scholarly journals Financial and risk analysis of African mahogany plantations in Brazil

2018 ◽  
Vol 42 (2) ◽  
pp. 148-158
Author(s):  
Andressa Ribeiro ◽  
Carolina Souza Jarochinski e Silva ◽  
Antonio Carlos Ferraz Filho ◽  
José Roberto Soares Scolforo
Keyword(s):  
Interest Rates ◽  
Net Present Value ◽  
Financial Analysis ◽  
Initial Density ◽  
Growth And Yield ◽  
Financial Return ◽  
African Mahogany ◽  
Management Regimes ◽  
Wood Demand ◽  
Growth And Yield Modeling

ABSTRACT Wood demand is increasing in quality and quantity, and economic studies are fundamental to analyze the feasibility of forest projects. These researches are in line with management and silvicultural studies, highlighting growth and yield modeling. This paper proposes an economic evaluation of implementation of African mahogany stands in Brazil under different perspectives of forest management. Data are from plantations ranging from 1.1 to 15 years old in different Brazilian regions. Financial analysis was undertaken using Net Present Value (NPV), Internal Rate of Return (IRR) and Equal Annual Equivalent (EAE) for a 20-year period considering three thinning management regimes (A - unthinned, B - one thinning at age 10 years remaining 150 trees ha-1 and C - two thinnings, first at age 8 remaining 150 trees ha-1 and second at age 15 years remaining 75 trees ha-1) considering an initial density of 278 trees ha-1. A Monte Carlo simulation was performed considering six risk variables. Results showed that the discount rate is the variable that most influences the viability of the project. All site indexes in all management regimes lead to a feasible financial return, with NPV values ranging from 25,053 to 125,780 Brazilian reais per hectare, being regimes B and C the best ones. The probability for an unfeasible investment is almost zero, highlighting African mahogany as a great forest investment opportunity, providing high interest rates values (14% to 25%), superior to most available market rates of return.

SYLVER: Modelling the Impact of Silviculture on Yield, Lumber Value, and Economic Return

1988 ◽  
Vol 64 (2) ◽  
pp. 127-131 ◽  
Author(s):  
Kenneth J. Mitchell
Keyword(s):  
Net Present Value ◽  
Financial Analysis ◽  
Wood Properties ◽  
Growth And Yield ◽  
Present Value ◽  
Silvicultural Treatments ◽  
Intensive Forest Management ◽  
Product Value ◽  
Analysis System ◽  
The Impact

Intensive forest management requires an understanding of the effect that silvicultural treatments have on wood properties, standing yield, log quality, product value, and net present value. These needs are addressed by a system of models (SYLVER) which includes the Tree and Stand Simulator (TASS), Root Rot Simulator (ROTSIM), Sawmill Simulator (SAWSIM), and the new Financial Analysis System (FAN$Y). The latter will be used by field foresters to compare the merits of candidate treatments for specific stands. Key words: Silviculture, growth and yield, juvenile wood, log quality, end-product value, net present value, Pseudotsuga menziesii, Phellinus weirii, modelling, TASS, ROTSIM, SAWSIM, FAN$Y, SYLVER.

Financial Analysis of Pruning Douglas-Fir and Ponderosa Pine in the Pacific Northwest

1993 ◽  
Vol 8 (2) ◽  
pp. 58-61 ◽  
Author(s):  
Roger D. Fight ◽  
Natalie A. Bolon ◽  
James M. Cahill
Keyword(s):  
Interest Rates ◽  
Ponderosa Pine ◽  
Douglas Fir ◽  
Growth And Yield ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Financial Return ◽  
Individual Tree ◽  
Internal Rate ◽  
The Cost

Abstract Recent lumber recovery studies of pruned and unpruned Douglas-fir (Pseudotsuga menziesii var. menziesii) and ponderosa pine (Pinus ponderosa var. ponderosa) were incorporated into computer software using lumber grade prices, growth and yield data, the cost of pruning, and interest rates to determine the expected financial return from pruning. Financial analyses showed that the cost of pruning at which the investment would yield an expected 4% real rate of return was positive on sites where individual tree growth is fairly high, pruning is done as early as biologically possible given limitations on crown removal, and the harvest is 30 to 70 yr after pruning. The better situations in Douglas-fir showed a breakeven cost of up to $21/tree and an internal rate of return exceeding 9%. The better situations in ponderosa pine showed a breakeven cost of up to $11/tree and an internal rate of return of 7%. West. J. Appl. For. 10(1):58-61.

scholarly journals ANALISIS PERTUMBUHAN DAN HASIL TANAMAN SUNGKAI (Peronema canescens Jack.) DI KALIMANTAN

2017 ◽  
Vol 2 (2) ◽  
pp. 116
Author(s):  
Wahyudi Wahyudi ◽  
Zainal Muttaqin ◽  
A. Russel Mojiol
Keyword(s):  
Net Present Value ◽  
Financial Analysis ◽  
Growth And Yield ◽  
Cost Ratio ◽  
Good Prospect ◽  
Present Value ◽  
Annual Increment ◽  
Bank Rate ◽  
Equation Modelling ◽  
Mean Annual Increment

Growth and Yield Analysis of Peronema canescens Jack. in Kalimantan          Sungkai (Peronema canescens) is a native and local species and one of some commercial trees which has a good prospect to be developed in timber estate in Kalimantan.This research was aimed to analyse sungkai plantation, neither the living percentage, productivity, economic cutting cycle, and also its profit. The data analysis was using the average of trees diameter, high and volume, mean annual increment, polynomial equation modelling and financial analysis i.e. net present value (NPV), benefit cost ratio (BCR) and internal rate of return (IRR). The research had been conducted at the community plantation in Kapuas District, Central Kalimantan Province since 1998 to 2010.  The result of this research showed that living trees precentage at 12 years old was 89.7%, mean annual increment and its density were 10,14 m3 ha-1  and 997 tree/ha respectively. Equation modelling of sungkai plantation was y = 2,073 + 1,6623x - 0,0165x2 (R2= 84,05%). In the bank rate of 9% per year, the economic cutting cycle of this plantation was 15 years with net present value was NPV 58,49 million per ha. BCR 7,64 and IRR 11,75 If the bank rate of 6% and 12% per year, then net present value at the 15 years were NPV 92.65 and 36.6 million per ha respectively. The sangtein was suitable as timber estate and to increase the productivity of former shifting cultivation, scru, and low potential forests which were widespread, especially in Kalimantan.Keywords :  Growth and yield, mean annual increment, Peronema canescens, economic cutting cycle ABSTRAK        Sungkai adalah jenis tanaman komersial lokal dan asli yang mempunyai prospek baik untuk dikembangkan dalam hutan tanaman Kalimantan. Penelitian ini bertujuan untuk mengetahui prosen hidup, produktivitas, siklus tebang optimum, dan keuntungan finansial dari tanaman sungkai. Penelitian dilakukan di hutan tanaman rakyat, Kabupaten Kapuas Provinsi Kalimantan Tengah. Obyek penelitian ialah tanaman sungkai yang ditanam sejak tahun 1998 pada tipe tanah Ultisol. Analisis data menggunakan nilai rataan diameter, tinggi dan volume, riap tahunan rata-rata tahunan, persamaan regresi, NPV, BCR dan IRR. Hasil penelitian menunjukkan bahwa pada umur 12 tahun prosen hidup tanaman mencapai 89,7 %, riap tahunan rata-rata 10,14 m3 ha-1 year-1 dengan kerapatan 997 pohon/ha. Model pertumbuhan tanaman sungkai ialah y = 2,073 + 1,6623x - 0,0165x2 (R2= 84,05%). Pada tingkat suku bunga pinjaman 9% per tahun, tanaman sungkai mempunyai siklus tebang ekonomi selama 15 tahun dengan nilai NPV Rp. 58,49 juta/ha, BCR: 7,64 dan IRR: 11,75%. Pada tingkat suku bunga pinjaman 6% dan 12% per tahun, maka pada siklus tebang selama 15 tahun, nilai NPVnya masing – masing menjadi Rp. 92,65 juta/ha dan Rp. 36,6 juta/ha. Tanaman sungkai sangat sesuai dikembangkan dalam hutan tanaman dan untuk meningkatkan produktivitas lahan bekas perladangan berpindah, semak belukar dan hutan potensi rendah yang tersebar luas, khususnya di Kalimantan.Kata kunci : Pertumbuhan dan hasil, riap tahunan rata – rata, Peronema canescens, siklus tebang ekonomi

scholarly journals Optimizing thinnings for timber production and carbon sequestration in planted teak (Tectona grandis L.f.) stands

2019 ◽  
Vol 28 (3) ◽  
pp. 3013
Author(s):  
María-Alejandra Quintero-Méndez ◽  
Mauricio Jerez-Rico
Keyword(s):  
Interest Rates ◽  
Net Present Value ◽  
Basal Area ◽  
Tectona Grandis ◽  
C Sequestration ◽  
Growth And Yield ◽  
Site Quality ◽  
Timber Production ◽  
Transport Costs ◽  
Yield Model

Aim of study: We developed an optimization model for determining thinning schedules in planted teak (Tectona grandis L.f.) stands that maximize the financial output in terms of soil expectation value (SEV) and net present value (NPV) considering a) the simultaneous optimization of timber production and carbon (C) sequestration and b) only for C sequestration.Area of study: Planted teak forests in the western alluvial plains of Venezuela.Material and methods: We integrated a stand growth and yield model with a constrained optimization model based on genetic algorithms (GA) for determining optimal thinning schedules (number, age, and removal intensity) that maximize SEV when simultaneously managing for timber production and C sequestration. The data came from permanent plots established in planted teak stands with remeasurements from 2 to 32 yr.-old. Plots differ in site quality, initial spacing, and thinning schedules. We obtained optimal thinning schedules for several scenarios combining site quality, initial spacing, interest rates, harvest and transport costs, as well as timber and C prices. The stand growth and yield model estimates timber products and C flows (storage and emissions) until most stored C is reemitted to the atmosphere.Main results: When considering simultaneously both, timber production and C sequestration, the scenario with the maximum SEV consisted of initial stand densities = 1,111 trees ha-1, site quality (SQ) I, harvest age 20 years, and four thinnings (ages 6, 10, 14, 17 with removal intensities 26 %, 28 %, 39 %, and 25 % of stand basal area respectively). For maximizing C sequestration only, the best schedule consisted of 1,600 trees ha-1, SQ I, harvest age 25 years, with no-thinning. A sensitivity analysis showed that optimal schedules and SEV were highly sensitive to changes in interest rates, growth rates, and timber prices.Research highlights:The management schedules favoring merchantable timber production are not the same that favor C sequestration.For planted teak, the objectives of maximizing timber production and carbon sequestration are in conflict because the thinning schedules that maximize financial gains from C sequestration reduce economic gains from timber and vice versa.With actual timber teak and market C prices, optimal NPVW is much larger than optimal NPVC.For C prices under 40 $US MgC optimizing simultaneously for timber production and C sequestration is the best option, as additional although sub-optimal revenues can be obtained from C payments.Lengthening the rotation, avoiding thinnings, or reducing their intensity increase carbon storage in planted teak, although, under the analyzed scenarios, after 120 yr. almost all carbon has been re-emitted to the atmosphere.Additional keywords: heuristics, genetic algorithms, operations research, forest management planning, stand level model, carbon stocks.Abbreviations used: C (Carbon); GA (genetic algorithm); NPVW, NPVC, NPVT (net present value from the cash flows of timber (wood), carbon, and total); SEV (Soil (land) expectation value); dbh (diameter at 1.3 m from the ground); G (stand basal area); Gp (potential site carrying capacity in terms of G); SQ (site quality); R (rotation, harvest age); A (age); I (thinning intensity); Vob, Vub (overbark, underbark volume); gr (basal area growth rate); r (interest rate); harvest and transport costs (Hc); Pc (C price). 

For Love, Not Money: The Financial Implications of Surgical Fellowship Training

2016 ◽  
Vol 82 (9) ◽  
pp. 794-800 ◽  
Author(s):  
Paul M. Inclan ◽  
Adam S. Hyde ◽  
Michael Hulme ◽  
Jeffrey E. Carter
Keyword(s):  
Net Present Value ◽  
Surgical Oncology ◽  
Fellowship Training ◽  
Financial Return ◽  
Group Management ◽  
Career Values ◽  
Management Association ◽  
Prolonged Training ◽  
Physician Income ◽  
Income Data

Surgical residents cite “increased income potential” as a motivation for pursuing fellowship training, despite little evidence supporting this perception. Thus, our goal is to quantify the financial impact of surgical fellowship training on financial career value. By using Medical Group Management Association and Association of American Medical Colleges physician income data, and accounting for resident salary, student debt, a progressive tax structure, and forgone wages associated with prolonged training, we generated a net present value (NPV) for both generalist and subspecialist surgeons. By comparing generalist and subspecialist career values, we determined that cardiovascular (ANPV = $698,931), pediatric ($430,964), thoracic ($239,189), bariatric ($166,493), vascular ($96,071), and transplant ($46,669) fellowships improve career value. Alternatively, trauma (-$11,374), colorectal (-$44,622), surgical oncology (-$203,021), and breast surgery (-$326,465) fellowships all reduce career value. In orthopedic surgery, spine ($505,198), trauma ($123,250), hip and joint ($60,372), and sport medicine ($56,167) fellowships improve career value, whereas shoulder and elbow (-$4,539), foot and ankle (-$173,766), hand (-$366,300), and pediatric (-$489,683) fellowships reduce career NPV. In obstetrics and gynecology, reproductive endocrinology ($352,854), and maternal and fetal medicine ($322,511) fellowships improve career value, whereas gynecology oncology (-$28,101) and urogynecology (-$206,171) fellowships reduce career value. These data indicate that the financial return of fellowship is highly variable.

scholarly journals ECONOMICAL AND FINANCIAL ANALYSIS OF AVIARIES FOR THE INTEGRATION OF BROILERS UNDER CONDITIONS OF RISK

2015 ◽  
Vol 39 (3) ◽  
pp. 240-247 ◽  
Author(s):  
Danilo Simões ◽  
João Paulo Ribeiro ◽  
Pedro Rodrigo Gouveia ◽  
Josiane Corrêa dos Santos
Keyword(s):  
Monte Carlo ◽  
Monte Carlo Method ◽  
Financial Analysis ◽  
Financial Risks ◽  
Financial Return ◽  
Financial Investment ◽  
Flow Models ◽  
Investment Projects ◽  
Broiler Production ◽  
Technological Level

Financial investment projects are characterized by uncertainties. When quantified, these will determine the probability of their occurrence and the condition of risk. This information might be analyzed via simulation of Monte Carlo Method, which will establish the level of associated risk. To understand the financial risks of broiler production in integration system, cash flow models for aviaries were formulated with different technological levels. Using deterministic techniques, the value of the main economic viability indicators were calculated, which were incorporated to the risk through a probabilistic model of pseudo-random numbers, generated with Monte Carlo Method. The uncertainties associated to financial projects show that broiler production in different integration systems is economically viable. However, the best financial return and smallest risk are obtained with an aviary which contains low technological level and the least financial investment.

scholarly journals ANALISA FINANSIAL PROYEK PEMBANGUNAN JALAN TOL AA DI JAWA TIMUR

2015 ◽  
Vol 9 (1) ◽  
pp. 40
Author(s):  
Adham Indra Kusuma, Marjono, Fauziah S.C.S Maisarah
Keyword(s):  
Sensitivity Analysis ◽  
Net Present Value ◽  
Financial Analysis ◽  
Road Construction ◽  
Influential Factors ◽  
Rate Of Return ◽  
Maintenance Cost ◽  
Cost Ratio ◽  
Toll Road ◽  
Investment Cost

One attempt to create a good transport system is the construction of new roads toll roads. A toll road construction soon to be implemented is AA segment a which is of  investment oriented and expected to give profits to the investors. According to the plan, the toll road is 40.5 km long development is divided into 4 sections. Data required to perform financial analysis is the cost of investment, operation and maintenance cost, traffic volume, and the toll rate plans. These data to find the values of the parameters used to calculate the financial analysis include the Net Present Value (NPV), Internal Rate of Return (IRR), Benefit Cost Ratio (BCR), and Payback Period (PP). The financial analysis will use two funding alternatives, alternative I using 100% equity, alternative II using 30% equity and 70%  loan. The purpose of this study is to determine the results of the financial analysis of the parameter values of highway construction project feasibility and determine the most influential factors after a sensitivity analysis has been made. Based on the financial analysis the investment cost results in IDR 3,827,698,222,645. The financial analysis NPV parameters alternative I results in IDR 661,439,934,962 and alternative II in IDR 230,334,925,350 which means they are feasible because both NPVs are greater than 0; both the IRR of 14.18% for alternative I and 13.02% for alternative II are greater than Minimum Attractive Rate Of Return (MARR) value of 12.42%; so, they are feasible; the value of BCR of alternative I is of 1.13 and alternative II is of 1.04; so, they are feasible because the value of BCR is greater than 1. While the PP of alternative I in the period of 12.1 years and alternative II in the period of 13.5 years. The sensitivity analysis of alternatives I and II result in  the most influential alternative—when construction period experiences ≥ 3 years backwards.Keywords: investment cost, financial analysis, sensitivity analysis.

scholarly journals Analisis Perencanaan Investasi Jaringan Tenaga Listrik

2020 ◽  
Vol 1 (2) ◽  
pp. 1-5
Author(s):  
Dwi Ajiatmo
Keyword(s):  
Net Present Value ◽  
Low Voltage ◽  
Financial Analysis ◽  
Well Being ◽  
Payback Period ◽  
Internal Rate Of Return ◽  
Social Discount Rate ◽  
Investment Planning ◽  
Present Value ◽  
The Social

Electricity is able to make a positive change and contribution to people's lives and well-being. This study aims to assess the feasibility of investment in the construction of low voltage electricity networks. The method used with project evaluation analysis is based on financial analysis. The criteria used to analyze activities carried out for 10 years use payback period (PP) analysis, net present value (NPV), internal rate of return (IRR), and profitability index (IP). The results showed that the analysis of investment planning can be carried out with the consequence of the results obtained in the form of not so large returns. PP results show the investment value with the payback period method will Return in the 9th year, while the positive NPV value is still above zero while the IRR value shows the value of 11% below the social discount rate as well as the IP value showing the value of 0.90. The feasibility of investment in terms of economic-financial analysis by looking at per criteria shows that investment is still feasible to be carried out with minimal profit levels.

scholarly journals Analisis Kelayakan Bisnis Usaha Teh Papua (Vernonia amygdalina)

2018 ◽  
Vol 12 (2) ◽  
pp. 145
Author(s):  
Eko Suwito Handjojo ◽  
Rizal Syarief ◽  
Sugiyono
Keyword(s):  
Net Present Value ◽  
Financial Analysis ◽  
Payback Period ◽  
Cost Ratio ◽  
Vernonia Amygdalina ◽  
Net Benefit ◽  
Benefit Cost Ratio ◽  
Diabetic Medicine ◽  
Malaria Epidemic ◽  
Benefit Cost

Various kinds of tea can be used as food and anti-diabetic medicine. One of plants that can be used as medicinal subtancesis Teh Papua (<em>Vernonia amygdalina</em>). Teh Papua, as become one of the local wisdom in Papua, has been used for generations to medicate malaria epidemic and  blood sugar disease. Hence, good bussiness planning review will be needed to develop this potential plant. The purpose of this study is to analyze the feasibility of small Teh Papua industry. Descriptive research method was used in this research. Data are collected by observation, survey, and depth-interview with the bussiness actor. Aspects observed in this studyare aspects of market, marketing, technical and technological, organiza-tional and also management. Measurement of financial aspectfeasibility in this study is using Net Present Value (NPV), Internal Rate of Return (IRR), Net Benefit-Cost Ratio (Net B/C ), and Payback Period (PP). The result shows commercial financial analysis of Teh Papua indicates a positive NPV value of Rp. 316 068 835, IRR value of 45.17%, net value B/C of 2.48 and Payback Period of 17% and 27% depreciation.

scholarly journals Financial Analysis of Water Management Practices in Cranberry Production in Quebec, Canada

2021 ◽  
Vol 10 (4) ◽  
pp. 13
Author(s):  
Ana-Maria Bogdan ◽  
Suren Kulshreshtha ◽  
Jean Caron
Keyword(s):  
Real Time ◽  
Management Practices ◽  
Net Present Value ◽  
Financial Analysis ◽  
Global Scale ◽  
Sensitivity Analyses ◽  
Economic Returns ◽  
Bottom Line ◽  
Agricultural Producers ◽  
Climate Change Effects

At a global scale, Canada is the second largest cranberry producer, with Quebec being the largest producing region within Canada. Efficient water use in agricultural production has long been a topic of outmost importance to agricultural producers, and governing bodies. The immediacy of climate change effects sped up the need to find solutions that conserve water. One such promising technology is irrigation using real-time tensiometers, which provides rapidly critical irrigation needs information to producers. Adoption of improved technologies by farmers is dependent on the effect it has on the farms&rsquo; bottom line. In this study, we examine the financial performance of real-time tensiometer based irrigation, and compare it to evaporation needs based irrigation (baseline), in the context of a Quebec-based cranberry farm. Our findings show that irrigating using real-time tensiometers technology generated higher economic returns. With a net present value of $96,847, this technology increased returns by nearly 53% compared to the baseline technology. Subsequent sensitivity analyses confirmed the robustness of these findings, even when changing important farming parameters.

Sign in / Sign up

Export Citation Format

Share Document