Tanzania's soil wealth

This paper adopts soil scientific models of soil productivity and degradation in Tanzania into an intertemporal optimisation framework. The farmers choose labour input, capital investment and fertiliser input to maximise soil wealth, i.e., the present value of soil rent. First we focus exclusively on soil mining, considering the nutrient stocks as determinants of land productivity. Next, we focus on soil erosion, and include rooting depth as determinant of land productivity. We compute the soil wealth under the assumption that the opportunity cost of labour is equal to current wages, or alternatively equal to zero. Our estimates suggest that the potential gains from change in agricultural management are considerable. Moreover, the shadow price on root depth and hence the returns to land conservation investments are highly sensitive to our labour market assumptions. We also find that the value of the eroded soil amounts to 12–17 per cent of the value of Hicksian income, and the savings required to maintain consumption amounts to 13–29 per cent of the contribution to GDP.

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Macroeconomic Risk Factor in Fuzzy Present Value of Highway Development

International Journal of Engineering & Technology ◽

10.14419/ijet.v7i4.33.23487 ◽

2018 ◽

Vol 7 (4.33) ◽

pp. 71

Author(s):

Siti Salihah Shaffie ◽

Saiful Hafizah Jaaman ◽

Daud Mohamad

Keyword(s):

Economic Growth ◽

Risk Assessment ◽

Risk Factor ◽

Cash Flow ◽

Capital Investment ◽

Accurate Estimation ◽

Present Value ◽

Macroeconomic Risk ◽

Macroeconomic Factor

Highway developments are the backbone for the society and economic growth. It is part of the capital investment in infrastructure developments that require high spending, long term commitment and prognosticated with numbers of risks. This is because the investment is associated with uncertainty and vagueness due to long term duration of construction and operation of the project. Hence, the valuation of the investment requires accommodated model to present more accurate estimation of the project. This study proposed to evaluate fuzzy present value of a highway project with anticipated risk assessment in its valuation using fuzzy present value. The risk assessment is part of the estimation of fuzzy cash flow to represent better present value of the project. The results show an estimated value comprise with risk assessment of macroeconomic factor to portray better estimation that can assist decision maker to make decision towards the project.

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The Economic Benefits of Malaysian University Degrees

IIUM Journal of Educational Studies ◽

10.31436/ijes.v7i1.197 ◽

2020 ◽

Vol 7 (1) ◽

pp. 15-25

Author(s):

Mohd Nahar Mohd Arshad ◽

Nur Nadhira Baharuddin

Keyword(s):

Human Capital ◽

Capital Investment ◽

Net Present Value ◽

Economic Benefits ◽

Degree Programs ◽

Educational Investment ◽

Present Value ◽

Public And Private ◽

Net Returns ◽

The Individual

AbstractThis study analyzes the net returns of educational investment in Malaysia using the net present value approach. The estimations consider the tuition payments of nine different bachelor degree programs of public and private universities in Malaysia and the forgone earnings while undertaking the degree programs as the cost of investments in human capital. The returns to education investment are based on the expected income accrued by the individual over the employment period until retirement. Under the assumptions that an individual would work until the retirement age of 60 years and a discount rate of 4 percent, the estimations show that holding a computer science degree from Universiti Sains Malaysia would give the highest net present value. Holding a medical degree, in general, would give the lowest net returns on educational investment as compared to the other selected programs. The net returns are sensitive to the costs of education, earnings and the duration of undertaking the degree programs.Keywords: Human capital investment, net present value, private rate of return, educational investment, Malaysian degree programmes

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Financial Feasibility of Sijuk Shrimp Paste Business in Sungai Padang Village, Sijuk District, Belitung Regency

Agro Ekonomi ◽

10.22146/jae.24208 ◽

2017 ◽

Vol 28 (1) ◽

pp. 142

Author(s):

Aditya Nugraha ◽

Suhatmini Hardyastuti ◽

Jangkung Handoyo Mulyo

Keyword(s):

Capital Investment ◽

Net Present Value ◽

Central Area ◽

Payback Period ◽

Operating Costs ◽

Selling Price ◽

Present Value ◽

Population Sampling ◽

Maximum Reduction ◽

Return Value

Sijuk shrimp paste business is a business in processing rebon shrimp which is most commonly implemented in Belitung Regency. In this study, profi t analysis, investment feasibility, and sensitivity were used to draw the conclusions. The samples involve 25 shrimp paste businesses taken by using census method in Sungai Padang Village, District Sijuk, Belitung Regency. This area is also a central area for producing Sijuk shrimp paste. Census refers to periodic collection of information about the specifi c population from the entire population. Sampling is a method of collecting information from a sample that represents population. The result showed that the Sijuk shrimp paste businesses gives benefi ts because they had a gain of Rp.17.558.914,29 / year, the value of gross profi t ratio of 50.61%, the rate of return per capital investment of 1.02, and the return on the investments amounted to 74.58%. The Sijuk shrimp paste businesses are feasible to continue be had the value of discounted payback period of 1.57 years, the net present value of Rp.18.264.662,44, the internal rate of the return value of 35%, and the profi tability index of 1.78. From the results of the sensitivity analysis concluded that the Sijuk shrimp paste businesses are feasible to continue because the percentage of increase in the maximum operating costs still can be tolerated which is equal to 44,763% and the percentage of maximum reduction in the selling price of Sijuk shrimp paste still can be tolerated which is equal to 22.108%.

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Risk Manage Capital Investment Decisions: A Lease vs. Purchase Illustration

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v25i3.1031 ◽

2011 ◽

Vol 25 (3) ◽

Author(s):

Thomas L. Zeller ◽

Brian B. Stanko

Keyword(s):

Capital Investment ◽

Net Present Value ◽

Investment Decisions ◽

Capital Budgeting ◽

Rate Of Return ◽

Internal Rate Of Return ◽

Wealth Creation ◽

Font Size ◽

Present Value ◽

Internal Rate

This paper demonstrates how to build risk into capital investment decisions.  We illustrate how to combine distribution theory, technology, and a business professional’s skills and insight into a capital investment analysis.  In addition, we show how management can approximate the risk of each cash flow estimate and display the overall capital investment results.  This framework is extended by showing how a mutually exclusive decision can be improved, using a lease versus purchase example.<a style="mso-footnote-id: ftn1;" name="_ftnref1" href="http://journals.cluteonline.com/index.php/JABR/author/saveSubmit/#_ftn1">[1]</a>  An Excel template is readily available from the authors allowing a hands-on application of the framework presented in this paper.  In addition, this paper positions the reader to comfortably use more advanced analytics, such as Monte Carlo simulation, a tool that is readily available in commercial software applications.<div style="mso-element: footnote-list;"> <hr size="1" /><div id="ftn1" style="mso-element: footnote;">This paper focuses on the application of net present value.  The advantage of using net present value in a capital budgeting decision is that it shows the potential stakeholder wealth creation and wealth destruction.  An internal rate of return analysis is intentionally left out of this paper.  According to Brealey, Myers and Allen, Principles of Corporate Finance, New York, NY: McGraw-Hill/Irwin 2006, pp. 91-99, internal rate of return should not be used to evaluate mutually exclusive capital investments.  </div></div>

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ANALISIS KELAYAKAN PENDIRIAN USAHA NUGGET IKAN BANDENG DENGAN METODE NET PRESENT VALUE (NPV) DI KABUPATEN MAROS

ILTEK : Jurnal Teknologi ◽

10.47398/iltek.v12i02.374 ◽

2017 ◽

Vol 12 (02) ◽

pp. 1751-1754

Author(s):

Suradi Suradi ◽

Andi Haslindah ◽

Jamilah Jamilah

Keyword(s):

Annual Cost ◽

Capital Investment ◽

Net Present Value ◽

Present Value

Ikan Bandeng merupakan potensi yang melimpah di Kabupaten Maros dimana pengolahannya masih sangat minim. Salah satu cara pemanfaatannya yaitu dengan melakukan pengolahan ikan bandeng menjadi nugget. Selain sebagai cemilan, nugget ikan juga bisa dijadikan sebagai lauk makanan.Penelitian ini didasarkan pada analisis data tentang kelayakan bisnis terhadap aspek pasar dan pemasaran, aspek produksi dan teknologi, aspek organisasi dan manajemen, aspek keuangan, serta Lingkungan. Nuggetdiolah dengan cara mencampurkan daging giling dengan bumbu-bumbu serta bahan pengikat kemudian dicetak dengan bentuk-bentuk tertentu selanjutnya dilumuri dengan tepung roti (coating) dan digoreng. Dari hasil penelitian dan analisa data keuangan yang dilakukan penulis, diperoleh nilai Investasi (Capital Investment) Rp. 179.900.000, Annual Cost Rp. 262.768.333 dan Annual BenefitRp. 345.600.000, nilai BEP Rp. 143.177.744 dengan memproduksi 3.579 bungkus dengan berat produk 1000 gram/bungkus, harga jual Rp. 40.000/bungkus, BCR 1,66 (BCR>1), dan NPV sebesar Rp. 118.691.592 IRR = 36,3%, MARR = 19%, serta PBP yang dapat dicapai pada tahun ke 3, Berdasarkan nilai tersebut diatas maka rencana pendirian usaha nugget ikan bandeng layak untuk dilaksanakan.

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A financial analysis of a white pine improvement cut in Ontario

The Forestry Chronicle ◽

10.5558/tfc71466-4 ◽

1995 ◽

Vol 71 (4) ◽

pp. 466-472 ◽

Cited By ~ 5

Author(s):

Kimberly Rollins ◽

Margaret Forsyth ◽

Samual Bonti-Ankomah ◽

Ben Amoah

Keyword(s):

Interest Rates ◽

Key Words ◽

Financial Analysis ◽

Forest Economics ◽

Present Value ◽

White Pine ◽

Economic Criterion ◽

Highly Sensitive ◽

Net Benefits ◽

Experimental Improvement

Standard tools of forestry economics are used to provide insights into the effects of an experimental improvement cut, designed to release understory white pine and initiate a shelterwood system. The economic criterion is to harvest when the present valued net benefits from forest stands are highest. This study shows that the improvement cut increased the present value of net benefits per hectare of treated stands compared to control stands. The results are highly sensitive to interest rates applied. The success of the treatment is due in part to the fact that the bulk of the costs are not incurred until the 55th year of the stands' lifespan, and hence are discounted significantly when total benefits are tallied. Key words: white pine release, pine mixed wood management forest economics

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COMPARATIVE ANALYSIS OF EVALUATION MODELS EFFECTIVENESS OF INVESTMENTS IN INNOVATION PROJECTS (PART 1)

Vìsnik Sumsʹkogo deržavnogo unìversitetu ◽

10.21272/1817-9215.2019.1-14 ◽

2019 ◽

pp. 99-110

Author(s):

O. Zaitsev

Keyword(s):

Capital Investment ◽

Net Present Value ◽

New Technology ◽

Investment Efficiency ◽

Capital Investments ◽

Present Value ◽

Advantages And Disadvantages ◽

Efficiency Assessment ◽

Reduced Costs ◽

Further Development

The article describes the main models and methodological tools for evaluating the effectiveness of investment and innovation measures and mechanisms that have been developed and applied in the economic environment since the mid-twentieth century. The article discusses two directions in the assessment of investments: the direction of market evaluation of the introduction of innovation / investment and the direction of the assessment of the effectiveness of capital investment (investment) in the development of new technology (innovation), which was used in the conditions of non-market (planned) economic system. The article has characteristics about the advantages and disadvantages of both areas. The direction of further development of investment efficiency assessment models is outlined. Keywords: net present value, discounting, economic efficiency of capital investments, reduced costs, indicator of the speed of specific increment in value.

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Assessing the impact of environmental cost on the capital investment decision-making of the Electricity Supply Commission, South Africa

10.51415/10321/3705 ◽

2020 ◽

Author(s):

◽

Toyese Titus Oyewo

Keyword(s):

Decision Making ◽

Capital Investment ◽

Power Plants ◽

Social Cost ◽

Net Present Value ◽

Environmental Cost ◽

Electricity Supply ◽

Present Value ◽

Coal Power Plants ◽

Coal Power

The availability of energy (electricity) is a key factor in economic growth and the sustainability of production processes. The need to quantitatively measure the environmental risk and hazard associated with energy sources for the environment is useful in evaluating capital investment for decision-making. Coal (fossil fuel) is the main source of energy in South Africa, based on its availability and cost-effectiveness. Specifically, quantitative research using mathematical marginal social cost modelling to evaluate the environmental cost of emissions emanating from the Electricity Supply Commission’s (ESKOM) coal power stations is employed. It was discovered that the price of electricity has trebled over the lifespan of coal power plants. Therefore, the need to construct coal power plants with optimum levels of production was highlighted. The net present value (NPV) technique was used to evaluate ESKOM's capital investment and the marginal social cost mathematical model was developed for measuring and quantifying the emission costs associated with the lifespan of the coal power plants. Results revealed that the optimum level production of 2,150,000 Gigawatts per annum within the range of the present capacity of ESKOM of 2,292,000 gigawatts annually is required and profitable to ESKOM. The net present value yielded a positive value of R1, 448,713,000,000-00 over a period of 30 years of coal power plants’ life-span. However, various technologies used to minimize emissions were also considered and investigated to confirm the feasibility and profitability of investment in coal- powered stations using environmental management accounting and marginal social cost approaches.

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Risk Analysis on PMMA Recycling Economics

Polymers ◽

10.3390/polym13162724 ◽

2021 ◽

Vol 13 (16) ◽

pp. 2724

Author(s):

Jacopo De De Tommaso ◽

Jean-Luc Dubois

Keyword(s):

Capital Investment ◽

Net Present Value ◽

Capital Expenditure ◽

Present Value ◽

Process Economics ◽

Plastic Recycling ◽

Payback Time ◽

The Future ◽

Plant Processing ◽

Risk Scenario

Poly(methyl methacrylate) (PMMA) is a versatile polymer with a forecast market of 4 Mtons/y by 2025, and 6 USD billion by 2027. Each year, 10% of the produced cast sheets, extrusion sheets, or granules PMMA end up as post-production waste, accounting for approximately 30 000 tons/y in Europe only. To guide the future recycling efforts, we investigated the risks of depolymerization process economics for different PMMA scraps feedstock, capital expenditure (CAPEX), and regenerated MMA (r-MMA) prices via a Monte-Carlo simulation. An analysis of plastic recycling plants operating with similar technologies confirmed how a maximum 10 M USD plant (median cost) is what a company should aim for, based on our hypothesis. The capital investment and the r-MMA quality have the main impacts on the profitability. Depending on the pursued outcome, we identified three most suitable scenarios. Lower capital-intensive plants (Scenarios 4 and 8) provide the fastest payback time, but this generates a lower quality monomer, and therefore lower appeal on the long term. On 10 or 20 years of operation, companies should target the very best r-MMA quality, to achieve the highest net present value (Scenario 6). Product quality comes from the feedstock choice, depolymerization, and purification technologies. Counterintuitively, a plant processing low quality scraps available for free (Scenario 7), and therefore producing low purity r-MMA, has the highest probability of negative net present value after 10 years of operation, making it a high-risk scenario. Western countries (especially Europe), call for more and more pure r-MMA, hopefully comparable to the virgin material. With legislations on recycled products becoming more stringent, low quality product might not find a market in the future. To convince shareholders and government bodies, companies should demonstrate how funds and subsidies directly translate into higher quality products (more attractive to costumers), more economically viable, and with a wider market.

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

Journal of Business and Economics ◽

10.15341/jbe(2155-7950)/07.10.2019/006 ◽

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.

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