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1

Mole, R. H. "The Cost of Capital for Financial Evaluation of Plant and Machinery Capital Proposals." Proceedings of the Institution of Mechanical Engineers, Part B: Journal of Engineering Manufacture 203, no. 1 (1989): 57–62. http://dx.doi.org/10.1243/pime_proc_1989_203_047_02.

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This paper makes the case for the close involvement of engineers in the financial appraisal of proposals for capital expenditure on plant and machinery. Post-tax assessments are now essential for the great majority of companies and this requires a coherent analytical framework which encompasses both the tax cash flows and the impact of tax upon the cost of capital in an inflationary environment. This paper deals with the impact of taxation upon the cost of capital, the discount rate and the yield (internal rate of return) which forms an essential component of modern methods of discounted cash
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2

Basovskiy, Leonid, and Elena Basovskaya. "Evaluation of the Effectiveness of Investment Projects that Generate Con-tinuous Cash Flows." Scientific Research and Development. Economics 10, no. 4 (2022): 60–63. http://dx.doi.org/10.12737/2587-9111-2022-10-4-60-63.

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A methodology for evaluating the effectiveness of investment projects that gen-erate continuous cash flows, which are typical for the service sector and retail trade, has been developed and substantiated. Models of discounted cash flow (DCF) for projects that generate continuous cash flows are obtained and presented. The use of models illus-trated with a concrete example are given. It is shown that in short-term projects, with a high cost of capital and, accordingly, a high discount rate, the net present value of the discounted continuous cash flow is significantly higher than the net present
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3

Grabowski, Roger J. "Comparing Growth Rates Used in Discounted Cash Flow Valuations." Business Valuation Review 40, no. 1 (2021): 2–12. http://dx.doi.org/10.5791/20-00007.1.

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Estimating growth in net cash flows is one of the key components in applying the discounted cash flow (DCF) method in valuing any company, reporting unit, or other business unit. This paper explains the underlying assumptions of the DCF method and demonstrates how to compare the most commonly used basis for estimating net cash flows (sometimes referred to as free cash flows), expected organic growth, to historic estimates of growth of the subject company and estimates of earning growth commonly prepared by security analysts.
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4

Solodov, A. A. "Stochastic Method of Discounted Cash Flows." Statistics and Economics 18, no. 1 (2021): 67–74. http://dx.doi.org/10.21686/2500-3925-2021-1-67-74.

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The method of discounted cash flows (DCF) is one of the main and popular methods of economic assessment of business, which is used all over the world. However, the actual behavior of business projects evaluated by this method often differs from that predicted, and the difference can be tens of times.It should be noted that at present, the discounted cash flow method is a subject of extensive literature, but there are no analytical arguments for large discrepancies between the theory and practice of the method. The aim of the study is to provide a theoretical explanation of the forecasting erro
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Kharisma dwi novianti, Mochamad Reza Adiyanto, Bambang Sudarsono, and Eni Sri Rahayuningsih. "Feasibility of Halal-Certified Slaughterhouse Business in Financial Aspects." Maro: Jurnal Ekonomi Syariah dan Bisnis 6, no. 2 (2023): 322–31. http://dx.doi.org/10.31949/maro.v6i2.7250.

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penelitian ini bertujuan untuk mengetahui kelayakan usaha Rumah Potong Hewan ditinjau dari aspek keuangan. Objek yang diambil dari penelitian ini adalah Rumah Potong Hewan Krian Kabupaten Sidoarjo. Penelitian ini menggunakan metode kuantitatif dengan pengambilan sampel purposive sampling. Data yang diperoleh dari penelitian ini adalah data primer wawancara dengan kepala Rumah Potong Hewan Krian secara langsung. Analisis ini menggunakan alat analisis kelayakan investasi yaitu Net Present Value, Internal Rate of Return, Average Rate of Return, Break Event Point, Payback Period, Profitability Ind
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Fairchild, Keith Wm. "Risk-Adjustment and Reinvestment Rates: Net Terminal Value." Journal of Applied Business Research (JABR) 3, no. 3 (2011): 34. http://dx.doi.org/10.19030/jabr.v3i3.6513.

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The traditional discounted cash flow techniques of capital investment analysis suffer a variety of problems due to implicit reinvestment assumptions, as well as a general inability to appropriately adjust for differing risk profiles. Net Terminal Value is introduced as a means by which these limitations may be overcome.
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7

Pinder, Jonathan P., and Ann S. Marucheck. "Using discounted cash flow heuristics to improve project net present valve." Journal of Operations Management 14, no. 3 (1996): 229–40. http://dx.doi.org/10.1016/0272-6963(96)00003-4.

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8

Nur Fajriah, Zaenal, and Solihin. "Kajian Ekonomi dengan Menggunakan Analisis Sensitivitas terhadap Biaya Produksi dan Harga Jual Sirtu CV Bumi Pasir Makmur di Kecamatan Leles, Kabupaten Garut, Provinsi Jawa Barat." Bandung Conference Series: Mining Engineering 5, no. 1 (2025): 119–28. https://doi.org/10.29313/bcsme.v5i1.17699.

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Abstract. Sirtu mining is an important sector in providing construction materials. CV Bumi Pasir Makmur is a sandstone mining company in Leles District, Garut Regency, West Java Province. Mining activities must consider economic feasibility, with indicators such as Net Present Value (NPV), Discounted Cash Flow Rate of Return (DCFROR), and Payback Period (PBP). This study aims to determine investment costs, production costs, income, economic feasibility of mining activities, and sensitivity analysis to see investment risks. Primary data include production targets, production costs, work schedul
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Wahyuni, Wahyuni, Diana Purwandari, and Tati Febrianti Syantika Rini. "ANALISIS KELAYAKAN EKONOMI TAMBANG BENTONIT MENGGUNAKAN METODE DISCOUNTED CASH FLOW." Jurnal Lebesgue : Jurnal Ilmiah Pendidikan Matematika, Matematika dan Statistika 4, no. 3 (2023): 1846–55. http://dx.doi.org/10.46306/lb.v4i3.484.

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This research was conducted to analyze and evaluate the feasibility of the bentonite mining business carried out by CV. Bentonit Ariyanto. The calculations in this research use Discounted Cash Flow (DCF). Discounted Cash Flow (DCF) is a cash flow calculation method that calculates the time value of money. Money invested in the present will have a different value in the future. From the calculation results using the Discounted Cash Flow method CV. BENTONIT ARIYANTO has a Net Present Value (NPV) of 2,864,612,232 > 0, Payback Period (PBP) 6 years 9 months < Age of Mine, Internal Rate of Ret
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10

Cornell, Bradford, and Richard Gerger. "Long-run Growth Rates in Discounted Cash Flow Models." Business Valuation Review 41, no. 3 (2022): 91–94. http://dx.doi.org/10.5791/bvr-d-22-00008.

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Long-run growth rates play a central role in all discounted cash flow models. This is true whether the goal is to estimate the value of a company or to estimate the cost of equity. It is well recognized as a matter of mathematics—although not always incorporated into practice—that the long-run expected growth rate cannot exceed the growth rate of the aggregate economy. What is less widely appreciated is that as an empirical matter the long-run growth rates for existing companies (that is, companies that are being appraised or whose cost of equity is being estimated) are almost certain to be le
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11

Srimi Ayu Lestari, Mochamad Reza Adiyanto, Bambang Sudarsono, and Eni Sri Rahayuningsih. "Feasibility Study of Chicken Slaughterhouse Business Investment." Maro: Jurnal Ekonomi Syariah dan Bisnis 6, no. 2 (2023): 332–41. http://dx.doi.org/10.31949/maro.v6i2.7233.

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This research aims to analyze the feasibility of investing in a Poultry Slaughterhouse business at CV Rafika Foods Indonesia from a financial aspect. This research uses a quantitative method with purposive sampling. The investment feasibility analysis tools used are Net Present Value, Internal Rate of Return, Average Rate of Return, Profitability Index, Break Event Point, Payback Period, Discounted Cash Flow, and Shutdown Point. The data obtained is primary data using interview techniques directly at the place of business. The calculations carried out resulted in a positive Net Present Value o
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Cynthia, Rudolf Lumbantobing, and Eka Desy Purnama. "Valuation of the Fair Market Value of the Shares of PT Link Net Tbk in Connection with the Acquisition of Shares by PT XL Axiata Tbk in 2022 Using the Discounted Cash Flow (DCF) and Abnormal Income Method." International Journal of Science and Society 6, no. 1 (2024): 1056–64. http://dx.doi.org/10.54783/ijsoc.v6i1.1103.

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Corporate takeover actions (acquisitions) carried out by companies are always in the spotlight of the capital market public, because corporate acquisition actions are classified as material transactions that require very large financing, and it is not uncommon for there to be conflicts of interest in their implementation. However, sometimes there can be cases where a company acquires another company in the hope of gaining synergies but instead incurs losses, which may be due to an unreasonable acquisition price that can harm many parties including the public and shareholders. This can of cours
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13

Zhukov, P. E. "New Models for Analyzing Changes in Company Value Based on Stochastic Discount Rates." Finance: Theory and Practice 23, no. 3 (2019): 35–48. http://dx.doi.org/10.26794/2587-5671-2019-23-3-35-48.

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We propose new models for analyzing changes in the value of the company using stochastic discount rates. It is shown that for the majority of the companies under study, local changes in the rate of the company value growth (percentage changes to the previous level) are not explained by the corresponding changes neither in the weighted average cost of capital (WACC), nor in the cash flows. This fact, as well as the research results by J. Cochrane, who proved that discount rates volatility is the main contributor to price volatility, became initial prerequisites for building models based on stoc
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14

Paulo, S. "Certainty equivalent coefficients and capital budgeting: A caveat." South African Journal of Business Management 24, no. 4 (1993): 130–33. http://dx.doi.org/10.4102/sajbm.v24i4.874.

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The purpose of this technical note is to draw attention to the problems which are inherent in the use of certainty equivalent coefficients as an approach to incorporating risk into capital budgeting. More specifically, the certainty equivalent coefficient net present value criterion violates an important principle of cash flow determination for discounted cash flow analysis. Further, this approach precludes the use of net present value profiles which are pivotal when evaluating conflicts among mutually exclusive projects. In addition, use of certainty coefficient equivalents amounts to an ackn
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15

Myniv, R. M. "Methodical approaches to the assessment of investment attractiveness of agricultural enterprises." Scientific Messenger of LNU of Veterinary Medicine and Biotechnologies 21, no. 93 (2019): 63–69. http://dx.doi.org/10.32718/nvlvet-e9313.

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Evaluation of investment efficiency is central to the process of justifying and selecting possible options for investing in investment projects, and is therefore a key to successful implementation of investment activities of agricultural enterprises. The main directions of financing of investment projects of agricultural enterprises are: purchase or construction of unfinished construction objects, new construction, expansion of existing enterprises, reconstruction of existing enterprises and technical re-equipment of existing enterprises. Two main groups of methods of assessing the cost-effect
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16

Ped, Iryna. "METHODOLOGICAL APPROACHES TO FORECASTING NET CASH FLOW WHEN EXPERTS-ECONOMISTS DETERMINE THE MARKET VALUE OF SHARES USING THE INCOME APPROACH." Criminalistics and Forensics, no. 67 (August 9, 2022): 562–70. http://dx.doi.org/10.33994/kndise.2022.67.57.

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Conducting forensic examinations on the issues of determining the market value of shares is subject to execution in compliance with the requirements of both the legislation on valuation and valuation activities, and the methods developed in accordance with the Law Ukrainian “On Forensic Expertise”. In accordance with national valuation standards, the main method of the income approach used for the valuation of integral property complexes is the discounted cash flow method. The method of complex expert studies for determining the value of shares of enterprises, developed in accordance with the
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17

Rajkumar, Aditya Vikram, and Jeffrey Williams. "Managing a Firm's Cash Flow Recovery Strategy." International Journal of Strategic Decision Sciences 3, no. 1 (2012): 60–80. http://dx.doi.org/10.4018/ijsds.2012010102.

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Traditional cash flow estimation techniques focus on generating net cash flow estimates period-by-period, which are then discounted by the firm’s cost of capital. While conceptually strong, this aggregation approach can be insensitive to the fine-grained detail so important to managing project cash flows, in particular, that investment returns are always a combination of growth (renewal) and decline (convergence) forces at work over the firm's life. As is demonstrated in this paper, the aggregation problem can be addressed by employing a cash flow recovery period (CFRP) framework, which distin
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18

Boyadzhiev, Radostin. "How to use real options in project evaluation." Science, Engineering and Education 8, no. 1 (2023): 114–19. http://dx.doi.org/10.59957/see.v8.i1.2023.14.

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An option is a financial instrument that gives the opportunity, but not the obligation, to sell or buy a given financial asset, under predetermined conditions. When used for real (tangible) assets, then we are talking about a real option. The present paper will examine the advantages and disadvantages of using real options in the evaluation of investment projects. The analysis will be presented as a com- parison with traditional discounted cash flow methods. Net present valu (NPV) and other discounted cash flow methods are based on the presumption that expectations for the period of the invest
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19

Baughman, Melvin J. "Economics of Dutch Elm Disease Control: A Model and Case Study." Journal of Forestry 83, no. 9 (1985): 554–57. http://dx.doi.org/10.1093/jof/83.9.554.

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Abstract A discounted cash-flow model is used to compare the economic efficiency of sanitation controls for Dutch elm disease. A case study in Minneapolis, Minnesota, considers intensive sanitation, winter sanitation, and minimum control. Costs and benefits are projected for each alternative over a period of ten years. Benefits are defined as savings from either intensive or winter sanitation over minimum control costs. Intensive sanitation produces the highest net present worth and saves the most trees at the lowest cost ($31.19 less per-tree saved than winter sanitation). Sensitivity analysi
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20

Mařík, Miloš, and Pavla Maříková. "Capitalized Net Income and Residual Earnings as an Alternative of Discounted Cash Flow?" Český finanční a účetní časopis 2008, no. 2 (2008): 7–20. http://dx.doi.org/10.18267/j.cfuc.265.

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21

Babitha., N., and Pakkala T.P.M. "Varying Order Sizes for One Time Discount Offer – A Net Present Value Analysis." International Journal of Innovative Science and Research Technology 8, no. 3 (2023): 2672–80. https://doi.org/10.5281/zenodo.8000645.

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One of the methods of taking optimal decisions under uncertainty is a probabilistic approach. Under the situation of one-time discount offer with uncertain ending duration, the optimal order sizes need not remain same. The cash flow that occurs at different time point depends on order sizes very much. The optimal order sizes will also depends on probability of discount closes before next replacement. The objective of the paper is to determine an optimal ordering policy when a discounted price is offered over a temporary period and it is for a random duration. The paper discusses the method of
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Anthony, O. Chikwe, and N. Ebue Anthony. "Comparative Economic Analysis of CNG and LNG Transportation." Journal of Scientific and Engineering Research 8, no. 9 (2021): 95–105. https://doi.org/10.5281/zenodo.10615506.

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<strong>Abstract</strong> There are many possible technologies of transporting gas from production fields to consumers elsewhere as a fuel or as a chemical feedstock in a petrochemical plant, where gas is converted into valuable products. The methods for transportation of natural gas also known as gas optimization options include Pipelines (PNG), Liquefied Natural Gas (LNG), Compressed Natural Gas (CNG), Gas to Hydrates (GTH), Gas to Liquids (GTL), Gas to Commodity (GTC) such as glass, cement or iron and Gas to Wire (GTW) i.e. electricity. Comparative Economic analysis of CNG and LNG transport
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He, Yan, and Frank Long. "DCF Valuation of Nonprofit Universities." Applied Finance and Accounting 6, no. 1 (2019): 1. http://dx.doi.org/10.11114/afa.v6i1.4553.

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We conduct the Discounted Cash Flow (DCF) valuation of two nonprofit organizations: Syracuse University and Indiana University. We transform nonprofits to for-profits by converting nonprofit social benefit to net earnings and by adopting for-profit cost of equity and tax rate. These adjustments attempt to capture considerable hidden value to equityholders. We find that in the best scenario, the net worth (market value of equity) could be about 2 times the book equity for both universities in June 2017.
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Carlini, Maurizio, Sonia Castellucci, Silvia Cocchi, Elena Allegrini, and Ming Li. "Italian Residential Buildings: Economic Assessments for Biomass Boilers Plants." Mathematical Problems in Engineering 2013 (2013): 1–10. http://dx.doi.org/10.1155/2013/823851.

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Biomass is increasingly used for energy generation since it represents a useful alternative to fossil fuel in order to face the pollutions and the global warming problem. It can be exploited for heating purposes and for supplying domestic hot water. The most common applications encompass wood and pellet boilers. The economic aspect is becoming an important issue in order to achieve the ambitious targets set by the European Directives on Renewable Sources. Thus, the present paper deals with the economic feasibility of biomass boiler plants with specific regard to an existing residential buildin
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Arista Yulanda, Yudi, M. Taufik Toha, and Fahrurrozi Syarkowi. "OPTIMASI STRIPPING RATIO DENGAN METODE DISCOUNTED CASH FLOW PADA PROJECT PLTU MULUT TAMBANG." Jurnal Pertambangan 4, no. 3 (2020): 128–33. http://dx.doi.org/10.36706/jp.v4i3.470.

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Harga batubara acuan pada bulan Januari 2020 adalah 65.93 USD/ton turun jauh dari tahun 2018 dimana harga batubara acuan sempat mencapai 107.83 USD/ton pada bulan Agustus. Dalam upaya menaikkan ratio elektrifikasi dalam RUPTL PLN 2018-2027 PLTU Mulut Tambang mendapatkan porsi 11 persen dengan peningkatan jumlah pembangkit setiap tahun nya. Keberadaan Batubara sebagai sumber daya alam yang terbatas dan tidak dapat diperbaharui menuntut penerapan prinsip konservasi cadangan batubara untuk mengoptimalkan keuntungan dan cadangan dengan memilih Stripping Ratio yang optimum. Tujuan penelitian ini ya
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26

Ann Brotman, Billie. "Green office construction: a discounted after-tax cash flow analysis." Journal of Property Investment & Finance 32, no. 5 (2014): 474–84. http://dx.doi.org/10.1108/jpif-01-2014-0007.

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Purpose – The purpose of this paper is to address the apparent slow acceptance on the part of developers located in the USA to seek green certifications. If green-certified construction costs more than non-green construction, then is there a financial reason for not seeking a green rating. Do green buildings perform better than non-green buildings financially? The paper develops and presents a discounted present value model for doing a cost-benefit analysis for building green. This model enables an investor to determine the feasibility of constructing a new green-certified building instead of
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Hardiman, V., E. Ibrahim, B. Setiawan, and M. Yusuf. "PEMILIHAN OPTIMUM PIT LIMIT BERDASARKAN VOLATILITAS HARGA BATUBARA MENGGUNAKAN DISCOUNTED CASH FLOW." Jurnal Pertambangan 8, no. 1 (2024): 1–10. https://doi.org/10.36706/jp.v8i1.2260.

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Nilai cadangan total dari sebuah pit pada tambang terbuka batubara didapatkan dari pemilihan pit shell dengan Net Present Value (NPV) tertinggi dari keseluruhan hasil pit optimasi yang telah dilakukan dengan bantuan perangkat lunak dengan algoritma tertentu. Pada umumnya NPV dihitung menggunakan harga batubara acuan (HBA) terbaru pada saat perhitungan dilakukan tanpa mempertimbangkan fluktuasi harga yang pernah terjadi. Sehingga nilai yang didapatkan tidak relevan lagi apabila terjadi perubahan harga yang sinifikan di masa mendatang. Penelitian bertujuan untuk menentukan optimum pit shell dari
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Sobko, Borys, Oleksii Lozhnikov, and Vitalii Kriachek. "Assessment of the using a mobile crushing and sorting plant investment attractiveness at the development of construction material quarries." Mining of Mineral Deposits 18, no. 4 (2024): 34–44. https://doi.org/10.33271/mining18.04.034.

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Purpose. To establish the influence of the quarry depth at the construction materials deposit mining on the payback period of investments when using the haulage mining system (HMS), cyclic flow technology (CFT), and mobile crushing and sorting plant (MCSP) with a comparison of its efficiency. Methods. The research used discounted value of cash flow methods to determine the company’s net present value (NPV) and the investment payback period. When establishing a mining enterprise’s technical and economic performance indicators, the present value factor of future costs and profits was considered.
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Vimpari, Jussi, and Seppo Junnila. "VALUE INFLUENCING MECHANISM OF GREEN CERTIFICATES IN THE DISCOUNTED CASH FLOW VALUATION." International Journal of Strategic Property Management 18, no. 3 (2014): 238–52. http://dx.doi.org/10.3846/1648715x.2014.940615.

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The market value of green properties is already acknowledged in scientific literature, but it has still remained unclear how green certificates are incorporated into property valuation. In this study, value influencing mechanism of green certificates in property investment is studied. A widely used discounted cash flow (DCF) model for property valuation was constructed and communicated with spreadsheet to industry professionals for valuing an office property in metropolitan Finland. The goal was to understand the value influencing mechanism and even deeper to identify the differences in DCF pa
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Silva, Joao Carlos Marques, and José Azevedo Pereira. "Taking the highway out: exiting the stock market to maximize results." CASE Journal 18, no. 2 (2021): 170–219. http://dx.doi.org/10.1108/tcj-01-2021-0020.

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Theoretical basis The essence of discounted cash flow valuation is simple; the asset is worth the expected cash flows it will generate, discounted to the reference date for the valuation exercise (normally, the day of the calculation). A survey article was written in Parker (1968), where it was stated that the earliest interest rate tables (use to discount value to the present) dated back to 1340. Works from Boulding (1935) and Keynes (1936) derived the IRR (Internal Rate of Return) for an investment. Samuelson (1937) compared the IRR and NPV (Net Present Value) approaches, arguing that ration
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Kenner, Bartholemew, Dayton M. Lambert, Carlos Omar Trejo-Pech, Jada M. Thompson, and Thomas Gill. "Financial risks in Rwandan smallholder broiler production." Journal of Agribusiness in Developing and Emerging Economies 9, no. 5 (2019): 569–83. http://dx.doi.org/10.1108/jadee-11-2018-0163.

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Purpose The purpose of this paper is to determine the stochastic net present value (NPV) of a model smallholder poultry operation in Rwanda under production and market uncertainty. Design/methodology/approach A discounted cash flow calculator was used to determine the NPV of operator investments and operating cash flows, including time, materials and capital. Broiler production data, market prices and variable input costs were collected from 125 smallholder operations in the Musanze District, Rwanda. These data were combined with a historical price index tracking the inflation rate of Rwanda’s
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Drapikovskyi, Oleksandr, and Iryna Іvanova. "PROPERTY LIFE CYCLE COST ANALYSIS METODS." Spatial development, no. 1 (December 23, 2022): 140–56. http://dx.doi.org/10.32347/2786-7269.2022.1.140-156.

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The minimization of the property life cycle cost as a criterion for making a decision regarding the economic feasibility of purchasing or building a certain real estate object compared to other objects with functional utility today has become a mandatory requirement of most regulatory and legal acts in Ukraine.&#x0D; At the same time, the practical implementation of this requirement faces the problem of methodical provision of life cycle cost analysis from the standpoint of the uncertainty of these costs in the future and the need to take into account the time value of money.&#x0D; The applica
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Correia, C. "Capital budgeting practices in South Africa: A review." South African Journal of Business Management 43, no. 2 (2012): 11–29. http://dx.doi.org/10.4102/sajbm.v43i2.180.

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This paper reviews the capital budgeting survey literature in South Africa over the period 1972 to 2008. The survey evidence indicates a significant growth in Discounted Cash Flow (DCF) methods and a fall in the use of other methods. In particular, there has been growth in the use of Net Present Value (NPV). Yet, the Internal Rate of Return (IRR) technique remains the primary method used in practice despite some serious drawbacks. Larger companies are more likely to use DCF methods. There has been a significant growth in the use of sensitivity analysis and scenario analysis. However, there is
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Wijaya, Darren Anthony, and Mandra Lazuardi Kitri. "Feasibility Study of PT XYZ's Villa Project In Seminyak, Bali." Journal Integration of Management Studies 2, no. 1 (2024): 101–17. http://dx.doi.org/10.58229/jims.v2i1.159.

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The tourism industry in Bali, a cornerstone of the local economy, faced a severe downturn due to COVID-19, resulting in declines in tourist arrivals and accommodations. However, the sector has seen a robust recovery, with tourist arrivals now exceeding pre-pandemic levels. Despite this, accommodations recovery has lagged, presenting a significant investment opportunity. PT XYZ aims to capitalize on this by developing a luxury villa in Seminyak, targeting the middle-to-upper tourist market. The planned investment of IDR 2,109,848,475 will be fully financed through equity. This study assesses th
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Chen, Hanxi. "Dependence of Investing Strategies on Expected Discounted Rate." Advances in Economics, Management and Political Sciences 80, no. 1 (2024): 258–65. http://dx.doi.org/10.54254/2754-1169/80/20241889.

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The Discounted Cash Flow model is a cornerstone in the fields of corporate finance and investment valuation, serving as a crucial decision-making tool for stock valuation. Driven by the motivation of searching for the dependence of different investing strategies on expected discounted rates, the article compares the valuations of two types of hypothetical net free cash flows under the same fluctuation of discounted rates, representing the stable and aggressive growth of companies. Modeling studies are then supported by regressing different representative indexes on the yield-to-maturity of Chi
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Yanuarti, Ika, and Helena Dewi. "Startup Bisnis Sebagai Alaternatif Investasi." ULTIMA Management 10, no. 2 (2019): 81–96. http://dx.doi.org/10.31937/manajemen.v10i2.979.

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Abstract&#x0D; &#x0D; The main purpose of the investment activity is to obtain profits for both the company and the investor. To generate profits for investors, the company requires initial capital to manage its operational to do business. In general, investors will make investment decisions based on the intrinsic value of the company or based on the growth of the company’s profitability from the previous period. To measure those reference, investors needs historical data of financial reports as a baseline to calculate and for comparison. The barriers for startup companies are the lack or unav
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Islam, K. M. Anwarul. "An Empirical Research on Beximco Knitting Ltd: Ratio, DuPont, Valuation and Pro-Forma Analysis." Indian Journal of Finance and Banking 1, no. 1 (2017): 1–7. http://dx.doi.org/10.46281/ijfb.v1i1.80.

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Beximco Knitting Ltd belongs to the Textile Industry. This paper examines some ratio analysis that showed the overall internal liquidity position of the company, that is not satisfactory; because of the entire ratio performance is not good, operating efficiency ratio is not good, indicates that lower efficiency generate capacity in terms of sale, debt-equity ratio is increasing overtime in order to employ the more debt financing as long-term borrowing compare to the equity financing, which make the firm more risky. Beximco Knitting Ltd is more sensitive to leverage compare to net profit margin
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Anthony, O. Chikwe, B. Oyoh Kechinyere, Appah Dulu, and I. Onwukwe Stanley. "Comparative study of pipeline and marine transportation modes for Gas-to-Liquid (GTL) products from Nigeria to Overseas." Journal of Scientific and Engineering Research 8, no. 1 (2021): 18–26. https://doi.org/10.5281/zenodo.10551767.

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<strong>Abstract</strong> Transportation modes mainly marine for marketing of Gas-to-liquid (GTL) products from the Niger Delta region of Nigeria to Overseas were evaluated economically using Microsoft visual basic program. Discounted project cash flow analysis was performed to ascertain the discount rate at which the project is economically viable. Marine transportation mode at Capital expenditure (Capex) of $1.7billion, Crude oil price of $70/bbl, Gas price of $4.06/Mscf and assumed discount factor of 10% were evaluated. Results obtained for Net Present Value (NPV), Internal Rate of Return (
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39

Aliu, Ing Florin. "Privatization Process in Kosovo." ILIRIA International Review 4, no. 1 (2014): 151. http://dx.doi.org/10.21113/iir.v4i1.58.

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Privatization is considered an initial step toward market economy, restructuring financial and economic sector that enables competition in the economy. Privatization is the most painful process in economy where beside legal establishment and political will, it includes also the aspect of fairness and honesty. Analysis of this process is based on the models and comparisons between Kosovo and countries of central and Eastern Europe, in order to give a clearer picture on the overall process of privatization in KosovoMethodology that is used to analyze this issue is based on empirical results and
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40

Belanová, Katarína. ""What If" Analyses in Investment Decision Making." Financial Assets and Investing 3, no. 3 (2012): 5–16. http://dx.doi.org/10.5817/fai2012-3-1.

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In general, each project`s value is estimated using a discounted cash flow (DCF) valuation, and the opportunity with the highest value, as measured by the resultant net present value (NPV) will be selected. The problem with such NPV estimates is that they depend on projected future cash flows. If there are errors in those projections, then estimated net present values can be misleading (a forecasting risk). Basic approach to evaluating cash flow and NPV estimates involves asking “what – if” questions. Accordingly, the paper discusses some organized way s of going about a what – if analysis. It
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Biose, Henry, Adewale Dosunmu, and Chijioke Nwaozuzu. "ECONOMIC FRAMEWORK FOR GAS PIPELINE DEVELOPMENT IN NIGERIA." International Journal of Engineering Technologies and Management Research 6, no. 12 (2020): 46–63. http://dx.doi.org/10.29121/ijetmr.v6.i12.2019.474.

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The paper present an economic model and framework for the development of natural gas pipeline for sustainable economic development in Nigeria. The study reviewed the economics of natural gas pipeline development in Nigeria. The research formulated an economic model for a case study of Calabar to Ajaokuta 417km gas pipeline project and a discounted cash flow for an economic life of 40 years. The project economics indicates a Net Present Value (NPV) of 12.5 billion USD with a discounted payback period of 7 years and 9 nine months, Profitability Index (PI) of 7.30, Internal Rate of Return of 23.0
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Henry, Biose, Adewale Dosunmu Professor, and Chijioke Nwaozuzu Dr. "ECONOMIC FRAMEWORK FOR GAS PIPELINE DEVELOPMENT IN NIGERIA." International Journal of Engineering Technologies and Management Research 6, no. 12 (2019): 46–63. https://doi.org/10.5281/zenodo.3595283.

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The paper present an economic model and framework for the development of natural gas pipeline for sustainable economic development in Nigeria. The study reviewed the economics of natural gas pipeline development in Nigeria. The research formulated an economic model for a case study of Calabar to Ajaokuta 417km gas pipeline project and a discounted cash flow for an economic life of 40 years. The project economics indicates a Net Present Value (NPV) of 12.5 billion USD with a discounted payback period of 7 years and 9 nine months, Profitability Index (PI) of 7.30, Internal Rate of Return of 23.0
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Isobe, Yoshihiro, Mitsuyuki Sagisaka, Shinobu Yoshimura, and Genki Yagawa. "Economic Evaluation of Maintenance Strategies for Steam Generator Tubes Using Probabilistic Fracture Mechanics and a Financial Method." Solid State Phenomena 120 (February 2007): 119–26. http://dx.doi.org/10.4028/www.scientific.net/ssp.120.119.

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As an application of probabilistic fracture mechanics (PFM) and a financial method, a risk-benefit model was developed for the purpose of optimizing maintenance activities of steam generator (SG) tubes used in pressurized water reactors (PWRs). To justify whether or not it is worth while implementing the selected maintenance strategy in terms of an economic point of view, net present value (NPV) was calculated as an index which is one of the most fundamental financial indices for decision-making based on the discounted cash flow (DCF) method.
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Thompson, Joseph, and David Neuzil. "Providing a Framework for Testing the Reasonableness of Terminal Period Cash Flow Investments." Business Valuation Review 39, no. 1 (2020): 5–13. http://dx.doi.org/10.5791/19-00009.1.

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Whether using the traditional Gordon Growth formula or the value driver formula, it is common for a valuer to neglect testing the reasonableness of the capitalized free cash flow used in determining the terminal value and, therefore, derive a terminal value that is incorrect. This is troubling considering how important the terminal value is when concluding an equity value; the terminal value most often accounts for a majority of the concluded enterprise value when applying the Discounted Cash Flow method. The purpose of this article is to provide a framework for testing the reasonableness of t
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Angelaccio, Michele, and Ulviyya Hajiyeva. "Slow Tourism Project to Redistribute Tourist Demand in Lazio: Cost-Benefit Analysis Using Monte Carlo Simulation." Athens Journal of Tourism 10, no. 4 (2023): 243–58. http://dx.doi.org/10.30958/ajt.10-4-1.

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This paper examines the potential financial advantages and disadvantages of a project called Feudo Turistico, which proposes the establishment of a slow tourism destination between Rome and Fiuggi. The objective of the project is to reduce the concentration of tourist demand in the city centers of Rome and Fiuggi and instead distribute it across the Lazio region by providing a local cultural and active tourism experience with new services that are currently unavailable in the region. To assess the project’s feasibility, a cost-benefit analysis is conducted using Monte Carlo Simulation with 10,
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Andriana, Monica, and Achmad Herlanto Anggono. "Project Investment Analysis on New Oil and Gas Field Development (M-X) at Pt. PTM." European Journal of Business and Management Research 8, no. 4 (2023): 168–72. http://dx.doi.org/10.24018/ejbmr.2023.8.4.2001.

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PT.PTM as one of major oil and gas company in Indonesia contributes highly to fulfilling oil and gas demand in Indonesia. However, with more than 40 years of operation, PT. PTM is currently at its declining phase. Aggressive development projects have been planned to sustain PT. PTM production. The latest development project is M-X new field developments. This Final Project is intended to assess the M-X Project feasibility in terms of economic terms considering possible dynamic changes in several factors. The results of this final project will help PT.PTM management decide whether to invest in
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Lothner, David C., Howard M. Hoganson, and Paul A. Rubin. "Examining short-rotation hybrid poplar investments by using stochastic simulation." Canadian Journal of Forest Research 16, no. 6 (1986): 1207–13. http://dx.doi.org/10.1139/x86-215.

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We examined and compared short-rotation hybrid poplar investments using standard discounted cash flow and stochastic simulation. With stochastic simulation, triangular probability density functions were used to describe the values for three important uncertain factors: product price, product yield, and harvest and transport costs. We found that the net present value per acre could range from a minus $310 to a positive $1010 with a mean value of about $140, using a 4% discount rate. Based on the assumptions we used, product price uncertainty was found to be the major cause of uncertainty surrou
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Kim, Hyun-Seung, and Churl-Hee Cho. "An Economical Boil-Off Gas Management System for LNG Refueling Stations: Evaluation Using Scenario Analysis." Energies 15, no. 22 (2022): 8526. http://dx.doi.org/10.3390/en15228526.

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The use of liquefied natural gas (LNG) in the transportation sector is increasing, and boil-off gas (BOG) management systems are considered viable options to increase economic efficiency and reduce greenhouse gas emissions at LNG refueling stations. The present study proposed an economically optimized method by investigating four refueling station scenarios, including different BOG management systems. Among the four scenarios, the scenario in which compressed natural gas was produced from BOG had the lowest minimum selling price (MSP) and was the most economical. Sensitivity and uncertainty an
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SHRIEVES, RONALD E., and JOHN M. WACHOWICZ. "FREE CASH FLOW (FCF), ECONOMIC VALUE ADDED (EVA™), AND NET PRESENT VALUE (NPV):. A RECONCILIATION OF VARIATIONS OF DISCOUNTED-CASH-FLOW (DCF) VALUATION." Engineering Economist 46, no. 1 (2001): 33–52. http://dx.doi.org/10.1080/00137910108967561.

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Гераськина and A. Geraskina. "The Method of Real Options in the Evaluation of Strategic and Investment Decisions." Economics 5, no. 3 (2017): 41–45. http://dx.doi.org/10.12737/article_59393a6b428b54.77069649.

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The method of real options is one of the new approaches to estimate investment projects’ cost and it is an important addition to discounted cash flow method. Real option significantly increases the efficiency of the project due to the possibility of decision-making during its implementation. This aspect is especially important in unstable environmental conditions. The main differences between the financial and real options are presented. The differences of valuation of investment projects by the real options method and net present value are examined. The article presents the types of real opti
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