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Background: Since 2003, the government of Ethiopia has trained and deployed more than 42,000 Health Extension Workers across the country to provide primary healthcare services. However, no research has assessed the return on investments into human resources for health in this setting. This study aims to fill this gap by analyzing the return on investment within the context of the Ethiopian Health Extension Program. Methods: We collected data on associated costs and benefits attributed to the Health Extension Program from primary and secondary sources. Primary sources included patient exit interviews, surveys with Health Extension Workers and other health professionals, key informant interviews, and focus groups conducted in the following regions: Amhara, Oromia, Tigray, and the Southern Nations Nationalities and Peoples' Region. Secondary sources consisted of financial and administrative reports gathered from the Ministry of Health and its subsidiaries, as well as data accessed through the Lives Saved Tool. A long-run return on investment analysis was conducted considering program costs (personnel, recurrent, and capital investments) in comparison to benefits gained through improved productivity, equity, empowerment, and employment. Findings: Between 2008–2017, Health Extension Workers saved 50,700 maternal and child lives. Much of the benefits were accrued by low income, less educated, and rural women who had limited access to services at higher level health centers and hospitals. Regional return ranged from $1.27 to $6.64, with an overall return on investment in the range of $1.59 to $3.71. Conclusion: While evidence of return on investments are limited, results from the Health Extension Program in Ethiopia show promise for similar large, sustainable system redesigns. However, this evidence needs to be contextualized and adapted in different settings to inform policy and practice. The Ethiopian Health Extension Program can serve as a model for other nations of a large-scale human resources for health program containing strong economic benefits and long-term sustainability through successful government integration. [ABSTRACT FROM AUTHOR]

In this study, a biorefinery concept is presented to produce valuable platform chemicals such as γ-valerolactone (GVL), 2-methyltetrahydrofuran (2-MTHF) and 5-hydroxymethylfurfural (5-HMF) from lignocellulosic biomass via aqueous phase processing. Process simulation models are developed using Aspen Plus and a techno-economic assessment including cost estimation, energy integration, profitability study, sensitivity analysis and Monte Carlo simulation-based uncertainty analysis is carried out for evaluating the economic potential of the proposed process. The total investment for a plant with an annual production capacity of 35 kt of GVL, 17 kt of 2-MTHF and 5 kt of 5-HMF, is estimated as 257 M€. The minimum selling prices (MSPs) of GVL, 2-MTHF and 5-HMF are estimated to be 1.91 €/kg, 1.64 €/kg, and 1.93 €/kg, respectively. The profitability study revealed that the process generates an internal rate of return of 15.90%, making it viable and profitable. The sensitivity analysis indicated that the annual operational costs and fixed capital investment have the biggest influence on the minimum selling price of the products. Furthermore, based on the uncertainty analysis, the probability of loss is estimated as 17%. According to the market potential assessment, the most promising application of these platform chemicals is as biofuels and solvents. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to deal with one of the technical difficulties of private and social cost–benefit analysis, i.e. the choice of the proper cost–benefit aggregation rule (or method) to use, when a private capital investment decision has to be taken or a public project appraisal has to be carried out. Design/methodology/approach: Although the considerable amount of existing literature, the problem of the choice of the right mathematical aggregation rule is still an open one. The majority of authors claim that net present value is a superior method and thus it is the one to be always used. Other authors try to show that various aggregation methods, under specific conditions, arrive at the same recommendation. An exceptional case is the field of education economics where the internal rate of return is widely used. Findings: This paper offers a survey of this controversial topic which focuses on some clear cut formal properties of the various aggregation methods and considers the empirical characteristics of the different fields of application. Its main conclusion is that no "correct" aggregation rule, always applicable in all decision frameworks, can exist. Originality/value: Its main objective is to supply clear guidelines to orient practitioners and help the teaching on this topic. Its main conclusion is that no "correct" aggregation rule, always applicable in all decision frameworks, can exist. On the contrary, even if one restricts her/himself to a particular class of investments, often no clear-cut selection can be made. [ABSTRACT FROM AUTHOR]

As we know, the increase in investments has a macroeconomic repercussion on the economies' growth, due to the multiplying effect on the increase in consumption and employment. Capital investment policies are difficult decisions that must continually be made. This requires havingknowledge of the macroeconomic framework of a country and the stability expected from it. It is also true that decision makers must know the development of markets, the different production alternatives and the sources of financial resources. [ABSTRACT FROM AUTHOR]

The Engineering Economist is a journal that focuses on data-driven engineering economic models to support capital investment decisions in uncertain economic conditions. The latest issue features articles on various topics. The first article introduces a project valuation framework that incorporates Economic Value Added (EVA) and Market Value Added (MVA) analysis into a binomial tree option pricing model. The second article merges earlier work on valuation and growth expectations with the Average Internal Rate of Return (AIRR) models, simplifying calculations for expected competitive advantage and growth rates. The third article utilizes real options analysis to assess uncertainty in the copper concentrate trading business. The journal publishes original research, case studies, surveys, and reviews related to capital investment problems. [Extracted from the article]

Abstract Blue Growth is the creation of economic activity and jobs at sea, while multiple use of space makes efficient use of the available sea area by combining industries. Clearly there are many combinations and many value propositions. However, most technologies to date are considered blue sky concepts, with little robust techno-economic analysis demonstrating profitability. The paper begins by providing a comprehensive review of Blue Growth and multi-use in Blue Growth; both in policy as well as the wide range of current technologies, including ocean energy, offshore wind energy, offshore aquaculture and desalination. The Maribe H2020 project provides the vehicle for the research element of the paper. The major contribution is a new methodology for selecting, filtering, developing and ranking business propositions for multiple-use of space (MUS) and multi-use platforms (MUP). Application of the method for the first time identified three case studies where Blue Growth combination projects can be economically viable, with attractive internal rate of return (IRRs). Results presented for the case studies report standard investment metrics and show the relative contribution of each product (energy, food, water) to the system profitability, as well as socio-economic impact. Existing companies were fully engaged in the process. Co-creation between sector experts and industry led to both improved business value propositions and robust assessment of investment readiness. In contrast to the presumption that large scale platforms are commercially attractive, the highest ranking case study companies required smaller capital expenditure (CAPEX) and operated in niche subsectors. In conclusion, the positive economic performance of the case studies should provide confidence for the EC as well as investors that MUS and MUP have viable economic futures leading towards commercialisation. The macro and micro assessment methods will be particularly useful in other Blue Economy contexts and in other multiple product contexts. Highlights • A comprehensive history of multiple use of space blue growth. • New metrics for comparing salmon to megawatts are presented. • Method and criteria for ranking potential investments in blue growth business models. • Profitable case studies described involving electricity, water, mussels and fish. [ABSTRACT FROM AUTHOR]

Purpose - This study aims to use gray models to predict abnormal stock returns. Design/methodology/approach - Data are collected from listed companies in the Tehran Stock Exchange during 2005-2015. The analyses portray three models, namely, the gray model, the nonlinear gray Bernoulli model and the Nash nonlinear gray Bernoulli model. Findings - Results show that the Nash nonlinear gray Bernoulli model can predict abnormal stock returns that are defined by conditions other than gray models which predict increases, and then after checking regression models, the Bernoulli regression model is defined, which gives higher accuracy and fewer errors than the other two models. Originality/value - The stock market is one of the most important markets, which is influenced by several factors. Thus, accurate and reliable techniques are necessary to help investors and consumers find detailed and exact ways to predict the stock market. [ABSTRACT FROM AUTHOR]

Hexane extraction is the most common method used in the industry to produce soybean oil due to its high oil recovery and lower production cost. With the demands of soybean oil increasing either in food or industrial applications, expansion plans are considered by many companies to increase production capacity. Techno-economic analysis is performed to evaluate the economic feasibility of soybean oil production by hexane extraction based on historical scenarios from 1980 to 2015. Capital investment, operating costs, revenues, and profits are main parameters to consider when estimating profits, gross margin, return on investment (ROI), and payback time and are the indices used to evaluate the profitability of the process. As the plant capacity increases in scale to over 34.64 million kg of annual soybean oil production, the break-even is met and the producing stream is able to earn profits. Additionally, sensitivity analysis is also applied to examine which factor affects profit the most. In the hexane extraction process, material costs, especially for soybean prices, have the most significant effect on profit. However, soybean meal is the main driving force for soybean oil production due to its significant amount of productivity and revenues. [ABSTRACT FROM AUTHOR]

Does the rate of return from the Chinese real estate industry correlate with the intensity of competition among real estate firms? If China’s equity market performs efficiently, the rates of return of real estate firms should vary indirectly with their level of monopoly power. Greater monopoly power reduces earnings risk and leads to lower costs of capital. The authors analyze empirical evidence and indicate no relationship exists between returns and competition. Speculation may induce stock prices to deviate from normal values. Because normal values assume no speculation, Chinese markets are not likely to be economically efficient. [ABSTRACT FROM PUBLISHER]

The purpose of the performed and presented financial analyzes, in the case of the two units, does not allow major discrepancies between the estimated and achieved situation. The authors have based the research on the technical-economic and financial analysis of investments, which sets economic efficiency and investments viability and assumes forecast of revenue, expenses, profit and loss account, balance sheet and cash flow: a) static analysis of indicators; b) dynamic analysis of indicators, c) cost-benefit analysis. Analysis of economic efficiency and sustainability of investments aimes at both static indicators of investment analysis and dynamic analysis of economic efficiency. The goal of research was to improve analyzes and economic indicators for assessing the effectiveness and sustainability of investments and the objectives targeted technical and economic analysis, solvency and viability of investments and the impact of the investment on key indicators of economic and financial technical analysis. Case studies, carried out at S.C. NORD INTERMED CONSULTING GROUP S.R.L. Dorneşti, Suceava county and S.C. ANDIMIR TOP S.R.L. Mihălăşeni, Botoşani county, led to a series of measures to improve the financial analysis of economic efficiency and sustainability of investments. [ABSTRACT FROM AUTHOR]

Purpose: This study investigates the effect of investment in intellectual capital and its components on the performance of Brazilian companies listed on the Brasil, Bolsa, Balcão (B3) exchange. More specifically, we examine whether a positive relationship exists between the proxies for intellectual, structural, human, and invested capital and firms' return on assets and equity. Originality/value: This study differs from those of Richieri (2007), Turra et al. (2015), and Brizolla and Turra (2015) by using panel data and static and dynamic econometric regression models to analyze firms' performance. It also differs from Nadeem et al. (2018) by using return on equity and return on assets to measure performance. Design/methodology/approach: We estimated two equations employing static estimators (static OLS and fixed effect) and dynamic estimators (dynamic OLS and GMM), as proposed by Nadeem et al. (2018). We performed strict exogeneity tests to ascertain the need to use dynamic models. Thus, the first equation analyzed the effect of intellectual capital on future performance (measured by ROA and ROE). In contrast, the second equation investigated the impact of structural, invested, and human capital on these same performance indicators. Findings: The results indicate a positive effect of investment in intellectual capital on the performance of Brazilian companies. In addition, all components of intellectual capital are significant in increasing returns on assets and equity. [ABSTRACT FROM AUTHOR]

[Display omitted] • Simultaneous effect of KOH and biochar was studied on hydrolysis and syntropy. • Taguchi based design of experiment was coupled with grey relation analysis. • 0.5 g/100 g straw of alkali and 10 g/L of biochar was the optimised dosing. • Techno-economic analysis showed US$ 25,652 of NPV and 11.29% IRR. The present study investigated the effect of alkali and biochar addition for simultaneous increment of hydrolysis and syntropy for higher methane yield from pearl millet straw (PMS) in solid state anaerobic digestion. A taguchi based design of experiment was coupled with grey relation analysis for multiple output optimization. Study showed that 0.5 g (g/100 g PMS) of alkali and 10 g/L of biochar was the optimised dosing. Statistically, contribution of biochar and alkali was 48 and 21% respectively on the multiple output. The confirmation test revealed that hydrolysis rate constant, k and total volatile fatty acid/alkalinity ratio for reactor having optimised conditions was 0.0521 d-1 and 0.36 while for control, it was 0.0595 d-1 and 0.76 respectively. Techno-economic assessment showed US$ 25,652 of net present value and 11.29% of internal rate of return. Sensitivity analysis showed that capital expenditure and methane yield was most sensitive to net present value. [ABSTRACT FROM AUTHOR]

The reduction in capex (capital expenditures) and opex (operating expenses) for distribution utilities is very important under market conditions. Utilities want to extend the life of existing equipment such as circuit breakers and transformers for deferring investment. They operate distribution transformers over its useful life to maximize the return on their investment. The studies on the distribution feeder reconfiguration have been brought up because distribution utilities have made increased investments in smart distribution systems. In this study, the life extension of the existing transformers is considered as an objective together with other economical ones such as loss minimization in the reconfiguration process. In the proposed approach, the problem is handled as a load balancing problem considering life extension of transformers over a time period using quasi-static time-series simulations, and the problem is solved under operating constraints such as current carrying capacities of feeders to find optimum system topology. [ABSTRACT FROM AUTHOR]

• The designs of vapor-recompression distillation columns for the ethylene-ethane separation with high or low pressures in the auxiliary condenser are compared. • High pressure reduces refrigeration cost in the condenser but increases compressor cost. • The high-pressure design has 11% lower total energy cost but requires more capital investment. • The return on investment is quite attractive. A recent paper studied the separation of ethylene and ethane using several types of distillation systems in which cryogenic cooling is required. The economics of a conventional column using a very low-temperature expensive refrigerant in the condenser were compared with several configurations using process compressors. The alternative configurations involve the pressure in the auxiliary condenser and the fraction of the column overhead vapor sent through the compressor. Low pressure in the condenser requires a very low-temperature expensive refrigerant but has lower compressor costs. The purpose of this paper is to show that all of the vapor from the column should be compressed and then split, with some going to the reboiler and the rest going to an auxiliary condenser that operates at high pressure so that a higher-temperature less-expensive refrigerant can be used. [ABSTRACT FROM AUTHOR]

Stores Block, a 2006 Supreme Court of Canada case, established that utilities are the sole owners of utility assets, thereby granting them the right to gain on the disposition of such assets. The case was game-changing, spawning a string of Alberta Court of Appeal, Supreme Court of Canada, and regulatory body decisions. This article traces the progression of these decisions and examines their implications for property ownership principles, including utility asset dispositions, utility rate bases, the prudent investment test, and stranded assets. The authors ultimately argue that these interpretations of Stores Block have led to "deleterious effects" for regulated utilities in Alberta, and discuss resulting attempts at legislative intervention by the Government of Alberta. [ABSTRACT FROM AUTHOR]

This study evaluated the techno-economic assessment of xylo-oligosaccharides (XOs) production from brewer's spent grains (BSG) in a single and two sequential flow-through subcritical water hydrolysis (SWH) reactors at different temperatures (80–180 °C). The process with a single reactor produced the highest yield (72.83 mg XOs g−1 BSG) at 180 °C. The SWH in two sequential reactors produced up to 52.47 mg XOs g−1 BSG for the process operated at 80 °C followed by 130 °C. The lowest cost of manufacturing (18.36 USD kg−1 XOs) was obtained for the process with two sequential reactors. Although the fixed capital investment was 0.82-fold lower for the process with a single reactor, the gross profit of the process with two sequential reactors was 30% higher, which resulted in a return on investment of 54.26% and a payback of 1.84 years. In conclusion, SWH is a potential eco-friendly process to produce XOs from BSG. [Display omitted] • Xylo-oligosaccharides (XOs) were obtained from subcritical water hydrolysis. • The highest XOs yield was obtained for the process at 180 °C. • Xylotetraose, xylotriose, and xylobiose represented 85% of the total XOs. • The lowest cost of manufacturing was 18.36 USD kg−1 XOs. • Subcritical water is a potential eco-friendly process to produce XOs. [ABSTRACT FROM AUTHOR]

Using 5-minute high frequency data from the Chinese stock market, we employ a non-parametric method to estimate Fama-French portfolio realized jumps and investigate whether the estimated positive, negative and sign realized jumps could forecast or explain the cross-sectional stock returns. The Fama-MacBeth regression results show that not only have the realized jump components and the continuous volatility been compensated with risk premium, but also that the negative jump risk, the positive jump risk and the sign jump risk, to some extent, could explain the return of the stock portfolios. Therefore, we should pay high attention to the downside tail risk and the upside tail risk. [ABSTRACT FROM AUTHOR]

The problem with evaluating the investment in a multi-site photovoltaic plant, such as that proposed in this paper (which can be viewed as a profitability analysis), is that it requires the development of an innovative methodological approach. By setting an upper limit of capital to invest, among sites with different Direct Normal Irradiations (DNI), those in which many photovoltaic systems can be installed are identified as is the optimal size within predefined ranges. The primary objective is to maximize the net return on investment for a multi-site plant with a lifespan of approximately twenty years. The proposed approach uses a stochastic business plan, through which data are generated via the Monte Carlo simulation. Subsequently, using the Response Surface Methodology procedure, it is possible to identify the regression meta-model that describes the optimum region and therefore the point (investment amount for individual sites and the corresponding size of plants) that maximizes the overall Net Present Value. The proposed approach is completely generalized and, as such, can be replicated. A properly conducted test case is presented and clearly illustrates the methodology. [ABSTRACT FROM AUTHOR]

This work aims is real options empirically study as a technique for technology-based coffee investment projects financial valuation, in addition to comparing the traditional valuation projects techniques versus the real options technique. In order to get the goal of this work the real options technique was applied to four technology-based investment projects from the coffee sector, it is most be mentioning that the four investment projects have cash flows corresponding to ten years each one. The real options technique was use, specifically applying the model developed by the authors Black & Scholes. The analysis carried out in this investigation is limited to coffee investment projects, which were obtained from the Ministry of Agriculture and Rural Development in Mexico (SADER). Present investi gation originality is that in Mexico real option methodology does not tend to be used as a rule, but for reasons of ease, traditional techniques are used, consisting of net present value, internal rate of return and recovery period. With the application of the real options methodology, a higher value was obtain than that obtained by applying the traditional technique, so it can be said that the real options favor reducing risk and uncertainty in projects for a better evaluation of these. Therefore, the use of real options is highly recommended, since real options technique gives greater certainty of the results of the traditional technique. [ABSTRACT FROM AUTHOR]

The Brazilian territory is irradiated with solar energy ranging from 1500 to 2300 kWh/m 2 /year, compared to 900 to 1850 kWh/m 2 /year in Germany, France, Italy and Spain. Despite that, photovoltaic (PV) technology is only now starting to penetrate the Brazilian electricity mix. Until recently, the high costs of PV generation had prevented this technology from competing in Brazil. However, the consistent PV price reductions and the worldwide scale reached, has brought attention to the Brazilian planners and actions have been taken recently in Brazil to help PV start its progress. In this paper, two of the recent government actions are analyzed, namely the National Electrical Energy Agency ANEEL Resolution RN482/2012, and the announcement of support by the Brazilian Development Bank offering loans at low interest rates for solar PV projects. The effects of these actions for residential PV systems are positive where the conventional electricity tariff is high with respect to the average in the country, and less relevant elsewhere. We compare these tariffs with the calculated Levelized Cost of Energy of rooftop PV generation. The influence of these policies on the return on investment of residential rooftop PV generation is studied for different climatic zones in Brazil. [ABSTRACT FROM AUTHOR]

We investigate an iterative, data-driven approximation to a problem where the investor seeks to maximize the expected return of her portfolio subject to a quantile constraint, given historical realizations of the stock returns. The approach, which was developed independently from Calafiore (SIAM J Optim 20:3427-3464 ) but uses a similar idea, involves solving a series of linear programming problems and thus can be solved quickly for problems of large scale. We compare its performance to that of methods commonly used in the finance literature, such as fitting a Gaussian distribution to the returns (Keisler, Decision Anal 1:177-189 ; Rachev et al. Advanced stochastic models, risk assessment and portfolio optimization: the ideal risk, uncertainty and performance measures, Wiley, New York ). We also analyze the resulting efficient frontier and extend our approach to the case where portfolio risk is measured by the inter-quartile range of its return. Our main contribution is in the detail of the implementation, i.e., the choice of the constraints to be generated in the master problem, as well as the numerical simulations and empirical tests, and the application to the inter-quartile range as a risk measure. [ABSTRACT FROM AUTHOR]

ABSTRACT Most organizations that use the Capability Maturity Model Integration (CMMI) stop their process improvement journey at Maturity Level 3 or less. The discussion about CMMI high-maturity levels has always been controversial, going most of the times through the consideration of return of investment, provider selection, and interpretation issues. Achieving Level 5 is not an easy task; it derives a lot of steps during the way. This article will show an example of the implementation of Level 5 in a consultancy company in two constellations: development and service. It depicts the example in steps, to help the understanding of the whole process. Copyright © 2014 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

Any business entity is based on labour, nature, capital and entrepreneurial ability in order to achieve the proposed objectives. The vast majority of the company assets are usually consumed over a longer or shorter period of time, passing on their value to manufactured/traded goods, services provided or works performed. The dynamic environment in which companies carry out their activity and the continuous desire to develop/expand with the purpose of increasing their economic performance/minimize risks, determine them to identify and select new investment opportunities. The article focuses on emphasizing the role and use of the accounting information in substantiating direct investment decisions. [ABSTRACT FROM AUTHOR]

• The general problem of developing profitability optima is considered at the conceptual level for chemical process designs. • Industrial estimates often employ IRR (Internal Rate of Return) to measure profitability, with a "traditional" hurdle rate to specify the required IRR (ROI). • The NPV % measure provides a more effective basis. Its parameters are adjustable to match the process, the financial environment, and profitability requirements. • Viewing long-term profitability (NPV project), short-term risk [(NPV %)−1] and total capital invested (TI), the first should be maximized ... the last two, minimized or at least subject to bounds. • A new graphical method, with NPV % plotted versus NPV project , couples the three objectives, thus avoiding a Pareto-style optimization with its arbitrary weightings. • The optimum design is at the point of diminishing returns for LT profitability. Any lower value of TI reduces max (NPV project); any larger value isn't fully recovered. Recent fundamental work with discounted cash flow methods shows that an alternative metric for evaluating profitability and risk, one different from Internal Rate of Return (IRR) —namely the annualized and non-dimensionalized Net Present Value (NPV %)— can make evaluating project profitability easier yet more informative. It provides a simple and transparent strategy to optimize a design's key financial dependent variables (capital investment, profitability, risk). 1 1 Model form was originally referred to as "inside-out," but is now called "exo-parametric," i.e., switching from the vernacular to a more scientific and widely-used terminology (Mellichamp, 2018). Both traditional and exo-parametric modeling methods developed by the author are linked to this metric, providing an efficient and precise mechanism to organize and carry out the financial/optimization search procedures in process design. Design engineers want to know what is the optimum size of investment (TI) that meets projected market conditions? What is the expected long-term (NPV) return? What metric can be used to maximize them, consistent with the need to recover capital as quickly as reasonably possible (i.e., to bound the "short-term risk")? The proposed approach answers all three questions simultaneously, with a precise min-max solution obtained transparently. [ABSTRACT FROM AUTHOR]

Abstract: In theory, biosugar for conversion to bioproducts can be produced economically from a variety of biomass types in many different technological, co‐production, and biorefinery siting contexts. In this paper, process modeling and financial analysis were conducted for all permutations of biochemical conversion pathways, global biomass types, co‐product options, and biorefinery siting contexts for biosugar production. Minimum sugar revenue (MSR) required to achieve a 15% internal rate of return values for scenarios examined ranged from $150–$748 per tonne. The scenarios with the lowest MSRs were sugarcane in South America and Asia, assuming hot water cook and co‐location or repurpose siting contexts. Another financially optimized scenario is corn grain, also assuming hot water cook, co‐producing distiller’s dry grains and solubles (DDGS), in a repurpose siting context. Against a benchmark sugar price of $408 per metric tonne, an internal rate of return on investment of >15% can typically only be achieved via previously demonstrated conversion pathways using sugar cane and corn grain. Major cost drivers were feedstock cost per metric tonne of carbohydrate, sugar yield, capital investment per annual metric tonne of sugar produced, residue value, and siting context. Near‐term promising technologies include autohydrolysis and dilute acid pathways. Generally, scenarios are financially enhanced by co‐location or repurposing, reducing capital expenditure (CAPEX) by about 33% and 50%, respectively, with negligible impact on cash cost. Conversion process complexity drives capital investment, making some scenarios infeasible despite high sugar yields. Any of the five major cost drivers can impact the order of financial attraction of scenarios, with the outcome of the analysis typically not obvious in advance. © 2018 Society of Chemical Industry and John Wiley & Sons, Ltd [ABSTRACT FROM AUTHOR]

This paper, on the basis of a sample of Chinese listed firms, investigates the relationship between both real and accrual-based earnings management activities and firms' capital investment behavior. We apply the threshold model proposed by Hansen (1999) and find firms managing earnings can either over or underinvest, depending upon firms' return on equity (ROE) level. The study results show an inverted relationship between earnings management and firms' investment, which changes from negative to positive with ROE rising beyond certain threshold levels. We also find that the level of ROE affects whether managers use real and accrual manipulations jointly or as substitutes in affecting firms' investment. Our evidence is important because it sheds new light on the relationship between earnings management activities and firms' investment behavior by showing that ROE may act as an important determinant in this relationship. This finding has important implications for policymakers such as the Chinese Securities Regulatory Commission (CSRC) as it shows that the regulatory benchmarks they set may have a significant impact on firms' investment behavior. • The relationship between investments and earnings management activities is not linear in return on equity (ROE) • Firms managing earnings can either over or underinvest, depending upon the level of firms' ROE • Level of ROE affects if managers use real and accrual manipulations jointly or as substitutes in affecting firms' investment [ABSTRACT FROM AUTHOR]

Abstract This study aims to evaluate whether the implied cost of capital (ICC) model is better than the capital asset pricing model (CAPM) in predicting the realized rate of return for infrastructure firms. We selected a sample of 49 listed companies in Brazil for the period from 2002 to 2014. The CAPM yielded a cost of capital of 11.97% per annum, while the ICC yielded 13.39% per annum, a difference of 1.42% annually. We suggest that a possible explanation for this result is the existence of systematic, non-diversifiable risk, potentially due to regulatory intervention in the business environment. Highlights • This paper aims to evaluate whether the implied cost of capital (ICC) model, in the version developed by Easton (2006), is better than CAPM to predict the realized rate of return (ROR) for infrastructure firms. We selected a sample of 49 Brazilian listed companies from 2002 to 2014. • Our findings, obtained in the pooled regression model, showed that the ICC had a positive and significant correlation with future stock returns, whereas the CAPM did not. • Robustness and Diebold–Mariano tests (1995) corroborated that the ICC is a superior predictor of actual ROR's for the sample of Brazilian utilities. [ABSTRACT FROM AUTHOR]

The management of variables with uncertainties in stochastic cash flow models related to capital investments in energy crops projects allows, in addition to risk measurement, the adoption of proactive measures that can assure the generation of value to the project. This study analyzes the economic feasibility of sugarcane cultivation for bioethanol production from sugar cane molasses, under technical and economic uncertainty. The analysis characterizes sugarcane productivity, capital investment, production costs, and costs of cutting, loading, and transport, considered as stochastic variables. For this, the uncertainty was propagated through Latin hypercube sampling. Sensitivity analysis was also performed to assess the impact of these variables. The results indicated that the productivity of the crop and the sugarcane price in the conveyor belt are determinant to guarantee the economic value of the investment project. There is a high probability of achieving positive NPV (net present value), in addition, MIRR (modified internal rate of return) is 5% higher than MARR (minimum acceptable rate of return). [ABSTRACT FROM AUTHOR]

This paper evaluates the economic feasibility of an integrated production pathway combining fast pyrolysis and bio-oil gasification. The conversion process is simulated with Aspen Plus® for a 2000 metric ton per day facility. Techno-economic analysis of this integrated pathway has been conducted. A total capital investment of $510 million has been estimated and the minimum fuel selling price (MSP) is $5.59 per gallon of gasoline equivalent. The sensitivity analysis shows that the MSP is most sensitive to internal rate of return, fuel yield, biomass feedstock cost, and fixed capital investment. Monte-Carlo simulation shows that MSP for bio-oil gasification would be more than $6/gal with a probability of 0.24, which indicates this pathway is still at high risk with current economic and technical situation. [ABSTRACT FROM AUTHOR]

An economic feasibility study must consider the uncertainties inherent to a mining project, whose risks must be quantified properly to enable accurate decisionmaking. Studies previously carried out through the Discounted Cash Flow (DCF) methodology in the project evaluated here - a quarry whose operations are currently interrupted, located in Pernambuco, Brazil, formerly taxed under the presumed profit regime - indicated a positive Net Present Value (NPV) in the deterministic scenario, therefore projecting a profitable project. However, a probabilistic analysis using Monte Carlo simulations indicated only a 49.98% occurrence probability for this NPV. An assessment focused on the company's taxation was never carried out, which is a gap that the present study intends to fill, in addition to evaluating the feasibility of immediate investment in this project. Furthermore, this is a gap in Brazilian literature in general, which does not take into account the taxation system in their economic assessments. In this context, considering scenarios whose taxation was based on real and presumed profit regimes, we reassessed the cash flows of this quarry and performed deterministic and probabilistic economic analyses, and compared the results of both scenarios. The sensitivity analysis indicated that the production rate would be the most impactful variable in the project's NPV, considering the six variables assessed. Hence, it was verified in both deterministic and probabilistic analyses that taxation under real profit, results in a higher economic return with a 56.08% probability of the NPV being positive and with the Internal Rate of Return (IRR) higher than inflation (SELIC rate) at 4.81%; the taxation under the presumed profit, on the other hand, obtained respective probabilities of 46.54% and 3.23%. However, with the chances of obtaining some profit (NPV greater than zero) at the order of 50% and a minimal chance of the IRR being greater than the SELIC rate adopted at the time of this study, we would advise against investing in this venture. Moreover, even if the current moment is not the most suitable for investment in this sector, regardless of the production rate assessed in the probabilistic analysis, taxation on the real profit regime presented a greater economic return than taxation on the presumed profit regime., indicating that, for the parameters considered in this study, the first would be the most appropriate choice of tax system for this type of enterprise in Brazil. [ABSTRACT FROM AUTHOR]

Firms that invest into positive net present value projects should outperform firms that do not invest. Surprisingly, several studies on United States data have found a negative relationship between capital investment and subsequent shareholder return. There are conflicting explanations for this negative relationship. The present study also confirmed a significant negative relationship between capital investment and subsequent shareholder returns in the South African developing market conditions. Over the period from 1992 to 2017, shares on the Johannesburg Stock Exchange with lower investment rates consistently outperformed shares with higher investment rates, exhibiting similar behaviour to the US. We find that the negative investment return is significantly associated to the firm’s book-to-market value consistent to the rational-based q-theory of investment with real options explanation. [ABSTRACT FROM AUTHOR]

Background: Public–private partnerships (PPP) are often how health improvement programs are implemented in low-and-middle-income countries (LMICs). We therefore aimed to systematically review the literature about the aim and impacts of quality improvement (QI) approaches in PPP in LMICs. Methods: We searched SCOPUS and grey literature for studies published before March 2022. One reviewer screened abstracts and full-text studies for inclusion. The study characteristics, setting, design, outcomes, and lessons learned were abstracted using a standard tool and reviewed in detail by a second author. Results: We identified 9,457 citations, of which 144 met the inclusion criteria and underwent full-text abstraction. We identified five key themes for successful QI projects in LMICs: 1) leadership support and alignment with overarching priorities, 2) local ownership and engagement of frontline teams, 3) shared authentic learning across teams, 4) resilience in managing external challenges, and 5) robust data and data visualization to track progress. We found great heterogeneity in QI tools, study designs, participants, and outcome measures. Most studies had diffuse aims and poor descriptions of the intervention components and their follow-up. Few papers formally reported on actual deployment of private-sector capital, and either provided insufficient information or did not follow the formal PPP model, which involves capital investment for a explicit return on investment. Few studies discussed the response to their findings and the organizational willingness to change. Conclusions: Many of the same factors that impact the success of QI in healthcare in high-income countries are relevant for PPP in LMICs. Vague descriptions of the structure and financial arrangements of the PPPs, and the roles of public and private entities made it difficult to draw meaningful conclusions about the impacts of the organizational governance on the outcomes of QI programs in LMICs. While we found many articles in the published literature on PPP-funded QI partnerships in LMICs, there is a dire need for research that more clearly describes the intervention details, implementation challenges, contextual factors, leadership and organizational structures. These details are needed to better align incentives to support the kinds of collaboration needed for guiding accountability in advancing global health. More ownership and power needs to be shifted to local leaders and researchers to improve research equity and sustainability. [ABSTRACT FROM AUTHOR]

A pure investment is defined here as any transaction where the invested capital is nonnegative at all times during the life of the transaction. This article proves that any transaction whose first non-zero term is negative can be uniquely partitioned into pure investments with strictly decreasing internal rates of return (IRRs). The IRRs of the partitioning transactions put bounds on the IRRs of the original transaction. The partitioning theorem gives a simple characterisation of Arrow/Levhari's results on the optimal truncation of a transaction. The partitioning theorem also has applications to the problem of the optimal time for an investor to sell the remaining terms in a transaction. [ABSTRACT FROM AUTHOR]

Benchmarking of the economics methodologies developed by the Generation IV International Forum (GIF) and the International Atomic Energy Agency’s International Project on Innovative Nuclear Reactors and Fuel Cycles (INPRO), was performed for three Generation IV nuclear energy systems. The Economic Modeling Working Group of GIF developed an Excel based spreadsheet package, G4ECONS (Generation 4 Excel-based Calculation Of Nuclear Systems), to calculate the total capital investment cost (TCIC) and the levelised unit energy cost (LUEC). G4ECONS is sufficiently generic in the sense that it can accept the types of projected input, performance and cost data that are expected to become available for Generation IV systems through various development phases and that it can model both open and closed fuel cycles. The Nuclear Energy System Assessment (NESA) Economic Support Tool (NEST) was developed to enable an economic analysis using the INPRO methodology to easily calculate outputs including the TCIC, LUEC and other financial figures of merit including internal rate of return, return of investment and net present value. NEST is also Excel based and can be used to evaluate nuclear reactor systems using the open fuel cycle, MOX (mixed oxide) fuel recycling and closed cycles. A Super Critical Water-cooled Reactor system with an open fuel cycle and two Fast Reactor systems, one with a break-even fuel cycle and another with a burner fuel cycle, were selected for the benchmarking exercise. Published data on capital and operating costs were used for economics analyses using G4ECONS and NEST tools. Both G4ECONS and NEST predicted comparable TCIC and LUEC; with some variation in fuel cycle costs. The benchmarking exercise was also useful to understand the differences in the two methodologies for potential harmonisation opportunities in the future. [ABSTRACT FROM AUTHOR]

We generally consider that making the right investment decisions, is to worry about having adequate and complete information, that meets some evaluation elements and defines the analysis criteria, the cash flow associated with the investments, the risk of the investments and the rate of return required, however we forget the mood and / or emotional of the person responsible for the decisions. The objective of this article was to understand how people made investment decisions based on emotions, we are turning to articles by experts in the field. Interviews were conducted with 22 Stock Brokers in Peru to consult them, as investors make investment decisions. The theory that guided was the Financial Psychology or Behavioral Finance. The results found are that there are indeed financial decisions that investors make on the basis of Behavioral Psychology, such as economy expectations, business expectations, risk aversion to lose among other considerations. [ABSTRACT FROM AUTHOR]

PURPOSE. The Article aims to present the potential and capabilities of the application of equity crowdfunding as an option to invest and to form investment portfolios for the individual investors. The emphasis is shifted from the widespread use of the concept of crowdfunding, as a cutting-edge source for providing capital for investment projects of innovative companies (especially suitable source for the so called Startup companies), to its use as a tool for establishing an investment portfolio based on appropriate balance between the rates of return and risk. METHODS. Various authors' views on key concepts such as investments, projects, investment projects, equity collective investment, investment portfolios, etc. have been clarified and summarized. The investment process is explained in the context of creating a portfolio of investments using equity crowdfunding platforms. Conceptually, the essential characteristic of the project theory, the theory of collective investment, with its methodological and mathematical tools, are revealed. RESULTS. On this theoretical basis and adaptation, a conceptual methodological model has been developed, to be used for selection of portfolio of investment projects for equity collective investment. The model focuses on the optimization of rate of return, given the risk nature of the financial investment instrument used in collective investment. CONCLUSIONS. Conclusions are presented about the main advantages and the respective limitations of the type of investments, subject of the paper. [ABSTRACT FROM AUTHOR]

ABSTRACT Beneficial use of waste polymers is an important issue for environmental protection researchers. In this study, a brief summary has been presented for recycling methods of polyethylene terephthalate (PET) wastes. An economic pre-feasibility study has been performed for the production of activated carbon from PET wastes. The proposed plant was used the physical activation process for the production of 10 000 t of activated carbon per year. The mass and energy balances and equipment designs of the process were performed using Aspen Plus 7.2 software. Asian countries have been selected as the location of this plant. The economic analysis of this plant for 2013 indicated that total capital investment and total production cost of plant were about $13 004 232 and $12 819 125, respectively. Using the economic criteria, the feasibility study of the project was conducted, and it was revealed that for a sale price of $1.7 per kg, minimum values of net present value ($418 486) and internal rate of return (15.33%) and the maximum value for payout period (25.44 years) have been reached. As it was expected, both net present value and internal rate of return increase by increasing sale price, while payout period decreases. This sensitivity analysis indicated that interest rate is the most effective parameter on net present value in each of the sale prices. © 2014 Curtin University of Technology and John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

Zinc and Boron dearth is an imperative soil constraint in Pakistan. Zinc (Zn) and boron (B) deficiency in soil is primary hindrance to achieve yield potential of maize. An experiment was conducted with the objectives to optimize methods of B and Zn application in maize and ultimately enhance profitability. The experiment was laid out in randomized complete block design with factorial arrangement during autumn 2015. Treatments were replicated three times. The treatments were comprised of C = no Zn and B (Control); Zn (S) = soil application of Zn @ of 12 kg ha-1; B (S): soil application of B @ 3 kg ha-1; Zn (F) = foliar application of 1% Zn at 9th leaf stage; B (F) = foliar application of 0.5% B at 9th leaf stage; Zn (S) + B (S) = soil application of Zn @ 12 kg ha-1 + B @ of 3 kg ha-1 and Zn (F) + B (F) = foliar application of 1% Zn + 0.5% B at 9 leaf stage. Foliar application of Zn and B produced more plant height, cob length, girth, stem girth, shelling percentage, number of grains per cob, 1000-grain weight, harvest index, grain and biological yield. Maximum marginal rate of return was obtained with foliar application of both Zn and B and using foliar Zn alone. Integrated B and Zn application produced more marginal rate of returns both in soil and foliar applications. Use of foliar Zn application also depicted promising results while foliar or soil B application without using Zn enhanced cost of production. [ABSTRACT FROM AUTHOR]

• Diluent and temperature-swing regeneration processes applied for extraction of succinic acid with TOA and TOPO in MIBK. • Swing in acid distribution between extraction and regeneration more important than acid distribution itself. • Regeneration process based on gaseous anti-solvent ethane is most efficient, requiring only 21% of the energy of evaporation. • Combination of evaporation of MIBK and temperature-swing strongly reduces required energy input and results in higher product purity. Solvent regeneration processes for liquid-liquid extraction of succinic acid (HSuc) from aqueous streams were investigated. Tri -n- octyl amine (TOA) and tri -n- octyl phosphine oxide (TOPO) in methyl isobutyl ketone (MIBK) showed good extraction. For 20 wt% TOA in MIBK, addition of pentane at anti-solvent-to-solvent ratio of 1 (vol/vol) decreased K D from 10.2 to 0.46, applying ethane at 30 bar decreased K D to 0.45 and increasing the temperature to 60 °C decreased K D to 1.6. Evaporation of MIBK from a solvent of 40 wt% TOA in MIBK decreased K D from 10.2 to 4.0. For these processes, capital investments and energy requirements were calculated for 10 kiloton per year at a concentration factor of 5. Costs of all processes to obtain the product at maximum solubility are less than evaporation (2600 kJ/kg product at maximum solubility). A combination of a swing in diluent and temperature results in higher product concentrations after back-extraction, and reduced the energy input to obtain the pure HSuc to 19 MJ/kg. The ethane-based process is most effective with 13 MJ/kg to obtain the pure HSuc product. Although additional capital investments for compressors and pumps are required, only 110 days of production are required for return on investments. [ABSTRACT FROM AUTHOR]

Artisan cheese makers lack access to valid economic data to help them evaluate business opportunities and make important business decisions such as determining cheese pricing structure. The objective of this study was to utilize an economic model to evaluate the net present value (NPV), internal rate of return, and payback period for artisan cheese production at different annual production volumes. The model was also used to determine the minimum retail price necessary to ensure positive NPV for 5 different cheese types produced at 4 different production volumes. Milk type, cheese yield, and aging time all affected variable costs. However, aged cheeses required additional investment for aging space (which needs to be larger for longer aging times), as did lower yield cheeses (by requiring larger-volume equipment for pasteurization and milk handling). As the volume of milk required increased, switching from vat pasteurization to high-temperature, short-time pasteurization was necessary for low-yield cheeses before being required for high-yield cheeses, which causes an additional increase in investment costs. Because of these differences, high-moisture, fresh cow milk cheeses can be sold for about half the price of hard, aged goat milk cheeses at the largest production volume or for about two-thirds the price at the lowest production volume examined. For example, for the given model assumptions, at an annual production of 13,608 kg of cheese (30,000 lb), a fresh cow milk mozzarella should be sold at a minimum retail price of $27.29/kg ($12.38/lb), whereas a goat milk Gouda needs a minimum retail price of $49.54/kg ($22.47/lb). Artisan cheese makers should carefully evaluate annual production volumes. Although larger production volumes decrease average fixed cost and improve production efficiency, production can reach volumes where it becomes necessary to sell through distributors. Because distributors might pay as little as 35% of retail price, the retail price needs to be higher to compensate. An artisan cheese company that has not achieved the recognition needed to achieve a premium price may not find distribution through distributors profitable. [ABSTRACT FROM AUTHOR]

Conceptual design of two options of carbon dioxide utilized gas-to-liquids process (CUGP), which mainly produces light olefins and Fischer–Tropsch (F–T) synthetic oils, has been implemented with the aid of Aspen Plus software. The mass and energy stream results as well as the process efficiencies and CO 2 emissions of the proposed options were obtained from the developed models. The capital investment and the product cost estimations were conducted before the following economic analysis. Several indicators such as net present value (NPV), discounted payback period (DPBP) and internal rate of return (IRR) were calculated to evaluate the profitability of the two proposed options. In the economic analysis, sensitivity analysis as well as break-even analysis was carried out. In addition, effects of several sensitive factors such as the prices of synthetic oil, olefin and natural gas, capital investment, carbon tax and plant scale on the IRR of each option were analyzed in detail. It was found that the CUGP, regardless of option, was economically feasible at the plant scale of 40,000 BPD and was more competitive compared with conventional GTL processes, in case of high carbon tax. [ABSTRACT FROM AUTHOR]

A promising feedstock for large‐scale production of sustainable jet biofuel is the inedible oilseed Brassica carinata (referred to simply as "carinata"), but transitioning to large‐scale fuel production entails significant economic uncertainty and requires substantial up‐front capital requirements for biorefinery construction. Furthermore, for carinata and other feedstocks attempting to compete within the established fossil jet fuel market, historically volatile aviation fuel prices affect the economic feasibility and return of biorefinery investments. In this study, we assess the impact of jet fuel price volatility on the return on investment in a carinata biorefinery employing a real options analysis (ROA). The key advantage of ROA over traditional net present value (NPV) analysis is that it simultaneously assesses the optimal timing for investments and the impact of jet fuel price dynamics on the likelihood of positive economic returns from investments in processing plants. Given the nonstationary nature of jet fuel prices and the presence of structural breaks, the price series are modeled as a geometric Brownian motion. Taking into account the volatility of jet fuel price, the ROA price threshold for a profitable investment is 45% greater than the NPV threshold. The ROA model identifies the necessary market conditions for a profitable investment and highlights the importance of considering market price dynamics before making substantial capital investments in a carinata biorefinery. [ABSTRACT FROM AUTHOR]

El artículo discurre sobre la implementación de un análisis coste-beneficio antes de decidir de invertir dinero en una empresa. El autor comenta sobre los problemas actuales asociados con la sobreinversión y describe la rareza del retorno de la inversión. También se considera la importancia de comprender los múltiples variables en el proceso de invertir.

The choice of discount rate has a significant impact on net benefit estimates when costs today have benefits over long time horizons. Standard U.S. government practice for cost–benefit analysis is to bound such analysis using two alternative rates. These rates are meant to represent the rate of return paid by capital investment and the rate received by consumers. Previous work has shown this approach legitimately bounds the analysis—but only when future benefits accrue directly to consumers either in a two-period model or as a perpetuity. We generalize to consider arbitrary patterns of future benefits, accruing either directly to consumers or indirectly through future investment. We derive an expression for the appropriate discount rate and show that it converges to the consumption rate for benefits increasingly far into the future. More generally, the bounding rates depend on the temporal pattern of the undiscounted dollars. As an application, we estimate the appropriate discount rate for climate change damages from carbon dioxide, finding it lies in a narrow range (±0.5 percent) around the consumer rate of interest. [ABSTRACT FROM AUTHOR]

Sydney Water's water network consists of about 21,000 km of water mains. Sydney Water is a statutory state owned corporation, with the Independent Pricing and Regulatory Tribunal as the economic regulator. Sydney Water has developed a comprehensive set of decision frameworks and business processes to manage the life cycle of water main assets to achieve a desired level of service and financial return within an acceptable risk. With the current constrained financial and economic environment, affordability is the most pressing issue in the water industry as customers are seeking value for money. It is requiring the water industry to reduce capital investment programs and deliver more with less while maintaining or improving customer satisfaction. This paper presents the analysis of the asset performances and customer expectations against the level of services and explains how Sydney Water explores the opportunities to build the level of services and customer value into its asset management strategy and decision framework to optimise the capital investment programs. [ABSTRACT FROM AUTHOR]

With the globalization of the economy, more and more companies have made and will continue to make project investment abroad. This paper discusses a multinational project adjustment and selection problem in which project parameters are regarded as random variables. Special cash flows and value sources brought from the new foreign projects and the adjustment of the existing foreign projects are introduced. A new risk measurement for budget exceeding is proposed and a new model is developed based on the new risk measurement. In addition, a genetic algorithm is designed for solving the problem and an example is given as an illustration. The results of the example show that the algorithm is effective for solving the proposed problem. In addition, the results show that the budget can be better used and bigger investment return in net present form can be obtained when new foreign project selection and the existing project adjustment are simultaneously considered than when only new projects are selected. [ABSTRACT FROM AUTHOR]

Distributed solar photovoltaic (DPV) under net-energy metering with volumetric retail electricity pricing has raised concerns among utilities and regulators about adverse financial impacts for shareholders and ratepayers. Using a pro forma financial model, we estimate the financial impacts of different DPV deployment levels on a prototypical Western U.S. investor-owned utility under a varied set of operating conditions that would be expected to affect the value of DPV. Our results show that the financial impacts on shareholders and ratepayers increase as the level of DPV deployment increases, though the magnitude is small even at high DPV penetration levels. Even rather dramatic changes in DPV value result in modest changes to shareholder and ratepayer impacts, but the impacts on the former are greater than the latter (in percentage terms). The range of financial impacts are driven by differences in the amount of incremental capital investment that is deferred, as well as the amount of incremental distribution operating expenses that are incurred. While many of the impacts appear relatively small (on a percentage basis), they demonstrate how the magnitude of impacts depend critically on utility physical, financial, and operating characteristics. [ABSTRACT FROM AUTHOR]