the other kinds of investment, investors in life insurance products have been seeking a tool for investment evaluation. However, currently there are no accurate tools that can provide the value of the investment in a life insurance product sensitive to the uncertainty. Internal rate of return is the basic tool that buyers or bankers may apply in order to find the rate of return of this type of investment. The investment decision tool is one of the most important keys that investors have utilized upon making their decisions on investments. Therefore, in this research, we propose a new mathematical model with applications for investment decision, being an extension of the internal rate of return by taking into account the life probability, considering different types of life insurance policies, and other factors specified on life insurance investments such as the premium, the death benefit, the maturity value, the sum insured, the lapse rate, the surrender value, the annuity certain, and the lapse rate with different genders and ages. This newly proposed model is named as the "Life Internal Rate of Return" or Life-IRR model. By using the sample data for both males and females aged 30 years old with expected benefit of 100,000 baht for different types of life insurance policies which are endowment plan, whole life plan and retirement plan, the results show that, for males, the highest life rate of returns is that obtained from the retirement plan (3.633692%), and the lowest life internal rates of returns is that obtained from the endowment plan (2.384443%), while the whole life plan offers moderate life rate of returns of 2.427941%. For females, the highest life rate of returns is that obtained from the retirement plan (3.335189%), and the lowest life internal rates of returns is that obtained from the whole life plan (2.104658%), while the endowment plan offers moderate life rate of returns of 2.308062%. The sensitivity analyses of the life internal rates of return perform the natural characteristics of life insurance.

Cost and Benefit Analysis of One Tambon One Product: A Case study of Rattan and Bamboo Wickerwork Products Group of Bantungfak, Thailand

2019 ◽  
Vol 10 (7) ◽  
pp. 654-657
Author(s):  
Pathompong Kookkaew ◽  
Keyword(s):  
Capital Investment ◽  
Net Present Value ◽  
Investment Decision ◽  
Rate Of Return ◽  
Cost Ratio ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Financial Return ◽  
Internal Rate ◽  
Cost And Benefit Analysis

The purposes of this research study were cost and benefits analysis of Rattan and Bamboo Wickerwork Products Group. Qualitative study was employed to collect and analyze data using in-depth interview. Interview questions were related to costs and benefit, and return on investment analysis — Net Present Value: NPV, Internal Rate of Return: IRR, Benefit and Cost Ratio: B/C Ratio at Discount Rate of 7% of 10 years of project life. The results reveal that Net Present Value (NPV) was 137,391 Baht, Internal Rate of Return (IRR) was 30.89%, Benefit and Cost Ratio (B/C Ratio) was 1.04. Financial return is in capital investment decision criteria.

ANALISIS KELAYAKAN FINANSIAL INDUSTRI PENGOLAHAN KECAP ANEKA GUNA DI KOTA LANGSA

2017 ◽  
Vol 2 (1) ◽  
pp. 21-30
Author(s):  
Muhammad Jamil ◽  
Januari Frizki Bella
Keyword(s):  
Net Present Value ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Internal Rate

Adapun tujuan dari Penelitian ini adalah untuk mengetahui kelayakan usaha industri pengolahan kecap Aneka Guna apabila dilihat dari segi kelayakan finansial. Penelitian ini menggunakan metode studi kasus. Lokasi penelitian yaitu di Kota Langsa dengan pertimbangan bahwa lokasi tersebut merupakan daerah yang terdapat industri pengolahan kecap asin dan mudah di jangkau oleh penulis. Waktu penelitian dilaksanakan pada Bulan Juni - Oktober 2014. Tenaga kerja yang digunakan berjumlah 27 orang, 20 tenaga kerja pria dan 7 orang tenaga kerja wanita. Jumlah penggunaan tenaga kerja selama 5 tahun sebesar 3759 HKP. Total biaya produksi yang dikeluarkan oleh pengusaha dalam usaha pembuatan kecap didaerah penelitian selama 5 tahun adalah Rp. 2.076.988.000,-. Pendapatan kotor yang diperoleh pengusaha sebesar Rp. 8.199.690.000,- dan pendapan bersih yang diperoleh sebesar Rp. 6.122.702.000,-                 Kota Langsa hanya memiliki 1 pengusaha pengolahan kecap asin dan dijadikan sebagai pengusaha sampel yaitu usaha industri pengolahan kecap asin Aneka Guna. Hasil perhitungan di peroleh Net Present Value (NPV) sebesar Rp. 263.281.290 (lebih besar dari nol), sedangkan Internal Rate of Return (IRR) sebesar 84% lebih besar dari tingkat bunga yang berlaku (D.F. = 18%), sedangkan Net B/C Ratio sebesar 3,27 (lebih dari pada 1) dan Pay Back Priod (PBP) 1 Tahun 6 Bulan (lebih kecil dari umur ekonomis).  

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