Risk Analysis on PMMA Recycling Economics

Poly(methyl methacrylate) (PMMA) is a versatile polymer with a forecast market of 4 Mtons/y by 2025, and 6 USD billion by 2027. Each year, 10% of the produced cast sheets, extrusion sheets, or granules PMMA end up as post-production waste, accounting for approximately 30 000 tons/y in Europe only. To guide the future recycling efforts, we investigated the risks of depolymerization process economics for different PMMA scraps feedstock, capital expenditure (CAPEX), and regenerated MMA (r-MMA) prices via a Monte-Carlo simulation. An analysis of plastic recycling plants operating with similar technologies confirmed how a maximum 10 M USD plant (median cost) is what a company should aim for, based on our hypothesis. The capital investment and the r-MMA quality have the main impacts on the profitability. Depending on the pursued outcome, we identified three most suitable scenarios. Lower capital-intensive plants (Scenarios 4 and 8) provide the fastest payback time, but this generates a lower quality monomer, and therefore lower appeal on the long term. On 10 or 20 years of operation, companies should target the very best r-MMA quality, to achieve the highest net present value (Scenario 6). Product quality comes from the feedstock choice, depolymerization, and purification technologies. Counterintuitively, a plant processing low quality scraps available for free (Scenario 7), and therefore producing low purity r-MMA, has the highest probability of negative net present value after 10 years of operation, making it a high-risk scenario. Western countries (especially Europe), call for more and more pure r-MMA, hopefully comparable to the virgin material. With legislations on recycled products becoming more stringent, low quality product might not find a market in the future. To convince shareholders and government bodies, companies should demonstrate how funds and subsidies directly translate into higher quality products (more attractive to costumers), more economically viable, and with a wider market.

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Analysis of the model application of mechanical equipment for hydrothermal treatment

Research in Agricultural Engineering ◽

10.17221/3/2012-rae ◽

2013 ◽

Vol 59 (No. 2) ◽

pp. 68-73 ◽

Cited By ~ 1

Author(s):

P. Junga ◽

T. Vítěz ◽

P. Mach ◽

P. Trávníček

Keyword(s):

Hydrothermal Treatment ◽

Net Present Value ◽

Capital Expenditure ◽

Mechanical Equipment ◽

Present Value ◽

Model Application ◽

Internal Rate ◽

Total Capital ◽

Payback Time ◽

Processed Material

Two model applications of mechanical equipment for hydrothermal treatment were analysed. Alternative 1 consisted of a treatment output of 2,000 Mg of processed material, the annual compost production of 1,000 Mg, total capital expenditure of 15,838,000 CZK, unit capital expenditure of 7,919 CZK per 1 Mg of processed material and annual operating expenses of 1,300,000 CZK. The net present value (NPV) is 1,482,800 CZK, the internal rate or return (IRR) totals 7.6% and the discounted payback time (Tsd) is 16.9 years. Alternative 2 employing the mechanical equipment proved a potential increase in the treatment output to 2,600 Mg, and an increase in the compost production to 1,300 Mg thanks to the shortened intensification of composting. At the same time, the total capital expenditure rose to 18,997,000 CZK, the operating expenses rose to 2,080,000 CZK. The unit capital expenditure of alternative 2 amounts to 7,306 CZK per 1 Mg of the treatment output. The NPV totals 6,984,200 CZK, IRR is at 10.7% and Tsd totals 11.8 years.

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

Review on Agriculture and Rural Development ◽

10.14232/rard.2018.1-2.115-120 ◽

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.

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The Economic Benefits of Malaysian University Degrees

IIUM Journal of Educational Studies ◽

10.31436/ijes.v7i1.197 ◽

2020 ◽

Vol 7 (1) ◽

pp. 15-25

Author(s):

Mohd Nahar Mohd Arshad ◽

Nur Nadhira Baharuddin

Keyword(s):

Human Capital ◽

Capital Investment ◽

Net Present Value ◽

Economic Benefits ◽

Degree Programs ◽

Educational Investment ◽

Present Value ◽

Public And Private ◽

Net Returns ◽

The Individual

AbstractThis study analyzes the net returns of educational investment in Malaysia using the net present value approach. The estimations consider the tuition payments of nine different bachelor degree programs of public and private universities in Malaysia and the forgone earnings while undertaking the degree programs as the cost of investments in human capital. The returns to education investment are based on the expected income accrued by the individual over the employment period until retirement. Under the assumptions that an individual would work until the retirement age of 60 years and a discount rate of 4 percent, the estimations show that holding a computer science degree from Universiti Sains Malaysia would give the highest net present value. Holding a medical degree, in general, would give the lowest net returns on educational investment as compared to the other selected programs. The net returns are sensitive to the costs of education, earnings and the duration of undertaking the degree programs.Keywords: Human capital investment, net present value, private rate of return, educational investment, Malaysian degree programmes

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Technologies for Waste Heat Recovery in Off-Shore Applications

Volume 6A: Energy ◽

10.1115/imece2013-62304 ◽

2013 ◽

Cited By ~ 1

Author(s):

Leonardo Pierobon ◽

Fredrik Haglind ◽

Rambabu Kandepu ◽

Alessandro Fermi ◽

Nicola Rossetti

Keyword(s):

Thermal Efficiency ◽

Heat Recovery ◽

Net Present Value ◽

Waste Heat ◽

Organic Rankine Cycle ◽

Rankine Cycle ◽

Combined Cycle ◽

Present Value ◽

Payback Time ◽

Low Weight

In off-shore oil and gas platforms the selection of the gas turbine to support the electrical and mechanical demand on site is often a compromise between reliability, efficiency, compactness, low weight and fuel flexibility. Therefore, recovering the waste heat in off-shore platforms presents both technological and economic challenges that need to be overcome. However, onshore established technologies such as the steam Rankine cycle, the air bottoming cycle and the organic Rankine cycle can be tailored to recover the exhaust heat off-shore. In the present paper, benefits and challenges of these three different technologies are presented, considering the Draugen platform in the North Sea as a base case. The Turboden 65-HRS unit is considered as representative of the organic Rankine cycle technology. Air bottoming cycles are analyzed and optimal design pressure ratios are selected. We also study a one pressure level steam Rankine cycle employing the once-through heat recovery steam generator without bypass stack. We compare the three technologies considering the combined cycle thermal efficiency, the weight, the net present value, the profitability index and payback time. Both incomes related to CO2 taxes and natural gas savings are considered. The results indicate that the Turboden 65-HRS unit is the optimal technology, resulting in a combined cycle thermal efficiency of 41.5% and a net present value of around 15 M$, corresponding to a payback time of approximately 4.5 years. The total weight of the unit is expected to be around 250 ton. The air bottoming cycle without intercooling is also a possible alternative due to its low weight (76 ton) and low investment cost (8.8 M$). However, cycle performance and profitability index are poorer, 12.1% and 0.75. Furthermore, the results suggest that the once-trough single pressure steam cycle has a combined cycle thermal efficiency of 40.8% and net present value of 13.5 M$. The total weight of the steam Rankine cycle is estimated to be around 170 ton.

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Analysis of the Model Application of Mechanical Equipment for Hydrothermal Treatment at Biogas Plant

Key Engineering Materials ◽

10.4028/www.scientific.net/kem.669.551 ◽

2015 ◽

Vol 669 ◽

pp. 551-559

Author(s):

Petr Junga ◽

Petr Trávníček ◽

Juraj Ružbarský

Keyword(s):

Hydrothermal Treatment ◽

Net Present Value ◽

Anaerobic Fermentation ◽

Capital Expenditure ◽

Mechanical Equipment ◽

Total Production ◽

Biodegradable Material ◽

Total Capital ◽

Payback Time ◽

Processed Material

The goal of the paper was to analyse model applications of mechanical equipment for hydrothermal treatment. Alternative 1 was an alternative with a treatment output of 14 500 Mg of processed material, the annual electricity and heat total production of 4000 MWh respectively 3800 MWh, total capital expenditure of 40 000 000 CZK, unit capital expenditure of 2759 CZK per 1 Mg of processed biodegradable material and annual operating expenses of 19 371 000 CZK. The net present value (NPV) is 1 061 000 CZK, the internal rate or return (IRR) totals 4.9%, the simple payback time (Ts) is 12.6 years and the discounted payback time (Tsd) is 19.2 years. Alternative 2 employing the mechanical equipment proved a potential increase in the treatment output to 18 125 Mg, and an increase in the electricity and heat total production to 5000 MWh respectively 4800 MWh, thanks to the shortened intensification of the anaerobic fermentation process. At the same time, the total capital expenditure rose to 43 000 000 CZK, the operating expenses rose to CZK 24 213 000. The unit capital expenditure of alternative 2 amounts to 2372 CZK per 1 Mg of the of processed biodegradable material. The NPV totals 8 329 000 CZK, IRR is at 6.7%, the simple payback time (Ts) is 10.8 years and Tsd totals 15.3 years.

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Financial Feasibility of Sijuk Shrimp Paste Business in Sungai Padang Village, Sijuk District, Belitung Regency

Agro Ekonomi ◽

10.22146/jae.24208 ◽

2017 ◽

Vol 28 (1) ◽

pp. 142

Author(s):

Aditya Nugraha ◽

Suhatmini Hardyastuti ◽

Jangkung Handoyo Mulyo

Keyword(s):

Capital Investment ◽

Net Present Value ◽

Central Area ◽

Payback Period ◽

Operating Costs ◽

Selling Price ◽

Present Value ◽

Population Sampling ◽

Maximum Reduction ◽

Return Value

Sijuk shrimp paste business is a business in processing rebon shrimp which is most commonly implemented in Belitung Regency. In this study, profi t analysis, investment feasibility, and sensitivity were used to draw the conclusions. The samples involve 25 shrimp paste businesses taken by using census method in Sungai Padang Village, District Sijuk, Belitung Regency. This area is also a central area for producing Sijuk shrimp paste. Census refers to periodic collection of information about the specifi c population from the entire population. Sampling is a method of collecting information from a sample that represents population. The result showed that the Sijuk shrimp paste businesses gives benefi ts because they had a gain of Rp.17.558.914,29 / year, the value of gross profi t ratio of 50.61%, the rate of return per capital investment of 1.02, and the return on the investments amounted to 74.58%. The Sijuk shrimp paste businesses are feasible to continue be had the value of discounted payback period of 1.57 years, the net present value of Rp.18.264.662,44, the internal rate of the return value of 35%, and the profi tability index of 1.78. From the results of the sensitivity analysis concluded that the Sijuk shrimp paste businesses are feasible to continue because the percentage of increase in the maximum operating costs still can be tolerated which is equal to 44,763% and the percentage of maximum reduction in the selling price of Sijuk shrimp paste still can be tolerated which is equal to 22.108%.

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ECONOMIC PROFITABILITY OF INVESTMENT IN A PHOTOVOLTAIC PLANT IN SOUTH-EAST POLAND

Annals of the Polish Association of Agricultural and Agribusiness Economists ◽

10.5604/01.3001.0013.3537 ◽

2019 ◽

Vol XXI (3) ◽

pp. 124-133 ◽

Cited By ~ 1

Author(s):

Piotr Gradziuk ◽

Barbara Gradziuk

Keyword(s):

Power Plant ◽

Empirical Data ◽

Net Present Value ◽

Present Value ◽

Photovoltaic Power ◽

Payback Time ◽

Registered Office ◽

Photo Voltaic ◽

Photovoltaic Plant

The goal of the conducted research was to assess the economic profitability of investment in a photovoltaic power plant located in south-east Poland, taking into consideration the whole invested capital, regardless of its origin. To determine such profitability, the NPV (Net Present Value) was used as well as the DPBT (Dynamic [Discounted] Pay Back Time). Empirical data was obtained from Energia Dolina Zielawy Sp. z o.o., with its registered office in Wisznice, which owns a photo-voltaic farm with 1.4 MW power, located in Bordziłówka (commune of Rossosz, province of Lublin). In accordance with the adopted assumptions described in the methodology section, the net present value of the investment in both variants was above zero, thus being economically efficient. The discounted period of payback time DBPT for the version with a subsidy was 9 years, whereas the option without subsidy extended that period to 13 years, and in the case of not taking the PMSPE into account – 18 years, still significantly shorter than the assumed 25-year period of use.

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Risk Manage Capital Investment Decisions: A Lease vs. Purchase Illustration

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v25i3.1031 ◽

2011 ◽

Vol 25 (3) ◽

Author(s):

Thomas L. Zeller ◽

Brian B. Stanko

Keyword(s):

Capital Investment ◽

Net Present Value ◽

Investment Decisions ◽

Capital Budgeting ◽

Rate Of Return ◽

Internal Rate Of Return ◽

Wealth Creation ◽

Font Size ◽

Present Value ◽

Internal Rate

This paper demonstrates how to build risk into capital investment decisions.  We illustrate how to combine distribution theory, technology, and a business professional’s skills and insight into a capital investment analysis.  In addition, we show how management can approximate the risk of each cash flow estimate and display the overall capital investment results.  This framework is extended by showing how a mutually exclusive decision can be improved, using a lease versus purchase example.<a style="mso-footnote-id: ftn1;" name="_ftnref1" href="http://journals.cluteonline.com/index.php/JABR/author/saveSubmit/#_ftn1">[1]</a>  An Excel template is readily available from the authors allowing a hands-on application of the framework presented in this paper.  In addition, this paper positions the reader to comfortably use more advanced analytics, such as Monte Carlo simulation, a tool that is readily available in commercial software applications.<div style="mso-element: footnote-list;"> <hr size="1" /><div id="ftn1" style="mso-element: footnote;">This paper focuses on the application of net present value.  The advantage of using net present value in a capital budgeting decision is that it shows the potential stakeholder wealth creation and wealth destruction.  An internal rate of return analysis is intentionally left out of this paper.  According to Brealey, Myers and Allen, Principles of Corporate Finance, New York, NY: McGraw-Hill/Irwin 2006, pp. 91-99, internal rate of return should not be used to evaluate mutually exclusive capital investments.  </div></div>

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Nilai Waktu Dari Uang Dalam Perspektif Ekonomi Islam

JES (Jurnal Ekonomi Syariah) ◽

10.30736/jes.v1i1.5 ◽

2016 ◽

Vol 1 (1) ◽

pp. 71-84

Author(s):

Misbahul Khoir

Keyword(s):

Net Present Value ◽

Average Rate ◽

Rate Of Return ◽

Value Of Time ◽

Present Value ◽

Time Value Of Money ◽

Time Value ◽

The Future ◽

Current Value ◽

Value Of Money

The time value of money is associated with the current value and future value because the money received now is more worth than the money received in the future. However, is the concept of time value of money is appropriate and justified by the Shari'ah? The time value of money is a concept that says that the money of the one rupiah that can be received today is more worth than one rupiah which will be received in the future time. The concept of time value of money is needed by financial managers in making decision when will invest in an asset and determine the source of loan funds that will be chosen. Methods for the time value of money pervade; a) the method of average rate of return. This method measures the level of profit gained by an investment. The disadvantage of this method is ignoring the time value of money; b) the payback period method. The method measures how fast the investment return is, the sooner the better; c) method of net present value (NPV). This method calculates quarrel between the current value of investment and the present value of net cash receipts in the future and calculates quarrel between the present value of cash outflow (investment) and cash inflow (income) per year; d) profitability index method (PI). This method calculates ratio between the present value of net cash receipts in the future and the present value of the investment; and e) the methods of internal rate of return (IRR). If IRR > saving or profit required → decent. Islam views money as a flow concept. Money must rotate in an economy and may not be idle for too long time. Moreover, it lets for years. Islam does not recognize the method of time value of money because this method adds value to money solely with increasing time and not effort. Islam actually knows the money value of time; that is the time has economic value as well as the money value of money. Imam Nawawi provides definition related to value addition for money based solely on the value of time is the category of riba.

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ANALISIS KELAYAKAN PENDIRIAN USAHA NUGGET IKAN BANDENG DENGAN METODE NET PRESENT VALUE (NPV) DI KABUPATEN MAROS

ILTEK : Jurnal Teknologi ◽

10.47398/iltek.v12i02.374 ◽

2017 ◽

Vol 12 (02) ◽

pp. 1751-1754

Author(s):

Suradi Suradi ◽

Andi Haslindah ◽

Jamilah Jamilah

Keyword(s):

Annual Cost ◽

Capital Investment ◽

Net Present Value ◽

Present Value

Ikan Bandeng merupakan potensi yang melimpah di Kabupaten Maros dimana pengolahannya masih sangat minim. Salah satu cara pemanfaatannya yaitu dengan melakukan pengolahan ikan bandeng menjadi nugget. Selain sebagai cemilan, nugget ikan juga bisa dijadikan sebagai lauk makanan.Penelitian ini didasarkan pada analisis data tentang kelayakan bisnis terhadap aspek pasar dan pemasaran, aspek produksi dan teknologi, aspek organisasi dan manajemen, aspek keuangan, serta Lingkungan. Nuggetdiolah dengan cara mencampurkan daging giling dengan bumbu-bumbu serta bahan pengikat kemudian dicetak dengan bentuk-bentuk tertentu selanjutnya dilumuri dengan tepung roti (coating) dan digoreng. Dari hasil penelitian dan analisa data keuangan yang dilakukan penulis, diperoleh nilai Investasi (Capital Investment) Rp. 179.900.000, Annual Cost Rp. 262.768.333 dan Annual BenefitRp. 345.600.000, nilai BEP Rp. 143.177.744 dengan memproduksi 3.579 bungkus dengan berat produk 1000 gram/bungkus, harga jual Rp. 40.000/bungkus, BCR 1,66 (BCR>1), dan NPV sebesar Rp. 118.691.592 IRR = 36,3%, MARR = 19%, serta PBP yang dapat dicapai pada tahun ke 3, Berdasarkan nilai tersebut diatas maka rencana pendirian usaha nugget ikan bandeng layak untuk dilaksanakan.

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