scholarly journals Competitiveness and innovation in the pulquera industry, an economic analysis

Nova Scientia ◽  
2021 ◽  
Vol 13 (26) ◽  
Author(s):  
María Magdalena Rojas Rojas ◽  
Karina Valencia Sandoval ◽  
Ma. Carmen Ybarra Moncada ◽  
José de Jesús Brambila Paz
Keyword(s):  
Real Options ◽  
Net Present Value ◽  
Price Volatility ◽  
Point Of View ◽  
Production Costs ◽  
Black Scholes ◽  
Binomial Trees ◽  
Innovation Processes ◽  
Process Benefits ◽  
Main Producer

Maguey is closely related to the marginalized areas of Mexico and lacks innovation processes; it mainly produces in Oaxaca for Mezcal and the production of pulque in Hidalgo and Tlaxcala. The objective of this study was to financially assess the pulque industry through its differentiation, generating a mead production project for agave syrup with respect to a project that only produces pulque   considering the price volatility in states of Hidalgo, Tlaxcala, and Oaxaca. The hypothesis is that uncertainty creates opportunities that add value and benefit the producer. Method: Maguey pulquero prices and yields from 2005 to 2018 were obtained from SIAP. Production costs and investments were obtained from the Xamini S.P.R. of R. I. and were considered for the three states. The possibility of innovating pulque process from a traditional point of view through the Net Present Value (NPV) was analyzed; however, since it does not consider the price volatility, an evaluation was used using real options with binomial trees and Black-Scholes formulas with expansion scenarios to two hectares. Results: Hidalgo had, on average, the best yields, and which positions him as the main producer of this drink; however, its trend was downward. Oaxaca was the entity with the highest critical value (1.771) because it presented greater price volatility; therefore, the risk in investment is higher. Through the traditional evaluation, the projects in the pulque industry of Hidalgo and Tlaxcala were accepted with values ​​greater than unity, not so for Oaxaca. With the evaluation of real options, once it is innovated, the project increased six times more for Hidalgo and Tlaxcala increased 37 times more. The numbers turned positive for Oaxaca, but it did not recover the investment initially; a similar situation occurs when the option is given to expanding the innovation to two hectares. With the evaluation of real options, once it is innovated, the project increased six times more for Hidalgo and Tlaxcala increased 37 times more, for Oaxaca the Discussion: For a differentiated product such as agave syrup, the risk increases, but also the possibilities of increasing your income and being competitive in the market, which happens when the product is associated with the current needs of the consumer. This applies to Hidalgo and Tlaxcala, however, for Oaxaca, the project to differentiate the pulque industry is not very viable, since its production is irrelevant compared to mezcal. This study confirmed the hypothesis, when the product is differentiated in its production process, benefits increase, despite the uncertainty.

A Real Options Approach to Hybrid Electric Vehicle Architecture Design for Flexibility

2016 ◽  
Author(s):  
Namwoo Kang ◽  
Alparslan Emrah Bayrak ◽  
Panos Y. Papalambros
Keyword(s):  
Real Options ◽  
Hybrid Electric Vehicle ◽  
Net Present Value ◽  
Price Volatility ◽  
Real Options Theory ◽  
Real Options Approach ◽  
Hybrid Electric ◽  
Gas Price ◽  
The Impact ◽  
Over Time

Manufacturers launch new product models at various time increments to meet changing market requirements over time. At each design period, product design and price may change. While price decisions can be made at product launching time, redesign decisions must be made in advance. Real options theory addresses such time gap decisions. This paper presents a real options approach with a binomial lattice model to determine optimal design and price decisions for hybrid electric vehicles (HEVs) that maximize expanded net present value of profit under gas price uncertainty over time. Results confirm that we can obtain changing vehicle attributes by changing gear ratios rather than the architectures themselves due to high cost of redesigning. A parametric study examines the impact of gas price volatility on option decisions and shows that larger volatility of gas price causes the change option to be selected more frequently.

Real Options Models for Maintenance Decision Making for Offshore Jacket Platforms

2005 ◽  
Author(s):  
Sandra Santa-Cruz ◽  
Ernesto Heredia-Zavoni
Keyword(s):  
Decision Making ◽  
Real Options ◽  
Structural Reliability ◽  
Net Present Value ◽  
Investment Project ◽  
Cash Flows ◽  
Point Of View ◽  
Investment Projects ◽  
Financial Variables ◽  
Financial Options

Real options models are currently available as one of the best tools for the assessment of investment projects. This is so mainly due to the capability of the real options models to: (1) account for uncertainties in financial variables that are crucial to the investment project; and (2) quantify the value of the possibility to make a decision on whether to defer, abandon, expand or reduce the project at one or several points along time. Recently, some researchers have proposed the use of real options models for the assessment of infrastructure projects for hydrocarbon exploitation from an economics point of view. The objective of this work is to develop real options models for decision making regarding inspection, maintenance and decommissioning of offshore facilities taking into account the financial and technical aspects of the project. In all cases it is considered that at some point in the future, within the service lifetime of the structure, the decision maker will have an option to carry or not an inspection, and take or not a maintenance or decommissioning action, which will determine the structural and financial performance of the project for its remaining lifetime. The in-service times with no structural failure and the rehabilitation times are modeled as random variables. The cash flows are modeled as stochastic processes considering interruption of operation due to repairs after failure. Analytical expressions are derived for the computation of structural reliability and availability depending upon maintenance actions. An example is given for a jacket platform subjected to fatigue deterioration and damage. Simple and compound options of maintenance and decommissioning options are analyzed. The value of the project is computed by means of an approach similar to that of Black and Scholes for financial options [2]. The results are compared to those obtained under the traditional Net Present Value approach.

scholarly journals Valuation of a Company Producing and Trading Seaweed for Human Consumption: Classical Methods vs. Real Options

2021 ◽  
Vol 18 (10) ◽  
pp. 5262
Author(s):  
Raisa Pérez-Vas ◽  
Félix Puime Guillén ◽  
Joaquín Enríquez-Díaz
Keyword(s):  
Real Options ◽  
Net Present Value ◽  
Point Of View ◽  
Added Value ◽  
Human Consumption ◽  
Present Value ◽  
Investment Projects ◽  
Financial Valuation ◽  
Classical Models ◽  
A Company

Aquaculture is an increasingly relevant sector in the exploitation of natural resources; therefore, it is appropriate to propose various models that include the fundamental variables for its economic-financial valuation from a business point of view. The objective of this paper is to analyze different models for the valuation of investment projects in a company in the aquaculture sector in order to conclude whether there is a model that represents a better valuation. Therefore, in this study, four valuation models have been applied, three classical models (net present value, internal rate of return, and payback) and a more recent model, real options (RO) for a company producing and marketing seaweed in Galicia (region located in the northwest of Spain). The results obtained, RO (€5,527,144.04) and net present value (€5,479,659.19), conclude that the RO model estimates a higher added value by taking into account in its calculations the flexibility given by the expansion option. Future lines of research include the application of valuation models that have been applied to companies belonging to the same sector in order to compare whether the results found are similar.

scholarly journals Cycle-oriented approach to building a model of production costs

2020 ◽  
Vol 17 ◽  
pp. 00124
Author(s):  
Elena P. Polikarpova ◽  
Igor E. Mizikovskiy
Keyword(s):  
Cost Management ◽  
Modern Science ◽  
Management Control ◽  
Point Of View ◽  
Production Costs ◽  
Production Cycle ◽  
Agricultural Activity ◽  
Management Tools ◽  
Agricultural Enterprises ◽  
Oriented Approach

Modern science and practice does not have a sufficient set of cost management tools, taking into account the duration of the production cycle, characteristic of agricultural activity. The implementation of a cycle-oriented approach to building a model of production costs was based on studying the existing options for classifying production costs, which were supplemented with features from the perspective of managing long production cycles. As a result of the study, a model of production costs was built from the point of view of a cycle-oriented approach, as well as a model of production costs from the standpoint of features of a long production cycle. The model can serve as the basis for the formation of the information space of cost management, control and cost analysis in the economy of agricultural enterprises.

scholarly journals Ethanol plant investment using net present value and real options analyses

2009 ◽  
Vol 33 (10) ◽  
pp. 1442-1451 ◽  
Author(s):  
Todd M. Schmit ◽  
Jianchuan Luo ◽  
Loren W. Tauer
Keyword(s):  
Real Options ◽  
Net Present Value ◽  
Present Value ◽  
Ethanol Plant

scholarly journals Physical Attributes of Ferralsol in Fertigated Sugarcane Production Environments for Bioethanol in the Midwest of Brazil

Agronomy ◽  
2021 ◽  
Vol 11 (8) ◽  
pp. 1641
Author(s):  
Otavio Silveira Gravina ◽  
Glenio Guimarães Santos ◽  
Vladia Correchel ◽  
Gustavo Cassiano da Silva ◽  
Lucas de Castro Medrado ◽  
...  
Keyword(s):  
Management Practice ◽  
Production Costs ◽  
Short Term ◽  
Cerrado Vegetation ◽  
Sugarcane Crop ◽  
Production Environments ◽  
Physical Attributes ◽  
Midwest Region ◽  
Soil Constituents ◽  
Main Producer

Brazil is the world leader in the production and export of sugarcane derivatives, and its center-south region is the main producer. Fertigation with byproducts from bioethanol production can be adopted as a strategy to mitigate the soil physical deterioration resulting from the intensification of mechanized farming practices. The objective of this study was to evaluate the behavior of soil physical attributes under sugarcane cultivation in different crop cycles in fertigated areas in the midwest region of Brazil. The samples were collected in different Ferralsol layers (0.0–0.1, 0.1–0.2, 0.2–0.3, and 0.4–0.5 m) and fertigated crop cycles (first, third, fifth, seventh, and twelfth sugarcane cycles), as well as from native Cerrado vegetation (reference area), and the weight and volume relationships of the soil constituents and total soil were evaluated. Soil physical attributes are affected by sugarcane cultivation cycles and fertigation with vinasse. In the short term (third cycle), the results indicate deterioration of the physical attributes of the soil. However, throughout the cycles of sugarcane culture via fertigation (twelve cycles), the addition of vinasse leads to improvements in physical attributes and soil aggregation, promoting an increase in the longevity of the sugarcane crop. Therefore, the evaluation of the physical attributes of the soil in areas with vinasse application in different sugarcane cultivation cycles should be analyzed in areas of different regions, as this management practice indicates a high potential to increase the longevity of cultivation sugarcane, reducing production costs in the bioenergy sector.

scholarly journals Economical assessment of an investment related to the establishment of a new farrowing place and pig-rearing building

2019 ◽  
Vol 7 (1-2) ◽  
pp. 115-120
Author(s):  
Brigitta Zsótér ◽  
Ágnes Milojev
Keyword(s):  
Net Present Value ◽  
Research Work ◽  
The State ◽  
Point Of View ◽  
Bank Credit ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Payback Time ◽  
Pig Farm ◽  
The Given

In our research work we aimed at carrying out an economical assessment of an investment and development of substantial volume. The examined project was completed at a pig-farm during which a new farrowing place and pig rearing building were built, as well as the renovation of the existing pig-farm. All of them were financed partly from the firm’s own source, partly from a non-repayable aid granted by the state, and finally from a credit granted by a commercial bank. The term of the credit is 10 years and the return of the investment expected by the investors is 8%, so we carried out our calculations according to these data. We examined the three possible ways of financing the investment from the economical point of view, as a result we proposed three hypotheses. Our hypotheses are: Hypothesis 1 (Case „A”): The investment will be financially recovered within the examined period of 10 years if it is financed from the firm’s own source, the state grant and the bank credit. Hypothesis 2 (Case „B”): The investment can be economically completed within the given period of time if the project meets the costs from the firm’s own source and the credit. Hypothesis 3 (Case „C”): The investment will be economically accomplished within the examined 10 years provided the firm finances the project from their own source and the state grant. In our calculations we used the net present value (NPV), the internal rate of return (IRR), the payback time (PB), the discounted payback time (DPB) and the profitability index (PI) as economy indicators. We carried out our calculations regarding 10 years to be able to compare the results since the term of the granted credit is 10 years, too.  

scholarly journals Engineering and Economic Perspective in The Production of Cu Nano

2020 ◽  
Vol 8 (1) ◽  
pp. 15
Author(s):  
Annisa Yuliandini ◽  
Asep Bayu Dani Nandiyanto
Keyword(s):  
Economic Evaluation ◽  
Net Present Value ◽  
Copper Acetate ◽  
Tween 80 ◽  
Point Of View ◽  
Industrial Scale ◽  
Sorbitan Monooleate ◽  
Economic Point ◽  
Economic Parameters ◽  
Break Even Point

The purpose of this study is to analyze the production of copper nanoparticles (Cu NPs) on an industrial scale in an engineering perspective and economic evaluation perspective. Energy is needed because of various energy related applications. Evaluation of Cu nanoparticle production in an engineering perspective is carried out from the selection of processes that are adapted to industrial scale, calculation of mass balance, to the adjustment of commercially available equipment. Evaluation of production from an economic point of view is done by calculating economic parameters: Gross Profit Margin, Internal Return Rate, Payback Period, Cumulative Net Present Value, Profitability Index, and Break Even Point. Briefly from the production process, we use Copper acetate hydrate (CuAc2.2H2O) (as a source of Cu), Tween 80 (polyoxyethylene-(80)-sorbitan monooleate) and ethylene glycol (as a reducing agent). The engineering viewpoint shows this process is capable of producing Cu nanoparticles which can be used as conductive nanoionic. Economic evaluation determines the process is beneficial, discussing with positive values ​​all economic parameters. However, for some variations this process is not profitable, so economic evaluation is needed.

Introduction

2017 ◽  
Author(s):  
Roi Wagner
Keyword(s):  
Option Pricing ◽  
Cognitive Theory ◽  
Philosophy Of Mathematics ◽  
Mathematical Cognition ◽  
Point Of View ◽  
Current State ◽  
Mathematical Life ◽  
Black Scholes ◽  
Epistemological Position ◽  
Mathematical Interpretation

This book examines the force of mathematics, what this force builds on, and how it works in practice by discussing mathematics not only from the point of view of applications but also from the point of view of its production. It explores the function of mathematical statements, their epistemological position, consensus in mathematics, and mathematical interpretation and semiosis. It also considers the notion of embodied mathematical cognition as well as the limitations of the cognitive theory of mathematical metaphor in accounting for the formation of actual historical mathematical life worlds. This introduction provides an overview of the current state of the philosophy of mathematics and presents a vignette on option pricing to give a concrete example of how mathematics relates to its wider scientific and practical context, with particular emphasis on the Black-Scholes formula.

scholarly journals Comparative Study on the Economic Efficiency of Rapeseed Culture in Conventional and Organic Systems

2018 ◽  
Vol 75 (1) ◽  
pp. 95
Author(s):  
Elena ȘURCĂ
Keyword(s):  
Economic Efficiency ◽  
Point Of View ◽  
Production Costs ◽  
Rate Of Return ◽  
Maximum Efficiency ◽  
Economic Point ◽  
Organic Systems ◽  
Use Of Resources ◽  
Revenue Structure ◽  
Crop System

From an economic point of view, efficiency implies the use of resources, of any kind, at maximum efficiency, or else the relation between effect and effort is over unit. In any kind of activity economic efficiency is the basis for its start. In the present paper, the level of economic efficiency for rape crops will be determined, according to two technological systems: conventional and organic. The revenue structure, and especially the expenditure, will be found in the income and expenditure budget of the culture. We will compare the value of production, production costs, but also yield or rate of return. In the continuation of the study, a set of indicators of economic efficiency will be calculated for each crop system, which will be subjected to a mirror analysis, to determine the feasibility of rapeseed crops as accurately as possible. Finally, the results will be presented, the profitability of the crop according to the system, the level of the profit and the recommendations regarding the future way of growing the rapeseed.

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