Manufacturer's pricing and lot-sizing decisions for perishable goods under various payment terms by a discounted cash flow analysis

Aircraft valuation and the estimation of an accurate aircraft price is undoubtedly a challenging task that has significant consequences for airlines. This paper presents an asset valuation model to show how a series of endogenous as well as exogenous factors can influence the value of an aircraft. Specifically, a discounted cash flow methodology is used to forecast the valuation of an old or new generation aircraft. Both total operating revenue and aircraft operating costs are taken into account to devise a reliable pre-tax profit measurement that is used as the basis of the discounted cash flow analysis. A sensitivity analysis based on Monte Carlo simulation is utilized to identify which factors have a more significant influence on the suggested aircraft value. Therefore, it addresses how value fluctuates in response to economic fluctuations. Indeed, the calculated value of an aircraft highly depends on the underlying assumptions used. The calculated value is compared with available data in a case study for verification.

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Choice data generation using usage scenarios and discounted cash flow analysis

Journal of Choice Modelling ◽

10.1016/j.jocm.2020.100250 ◽

2020 ◽

Vol 37 ◽

pp. 100250

Author(s):

Ungki Lee ◽

Namwoo Kang ◽

Ikjin Lee

Keyword(s):

Cash Flow ◽

Flow Analysis ◽

Data Generation ◽

Choice Data ◽

Discounted Cash Flow

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Inventory Policies for Deteriorating Items with Maximum Lifetime under Downstream Partial Trade Credits to Credit-Risk Customers by Discounted Cash Flow Analysis

Application of Decision Science in Business and Management ◽

10.5772/intechopen.90689 ◽

2020 ◽

Author(s):

Nirmal Kumar Duari ◽

Sorforaj Nowaj ◽

Jobin George Varghese

Keyword(s):

Credit Risk ◽

Cash Flow ◽

Flow Analysis ◽

Deteriorating Items ◽

Discounted Cash Flow ◽

Inventory Policies ◽

Maximum Lifetime ◽

Trade Credits

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Real Options and Discounted Cash Flow Analysis to Assess Strategic Investment Projects

Economics and Business ◽

10.1515/eb-2017-0008 ◽

2017 ◽

Vol 30 (1) ◽

pp. 91-101 ◽

Cited By ~ 3

Author(s):

Agnė Pivorienė

Keyword(s):

Real Options ◽

Cash Flow ◽

Flow Analysis ◽

Investment Decisions ◽

Business Environment ◽

Strategic Decision ◽

Discounted Cash Flow ◽

Strategic Investment ◽

Investment Projects ◽

Real Options Approach

Abstract In today’s uncertain and highly competitive business environment, the difficulty to make strategic investment decisions is growing. The dominant discounted cash flow analysis requires the assumption of perfect certainty of project cash flows. However, under uncertainty traditional DCF approach falls short of providing adequate strategic decision support, and this situation demands new methods for investment evaluation. Real options approach (ROA) has shown the potential for valuation of strategic corporate investment decisions and managerial flexibility in situations of high uncertainty. Under ROA, projects are viewed as real options that can be valued using financial option pricing techniques. This framework allows their owner to keep investment options open and to benefit from the upside potential of an opportunity while controlling the downside risk. The main aim of this research is to investigate the feasibility of real options approach and traditional DCF analysis for assessment of strategic investment projects under environmental uncertainty.

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Modelling of cogeneration systems. Part 2: Development of a quasi-static cogeneration model (steam turbine cogeneration analysis)

Proceedings of the Institution of Mechanical Engineers Part A Journal of Power and Energy ◽

10.1243/0957650001538236 ◽

2000 ◽

Vol 214 (2) ◽

pp. 125-143 ◽

Cited By ~ 4

Author(s):

J M O'Brien ◽

P K Bansal

Keyword(s):

Steam Turbine ◽

Cash Flow ◽

Flow Analysis ◽

Plant Performance ◽

Small Scale ◽

Cogeneration Plant ◽

Discounted Cash Flow ◽

Part Load ◽

Load Models ◽

Plant Simulation

Steam turbine cogeneration analysis (STuCA) is a quasi-static cogeneration plant model that has been developed to simulate steam turbine cogeneration plants subject to varying loads. STuCA was developed to provide potential cogeneration plant users with a model that could simulate part-load performance over the expected operating range of the cogeneration plant using fundamental engineering analysis methods. The model was designed to bridge the gap between static design-point models that could not accommodate part-load conditions and complex part-load models which are too expensive for small scale cogeneration proposals. In addition, the model contains economic analysis tools to analyse the thermoeconomic performance of the plant and to conduct a cash flow analysis. These features are an extension to the static and part-load models. The model consists of four submodels: a load, system, plant and economic model. The load submodel drives the cogeneration plant simulation, supplying utility demands to the system models. The system submodels calculate the steam required by the system components to meet the utility demands. The plant submodel then predicts turbine and boiler performance as they meet the steam demand. The primary plant submodel outputs are the electricity generated and quantity of coal consumed by the boiler, which are used by the economic submodel to conduct a thermoeconomic analysis of the site as well as a discounted cash flow analysis. This method of modelling results in a model that can predict plant performance with respect to varying load and then use those data to conduct a meaningful economic performance analysis of the site.

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