The economic value of an investment in physiotherapy education: a net present value analysis

This study investigates how balancing internal and external financing sources can create economic value. We set a financial scorecard, consisting of the Cost of Debt (COD), Return on Investment (ROI), and the Cost of Equity (COE). We show that COE should be a cap for COD and a floor for ROI in order to increase the Net Present Value at Weighted Average Cost of Capital and the Adjusted Present Value of the levered investment. However, leverage should be carefully monitored if COD and ROI go off the grid. Situations where leverage has the opposite effect on value creation and the Equity Internal Rate of Return are also discussed. Illustrative examples are given. The proposed model aims to help corporate management in financial decisions.

Download Full-text

Estimating the aboveground carbon sequestration and its economic value (case study: Iranian Caspian forests)

Journal of Forest Science ◽

10.17221/88/2017-jfs ◽

2017 ◽

Vol 63 (No. 11) ◽

pp. 511-518 ◽

Cited By ~ 1

Author(s):

Mohammadi Zohreh ◽

Limaei Soleiman Mohammadi ◽

Lohmander Peter ◽

Olsson Leif

Keyword(s):

Carbon Sequestration ◽

Net Present Value ◽

Economic Value ◽

Volume Growth ◽

Allometric Equation ◽

Present Value ◽

Diameter Increment ◽

Aboveground Carbon ◽

The North ◽

Annual Volume

The aim of the study is to estimate the aboveground carbon sequestration and to determine the economic value of forests in carbon sequestration as a way of mitigating climate change. This research was conducted at Asalem forests in the north of Iran. In order to estimate the amount of annual carbon sequestration, the annual volume growth of stand was determined using the diameter increment data and tariff. The amount of carbon sequestration was estimated based on wood density and using the allometric equation. The carbon model was obtained for each species. The value of sequestrated carbon in stumpage and the net present value of carbon sequestration were determined in order to estimate the economic value of carbon sequestration. Results indicated that the annual volume growth per hectare and the carbon stored are 6.023 m3·yr–1 and 2.307 t·ha–1, respectively. Finally, the carbon sequestration value of stumpage and the net present value of carbon sequestration are 11,023.753 and 790.361 (10,000 IRR·t–1·ha–1), respectively. Our results are very useful in estimating the total economic value of Asalem forests and other Iranian Caspian forests in the future.

Download Full-text

Is Smart Housing a Good Deal? An Answer Based on Monte Carlo Net Present Value Analysis

Sustainability ◽

10.3390/su11154193 ◽

2019 ◽

Vol 11 (15) ◽

pp. 4193 ◽

Cited By ~ 2

Author(s):

Elariane ◽

Dubé

Keyword(s):

Monte Carlo ◽

Net Present Value ◽

Smart Cities ◽

Statistical Significance ◽

Good Deal ◽

Present Value ◽

Value Analysis ◽

Social Growth ◽

Operation Costs

The smart cities are considered to be an engine of economic and social growth. Most countries started to convert their existing cities into smart cities or construct new smart cities in order to improve the quality of life of their inhabitants. However, the problem that facing those countries while applying the concept of smart cities is the costs, especially for the residential sector. Despite the high initial and even operation costs for adopting different technologies in smart housing; the benefits could exceed those costs within the lifespan of the project. This article is shedding the light on the economics of smart housing. This study aims to evaluate the net present value (NPV) of a smart economic housing model to check the viability and feasibility of such projects. The calculation of the NPV based on Monte Carlo simulation provides an interesting methodological framework to evaluate the robustness of the results as well as providing a simple way to test for statistical significance of the results. This analysis helps to evaluate the potential profitability of smart housing solutions. The research ends up by proving the feasibility of this type of project.

Download Full-text

Plasma Assisted Combustion as a Cost-Effective Way for Balancing of Intermittent Sources: Techno-Economic Assessment for 200 MWel Power Unit

Energies ◽

10.3390/en13195056 ◽

2020 ◽

Vol 13 (19) ◽

pp. 5056

Author(s):

Tadeusz Mączka ◽

Halina Pawlak-Kruczek ◽

Lukasz Niedzwiecki ◽

Edward Ziaja ◽

Artur Chorążyczewski

Keyword(s):

Power Unit ◽

Net Present Value ◽

Renewable Energy Sources ◽

Cost Effective ◽

Economic Assessment ◽

Marginal Effect ◽

The European Union ◽

Present Value ◽

Plasma System ◽

Value Analysis

Due to the increasing installed power of the intermittent renewable energy sources in the European Union, increasing the operation flexibility of the generating units in the system is necessary. This is particularly important for systems with relatively large installed power of wind and solar. Plasma technologies can be used for that purpose. Nonetheless, the wide implementation of such technology should be economically justified. This paper shows that the use of plasma systems for increasing the flexibility of power units can be economically feasible, based on the results of a net present value analysis. The cost of the installation itself had a marginal effect on the results of the net present value analysis. Based on the performed analysis, the ability to lower the technical minimum of the power unit and the relationship between such a technical minimum and the installed power of a plasma system can be considered decisive factors influencing the economics of the investment for such an installation. Further research on better means of prediction of the minimum attainable load, which would allow determining the influence of implementation of a plasma system, is recommended. This will be the decisive factor behind future decisions regarding investing in such systems.

Download Full-text

The Effects of Spatial Harvest Scheduling Constraints on the Value of a Medium-Sized Forest Holding in the Southeastern United States

Southern Journal of Applied Forestry ◽

10.1093/sjaf/29.4.185 ◽

2005 ◽

Vol 29 (4) ◽

pp. 185-193 ◽

Cited By ~ 3

Author(s):

Wise H. Batten ◽

Pete Bettinger ◽

Jianping Zhu

Keyword(s):

Net Present Value ◽

Southeastern United States ◽

Economic Value ◽

Forest Planning ◽

Harvest Scheduling ◽

Present Value ◽

Period 2 ◽

Planning Technique ◽

Programming Solution ◽

Forest Plans

Abstract Forest plans related to a number of spatial harvest scheduling scenarios were developed for a medium-sized forest holding using a heuristic forest planning technique (tabu search). Green-up periods of 2 to 7 years were assessed in conjunction with the two types of adjacency constraints. The results indicate for this one property that a short green-up period (2–3 years) did not significantly affect the economic value of the forest holding studied. Longer green-up periods and smaller maximum clearcut sizes could reduce the net present value of this forest holding by as much as 5 to 15% depending on the clearcut adjacency rules used. In a validation of the heuristic solutions, we found that the best solution generated with the heuristic (for three separate problems) was within 0.25% of the integer programming solution. South. J. Appl. For. 29(4):185–193.

Download Full-text

Net Present Value Analysis of Projects Under Expected Utility

SSRN Electronic Journal ◽

10.2139/ssrn.3155192 ◽

2018 ◽

Author(s):

Manel Baucells ◽

Samuel E. Bodily

Keyword(s):

Expected Utility ◽

Net Present Value ◽

Present Value ◽

Value Analysis

Download Full-text

The Role of Economic Uncertainty on the Block Economic Value – a New Valuation Approach / Rola Czynnika Niepewności Przy Obliczaniu Wskaźnika Rentowności – Nowe Podejście

Archives of Mining Sciences ◽

10.2478/v10267-012-0066-6 ◽

2012 ◽

Vol 57 (4) ◽

pp. 991-1014 ◽

Cited By ~ 1

Author(s):

H. Dehghani ◽

M. Ataee-Pour

Keyword(s):

Net Present Value ◽

Economic Value ◽

Operating Cost ◽

Mine Planning ◽

Open Pit ◽

Economic Uncertainty ◽

Present Value ◽

Wrong Decision ◽

Binomial Tree ◽

Conventional Methods

Abstract The block economic value (BEV) is one of the most important parameters in mine evaluation. This parameter can affect significant factors such as mining sequence, final pit limit and net present value. Nowadays, the aim of open pit mine planning is to define optimum pit limits and an optimum life of mine production scheduling that maximizes the pit value under some technical and operational constraints. Therefore, it is necessary to calculate the block economic value at the first stage of the mine planning process, correctly. Unrealistic block economic value estimation may cause the mining project managers to make the wrong decision and thus may impose inexpiable losses to the project. The effective parameters such as metal price, operating cost, grade and so forth are always assumed certain in the conventional methods of BEV calculation. While, obviously, these parameters have uncertain nature. Therefore, usually, the conventional methods results are far from reality. In order to solve this problem, a new technique is used base on an invented binomial tree which is developed in this research. This method can calculate the BEV and project NPV under economic uncertainty. In this paper, the BEV and project NPV were initially determined using Whittle formula based on certain economic parameters and a multivariate binomial tree based on the economic uncertainties such as the metal price and cost uncertainties. Finally the results were compared. It is concluded that applying the metal price and cost uncertainties causes the calculated block economic value and net present value to be more realistic than certain conditions.

Download Full-text

Assessment of the Efficiency of Different Forms of Financing

International Journal of Recent Technology and Engineering - 2 ◽

10.35940/ijrte.c4595.098319 ◽

2019 ◽

Vol 8 (3) ◽

pp. 1989-1995

Keyword(s):

Income Tax ◽

Net Present Value ◽

Economic Value ◽

Value Added ◽

Comprehensive Assessment ◽

Economic Value Added ◽

Present Value ◽

Return On Equity ◽

Investment Capital ◽

Tax Savings

The study analyzes various criteria and forms for assessing the effectiveness of financing the activities of enterprises. A methodological toolkit has been developed for the comprehensive assessment of the effectiveness of various forms of financing the activities of enterprises, taking into account the significance of criteria. The following criteria are considered: tax savings on income tax excluding the time factor, cost of the i-th source of attraction, economic value added, increase in return on equity, the profitability of investment capital, net present value.

Download Full-text

Economics of Purchasing Genetically Superior Beef Bulls

Journal of Agricultural and Applied Economics ◽

10.1017/s0081305200016782 ◽

1984 ◽

Vol 16 (2) ◽

pp. 31-36 ◽

Cited By ~ 2

Author(s):

G. M. Clary ◽

J. W. Jordan ◽

C. E. Thompson

Keyword(s):

Net Present Value ◽

Superior Performance ◽

Present Value ◽

Value Analysis ◽

Beef Cow ◽

Additional Amount ◽

Bid Price ◽

Beef Herd ◽

Alternative Scenarios ◽

The Impact

AbstractNet present value analysis is used to derive the marginal bid price for a beef herd sire from after-tax net revenues and cash flow influenced by genetic improvements. Marginal bid price represents the additional amount a producer could pay, above the present value of the current beef herd sire, for a sire expected to exhibit superior performance as reflected by increased average weaning weights of offspring.An analysis of the profitability of purchasing a breeding bull for a commercial beef cow herd is presented as an application. Several alternative scenarios illustrate the impact of selected determinants on the marginal bid price of a bull.

Download Full-text