Net Present Value Analysis of Projects Under Expected Utility

2018 ◽  
Author(s):  
Manel Baucells ◽  
Samuel E. Bodily
2019 ◽  
Vol 11 (15) ◽  
pp. 4193 ◽  
Author(s):  
Elariane ◽  
Dubé

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.


Energies ◽  
2020 ◽  
Vol 13 (19) ◽  
pp. 5056
Author(s):  
Tadeusz Mączka ◽  
Halina Pawlak-Kruczek ◽  
Lukasz Niedzwiecki ◽  
Edward Ziaja ◽  
Artur Chorążyczewski

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.


2015 ◽  
Vol 61 (3) ◽  
pp. 148-154 ◽  
Author(s):  
George Rivers ◽  
Jonathan Foo ◽  
Dragan Ilic ◽  
Peter Nicklen ◽  
Scott Reeves ◽  
...  

1984 ◽  
Vol 16 (2) ◽  
pp. 31-36 ◽  
Author(s):  
G. M. Clary ◽  
J. W. Jordan ◽  
C. E. Thompson

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.


Energies ◽  
2010 ◽  
Vol 3 (5) ◽  
pp. 943-959 ◽  
Author(s):  
Nicholas H. Johnson ◽  
Barry D. Solomon

2004 ◽  
Vol 190 ◽  
pp. 89-103 ◽  
Author(s):  
Peter Dolton ◽  
Tsung-Ping Chung

The problem of recruiting graduates into the teaching profession and retaining them has bedevilled recent UK governments. An obvious question to ask is why is teaching so relatively unattractive for graduates. This paper presents a careful analysis of this problem. We compare the earnings of qualified teachers who choose to teach with the ‘opportunity wage’ for those who do not teach. We find that the ‘rate of return on career choice’ for teachers has been declining for both men and women over the past 25 years although teaching is still relatively well paid for women. From our net present value analysis we estimate that males who enter teaching lose, on average, earnings of £40,000 to £67,000 over their lifetime while females could stand to gain average earnings of £42,000 to £65,000 if they opted to become school teachers.


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