Sensitivity Analysis on Some Profitability Indices for Photovoltaic Grid–Connected Systems on Buildings: The Case of Two Top Photovoltaic European Areas

2012 ◽  
Vol 135 (1) ◽  
Author(s):  
D. L. Talavera ◽  
G. Nofuentes ◽  
J. de la Casa ◽  
J. Aguilera
Keyword(s):  
Sensitivity Analysis ◽  
Net Present Value ◽  
Rate Of Return ◽  
Economic Factors ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Internal Rate ◽  
Payback Time ◽  
Investment Subsidy ◽  
Require Information

Frequently changing regulation codes, photovoltaic (PV) technology progress and variations in economic parameters that determine a specific economic scenario make a prospective owner of photovoltaic grid-connected systems (PVGCS) on buildings require information concerning the profitability of their investment on these systems. Hence, an analysis of the main economic factors of PVGCS on buildings addressed to ascertain their influence on the latter profitability is demanded and welcome. Consequently, a sensitivity analysis of some profitability indices such as the net internal rate of return, the net present value, and the discounted payback time has been carried out. This sensitivity analysis is aimed at demonstrating the influence on these indices of possible changes in the factors that are involved in their estimation. Two scenarios have been considered that closely resemble two top PV geographical areas: Germany and Spain. The results obtained here provide clear evidence that factors such as initial investment subsidy, dividends of own capital, taxes, annual loan interest exert a relatively small and similar influence on the net internal rate of return, the net present value, and the discounted payback time. However, other factors such as the initial investment, the annual PV electricity yield, and the PV electricity unitary price have a bigger influence on these profitability indices.

scholarly journals Can Capital Injection Make Challenged Gold Projects in Ghana Economically Viable? – A Case Study

2019 ◽  
Vol 19 (1) ◽  
pp. 42-48
Author(s):  
D. Mireku-Gyimah ◽  
R. Gyebuni
Keyword(s):  
Sensitivity Analysis ◽  
Risk Analysis ◽  
Net Present Value ◽  
Operating Cost ◽  
Gold Price ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Internal Rate ◽  
Economic Parameters

Damang Gold Mine (DGM) in Ghana uses open pit mining technology to mine its gold deposit. It has an estimated mineable gold reserve of about 32 Mt exploitable for 8 years. As the gold price kept falling from 2013 and operating cost kept rising, the mine down sized its operations. But the operations became challenging due to poor performance of ageing mining equipment and processing plant, and the need for a new tailings dam. As the gold price stabilises, it could be gainful to invest capital to resolve the challenges and increase production. This study aims at investigating whether DGM would be economically viable if the intended investment is made assuming the gold price falls to US$ 32.15/g. The study estimates the required capital and annual operating cost to be US$89.49 M and US$100.84 M respectively.  A cash flow analysis is carried out assuming no price escalation, discount rate of 20%, and applying the following investment laws of Ghana: royalty of 5% of gross revenue; straight line depreciation of capital expenditure over five years (20% per year); investment allowance of 5% in the first year only; loss carry forward; and corporate tax of 35%. The results give Net Present Value of US$82 723 720.28 and Internal Rate of Return of 41.13%, indicating profitability. Sensitivity analysis reveals that the project will continue to be profitable until the revenue falls below 24%, assuming all other economic parameters remain constant. The project will also continue to be profitable until the operating cost increases beyond 30%, assuming all other economic parameters remain constant. Risk analysis on the project indicates the project has 70% chances of success. DGM could invest the capital to mine its gold reserves because the mine will make profit provided cost is controlled and production level maintained to generate needed revenue. Keywords: Net Present Value, Internal Rate of Return, Sensitivity Analysis, Risk Analysis

scholarly journals Economic Calculations of an Investment of a Slicing and Packaging Production Line

2017 ◽  
Vol 11 (1) ◽  
pp. 23-31
Author(s):  
Brigitta Zsótér ◽  
Bálint Kura
Keyword(s):  
Production Line ◽  
Net Present Value ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Internal Rate ◽  
Payback Time ◽  
Meat Packing

We test a Csongrád county meat-packing factory’s new slicing-packing production line’s investment. We value the different tenders from five main viewpoints, these are the following: the NPV (Net Present Value), IRR (Internal Rate of Return), DPB (Dynamic Payback), PI (Profitability Index), PB (Payback Time). During the calculation, we have experienced that both tenders would be viable financially. We recommended the offer of the GEA Group AG.

scholarly journals Economics of Distributed Power Generation via Gasification of Biomass and Municipal Solid Waste

Energies ◽  
2020 ◽  
Vol 13 (14) ◽  
pp. 3703 ◽  
Author(s):  
Natarianto Indrawan ◽  
Betty Simkins ◽  
Ajay Kumar ◽  
Raymond L. Huhnke
Keyword(s):  
Sensitivity Analysis ◽  
Municipal Solid Waste ◽  
Solid Waste ◽  
Net Present Value ◽  
Payback Period ◽  
Rate Of Return ◽  
Rural Electrification ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Internal Rate

More than one billion people worldwide still lack access to electricity. Rural electrification via gasification has the potential to satisfy electricity access and demand. This study conducts an economic evaluation of rural electrification through gasification of biomass and municipal solid waste (MSW) using a 60 kW downdraft gasifier, developed at Oklahoma State University. The effects of feedstock cost, electricity selling price, feed-in-tariff, tipping fee, tax rate, and the output power are evaluated using major financial parameters: the net present value, internal rate of return, modified internal rate of return, simple payback period, and discounted payback period, and sensitivity analysis. Results show that the downdraft gasification power system offers a payback period of 7.7 years, while generating an internal rate of return, modified internal rate of return, and net present value of 10.9%, 7.7%, and $84,550, respectively. Results from a sensitivity analysis indicate that the feed-in-tariff has the greatest positive contribution to the project’s net present value. Using MSW, the gasification power system potentially reduces carbon dioxide, nitrogen oxides, and sulfur dioxide emissions as compared to direct combustion and landfill. The technology provides a promising future for rural electrification utilizing biomass and MSW whilst offering economic and environmental benefits for local communities.

scholarly journals An Economic Evaluation of the Loye Quarry of Atiwa Quarries Limited

2017 ◽  
Vol 17 (1) ◽  
pp. 43-53
Author(s):  
D. Mireku-Gyimah ◽  
N. K. Owusu Ansah
Keyword(s):  
Sensitivity Analysis ◽  
Risk Analysis ◽  
Net Present Value ◽  
Operating Cost ◽  
Estimation Method ◽  
Rate Of Return ◽  
Sensitivity Analyses ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Internal Rate

Atiwa Quarries Limited (AQL) is one of the large operating granite quarries in the Central Region of Ghana. AQL’s current production of 24 000 m3 of aggregates per month cannot meet current demand let alone support a new contract to supply 25 000 m3 of aggregates per month for a major road infrastructure project. Fortunately, AQL has another granite concession at Loye, about 3 km from the first concession, with estimated granite reserves of 6 286 208 m3, which can be developed as a new quarry to meet the demand of the new contract. This will require capital to build infrastructure, purchase equipment, recruit labour and provide working capital. The objective of this paper is to evaluate the economic viability of the new quarry, considering it as a stand-alone project. The yearly revenue was estimated based on projected production of 25 000 m3/month and average price of US$ 15.63/m3.  Capital and operating costs were estimated using detailed cost estimation method based on quotations from equipment suppliers and operational unit costs of AQL. It turns out that AQL can generate yearly gross revenue of US 4.69 million but requires total capital of US$ 3.67 million; the yearly operating cost is US$ 1.72 million.  Cash flow and sensitivity analyses using Net Present Value (NPV) and Internal Rate of Return (IRR) as criteria, and risk analysis using Monte Carlo simulation method were carried out. The economic analysis indicates that based on AQL’s preferred capital structure of 80% equity and 20% loan, the NPV is $ 5.17 million and the IRR is 53.01%, showing the new quarry is profitable; the sensitivity analysis indicates that the project can withstand up to 40% drop in revenue, or over 60% increase in capital or operating cost. The risk profile indicates a probability of success of 98.2%. The study therefore recommends that AQL invests in the new quarry as it is economically viable. Keywords: Granite Quarry, Net Present Value, Internal Rate of Return, Sensitivity Analysis, Risk Analysis

scholarly journals Pendirian Multifinance Syariah (Ahd Multifinance) Sebagai Upaya Peningkatan Pembiayaan dengan Skema Syariah (Telaah Aspek Keuangan)

ISLAMADINA ◽  
2019 ◽  
pp. 83
Author(s):  
Wisnu Julianto ◽  
Krisno Septyan
Keyword(s):  
Sensitivity Analysis ◽  
Net Present Value ◽  
Business Plan ◽  
Payback Period ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Internal Rate

Penelitian ini membahas mengenai perencanaan bisnis (business plan) perusahaan pembiayaan (multifinance) yang berlandaskan prinsip syariah dalam penerapan bisnisnya, khususnya mengenai perencanaan keuangan. Untuk menilai kelayakan dari bisnis ini disusun proyeksi pendapatan, biaya beban, arus kas dan neraca untuk lima tahun kedepan. Pengujian kelayakan bisnis ini juga didukung dengan metode Net Present Value (NPV), Internal Rate of Return (IRR), Profitability Index (PI), Discounted Payback Period (DPP) dan Sensitivity Analysis.

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).  

EVALUASI TERHADAP PENGELOLAAN SAMPAH DALAM MENINGKATKAN PELAYANAN ASET DI KOTA PEMATANGSIANTAR

2017 ◽  
Vol 13 (3) ◽  
pp. 240
Author(s):  
Novdin M Sianturi
Keyword(s):  
Net Present Value ◽  
Payback Period ◽  
Rate Of Return ◽  
Cost Ratio ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Benefit Cost Ratio ◽  
Internal Rate ◽  
Benefit Cost

Abstrak: Pengelolaan sampah di Kota Pematangsiantar masih bertumpu pada pendekatan akhir (kumpul-angkut-buang), dengan tingkat pelayanan yang rendah, sehingga untuk meningkatkan pelayanan sampah, perlu dilakukan pemilahan di tempat penampungan sementara (TPS). Penelitian ini bertujuan untuk mengkaji sistem pengelolaan sampah dengan melakukan pemilihan di TPS dapat meningkatkan pelayanan aset persampahan sampai tahun  2015 secara teknis operasional dan dari aspek keuangan. Analisa teknis operasional aset pengelolaan sampah mulai dari pewadahan, pengumpulan dan pengangkutan sedangkan analisa keuangan dan analisa kelayakan menggunakan Net Present Value, Internal Rate of Return, Benefit/Cost Ratio, dan Payback Period. Dari hasil analisa tersebut diperoleh suatu sistem pengelolaan sampah dengan pemilihan di TPS berdasarkan zona pelayanan dengan skala prioritas secara bertahap daritahun 2013-2017, dapat meningkatkan cakupan pelayanan sampah eksisting rata-rata 6,69 %, cakupan pelayanan TPS eksisting rata-rata 8,29 %, dan cakupan pelayanan truk pengangkut sampah eksisting rata-rata 12,03 %. Investasinya layak, diperoleh Net Cashflow pada tahun 2020 sebesar Rp 1.720.242.284,-, NPV suku bunga 15 % bernilai positif, IRR > MARR 15 %,  B/C Ratio > 1, dan PP 4,7 tahun, lebih pendek dari periode investasi 10 tahun. Dari Metode penelitian ini maka pengumpulan data, observasi lapangan dan pengukuran contoh timbulan sampah dengan sampel 4 TPS perumahan yang terlayani pengangkutan.

TINJAUAN STUDI KELAYAKAN USAHA BADAN USAHA MILIK DESA (NAGARI) KAMANG HILIA SEJAHTERA KENAGARIAN KAMANG HILIA, KECAMATAN KAMANG MAGEK, KABUPATEN AGAM, PROVINSI SUMATERA BARAT

2018 ◽  
Vol 3 (2) ◽  
pp. 160
Author(s):  
Halkadri Fitra ◽  
Salma Taqwa ◽  
Charoline Cheisviyanny ◽  
Abel Tasman ◽  
Nurzi Sebrina
Keyword(s):  
Cash Flow ◽  
Net Present Value ◽  
Average Rate ◽  
Flow Analysis ◽  
Payback Period ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Internal Rate

Penelitian ini bertujuan untuk melihat kelayakan aspek keuangan usaha grosir sembako Badan Usaha Milik Desa (Nagari) Kamang Hilia Sejahtera di Kenagarian Kamang Hilia Kecamatan Kamang Magek Kabupaten Agam Provinsi Sumatera Barat yang dilakukan pada tahun 2018. Penelitian bersifat deskriptif kuantitatif dengan menggunakan metode cash flow analysis, payback period, net present value, profitability index, internal rate of return, dan average rate of return. Hasil penelitian menunjukkan bahwa nilai net cash flow Badan Usaha Milik Desa (Nagari) Kamang Hilia Sejahtera adalah positif yaitu Rp.21.774.000, nilai payback period adalah 1,15 tahun, nilai net present value positif sebesar Rp.10.680.034,47, nilai profitability index adalah positif 1,37, sedangkan nilai internal rate of return adalah 46,7% dan nilai average rate of return adalah 57,23%. Berdasarkan standar penilaian maka semua metode yang digunakan memberikan kesimpulan bahwa usaha grosir sembako milik Badan Usaha Milik Desa (Nagari) Kamang Hilia Sejahtera dalam kategori layak untuk dilaksanakan.

Analisis Kelayakan Finansial Usaha Ternak Ayam Kampung Super (Studi Kasus pada Peternakan Suparlan di Desa Jojog Kecamatan Pekalongan Kabupaten Lampung Timur)

1970 ◽  
Vol 3 (1) ◽  
Author(s):  
Fikri Fathurahman Aziz
Keyword(s):  
Return On Investment ◽  
Net Present Value ◽  
Secondary Data ◽  
Payback Period ◽  
Rate Of Return ◽  
Primary Data ◽  
Cost Ratio ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Internal Rate

This study aims to analyze financially (net present value, revenue cost ratio, internal rate of return, break event point, return on investment and payback period) feasibility of kampung super chicken farming Mr. Suparlan in Jojog village, district Pekalongan, East Lampung regency. The data used in the form of quantitative and qualitative data sourced from the primary data and secondary data which is then analyzed descriptively. Based on the analysis, it is known that kampung super farm is financially feasible to cultivate. This is indicated by the positive value of net present value (NPV) of Rp 186,568,517, revenue ratio (RCR) 1.59, internal rate of return (IRR) of 135.82%, return on investment (ROI) of 43%, and the value of payback period (PP) of 0.50. Keywords: financial feasibility, kampung chicken, chicken farm

scholarly journals Business plan for a Zen garden

Agricultura ◽  
2015 ◽  
Vol 12 (1-2) ◽  
pp. 1-7
Author(s):  
Maja Žibrat ◽  
Karmen Pažek ◽  
Vesna Weingerl
Keyword(s):  
Net Present Value ◽  
Business Plan ◽  
Market Analysis ◽  
Rate Of Return ◽  
Theme Park ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Business Opportunity ◽  
Internal Rate ◽  
Financial Aspect

AbstractThe placement of a theme park in the form of a Zen garden, as a business opportunity in the Slovenian rural area, is discussed. The design of the garden, with all the major points of a standard business plan, is accurately presented, with a description of the business, branch, and services, market analysis, marketing strategy, financial projections, and a plan of the work and activities. The financial aspect is presented as the amount of investment, net present value, and internal rate of return. The amount of investment is estimated at € 14.891, which should be reimbursed within 4 years of operations. The estimated internal rate of return is estimated at 16.86%. Part of the study is the market analysis - conduction of a survey into knowledge of, and interest in, Zen and Zen gardens. The principles of landscape ecology are respected, as the Zen garden would be set in the woods and will blend seamlessly into the landscape.

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