scholarly journals EFFICIENCY ASSESSMENT OF IMPLEMENTATION OF THE MECHANISM OF INNOVATIVE RISK MANAGEMENT OF THE FAT AND OIL INDUSTRY IN UKRAINE

ScienceRise ◽  
2020 ◽  
pp. 61-70
Author(s):  
Yuliya Zhadan
Keyword(s):  
Risk Management ◽  
Net Present Value ◽  
Methodological Approach ◽  
Oil Industry ◽  
Pricing Model ◽  
Present Value ◽  
Efficiency Assessment ◽  
Before And After ◽  
Capm Model

Object of research: risk management processes of enterprises of the oil and fat industry in Ukraine. Investigated problem: to assess the efficiency of the implementation of the mechanism of innovative risk management for enterprises of the oil and fat industry in Ukraine Main scientific results: the paper proposes a scientific and methodological approach to quantifying the effectiveness of the implementation of the mechanism of innovative risk management (MIRM) of enterprises of the oil and fat industry in Ukraine, based on comparing the net present value before and after the MIRM implementation and consists of a number of successive interrelated stages, which include: comparative analysis and integrated assessment of unsystematic (financial, production, investment and other types) risks before and after the MIRM implementation at the enterprise; expert assessment of systematic risks that form the environment of the enterprise and can’t be controlled; determination of the total risk value as an arithmetic weighted average non-systematic and systematic component for each type of risk; determination of discount rates taking into account risk before and after the MIRM implementation at the enterprise using the CAPM model (capital assets pricing model) for calculating and comparing the net present value before and after the MIRM implementation at the enterprise (NPV and NPV', respectively). Efficiency assessment of the implementation of the mechanism of innovative risk management (MIRM) was carried out on the example of eleven processing enterprises of the fat and oil industry in Ukraine. The scope of practical use of research results: the risk management system of processing enterprises of the fat and oil industry in Ukraine, which should be the object of constant monitoring of the feasibility of implementation and assessment of the effectiveness of MIRM functioning by management and top management. Innovative technological product: a scientific and methodological approach to quantifying the effectiveness of the implementation of the mechanism of innovative risk management for enterprises of the oil and fat industry in Ukraine, based on comparing the net present value before and after the MIRM implementation (NPV and NPV’, respectively) using the CAPM model (capital assets pricing model) to determine the discount rates taking into account the risk before and after the MIRM implementation (d and d', respectively), which makes it possible to determine the expected amount of reduction in losses at the processing enterprises of the oil and fat industry of Ukraine from the implementation of a set of risk management measures and make informed management decisions on the appropriateness of their application. Scope of application of the innovative technological product: processing enterprises of the oil and fat industry in Ukraine.

scholarly journals Evaluation of the Cost-Effectiveness of the Installation of Heat-Cost Allocators in Multifamily Buildings in Croatia

Energies ◽  
2019 ◽  
Vol 12 (3) ◽  
pp. 507 ◽  
Author(s):  
Sunčana Slijepčević ◽  
Davor Mikulić ◽  
Kristijan Horvat
Keyword(s):  
Energy Consumption ◽  
Cost Effectiveness ◽  
Net Present Value ◽  
Energy Savings ◽  
Heat Energy ◽  
Energy Prices ◽  
Present Value ◽  
Improve Energy Efficiency ◽  
Before And After ◽  
The Cost

In order to improve energy efficiency, the Croatian government introduced an individual metering obligation for all district heat network users. The purpose of the research was to evaluate this policy measure regarding its effects on tenants’ behavior and energy savings, but also from the perspective of cost-effectiveness. The sample includes approximately 20% of all Croatian users of district heat energy. Energy savings related to the installation of heat cost allocators are calculated by comparing the specific heat energy consumption, corrected for the number of heating degree days, in periods before and after the installation of the heat cost allocators. The cost-effectiveness assessment is based on the concept of the net present value. The transition to individual metering in Croatia resulted in significant energy savings averaged from 20 to 35%. However, low heat energy prices in cities with a dominant share of heat energy consumption did not ensure a positive net present value of investment for all buildings.

scholarly journals Assessing the Option to Abandon an Investment Project by the Binomial Options Pricing Model

2016 ◽  
Vol 2016 ◽  
pp. 1-12 ◽  
Author(s):  
Salvador Cruz Rambaud ◽  
Ana María Sánchez Pérez
Keyword(s):  
Real Option ◽  
Net Present Value ◽  
Investment Project ◽  
Mathematical Expression ◽  
Options Pricing ◽  
Pricing Model ◽  
Operational Flexibility ◽  
Present Value ◽  
Project Appraisal ◽  
Financial Options

Usually, traditional methods for investment project appraisal such as the net present value (hereinafter NPV) do not incorporate in their values the operational flexibility offered by including a real option included in the project. In this paper, real options, and more specifically the option to abandon, are analysed as a complement to cash flow sequence which quantifies the project. In this way, by considering the existing analogy with financial options, a mathematical expression is derived by using the binomial options pricing model. This methodology provides the value of the option to abandon the project within one, two, and in general n periods. Therefore, this paper aims to be a useful tool in determining the value of the option to abandon according to its residual value, thus making easier the control of the uncertainty element within the project.

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

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.

scholarly journals THE DEVELOPMENT OF THE RISK MANAGEMENT MECHANISM FOR INNOVATION PROJECT

2018 ◽  
Vol 3 ◽  
pp. 12-20
Author(s):  
Anatoliy Shakhov ◽  
Varvara Piterska
Keyword(s):  
Risk Management ◽  
High Probability ◽  
Net Present Value ◽  
Risk Measures ◽  
Innovative Activity ◽  
Financial Risks ◽  
Present Value ◽  
Management Mechanism ◽  
Management Measures ◽  
Innovation Project

It is established that the high probability of emergence of risk situations in the innovation project, requires the implementation of risk management measures. It is noted that there is currently no mechanism for distributing of financial risks between the customer and the executor of the innovation project, that is largely negatively reflected in the desire to invest own funds in innovation. The methodological bases of risk management of innovative activity of the project-oriented organization are offered in the article. With the proposed approach, it is possible to estimate in advance how much the proposed risk management measures can reduce the risk of an innovation project and how this activity will affect on the project's effectiveness in deciding whether to continue or stop the innovation project research. On the basis of the existing characteristics of the risk measures of the innovation project, it can be concluded that the best indicator of the effectiveness of a certain stage of the innovation project by the results of simulation is net present value of the project. It is better to use the probability of receiving an ineffective result of an innovation project at an appropriate stage for assessing of the risk of the innovation project and the decision to continue or stop the innovation project at a certain stage.

scholarly journals Maintenance Strategies, Periodic Renovations and Building Modernisation in the Aspect of the Criterion of the Whole Life Costs

2021 ◽  
Vol 31 (2) ◽  
pp. 15-29
Author(s):  
Apolonia Przesmycka ◽  
Damian Wieczorek
Keyword(s):  
Life Cycle ◽  
Net Present Value ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Iso Standard ◽  
Maintenance Strategies ◽  
Life Planning ◽  
Efficiency Assessment ◽  
Deferred Maintenance

Abstract The article deals with the issues of building exploitation and maintenance and focuses on the characteristics of the maintenance strategies mentioned in the ISO 15686-5:2017 Buildings and constructed assets - Service life planning - Part 5: Life-cycle costing. The article describes all three strategies recommended by the ISO standard (preventive, corrective and deferred maintenance). The purpose of the article is to conduct whole life costs analysis of three variants of modernisations, renovations and maintenance strategies for a selected building. The methods of economic efficiency assessment were used, such as net present value (NPV) method and internal rate of return (IRR) method.

The Term Structure of Interest Rates and the Evaluation of Forestry Investments: A Note

1988 ◽  
Vol 12 (4) ◽  
pp. 256-258
Author(s):  
F. Christian Zinkhan
Keyword(s):  
Interest Rates ◽  
Term Structure ◽  
Discount Rate ◽  
Net Present Value ◽  
Present Value ◽  
Term Structures ◽  
Forestry Investments ◽  
The Relationship

Abstract The forestry literature generally assumes that the appropriate discount rate to be used in the estimation of a given investment's net present value is the same over its lifetime. However, the values of many alternative investments such as stocks and bonds often reflect term structures that are not flat. That is, the relationship between the number of years to maturity of an investment and that investment's required rate of return is often a significant consideration. This note suggests a procedure for incorporating a consideration of the term structure of interest rates into the determination of a discount rate specific to each annual net cash flow associated with a given long-term forestry investment. Using an actual 10-year case analysis, it was found that the valuation of a timberland tract varied by approximately 11%, depending upon whether or not the term structure of interest rates was recognized. South. J. Appl. For. 12(4):256-258.

The modified binomial options pricing model and the revised replicating portfolio approach with the concept of sustainability options

2020 ◽  
Vol 07 (02) ◽  
pp. 2050013
Author(s):  
Tyrone T. Lin ◽  
Hui-Tzu Yen ◽  
Shu-Yen Hsu
Keyword(s):  
Net Present Value ◽  
Evaluation Criteria ◽  
Options Pricing ◽  
Pricing Model ◽  
Objective Functions ◽  
Present Value ◽  
Project Investment ◽  
Decision Variables ◽  
Portfolio Approach ◽  
Replicating Portfolio

This paper discusses whether the project investment can develop the decision-making for the concept of sustainability options. The conventional net present value (NPV) approach assesses whether the project investment should be implemented, and develops the evaluation criteria of implementing sustainability costs from the modified binomial options pricing model (BOPM) and the revised replicating portfolio approach. It treats options premium value and the replicating portfolio approach (RPA) value as the objective functions, and the options premium of the BOPM and the initial values of the RPA as the decision variables.

scholarly journals Aquaponics Cultivation of Ipome Aquatica and the Peasant Financial Income of Cirata Cistern

2016 ◽  
Vol 1 (2) ◽  
pp. 241
Author(s):  
Abel Gandhy
Keyword(s):  
Net Present Value ◽  
Payback Period ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Community Members ◽  
West Java ◽  
Internal Rate ◽  
Before And After ◽  
Financial Income

The research paper analyzes the financial income of a poor community living around the Cirata cistern, in West Java, Indonesia, before and after the community employed the aquaponics strategy of planting ipomoea aquatica. Data are gathered from observation, interviews and statistical analysis of the incomes of community members. In addition, analysis of the data applies Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period (PP). The findings clearly demonstrate an increased annual income of more than 1.117.296 rupiah among those community members using the aquaponics strategy. Once the community has adjusted to professionally implementing this aquaponics strategy, it would be practically useful to invite investors to invest their capital to develop this area. Keywords: aquaponics, financial income, West Java, internal rate of return, payback period  

A New Approach To Determine When to Control Weeds

Weed Science ◽  
1996 ◽  
Vol 44 (3) ◽  
pp. 496-503 ◽  
Author(s):  
Antonio Berti ◽  
Claudio Dunan ◽  
Maurizio Sattin ◽  
Giuseppe Zanin ◽  
Philip Westra
Keyword(s):  
Weed Control ◽  
Control Strategies ◽  
Methodological Approach ◽  
Economic Loss ◽  
Weed Biology ◽  
Amaranthus Cruentus ◽  
Before And After ◽  
Net Margin ◽  
Time Density

A methodological approach to determine the optimum time to control weeds that integrates aspects of weed biology, weed-crop competition, and economics is presented. The approach is based on the concept of Time Density Equivalent: this is defined as the density of weed plants that germinate with the crop and compete until harvest that causes the same yield loss caused by a group of weeds with a given density, time of emergence, and time of removal. A model was developed that accounts for pattern of weed emergence and permits determination of timing of weed control that minimizes economic loss due to weeds emerging both before and after treatments. The outcomes of the model are presented with two examples: corn in competition with velvetleaf and soybean in competition withAmaranthus cruentus.For both crops, six different weed control strategies involving preemergence, chemical, and mechanical postemergence treatments are considered. The results obtained with the model are compared with the calculation of net margin based on assumptions of simultaneous emergence of crop and weeds and no effect of different times of control. Different control strategies are compared considering not only maximum net margin but also its dependence on time of control, because a strategy with a lower value of maximum net margin, but a flatter net margin curve, allows more flexibility of time of control.

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