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Pit J is a new pit at Binungan 8 that will be developed to the west in 2024 and has a mine life of 9 years. The initial plan was to develop Pit J, which produced around 23 million tons of coal. However, there is a second alternative that can increase Pit J production to 28 million tons. Therefore, a project investment analysis of these two alternatives was conducted to determine which mining scheme to take and which is more profitable. This research uses a method of conducting investment valuation of the Pit J mine project, namely discounted cash flow (DCF). A deterministic approach using DCF was first conducted to determine the value of economic feasibility parameters, including net present value (NPV), internal rate of return (IRR), and payback period. This was followed by the identification of variables that most affect the NPV value through sensitivity analysis. Based on the research, both mining alternatives were declared financially feasible through the discounted cash flow method, with the first alternative having an NPV of 65.8 million USD, IRR of 60%, and a payback period of 4.77 years, while the second alternative resulted in an NPV of 88.4 million USD, IRR of 65%, and payback period 4.55 years. Sensitivity analysis shows that the variable change in Coal price is the most sensitive variable to the valuation of Pit J. Therefore, the second alternative is chosen as the best alternative to run. [ABSTRACT FROM AUTHOR]

In decision analysis, expected utility of discounted cash flows is the traditional approach to incorporate risk aversion into the evaluation of a project. The choice of discount rate as well as the convergence with the beta-adjusted approach from finance have always been in question. To address this gap, we adopt a risk-sharing setup in which investors have both treasuries and the stock market as alternatives to the project. For a full utility analysis of all the investor's capital, we provide a unique discount rate that allows setting the horizon at the termination of the project. For a traditional analyst who conducts expected utility of discounted cash flows and ignores the capital not allocated to the project, we recommend an adjusted discount rate that compensates for double-counting the systematic risk. [ABSTRACT FROM AUTHOR]

Resource Constraint Project Scheduling Problems with Discounted Cash Flows (RCPSPDC) focuses on maximizing the net present value by summing the discounted cash flows of project activities. An extension of this problem is the Payment at Event Occurrences (PEO) scheme, where the client makes multiple payments to the contractor upon completion of predefined activities, with additional final settlement at project completion. Numerous approximation methods such as metaheuristics have been proposed to solve this NP-hard problem. However, these methods suffer from parameter control and/or the computational cost of correcting infeasible solutions. Alternatively, approximate dynamic programming (ADP) sequentially generates a schedule based on strategies computed via Monte Carlo (MC) simulations. This saves the computations required for solution corrections, but its performance is highly dependent on its strategy. In this study, we propose the hybridization of ADP with three different metaheuristics to take advantage of their combined strengths, resulting in six different models. The Estimation of Distribution Algorithm (EDA) and Ant Colony Optimization (ACO) were used to recommend policies for ADP. A Discrete cCuckoo Search (DCS) further improved the schedules generated by ADP. Our experimental analysis performed on the j30, j60, and j90 datasets of PSPLIB has shown that ADP–DCS is better than ADP alone. Implementing the EDA and ACO as prioritization strategies for Monte Carlo simulations greatly improved the solutions with high statistical significance. In addition, models with the EDA showed better performance than those with ACO and random priority, especially when the number of events increased. [ABSTRACT FROM AUTHOR]

Purpose: Although Public Research Institutions (PRIs) are large technology producers, they lack automated information tools that follow technical and scientific criteria for assessing and valuing patents. The assessment and valuation processes are stages of technology transfer (TT) that make it possible to obtain productive arrangements and guide the efforts of those involved in the development, maintenance and negotiation. This study aims to analyze the hybrid model of assessment and valuation of technologies by Soares (2018), applying the 'Valorativo' software. In addition to patent value and indicator scores, the methods allow an understanding of the technology portfolio and its management. Design/methodology/approach: This research is quali-quantitative, following an approach of applied nature and descriptive objectives. The research has bibliographical, documental and case study features based on the software development methodologies described in the study and the theoretical framework. Findings: The Valorativo software assisted in the analysis of ten patents on PRIs. With the data collection and patent analysis, PAT1 scored highest among engineering patents, PAT3 scored highest among pharmaceutical patents and PAT10 scored highest among biotechnology patents. Five of the assessed patents resulted in a surplus of net present value (NPV), final net present value (NPVF) and royalties; revenue expectations outpaced investments. Practical implications: The authors based the developed software on Soares's (2018) methodology, with additional calculations and graphs. The Web software and the spreadsheet with Visual Basic for Application (VBA) were developed to deal with the patents assessment and valuation, helping in the analysis of their Legal Value, Technological Value and Market Conditions in the assessment process, and the Discounted Cash Flow and NPV in the valuation process. Originality/value: The software helps with patent analysis and can generate indicators for traders, technology holders and researchers. Thus, it was necessary to understand and develop a theoretical-applied framework to outline and replicate the methodology clearly and easily. [ABSTRACT FROM AUTHOR]

This study aims to explore the feasibility of adopting international capital budgeting (ICB) Criteria, specifically Net Present Value (NPV) and Adjusted Present Value (APV), as more suitable criteria for international companies when making investment decisions (ID). The study also elucidates the equations related to measuring the results of ICB Criteria, contributing to the estimation and prediction of future cash flows. The research sample included analysts, investors, academics, financial managers, and individuals interested in foreign investments and financial data analysis across all service contract fields. The researcher distributed 343 valid survey forms, including paragraphs and questions, and collected and classified the data using the Statistical Package for the Social Sciences (SPSS version 24). The study concludes that ICB Criteria (NPV and APV) based on discounted cash flows (DCF) are preferred measures for making optimal ID in the Iraqi environment. [ABSTRACT FROM AUTHOR]

• Designed an automated Material Recovery Facility for mixed waste. • Estimated a capital cost of $23 MM for 120,000 tonne/year of MSW. • The NPV ranged from $3.57 to $60 MM based on location. • Global warming potentials ranged from 5.98 to 8.53 kg CO 2-eq /MT. Material Recovery Facilities (MRFs) are crucial players in achieving a circular economy. MRFs receive complex waste streams and separate valuable recyclables from these mixtures. This study conducts techno-economic analysis (TEA) to estimate the net present value (NPV) and life cycle assessment (LCA) to estimate different environmental impacts of a commercial scale standalone, single-stream MRF to assess the economic feasibility and environmental impacts of recovering valuable recyclables from an MRF processing 120,000 tonnes per year (t/y). The TEA employs a discounted cash flow rate of return (DCFROR) analysis over a 20-year facility lifetime, along with a sensitivity analysis on the impact of different operating and economic parameters. Results show that the total fixed cost of building the MRF facility is $23 MM, and the operating cost is $45.48/tonne. The NPV of the MRF can vary from $3.57 MM to $60 MM, while 100-year global warming potential can range from 5.98 to 8.53 kg carbon dioxide equivalents (CO2-eq) per tonne of MSW. We have also found that MSW composition (arising from regional effects) significantly impacts costs, 100-year global warming potential, and other impact categories such as acidification potential, eutrophication potential, ecotoxicity, ozone depletion, photochemical oxidation, carcinogenic effects, and non-carcinogenic effects. Sensitivity and uncertainty analysis indicate that waste composition and market prices significantly impact the profitability of the MRF, and the waste composition mostly impacts global warming potential. Our analysis also indicates that facility capacity, fixed capital cost, and waste tipping fees are vital parameters that affect the economic viability of MRF operations. [ABSTRACT FROM AUTHOR]

Background: There is extensive evidence for the cost-effectiveness of programmatic and additional tuberculosis (TB) interventions, but no studies have employed the social return on investment (SROI) methodology. We conducted a SROI analysis to measure the benefits of a community health worker (CHW) model for active TB case finding and patient-centered care. Methods: This mixed-method study took place alongside a TB intervention implemented in Ho Chi Minh City, Viet Nam, between October-2017 – September-2019. The valuation encompassed beneficiary, health system and societal perspectives over a 5-year time-horizon. We conducted a rapid literature review, two focus group discussions and 14 in-depth interviews to identify and validate pertinent stakeholders and material value drivers. We compiled quantitative data from the TB program's and the intervention's surveillance systems, ecological databases, scientific publications, project accounts and 11 beneficiary surveys. We mapped, quantified and monetized value drivers to derive a crude financial benefit, which was adjusted for four counterfactuals. We calculated a SROI based on the net present value (NPV) of benefits and investments using a discounted cash flow model with a discount rate of 3.5%. A scenario analysis assessed SROI at varying discount rates of 0-10%. Results: The mathematical model yielded NPVs of US$235,511 in investments and US$8,497,183 in benefits. This suggested a return of US$36.08 for each dollar invested, ranging from US$31.66-US39.00 for varying discount rate scenarios. Conclusions: The evaluated CHW-based TB intervention generated substantial individual and societal benefits. The SROI methodology may be an alternative for the economic evaluation of healthcare interventions. [ABSTRACT FROM AUTHOR]

During the COVID-19 pandemic, more than 24 billion pieces of surgical mask waste (WM) were generated in the EU region, with an acute shortage of their management and recycling. Pyrolysis and gasification are among the most promising treatments that were proposed to dispose of WMs and convert them into pyrolysis oil and hydrogen-rich syngas. This work aimed to investigate the techno-economic analysis (TEA) of both treatments in order to assess the feasibility of scaling up. The TEA was carried out using a discounted cash flow model and its data were collected from practical experiments conducted using a fluidised bed pyrolysis reactor and bubbling fluidised bed gasifier system with a capacity of 0.2 kg/h and 1 kg/h, respectively, then upscaling to one tonne/h. The technological evaluation was made based on the optimal conditions that could produce the maximum amount of pyrolysis oil (42.3%) and hydrogen-rich syngas (89.7%). These treatments were also compared to the incineration of WMs as a commercial solution. The discounted payback, simple payback, net present value (NPV), production cost, and internal rate of return (IRR) were the main indicators used in the economic feasibility analysis. Sensitivity analysis was performed using SimLab software with the help of Monte Carlo simulations. The results showed that the production cost of the main variables was estimated at 45.4 EUR/t (gate fee), 71.7 EUR/MWh (electricity), 30.5 EUR/MWh (heat), 356 EUR/t (oil), 221 EUR/t (gaseous), 237 EUR/t (char), and 257 EUR/t (syngas). Meanwhile, the IRR results showed that gasification (12.51%) and incineration (7.56%) have better economic performance, while pyrolysis can produce less revenue (1.73%). Based on the TEA results, it is highly recommended to use the gasification process to treat WMs, yielding higher revenue. [ABSTRACT FROM AUTHOR]

Keywords: Cost-benefit Analysis, Net Present Value (NPV), Internal Rate of Return (IRR), Capital Amortization Schedule (CAS), Problems of Discounted Cash Flow (DCF). This paper introduces a new method, different from the discounted cash flow (DCF) method, for the first time, to estimate NPV and IRR. This method makes use of the capital amortization schedule (CAS). Accordingly, the present value (PV) of the closing balance (CB) in a CAS at a particular discount rate is the NPV at that rate and the interest rate that makes the CB zero is the IRR. CAS method also reveals that NPV represents the unutilised net cash flow (NCF) that remains as the CB in CAS. IRR is the only rate that fully utilize the NCF and makes the CB zero. The estimated NPV and IRR by CAS and DCF methods are perfectly matching in all cases of small or large-scale investments and under the financial and or economic analysis of investments. The CAS method is more transparent than the DCF method and provides a better insight into: a. evidence of reinvestment of intermediate income in some normal NCF and most non-normal NCF (NNCF) investments; b. elimination of the reinvestment income to get a unique IRR that resolves the problem of multiple IRR; and c. to identify the appropriate criterion between IRR and NPV, as NPV indicates the unutilised NCF whereas IRR indicates the return on invested capital (ROIC) by fully utilizing the NCF. The investors are comfortable to compare the IRR with the cost of capital in percentage term. As the modified IRR (MIRR) assumes reinvestment, MIRR might become redundant if there is no reinvestment and this is an incidental inference drawn.

Turkey has rapidly become one of the top markets for onshore wind energy with a 10 GW onshore wind power installation, a significant accomplishment for the nation. It means that Turkey's wind energy capacity has more than tenfold increase in the last 10 years. Despite the fact that Turkey has no offshore wind farms, research has indicated a significant and untapped energy potential. This work provides a comprehensive techno-economic analysis of the Samandag Offshore Wind Farm (OWF) project in Turkey. To undertake an economic feasibility study under different Feed-in Tariffs (FiT) and discount rates, a discounted cash flow economic model is utilized. This study takes into consideration the economic indicators utilized in decision-making processes from the perspective of an OWF investor. The planned OWF project is shown to be economically viable only provided specific techno-economic prerequisites are satisfied. Samandag City has a lower levelized cost of energy (LCOE), which is roughly $69.97/MWh, according to the findings. However, the findings show that the net present value (NPV) is very sensitive to discount rates and FiT. The goal of this research is to contribute scientifically to the development of offshore wind energy in Turkey. [ABSTRACT FROM AUTHOR]

Copyright of Coal Science & Technology (0253-2336) is the property of Coal Science & Technology and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

• Develop a novel approach called SEH that represents multi-carrier energy systems operating in the SG environments. • The optimum size of the important equipment of SEH such as transformers, ACHs, boilers, and CHP have been considered. • An RL method has been proposed to solve the optimization issue in this article, and also the problem is described as reward function, action space, and state space. • Three criteria as net present value (NPV), rate of return (ROR), and dynamic payback period (DPP) have been applied to approximate the efficiency of the project in the Discounted cash flow (DCF). • The residential customer as an SEH is considered to validate the proposed optimization approach. Getting equipped by highly new smart technologies, Energy Hubs (EHs) and Smart Grids (SGs) are gaining interest these days. Energy management will advance over time as a result of the interaction impact among power and natural gas grids, and the use of smart technology for communications. The present study proposes a novel approach entitled Smart EH (SEH) for modeling multi-carrier energy systems in SG environments. Furthermore, this paper determines the optimum management and sizing of combined heat and power, auxiliary boiler, absorption chiller, as well as transformer unit as the essential components of an SEH. It is difficult to address the requirements of SGs with most conventional load scheduling algorithms because they lack robustness and performance in complex environments. An evaluation of the benefits and costs of optimizing such parameters was carried out in this paper and the Reinforcement Learning (RL) algorithm is applied to solve the optimization problem. An individual user in a dynamic electrical market was examined as an SEH in support of the suggested approach. According to simulation outcomes, the suggested method is effective regarding time efficiencies and load variations. [ABSTRACT FROM AUTHOR]

The conventional hydrothermal carbonisation (HTC) is mainly tied to the high capital investment of the reactor and low product quality. In a novel approach, the rapid subcritical HTC of paunch waste (at 240 °C for only 5 min) was proposed to enhance the quality of products and their utilisation via in-situ production of magnetic hydrochar. Magnetite nanoparticles were found on the surface of hydrochar with size of 10–20 nm and crystal lattice spacing of 0.25 nm, XRD characteristic peaks of magnetite, and strong FTIR peak at 580 cm−1 assigned to Fe-O stretching in the crystalline lattice of magnetite. Magnetic hydrochar could adsorb Congo Red at a capacity of 59.9 mg g−1. An organic-rich process water with a high COD of 43 g L−1 was co-generated along with magnetic hydrochar and assumed to be anaerobically digested. The estimated theoretical methane yield was found sufficient to run the HTC plant in an energy-neutral mode. After developing a process model in Aspen plus, the discounted cash flow analysis revealed a net present value of US$13.04 MM for 30 years of operation, which can increase to $34.79 MM if the iron precursors are sourced from locally available iron-rich sludge. [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]

There is growing awareness that traditional valuation methods based on discounted cash flows using constant risk-adjusted discount rates struggle to account for climate-related risks when assessing long-term investments in physical assets and infrastructure. Worst yet, such methods fail to consider numerous financial benefits accruing from investment in resilience and adaptation, categorizing such expenditures as sunk costs that reduce investors' returns. Such traditional valuation methods encourage investors to postpone or forgo entirely investing in resilience and adaptation. The decoupled net present value (DNPV) method incorporates risk and risk-reduction measures into project valuations in clear and compelling financial terms. By quantifying both (i) risk exposures of assets to hazards and (ii) the reduction of such exposure through up-front investments, DNPV recasts the financial impact of risk-reduction measures. Thus, the benefits of risk-reducing investments such as adaptation and resilience can be fully valorized in project-level accounting, removing a significant barrier facing such investments today. [ABSTRACT FROM AUTHOR]

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 analyses were conducted for the economically optimal scenario, which identified the factors with the most influential impact and their uncertainties on the MSP. Finally, to determine the feasibility of the business through profitability analysis, the net present value, discounted payback period, and present value ratio due to changes in the discount rate were presented, and the discounted cash flow rate of return was found to be 13.22%. As a result of this study, a BOG management system can contribute to improving the economic feasibility for LNG refueling stations by reliquefying BOG and re-selling it (the most efficient way is scenario 4) and will provide an economical guide for countries with much demand for LNG in the transport sector. [ABSTRACT FROM AUTHOR]

Copyright of Revista Producao Online is the property of Associacao Brasileira de Engenharia de Producao and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The adoption of renewable energy resources is in the core of energy transition. However, its implementation can be highly impacted by country policies. A limited number of researches investigated solar photovoltaic investments, comparing net-metering rules for distinctive energy consumption levels and different discounted rates, from the investors' point of view. This paper analyzes the impact of Brazilian net-metering rules on solar photovoltaic investments, considering residential scale. The methodology contemplates the development of a Discounted Cash Flow model to calculate Discounted Payback (DP), Net Present Value (NPV), Internal Rate of Return (IRR), and Levelized Cost of Electricity (LCOE) of projects. The case studies consider the impact of Brazilian regulation from net-metering rules (previous, considered, and current), energy consumption levels (Low, Middle, and High), and discount rates (5 %, 10 %, 15 %, and 20 %). The results show that from the previous to current rule the return for investor, on average, decreased 5.77 %. However, this reduction would be of 12.81 % if considered rule was adopted. For the 36 studies carried out, even in the worst case the investments remain viable. Therefore, the existing policy is suitable for the current stage of sector development; minimizing the impacts for energy tariff, distribution companies, consumers, and prosumers. [ABSTRACT FROM AUTHOR]

Offshore wind auctions in Europe have recently seen considerable price decreases, with resulting support levels low enough to warrant the question whether project profitabilities are robust enough against changing market prices, or whether project suffer from low returns upon project realisation. This study investigates the development of profitability between auction date and Final Investment Decision, mainly through identifying impacts of changes in electricity prices, using stochastic discounted cash flow analysis. Some projects seem to have experienced adverse market developments. The study employs an explanatory-sequential approach to analyse two strategies to mitigate this risk: Pricing risks into the auction bid and absorbing losses through reduced returns or, alternatively, passing them down to contractors in the supply chain. The study finds indications that post-auction market developments have likely led to diminishing returns of developers, rather than increased price pressure on contractors. The study enhances the understanding of project profitabilities and developers' choices between auction and investment decision, and therewith opens the discussion on post-auction industry dynamics as an increasingly relevant factor to ensure that offshore wind can live up to its envisaged role in the decarbonisation of society. [Display omitted] • Detailed empirical approach to assessing economic viability of projects over time. • Implications of adverse market developments in major European offshore wind projects. • Some developers have experienced diminishing returns from market price changes. • Post-auction industry dynamics as increasingly relevant research field. [ABSTRACT FROM AUTHOR]

Economic feasibility analysis is essential in the decision-making process regarding investment in photovoltaic projects. Project profitability must be measured based not only on the costs and revenues, but also on the climatic particularities of the different locations. Therefore, performing simulations of technical and economic performance of photovoltaic models is fundamental. Thus, the objective of this study was to analyze deterministic and stochastic models of investments in two types of photovoltaic systems, one incorporated into the enterprise's architecture (a BIPV system) and the other, a conventional one, in different Brazilian locations, covering the predominant climatic factors in the country. The methodological proposal consisted of choosing a city in Brazil with each predominant climate type and compiling its data on irradiation, monthly sunshine hours, and tariffs of the electric power concessionaire, to simulate the electrical generation performance of the proposed photovoltaic systems and their profitability. For the economic analysis, the cumulative probability of positive Net Present Value (NPV) returns was obtained through deterministic simulations in all municipalities. Only the municipality of Pau dos Ferros-RN was chosen to perform 10,000 stochastic simulations, and its cumulative probabilities of positive NPV returns were obtained. In both models of photovoltaic technology analyzed and simulation logics, 100% of the NPVs were positive, indicating profitable cash flows in all scenarios. However, some municipalities obtained better results than others when the climate types favored sunny weather. Moreover, although all cases returned positive NPVs, the conventional model proved to be more economically attractive than BIPV system. [ABSTRACT FROM AUTHOR]

The energy economy is continually evolving in response to socio-political factors in the nature of primary energy sources, their conversions to useful forms, such as electricity and heat, and their utilization in different sectors. Nuclear energy has a crucial role to play in the evolution of energy economy due to its clean and non-carbon-emitting characteristics. A techno-economic analysis was undertaken to establish the viability of selling heat along with electricity for an advanced 100 MWth small modular reactor (SMR) and four nuclear hybrid energy system (NHES) configurations featuring the SMR paired with chemical heat pump (ChHP) systems providing a thermal output ranging from 1 to 50 MWth. Net present value, payback period, discounted cash flow rate of return, and levelized cost of energy were evaluated for these systems for different regions of U.S. reflecting a range of electricity and thermal energy costs. The analysis indicated that selling heat to high temperature industrial processes showed profitable outcomes compared to the sale of only electricity. Higher carbon taxes improved the economic parameters of the NHES alternatives significantly. Providing heat to high temperature industries could be very beneficial, helping to cut down the greenhouse gases emission by reducing the fossil fuel consumption. [ABSTRACT FROM AUTHOR]

The article describes the approach proposed by the authors to analyze the effectiveness of projects for the introduction of eco-technologies in hotels concerning the risk-return ratio. The net present value (NPV) of the project is used as a criterion for assessing the profitability of the green technology implementation project. The magnitude of the project risk is the second criterion, which can be calculated by various methods. Applying the proposed approach, the authors analyzed the experience of implementing environmental projects by Russian hotels. An illustration of the proposed method is the 'risk-return' diagram for introducing energy-saving technologies in a 3* hotel. The approach combines the advantages of the analysis method for discounted cash flow project efficiency and project risk analysis tools by using two criteria and can be applied for a quick and visual analysis of environmental projects in the hospitality sector. [ABSTRACT FROM AUTHOR]

Risk is a significant phenomenon in mineral industries due to several associated social, environmental, technical, and financial uncertainties. Risk assessment is a standard procedure that evaluates the effects of uncertainties on a mining project. To deal with technical and financial uncertainties, the most well-known risk assessment technique is the Monte Carlo simulation (MCS), which requires reproducing correlations between uncertain variables. Correlation does not imply causation, but it does provide information regarding how uncertain variables interact. Given that samples generated in MCS are used in a transfer function (e.g., to produce net present value), transfer function values may mislead risk assessors if the interactions are not reproduced. This study uses historical reference data to compare MCS outcomes based on Pearson and copula correlations with regard to their ability to reproduce interactions. Furthermore, results from a case study on a gold mining project—including gold price, production cost, grade, and recovery as well as interest rate as uncertain parameters—show that if the associations between the variables are non-linear, copulas capture interactions and correlations more accurately than Pearson. [ABSTRACT FROM AUTHOR]

The investment projects evaluation in real assets is essential for decision making; however, undoubtedly, it is a process whose components have interdependent relationships, which generate uncertainties that can lead to the wrong acceptance or rejection of the investment. This study aimed to apply the Monte Carlo simulation to the risk incorporation into the economic and financial evaluation of an investment project in mineral assets under conditions of uncertainties, with a view to the obtained returns measurement. Thus, the evaluation was based on the projection of discounted cash flow, which allowed the adoption of methods commonly used to evaluate real assets that consider the time value of the money. The economicfinancial risk incorporation was performed using a stochastic and dynamic mathematical model, and the Monte Carlo method was used to generate values from probability distributions. The results showed that the investment project in mineral assets is economically feasible by adding value to investors. [ABSTRACT FROM AUTHOR]

In recent years, energy debates are increasingly focused on the energy transition, the Kingdom of Morocco has shown a growing preference for Liquid Natural Gaz (LNG) to ensure energy efficiency. Therefore, Morocco is projecting to invest in its first natural gas for importing and storage capacity by 2030. In tune with developing a terminal site location and an optimum routing alternative for pipeline [1], this article comes as a follow up to establish a profitability study for the same importation terminal. It aims to investigate the financial viability of such a project.The profitability of an investment is generally the most important criterion for the decision-making. Even if the combined ecological and industrial benefits of natural Gaz can sometimes provide enough motivation to invest in importation terminal, a long-term profitability study is a compulsory in such expensive projects, it is systematically pursued to evaluate the economic impact of such an investment decision.After highlighting the multiple benefits of Natural Gaz, the first step is setting up the financial model to be adopted, which is in this case the net present value (NPV) and payback profitability criteria. Therefore, operating and financial assumptions are made based on the benchmark with other similar projects, and finally, the profitability study will allow us to measure the LNG terminal capacity to generate revenue.

In this paper, we discuss the resource–constrained project scheduling problem with discounted cash flows. We introduce a new schedule construction technique which moves sets of activities to improve the project net present value and consists of two steps. In particular, the inclusion of individual activities into sets, which are then moved together, is crucial in both steps. The first step groups the activities based on the predecessors and successors in the project network, and adds these activities to a set based on their finish time and cash flow. The second step on the contrary does so based on the neighbouring activities in the schedule, which may but need not include precedence related activities. The proposed scheduling method is implemented in a genetic algorithm metaheuristic and we employ a penalty function to improve the algorithm’s feasibility with respect to a tight deadline. All steps of the proposed solution methodology are tested in detail and an extensive computational experiment shows that our results are competitive with existing work. [ABSTRACT FROM PUBLISHER]

In the literature, the integration of the cash and risk effects of executive compensation into company valuation is discussed only marginally. This paper addresses the question of how these effects can be integrated into corporate valuation. Several methods for solving the problem are discussed and a method free of circular references, similar to the adjusted present value approach to company valuation, is identified. Contrary to a common assumption in the literature, there is no uniform and constant cost of capital for a company that uses employee stock options. Cost of capital needs to be adjusted to the cash and risk impact of equity‐based executive compensation. Making recourse to the treasury stock method, which is used to calculate diluted earnings per share, is not recommended here even though a corrected version of this method is used. I discuss different forms of equity‐based executive compensation, including the resulting allocation of risk and net present value between owners and managers. [ABSTRACT FROM AUTHOR]

A techno-economic analysis (TEA) was conducted to evaluate the economic profitability and feasibility for a H 2 energy storage system using an alkaline and a polymer electrolyte membrane water electrolysis for 1 MW water electrolysis operation. Many economic analysis methods such as itemized cost estimation, profitability analysis using a cumulative cash flow diagram, and uncertainty analysis employing a Monte-Carlo simulation method were utilized to perform a TEA. In particular, a renewable energy certificate (REC) was considered as an additional benefit of a renewable energy use. From itemized cost estimation, respective levelized costs of H 2 of 7.21 and 9.19 $ kgH 2 −1 were obtained for both H 2 energy storage systems in an alkaline and a polymer electrolyte membrane water electrolysis by considering current economy situation and therefore it is still difficult to be cost-competitive compared to a commercial H 2 production cost. From profitability and uncertainty analysis results, an appropriate REC weight was confirmed in terms of discounted profitability criteria like a discounted payback period, a net present value, a present value ratio, and a discounted cash flow rate of return. In addition, a REC weight was affected on a net present value compared to a REC trading cost fluctuation. • Techno-economic analysis was conducted for a H 2 energy storage system. • Respective LCOHs of 7.21 and 9.19 $ kgH 2 −1 were obtained for HESSs in an AWE and a PWE. • An appropriate REC weight was identified based on discounted profitability criteria. • A REC weight has more impact on a NPV than a REC trading price fluctuation. [ABSTRACT FROM AUTHOR]

The circular economy is calling for the rapid use of already-developed renewable energies. However, the successful implementation of those new fuels is limited by economic and political issues. For instance, in the Brandenburg region, Germany, biogas production from anaerobic digestion of biomass and wastes is a current alternative. However, the upgrading biogas to biomethane is still challenging and the economic viability is unknown. Therefore, we performed an economic analysis for biogas upgrading to biomethane in the Brandenburg region. Five biogas plant sizes were analyzed by the method of discounted cash flow. This method yields the net present value of the projects, thus revealing the profitability or non-profitability of the plants. Results indicate profitable outputs for medium and large plants, with net present values between 415 and 7009 k€. However, the smallest plants have net present values from -4250 to -3389 k€, thus needing further economic efforts or subsidies to reach profitability. Indeed, biomethane prices should range between 52.1 and 95.6 €/MWh to make these projects profitable. Combinations of 50% of investment subsidized and 11.5 €/MWh feed-in tariffs subsidies could make the projects reach profitability. These findings reveal that political actions such as green policies and subsidies are needed to implement green energy. This case study should serve as a potential tool for policy-makers toward a sustainable bioeconomy. [ABSTRACT FROM AUTHOR]

Liming is a common management practice, but there exists uncertainty about the economic benefits. An economic analysis of the costs and profitability of liming arable crops was undertaken using data from the long‐term liming experiment at Rothamsted and Woburn. There was a strong liming effect on gross margins, but large differences in the economic benefit between crops. For some crops (such as spring barley), liming greatly improved the gross margin, while for spring oats liming provided very little increase. Most economic benefit was achieved with the high lime treatment, but the cumulative discounted cash flow indicated that it took approximately 20 years before a distinct difference developed between the lime treatments. Therefore, lime should be considered a capital investment and economic evaluation undertaken over a long period. Liming rate increased the net present value expressed as an annual equivalent (NPVa). An additional £436 ha−1 year−1 at Rothamsted and £208 ha−1 year−1 at Woburn of profit was gained from the adoption of the most profitable liming treatments over not liming. Sensitivity analysis indicated that total liming costs had a weak effect on NPVa, but crop price had a strong effect. The economic performance of liming differed between sites and was higher at Rothamsted than at Woburn, mostly because of soil differences. Liming greatly improves economic returns of most arable crops, but the magnitude of the long‐term economic benefit depends upon the sequence of crops within a given rotation. [ABSTRACT FROM AUTHOR]

Copyright of Global Journal of Economics & Business is the property of Refaad for Studies, Research & Development and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Journal of Petroleum Research & Studies is the property of Republic of Iraq Ministry of Higher Education & Scientific Research (MOHESR) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

With limited financial resources, decision-makers in firms and governments face the task of selecting the best portfolio of projects to invest in. As the pool of project proposals increases and more realistic constraints are considered, the problem becomes NP-hard. Thus, metaheuristics have been employed for solving large instances of the project portfolio selection problem (PPSP). However, most of the existing works do not account for uncertainty. This paper contributes to close this gap by analyzing a stochastic version of the PPSP: the goal is to maximize the expected net present value of the inversion, while considering random cash flows and discount rates in future periods, as well as a rich set of constraints including the maximum risk allowed. To solve this stochastic PPSP, a simulation-optimization algorithm is introduced. Our approach integrates a variable neighborhood search metaheuristic with Monte Carlo simulation. A series of computational experiments contribute to validate our approach and illustrate how the solutions vary as the level of uncertainty increases. [ABSTRACT FROM AUTHOR]

Providing decision makers and the investment community with transparent methods to value investments in resilience and adaptation measures to protect physical assets from climate change impacts is becoming increasingly critical. To address this need, this paper introduces and utilizes the decoupled net present value (DNPV) valuation methodology. DNPV is a robust method that can incorporate climate change risk into investment analyses. This paper also discusses how the widespread use of traditional valuation methods such as net present value combined with risk-adjusted discount rates introduces a pernicious time bias effect that magnifies stakeholders' misaligned interests and investment horizons, leading investors, both public and private, to significantly underinvest in resilience and adaptation. Furthermore, because traditional valuation methods cannot correlate physical risks (e.g., loss of revenue due to physical damage or lost access to an asset) with discount rates, investments to reduce climate change risks are largely considered as expenses that make the investment less attractive. The DNPV method addresses this issue and offers a viable alternative that can consistently and transparently quantify all risks (market and non-market) in terms of cash flows. This allows investors and stakeholders to quantify in monetary terms the potential exposure of physical assets to climate-related hazards and assess the effect of decisions to invest in resilience and adaptation measures. With the aid of a simple numerical example, the DNPV method is used to illustrate how such actions can be treated as quantifiable risk reduction investment opportunities that result in better investment decisions. [ABSTRACT FROM AUTHOR]

We consider a company that schedules the tasks of its projects to maximize their expected net present value (ENPV) when tasks may fail. The failure of any task terminates the project immediately. We show that for projects with certain decreasing failure rates, the ENPV optimization problem can be solved using a linear program. The main focus of our work is on how constant task failure rates contribute to decreasing project risk as tasks are completed. Under constant task failure rate, earlier completion of a task improves its probability of success and the risk profile of the project. However, it may also accelerate costs, which worsen discounted cash flow. We show the equivalence of cash flow discount rate and failure rate. Further, if task failures are independent, then the failure rates are additive. We develop a model that (a) recognizes the reduction in project risk when a task is completed, (b) implements this risk reduction into the ENPV calculation, and (c) permits optimization of the ENPV through sequencing and timing decisions for the tasks. We design an algorithm to solve the problem optimally. This enables us to validate the contributions of our work using two computational studies. The first study demonstrates a significant increase in maximum project ENPV from improved project scheduling. The second study demonstrates a significant increase in total project portfolio value as a result of better informed project selection. Our work motivates companies to develop more precise information about the failure risks of their project tasks. [ABSTRACT FROM AUTHOR]

Green ammonia production is facing increasing interest on a global scale as a hydrogen carrier for power generation as well as fertilizer for food production. The conventional Haber-Bosch method for ammonia synthesis is energy demanding, requires high purity hydrogen, and is based on fossil fuels. A preliminary techno-economic model for electrochemical ammonia synthesis at near ambient pressure using feed rates of 32 metric ton/day for hydrogen and 135 metric ton/day for nitrogen is presented in this study. Various pathways using different methods for nitrogen generation and hydrogen production were investigated to gain insight into added energy savings per metric ton of ammonia. Electrochemical synthesis using electrolysis for hydrogen and cryogenic nitrogen was found to be a potentially viable pathway for green ammonia. The profitability metrics including discounted cash flow rate of return, net present value and discounted payback period were estimated to be 8%, $40 MM, and 4–6 years respectively for this pathway. The cost of electricity, conversion rate, and conversion efficiency dominate the tonnage cost of ammonia and were used to assess the feasibility of the model. A life cycle assessment was also conducted to assess the environmental impact of a well to product ammonia process. • Integrated electrochemical ammonia systems with renewable intermittent sources has. linear scalability advantages. • Energy consumption of at least 17 MWh per metric ton for electrochemical ammonia. • Number of modules decreases with current density. • Specific energy decreases as the production rate increases. [ABSTRACT FROM AUTHOR]

Irrefutably, energy transition has recently gathered momentum thanks to the Paris Agreement and renewable energy (RE) falling costs. However, unlocking the full socio-economic potential of energy transition requires encouraging Foreign Direct Investment (FDI) in developing countries where energy demand and the risk of stranded assets are growing. Encouraging FDI in developing countries necessitates addressing two highly controversial issues: measuring political risk and carrying out proper valuation of long-term RE investments. In this regard, current paper investigates the rationale behind classic risk-adjusted discount rate (RADR) approach. It finds that since RADR requires heuristics, it may lead to misrepresentation of real worth of RE projects in developing countries. Addressing this issue, the paper offers a hybrid method based on risk pricing which can incorporate political risk into valuation straightforwardly. The hybrid method is applied to a photovoltaic case in Iran. Surprisingly, while the analysis based on classic RADR approach indicates that the investment is not financially viable, the hybrid analysis demonstrates attractive return on the investment. This can contribute to unlocking a considerable annual amount of 270 TWh solar power in Iran. The empirical study also shows that the suitable rate to discount RE investments in Iran is 10.22%. • Foreign Direct Investment can create a game-changing shift in energy market. • Risks should be reflected in cash flow instead of discount rate. • Sovereign spread is not a good proxy for political risk. • An alternative approach to value renewable energy investments is proposed. • The method can unlock investment in renewables in developing counties. [ABSTRACT FROM AUTHOR]

The inability of existing analytical models to accurately predict future events has, at times, led to the economic failure of mining operations whose financial viabilities were determined based on static assumptions, leaving operational managers with little room to make future decisions. Therefore, the application of a robust decision-making tool, such as Real Options (RO) can minimise losses and more accurately express uncertainty. This paper has considered a stochastic simulation to analyse ROs for a real case iron ore mine, which closed in April 2016. In comparing the net present value from the traditional discounted cash flow (DCF) method to delay, to abandon the operations and to stage the investment options, the ROs method increased the project value by between 56% and 195% depending on the volatility. As a new contribution, a managerial flexibility domain map is proposed in this paper. Thus, flexibility in mining operations creates agility, increases value and mitigates financial losses. [ABSTRACT FROM AUTHOR]

One of the main barriers to the development of energy efficiency (EE) projects in Brazil is the decision-makers' lack of knowledge about the risks of the projects. The Brazilian Government's Procedures of Energy Efficiency Program (PROPEE) is currently one of the main sources of funding for energy efficiency (EE) projects. The method for evaluating the technical and economic feasibility of projects presented in PROPEE applies the traditional discounted cash flow (DCF) methodology to calculate the net present value (NPV). The energy price used in this model is a fixed value calculated through the postponement of investments (cost of avoided demand) and/or reduction of operating expenses (avoided energy cost). The avoided costs for a given voltage level are incurred throughout the power system, upstream of the consumption unit (view of the electrical system's operator). The PROPEE's methodology, applied on a large scale in Brazil, does not consider some technical uncertainties present in EE projects, nor the market uncertainty regarding the fluctuation of the energy price paid by the consumer units. This paper evaluates the investment risk of EE projects (consumer's perspective) adopted by the Brazilian market, taking as example a large electricity consumer. A methodology is proposed, which, considering the technical and economic uncertainties, performs a more comprehensive and realistic analysis of the complex business scenario involving the EE projects. This case study considered the data collected by a team of independent engineers, for the first time in January 2009 and updated in January 2015, to assess the energy efficiency potential of a commercial consumer unit installed in the city of Rio de Janeiro and connected to the grid of local distribution level voltage 13.8 kV. This study demonstrates a model that made the risk management projects viable in energy efficiency demand-side management (DSM). However, it could also be applied in other markets as well. Understanding how the uncertainties affect decision-making in EE projects is essential for developing a more comprehensive outlook on constructive and regulatory perspective, contributing to the promotion of energy efficiency projects. [ABSTRACT FROM AUTHOR]

Stochastic optimisation provides a framework that is capable of generating a strategic life-of-mine production schedule that increases net present value while simultaneously reducing the risk associated with geological uncertainty. This paper focuses on the application of the stochastic strategic mine planning for technical risk management in the KéMag iron ore deposit in Quebec, Canada, demonstrating the key steps of the framework. The approach first quantifies both the volumetric and multi-element grade uncertainty of the deposit by generating a set of equally probable scenarios of the orebody. In this case study, the boundaries of the lithologies (volumetric uncertainty) defining the KéMag iron ore deposit are generated using a pattern-based wavelet simulation algorithm. The pertinent grade properties, namely, head iron, Davis Tube weight recovery, Davis Tube concentrate iron and silica content (multi-element grade uncertainty) are jointly simulated using the direct block minimum/maximum autocorrelation factors algorithm. Subsequently, the simulated scenarios of the iron deposit serve as an input to a life-of-mine stochastic integer programming production-scheduling model. The latter stochastic optimisation model is employed to manage and minimize the risk associated with the geological uncertainty of the deposit in terms of meeting production targets while generating a mining sequence of extraction maximising the net present value. The results of the case study quantify the risk associated with the product's silica content, total iron production and expected discounted annual cash flows. [ABSTRACT FROM AUTHOR]

The paper highlights the role of urban farming in vacant spaces in tertiary institutions, the need to support the local food economy and contribute nutritious and fresh foods to needy students and staff. Materials for the study were gathered through secondary data from journals, books and personal interview which centred on a prepared schedule held with the farm manager of the greenhouse project as well as extensive viability analyses to prove worthwhileness of the project. The study revealed that many backyard farming activities are taking place in vacant spaces in various tertiary institutions by resident and non-resident staff households. The viability techniques of cash flow forecast, profit and loss account and discounted cash flow analyses carried out on the greenhouse project proved its viability as all the analyses gave positive results. For example, the cash flow forecast showed a surplus before tax of N39,394.16 from year 3 and a break even point at year 6 as the accumulated surplus of N275,346.11 surpassed the accumulated deficit of -N223,150.95. The profit and loss account of the project also showed an accrued surplus before tax of N490,969.67 from year 2 while the discounted cash flow analysis showed a net present value (NPV) of +N885,339.91 in life of the project. The paper, therefore, supports the activity as a positive measure in the use of idle spaces in tertiary institutions. It concludes that policies be put in place to officially enumerate and assign vacant spaces for proper farming activities to enhance food security among staff households and students in the tertiary institutions. It recommends that urban farming activities be formally recognized and land devoted for that purpose through policy making, planning and curriculum changes in the various tertiary institutions. [ABSTRACT FROM AUTHOR]

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 currency. Policies including overstocking, technical support repayment scheduling, selling broilers at a spot market price, using marketing contracts and selling poultry manure were compared using non-parametric paired comparisons and stochastic dominance. Findings: Risk-neutral and risk-averse producers would prefer overstocking, delaying repayment of technical support services and selling manure to status quo operational policy. No differences were observed between the option to sell birds at spot market prices or through contracts. Research limitations/implications: This analysis demonstrates how individual managerial or an intervention in smallholder broiler production affects financial performance. Practical implications: To mitigate risk associated with this novel enterprise, producers should consider overstocking birds. If local markets for manure were developed, the risks faced by new or beginning poultry operators could be mitigated. Originality/value: A stochastic, discounted cash flow model calculator was used to determine the NPV and discounted payback period of operator investments and operating cash flows, including time, materials and capital. [ABSTRACT FROM AUTHOR]

Hydrogen is a prominent clean fuel option for combatting global warming and producing low-emission, ecologically friendly electricity. Consequently, the proton exchange membrane water electrolysis (PEMWE) hydrogen refueling station has undergone thorough economic and environmental analysis. This work intends to fill the gap by presenting the influence of various operating circumstances and design parameters on the economic and environmental aspects of PEMWE based on various behaviors and features (I–V curve) under various scenarios. Profitability analysis (PA) is performed in terms of the net present value (NPV), discounted payback period (DPBP), benefit-cost ratio (BCR), and internal rate of return (IRR) from cumulative discounted cash flow diagrams (CFD). Also, sensitivity analysis (SA) is conducted to assess the impact of different economic factors, while simultaneously establishing CO 2 footprint guidelines for optimal operating and design conditions. The findings highlight that enhancing economic feasibility and reducing environmental concerns are simultaneously achievable by increasing cathode pressure, operating temperature, and decreasing membrane thickness. At membrane thicknesses over 100 μm, the project becomes unprofitable and inefficient at 1.85 V. PEMWE becomes more valuable and sustainable with a current density of 12,000 A/m2 or higher, but it releases more CO 2 emissions. Hence, utilizing excess renewable electricity in PEMWE addresses environmental concerns and enhances the overall ecological sustainability of hydrogen production. [ABSTRACT FROM AUTHOR]