scholarly journals Optimal Model of Investment Decision for Distribution Network Construction Project

2020 ◽  
Vol 194 ◽  
pp. 03020
Author(s):  
YU Haozheng ◽  
SUN Huijun ◽  
LI Ke ◽  
ZHOU Peng ◽  
GUO Xinzhi ◽  
...  
Keyword(s):  
Financial Constraints ◽  
Net Present Value ◽  
Programming Model ◽  
Investment Decision ◽  
Distribution Network ◽  
Present Value ◽  
Optimal Model ◽  
Network Construction ◽  
Investment Allocation ◽  
Grid Operation

In order to meet the requirements of precise investment in the distribution network under the new power reform, this paper proposes an optimization model for the investment decision of the distribution network. With the largest net present value rate and the smallest comprehensive cost of grid operation as the optimization goal, and certain capital constraints as constraints, a distribution network 0-1 programming model is established and solved by LINGO software; the analysis of an example shows that this model can ensure the safety of investment in the distribution network and the precise investment allocation in the distribution network under certain financial constraints.

Seed Orchard Replacement Guidelines: A Linear Programming Approach

1991 ◽  
Vol 15 (3) ◽  
pp. 117-125
Author(s):  
Jay O'Laughlin ◽  
Christopher M. Whatley ◽  
Craig R. McKinley
Keyword(s):  
Linear Programming ◽  
Net Present Value ◽  
Programming Model ◽  
Seed Orchard ◽  
Planning Horizon ◽  
Linear Programming Model ◽  
Programming Approach ◽  
Specific Production ◽  
Present Value ◽  
Linear Programming Approach

Abstract A linear programming model is used to determine when to replace a seed orchard with subsequent rotations reflecting additional genetic improvements. The objective is to maximize the net present value of the orchard while meeting specific production targets of exactly 1,000 pounds of seed per year. The solution calls for a 39 ac orchard over the 50-year planning horizon, and provides a schedule indicating both when and how much of the orchard is to be replaced. Slightly more than half (55%) of the first orchard rotation is replaced between years 13 and 21—roughly 13% in year 13, 14% in year 15, 16% in year 17, 4% in year 19, and 8% in year 21. The remaining 45% of the orchard is replaced at the maximum orchard age of 25. To meet production needs in years 25 through 34 without using additional orchard acreage, 2,550 pounds of surplus seed are produced between years 13 and 24. South. J. Appl. For. 15(3):117-125.

scholarly journals An Ex Ante Assessment of Investments in Texas Grapefruit under Uncertainty

2001 ◽  
Vol 33 (3) ◽  
pp. 391-401 ◽  
Author(s):  
Nicole A. Elmer ◽  
Amy P. Thurow ◽  
Jason L. Johnson ◽  
C. Parr Rosson
Keyword(s):  
Net Present Value ◽  
Important Determinant ◽  
Investment Decision ◽  
Production Costs ◽  
Investment Behavior ◽  
Present Value ◽  
Price Variability ◽  
Rule Based ◽  
Ex Ante ◽  
Hurdle Rate

AbstractThe Dixit-Pindyck model was applied to examine the hypothesis that uncertainty associated with grapefruit production costs and returns is an important determinant of Texas grapefruit growers' investment behavior. Freezes, price variability, and the effects of expanded trade were analyzed as risk factors. An investment decision rule based on a net-present value calculation would approve a 25-year commitment to a 20-acre grapefruit grove, given a 6-percent discount rate. The modified hurdle rate, calculated using an ex ante version of the Dixit-Pindyck model, is 24 percent. The major source of the risk borne by Texas grapefruit investors is from freezes, rather than from expanded trade.

scholarly journals SENSITIVITAS INVESTASI STUDI KASUS PADA PENINGKATAN KAPASITAS PABRIK GULA SRAGI PT.PERKEBUNAN NUSANTARA IX

2021 ◽  
Vol 5 (2) ◽  
pp. 155-166
Author(s):  
Dyah Puspasari ◽  
Suwandhi
Keyword(s):  
Net Present Value ◽  
Investment Decision ◽  
Sensitivity Study ◽  
Payback Period ◽  
Selling Price ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Investment Value ◽  
Cost Of Production ◽  
The Cost

This study aims to determine the sensitivity of the increase or decrease in the selling price of sugar and drops, then the investment value, and the cost of production to the IRR obtained from the investment decision to increase the capacity of the Sragi Sugar Factory. Hypothesis testing is carried out on the results of the calculation of investment analysis which includes several commonly used parameters, namely Net present value (NPV), Internal rate of return (IRR), Profitability Index (PI), and Payback Period (PP), in this case as a comparison used The results of the IRR calculation. The results of the sensitivity study found that the selling price has the highest sensitivity, then the second is the investment value, while the cost of goods manufactured has the lowest sensitivity. The results of tests carried out on three parameters show that there is a significant change between the Selling Price, Investment Value and Cost of Production with the calculation of the IRR of an investment.

Der Weg zur modernen Investitionsrechnung

2010 ◽  
Vol 51 (1) ◽  
pp. 22-28 ◽  
Author(s):  
Stefan Behringer
Keyword(s):  
Net Present Value ◽  
Investment Decision ◽  
17Th Century ◽  
Separation Theorem ◽  
Present Value ◽  
Time Value Of Money ◽  
Time Value ◽  
Investment Appraisal ◽  
Value Of Money ◽  
The Way

Seitdem der Mensch wirtschaftet, triff t er Entscheidungen über Investitionen. Heute hat er dazu ein ausgereiftes Instrumentarium: Investitionen werden mit dem Kapitalwertkriterium in verschiedenen Szenarien, die mit ihren Wahrscheinlichkeiten gewichtet werden, auf Vorteilhaftigkeit geprüft. Der Weg dahin war lang: Die Zeit muss durch den Zins berücksichtigt werden. Allerdings war das kanonische Zinsverbot ein Hindernis auf dem Weg zum Kapitalwertkriterium. Erst Leibniz konnte den Weg frei machen, indem er eine logische Ableitung für die Barwertrechnung vorlegte. Um die Risiken der Investition angemessen zu berücksichtigen, braucht man Wahrscheinlichkeiten. Die französischen Philosophen Fermat und Pascal haben in einem Briefwechsel jeweils eine Lösung entwickelt, die heute in der Szenariotechnik Verwendung fi ndet. Damit die Investitionsentscheidung isoliert getroff en werden kann, bedarf es als letztem Element eines Separationstheorems, welches Irving Fisher Anfang des 20. Jahrhundert entwickelte. Today the Net Present Value rule is widely used in different scenarios, that are weighted with likelihoods to evaluate whether an investment is advantageous or not. The way to that rule has a long history, since investments are done since mankind works together in economies. Interest is needed to account for the time value of money. The canonical ban on interest was an obstacle for the development of the net present value rule, which was resolved only in an essay from Leibniz in the 17th century. The likelihoods were developed by the French philosophers Pascal and Fermat also in the 17th century. As last element of modern investment appraisal Irving Fisher developed the separation theorem, which allows making an investment decision isolated from the surroundings. Keywords: der weg zur modernen investitionsrechnung

scholarly journals The Decision To Build A Fence: A Real-Option Problem

1970 ◽  
Vol 36 (1) ◽  
pp. 45-58
Author(s):  
Garland Simmons
Keyword(s):  
Real Option ◽  
Net Present Value ◽  
Programming Model ◽  
Investment Decision ◽  
Economic Value ◽  
Value Added ◽  
Capital Budgeting ◽  
Herd Size ◽  
Cattle Production ◽  
Relationship Of

Real-option methods of Net Present Value (NPV) analysis are applied tounderstand a capital budgeting decision concerning flexibility. The capital budgetingproblem under study here is the decision of whether Spade Ranch (Spade) should builda fence. If this fence is built, then a hay-meadow could be converted into pasture land,which would in turn permit the herd-size of the Spade Ranch to increase. However,this fence building does not require the Spade to take the newly-fenced land out of hayproduction and put it into cattle production. Instead, once the fence is built, the Spadehas the ability to switch land use from hay production to cattle production and viceversa. The decision of whether or not to create this flexibility by fence-building is thecrux of this paper. What is the value of flexibility? If the fence costs less than the valueof this flexibility then we build the fence, otherwise no.For two different scenarios, a linear programming model is employed todefine the relationship of Economic Value Added (EVA) to the question of whetheror not one should produce hay or cattle given that the existence of a fence permits adecision maker to switch back and forth between hay and cattle production. Thesetwo scenarios, each of which work under different pricing assumptions, producedifferent EVA results and different production choices.From this scenario work, the paper moves to the question of NPV. Is thedecision to build a fence a positive NPV investment decision or not? An optionpricing model is used to approach this question. Given a fence that provides for theability to switch back and forth between cattle and hay production, what is the valueof choosing additional cattle production by giving up the additional production ofhay for sale? As it turns out, the question of NPV for an investment that provides afirm more flexibility by switching from the production of one product to another canbe answered. But the answer depends on the volatility of possible rates of return oninvestment for both hay and cattle production, and their correlation with one another.

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.

EVALUATION METHODS FOR CONSTRUCTION PROJECTS

2009 ◽  
Vol 15 (4) ◽  
pp. 349-359 ◽  
Author(s):  
Moonseo Park ◽  
Yongsik Chu ◽  
Hyun-Soo Lee ◽  
Wooyoung Kim
Keyword(s):  
Construction Projects ◽  
Net Present Value ◽  
Investment Decision ◽  
Evaluation Methods ◽  
Rate Of Return ◽  
Systematic Bias ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Decision Tools ◽  
Construction Market

Financial evaluation methods such as Net Present Value (NPV) and Internal Rate of Return (IRR) are not fully adequate for accounting three practical aspects of construction projects: reinvestment rate, actual amount of required investment, and firm available funds. In a certain type of projects, this inadequacy often results in the inapplicability of NPV, multiple or no IRR problem, systematic bias of IRR, and inconsistent decision signal and ranking between NPV and IRR. Many modified methods have been developed, but hardly succeeded in reflecting construction market reality in an integrated manner. To address this issue, Project Present Value, Project Rate of Return, and Firm Rate of Return are proposed together with an investment decision framework. The proposed methods are designed to be free from all those problems, while incorporating market reality in them. As a result, construction practitioners would have more reliable and economically meaningful decision tools, which lead to the success of their projects. Santrauka Finansiniai įvertinimo metodai, kaip dabartinės vertės (DV) arba vidinės grąžos (VG), neadekvačiai vertina tris praktinius statybos projektų aspektus: reinvestavimo greitį, tikrąjį investicijų ir kapitalo poreikį. Dėl to neadekvatumo tam tikrai projektų rūšiai minėtųjų metodų iš viso neįmanoma pritaikyti. Sukurta daug modifikuotų metodų, tačiau jie sunkiai atspindi statybos rinkos tikrovę integruota forma. Tam pasiūlyta investicinių sprendimų sistema, į kurią integruoti trys metodai: dabartinės projekto vertės, projekto vidinės grąžos ir įmonės apyvartumo. Pasiūlytieji metodai gali įvertinti rinkos realybę. Dabar statybos gamybininkai turės patikimesnes ekonomiškai reikšmingas priemones sprendimams priimti ir galės sėkmingiau įgyvendinti savo projektus.

scholarly journals ANALISIS INVESTASI PENAMBAHAN AKTIVA TETAP (MESIN OVEN) PADA UD. WARNA SARI DI DESA SURANADI KECAMATAN NARMADA KABUPATEN LOMBOK BARAT

GANEC SWARA ◽  
2020 ◽  
Vol 14 (1) ◽  
pp. 413
Author(s):  
I GUSTI AGUNG DIDIT EKA PERMADI
Keyword(s):  
Data Collection ◽  
Net Present Value ◽  
Investment Decision ◽  
Production Capacity ◽  
Payback Period ◽  
Present Value ◽  
Case Methods ◽  
Fixed Assets ◽  
Collection Methods ◽  
Financial Aspect

The purpose of this study was to analyze the feasibility of an investment plan to add fixed assets (oven machines) by UD. Warna Sari in terms of financial aspects. This research is applied with data collection methods namely; case methods, data collection techniques: observation, interviews, and documentation. Data collection tools used in this study are questionnaire and tape recorder. Data analysis uses Net Present Value (NPV) analysis, Internal Rate of Return (IRR), Payback Period (PP), and Profitability Index (PI). From the results of this study can be concluded as follows: investment plans to add fixed assets (oven machines) are feasible to be implemented by UD. Warna Sari, when viewed from the financial aspect. This can be seen from the Payback Period (PP) = 0.09 years <1 year, Net Present Value (NPV) of Rp 473,330,270 is positive, IRR (105.04%)> RRR (50%), PI (60%) , 17)> 1 The investment decision to add fixed assets (oven machines) for business leader at UD. Warna Sari is feasible to be implemented to increase the production capacity of jackfruit dodol whose sales value continues to increase from year to year.

scholarly journals ANALISIS KELAYAKAN USAHA PENGOLAHAN GAHARU DARI KABUPATEN ASMAT

Agro Ekonomi ◽  
2016 ◽  
Vol 25 (2) ◽  
pp. 105
Author(s):  
Dwi Iriana ◽  
Dwidjono Hadi Darwanto ◽  
Slamet Hartono
Keyword(s):  
Net Present Value ◽  
Financial Analysis ◽  
Investment Decision ◽  
Economic Value ◽  
Payback Period ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Analysis Study ◽  
Marketing Chain

Feasibility analysis/study is a way to determine the feasibility of the business in terms economic , technical, and financial. The result of this analysis can give benefit as a guide for entrepeneurs, farmers, government to etermine the investment decision. This research/thesis aim to examine the aloes processing aspect, such as: production, managerial, commercial, economic value, environmental impact the aloes marketing chain, and analyze the feasibility of pig aloes processing of Asmat district.This study uses financial analysis, including : Net Present Value (NPV), Net B/C Ratio, Internal Rate Of Return (IRR), Break Event Point (BEP), Payback Period (PP), Sesitivity analysis was also performed, considering the uncertainrty in the parameters and cultivation analysis as comparison of aloes business in nature exploitation.The result of this study show that business of aloes pig processing of Asmat is feasible. If the business activity was conducted in Asmat district with an estimate investment costs increased by 200% the business is feasible. It is recommended to carry out does cultivation in order to preserve the forest, aloes host tree preservation, and sustainability of the aloes processing business. 

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