3,901 results on '"DISCOUNTED cash flow"'
Search Results
102. Delaware Supreme Court Upholds 'Entire Fairness' of a Tesla Acquisition.
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APPELLATE courts ,CONSTITUTIONAL courts ,BUSINESS enterprises ,FAIRNESS ,BUSINESS valuation ,VERTICAL integration ,DISCOUNTED cash flow ,COUNTERPARTY risk ,EXPERT evidence - Published
- 2023
103. A New Method to Estimate NPV and IRR from the Capital Amortization Schedule and the Advantages of the New Method
- Author
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Kannapiran Arjunan
- Subjects
cost-benefit analysis ,net present value ,npv ,internal rate of reyurn ,irr ,capital amortization schedule ,cas ,problems ,discounted cash flow ,dcf ,Business ,HF5001-6182 - Abstract
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.
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- 2022
- Full Text
- View/download PDF
104. Editor's Note on ASU 2016-13 Pertaining to the Current Expected Credit Loss Standard.
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ACCOUNTING standards ,CREDIT risk ,DISCOUNTED cash flow - Abstract
Mr. Schroeder, who is currently a visiting scholar at Rutgers University, provides a thorough and detailed discussion of (1) how new FASB standards are formulated and adopted and (2) how this pertains specifically to the CECL standard. His insights will provide accounting researchers with a better idea about the approach of the FASB and the careful procedures that accompany the formulation of new accounting standards. In its general move toward forward-looking accounting rules, the Financial Accounting Standards Board (FASB) adopted ASU 2016-13, I Measurement of Credit Losses on Financial Instruments i , to better align the recognition of expected credit losses with changes in credit risk. [Extracted from the article]
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- 2023
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105. The nationalization of the large-scale copper mines in Chile: successful investment or financial failure?
- Author
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González, Andrés, Sánchez, Felipe, and Castillo, Emilio
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- 2023
- Full Text
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106. Gregory Reveals What's Going on With the IRS and Tax Valuations.
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BUSINESS valuation ,DISCOUNTED cash flow - Abstract
This article discusses the recent developments and focus areas of the IRS in relation to tax valuations. The author, Michael Gregory, who has extensive experience at the IRS, highlights key issues that the agency is currently focusing on, including discount for lack of marketability, assumptions and limiting conditions, subchapter S tax affecting, reasonable compensation, cash flow and discount rate, and math errors. Gregory also mentions the importance of staying updated on emerging models and the scrutiny faced by famous names in the estate and gift area. Additionally, the article mentions the hiring plans of the IRS and the potential impact on efficiency rates. Readers interested in more information can visit Gregory's blog for regular updates on IRS-related topics. [Extracted from the article]
- Published
- 2024
107. Techno-economic analysis of an offshore wind farm on the eastern Mediterranean Sea coast.
- Author
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Yildirim, Alper, Bilgili, Mehmet, Akgün, Hakan, and Ünal, Şaban
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OFFSHORE wind power plants ,DISCOUNTED cash flow ,WIND power ,NET present value ,ENERGY industries - Abstract
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]
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- 2023
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108. Qualitative Comparison of Valuation Methods for Power Plants and Flexibility.
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Wehkamp, Steffen, Kusch, Pavel Wilhelm, and Marx Gómez, Jorge
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VALUATION , *ENERGY industries , *DISCOUNTED cash flow , *OPTIONS (Finance) - Abstract
The financial valuation of power plants is an important instrument for investment planning. The environment of the energy sector, which is strongly influenced by renewable energies, is changing. The shift to decentralized supply has an impact on the technical complexity of the energy system and requires congestion management. In such a transitioning system, flexibility is gaining a more important function in the valuation of power plants. Existing valuation methods are examined as to how flexibility and marketing options are taken into account. The comparison of the existing valuation methods showed that the valuation results are strongly dependent on the method used and the technology investigated. There is a lack of validation of the methods through quantitative evaluation. [ABSTRACT FROM AUTHOR]
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- 2023
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109. Enterprise to Equity Value Adjustments in DCF Valuation: A Case Study of Coca-Cola.
- Author
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Lyons, Bridget
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ENTERPRISE value ,UNDERFUNDED pension plans ,STOCK prices ,VALUATION ,VALUE (Economics) - Abstract
This case study examines the challenges faced in practice when determining equity value and share price for firms characterized by complexities including dilutive securities, equity investments, noncontrolling interests, leases, and underfunded pension plans. Coca-Cola Company is used as a case study to demonstrate how to accurately account for such items when deriving equity value and implied share price from enterprise value. [ABSTRACT FROM AUTHOR]
- Published
- 2023
110. 煤层气开发井网密度和井距优化研究 −以韩城北区块为例.
- Author
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王之朕, 张松航, 唐书恒, 王凯峰, 张迁, and 林文姬
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DISCOUNTED cash flow ,GAS wells ,NET present value ,COALBED methane ,PAYBACK periods - Abstract
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.)
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- 2023
- Full Text
- View/download PDF
111. Uncertainty in firm valuation and a cross-sectional misvaluation measure.
- Author
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Bottazzi, Giulio, Cordoni, Francesco, Livieri, Giulia, and Marmi, Stefano
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BUSINESS enterprises ,DISTRIBUTION (Probability theory) ,FAIR value ,VALUATION ,DISCOUNTED cash flow ,ABNORMAL returns ,FINANCIAL statements - Abstract
The degree of uncertainty associated with the value of a company plays a relevant role in valuation analysis. We propose an original and robust methodology for company market valuation, which replaces the traditional point estimate of the conventional Discounted Cash Flow model with a probability distribution of fair values that convey information about both the expected value of the company and its intrinsic uncertainty. Our methodology depends on two main ingredients: an econometric model for company revenues and a set of firm-specific balance sheet relations that are estimated using historical data. We explore the effectiveness and scope of our methodology through a series of statistical exercises on publicly traded U.S. companies. At the firm level, we show that the fair value distribution derived with our methodology constitutes a reliable predictor of the company's future abnormal returns. At the market level, we show that a long-short valuation (LSV) factor, built using buy-sell recommendations based on the fair value distribution, contains information not accessible through the traditional market factors. The LSV factor significantly increases the explanatory and the predictive power of factor models estimated on portfolios and individual stock returns. [ABSTRACT FROM AUTHOR]
- Published
- 2023
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112. The market value of SMEs: a comparative study between private and listed firms in alternative stock markets.
- Author
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Rodríguez-Valencia, Leslie, Lamothe-Fernández, Prosper, and Alaminos, David
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CAPITAL assets pricing model ,STOCK exchanges ,CAPITAL structure ,MARKET value ,DISCOUNTED cash flow ,SMALL business ,VALUE (Economics) - Abstract
This study aims to compare the market value of private firms and publicly listed small and medium-sized firms (SMEs) in alternative stock markets through a private discount approach with estimates of value based on discounted cash flow projections and along with a comparable multiples approach. The valuation methodology applied in this study yielded a final sample that included 232 observations between public and private companies in the Spanish market. To calculate the discount, we apply the different approaches of discounted cash flow and multiples, such as valuation, earnings, book value, and revenue. Our results conclude there is no private discount, instead, the outcomes of this article suggest a premium over public firms for some ratios. The negative private company discounts mean a premium and, on the other hand, some multiples suggest a discount according to the method of valuation. This paper proves private discounts resulted does not have any comparable value within the same country although all firms in Spain use the same currency. We value the discounted cash flows of our forecasts using a discount rate based on the Capital Asset Pricing Model (CAPM), so our study can also be viewed as a test sensitivity of CAPM-based approaches to equity risk premium, terminal value, and growth rate. Furthermore, we compare historical transaction multiples of privately held companies with transaction multiples of similar publicly held firms. [ABSTRACT FROM AUTHOR]
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- 2023
- Full Text
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113. Feasibility of 10 MW Biomass-Fired Power Plant Used Rice Straw in Cambodia.
- Author
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Sokrethya, Sin, Aminov, Zarif, Van Quan, Nguyen, and Xuan, Tran Dang
- Subjects
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INFORMATION display systems , *DISCOUNTED cash flow , *COAL-fired power plants , *POWER plants , *BURNING of land , *RICE straw , *GEOGRAPHIC information systems - Abstract
This study investigates the feasibility of rice straw for energy production in Cambodia. The potential areas for a 10 MW biomass-fired power plant installation are estimated based on rice straw availability displayed in a graphic information system (GIS). The discounted cash flow (DCF) method on the profitability index (PI) was executed by Mathlab software, which was used to determine the period of the power plant profitability. The reduction of CO and CO2 emissions from the proposed rice straw biomass-fired power plant with 10 MW capacity was calculated and compared with the coal-fired power plant and open field burning. Prey Veng, Takeo, and Battambang are potential provinces that have an estimated rice straw source of 804,796 t/annum, 720,040 t/annum, and 603,273 t/annum, respectively. Within a 20-year project, the biomass-fired power plant can reach profitability between six and ten years with the operation of the rice-straw price of 20 USD/t to 40 USD/t. The total energy produced by these potential areas is 1251 GWh/annum, with a CO2 emission avoidance of 1.06 million t/annum compared to the coal-fired power plant operation. Simultaneously, the emission savings of the biomass-fired power plant compared to open-field burning are 0.61 million t/annum of CO2 and 0.02 million t/annum of CO in the study site. The findings are prospectively essential for further designing of a small-scale biomass-fired power plant in Cambodia. [ABSTRACT FROM AUTHOR]
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- 2023
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114. Management and real-time monitoring of interconnected energy hubs using digital twin: Machine learning based approach.
- Author
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He, Qingsu, Wu, Muqing, Liu, Chun, Jin, Dan, and Zhao, Min
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DIGITAL twins , *MACHINE learning , *DISCOUNTED cash flow , *NET present value , *REINFORCEMENT learning , *NETWORK hubs - Abstract
• 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]
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- 2023
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115. In-situ production of magnetic char via rapid subcritical hydrothermal carbonisation of paunch waste.
- Author
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Hedayati Marzbali, Mojtaba, Hakeem, Ibrahim Gbolahan, and Shah, Kalpit
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DISCOUNTED cash flow , *NET present value , *IRON , *CONGO red (Staining dye) , *CRYSTAL lattices , *UPFLOW anaerobic sludge blanket reactors - Abstract
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]
- Published
- 2023
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116. Stochastic economic feasibility assessment and risk analysis of a quarry mine focusing on the Brazilian tax system.
- Author
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Valença Mariz, Jorge Luiz, Silva Rocha, Suelen, César de Souza, Júlio, and de Sousa Maior, Gleicon Roberto
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MINING methodology , *MONTE Carlo method , *DECISION making , *DISCOUNTED cash flow , *INTERNAL rate of return , *CAPITAL investments , *TAXATION of profits , *CASH flow , *NET present value - Abstract
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]
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- 2023
- Full Text
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117. Cost-effectiveness of selective caries removal versus stepwise excavation for deep caries lesions.
- Author
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JARDIM, Juliana Jobim, ALVES, Luana Severo, DECOURT, Roberto Frota, de PAULA, Lilian Marly, MESTRINHO, Heliana Dantas, and MALTZ, Marisa
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DENTAL caries ,TOOTH fractures ,DISCOUNTED cash flow ,MOLARS ,CLINICAL trials ,COST effectiveness - Abstract
A multicenter, randomized controlled clinical trial evaluated the effectiveness of two treatments for deep caries lesions in permanent molars - selective caries removal (SCR) to soft dentin with restoration in a single visit, and stepwise excavation (SW) - regarding pulp vitality for a 5-year follow-up period. The present study aimed to determine the cost-effectiveness of these treatments. Treatments were conducted in two Brazilian cities (Brasília and Porto Alegre). At baseline, 299 permanent molars (233 patients) were treated and 229 teeth (174 patients) were evaluated after 5 years. The discounted cash flow method was adopted. The total cost of each treatment was calculated, and the failure cost (endodontic treatment + restoration) was added to the final cost, according to the 5-year failure rates of each therapy (20% for SCR and 44% for SW). A public health service unit composed of three dentists in 4-hour work shifts was used to calculate the monetary value of the treatments, assuming a total of 528 treatments/month. Considering the 229 teeth evaluated after 5 years (115 SCR and 114 SW), SCR provided savings of 43% (amalgam) and 41% (resin composite) per treatment, compared to SW. The SCR technique provides benefits for public finances (direct economy) and for public health services (increase in the number of treatments performed). Considering that maximizing profit and reducing costs are powerful motivating factors for adopting a certain treatment, this study provides data to better support the decision-making process, regarding the management of deep caries lesions in permanent molars. [ABSTRACT FROM AUTHOR]
- Published
- 2023
- Full Text
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118. Analysis of the profitability of a photovoltaic investment by private investors depending on the level of self-consumption of the energy produced in the amended RES Act in Poland.
- Author
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DRZYMAŁA, Agnieszka Joanna and KORZENIEWSKA, Ewa
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INDIVIDUAL investors ,DISCOUNTED cash flow ,INTERNAL rate of return ,ENERGY consumption ,GOVERNMENT securities ,PROFITABILITY - Abstract
Copyright of Przegląd Elektrotechniczny is the property of Przeglad Elektrotechniczny 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.)
- Published
- 2023
- Full Text
- View/download PDF
119. The value recapture of complex urban transformation interventions: a rational procedure for the fair share of public and private benefits.
- Author
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Morano, Pierluigi, Tajani, Francesco, and Anelli, Debora
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SUSTAINABLE development ,URBANIZATION ,DISCOUNTED cash flow ,MATHEMATICAL optimization ,DISCOUNT prices - Abstract
Copyright of Valori e Valutazioni is the property of Societa Italiana di Estimo e Valutazione (SIEV) 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.)
- Published
- 2023
- Full Text
- View/download PDF
120. Economic-financial evaluation of a cement company: Cementos Pacasmayo.
- Author
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Lizarzaburu Bolaños, Edmundo, Burneo Farfán, Kurt, and Diego García-Gómez, Conrado
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CEMENT industries ,CAPITAL costs ,CASH discounts ,VALUE (Economics) ,DISCOUNT prices ,ECONOMIC models ,DISCOUNTED cash flow ,INSIDER trading in securities - Abstract
Copyright of RAN - Revista Academia & Negocios is the property of RAN - Revista Academia & Negocios, Universidad de Concepcion 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.)
- Published
- 2023
- Full Text
- View/download PDF
121. PREREQUISITES FOR THE USE OF MACHINE LEARNING FOR BUSINESS VALUATION.
- Author
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Koklev, Petr
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BUSINESS valuation ,MACHINE learning ,DISCOUNTED cash flow ,STATISTICAL learning ,LEAST squares - Abstract
Copyright of Brazilian Journal of Law & International Relations / Relações Internacionais no Mundo is the property of Relacoes Internacionais no Mundo 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.)
- Published
- 2023
122. Decoupled net present value: protecting assets against climate change risk by consistently capturing the value of resilient and adaptable investments.
- Author
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Espinoza, David, Rojo, Javier, Phillips, William, and Eil, Andrew
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NET present value ,VALUE capture ,DISCOUNTED cash flow ,CLIMATE change ,ASSETS (Accounting) - Abstract
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]
- Published
- 2023
- Full Text
- View/download PDF
123. MEASURING VALUATION UNCERTAINTY: A PCA APPROACH.
- Author
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GARCIA, JOHN
- Subjects
MULTIPLE correspondence analysis (Statistics) ,ORGANIZATIONAL ideology ,UNCERTAINTY ,DISCOUNTED cash flow ,ECONOMIC shock - Abstract
Determining which companies are more difficult to value is a topic of significant interest in finance. While prior studies have employed various univariate proxies to classify firms into high- and lowvaluation uncertainty groups, this study proposes a new approach to measuring valuation uncertainty. Specifically, I employ principal component analysis (PCA) to extract the first principal component from 11 valuation uncertainty proxies. The first principal component is proposed as a comprehensive measure of a firm's valuation uncertainty. The findings demonstrate that the PCAderived valuation uncertainty index provides two key benefits over univariate valuation uncertainty proxies. First, integrating multiple valuation uncertainty proxies into a single metric improves our ability to quantify valuation uncertainty. Second, it assists in identifying the proxies that are most informative in measuring a firm's valuation uncertainty. Ultimately, the PCA-derived valuation uncertainty index can better enable market participants to measure a firm's valuation uncertainty. [ABSTRACT FROM AUTHOR]
- Published
- 2023
- Full Text
- View/download PDF
124. Are U.S. firms becoming more short‐term oriented? Evidence of shifting firm time horizons from implied discount rates, 1980–2013.
- Author
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Sampson, Rachelle C. and Shi, Yuan
- Subjects
BUSINESS enterprises ,FORECASTING ,BUSINESS planning ,DISCOUNTED cash flow ,INVESTORS - Abstract
Research Summary : We provide evidence that investors in U.S. public markets are increasingly discounting firms' expected future cash flows during 1980–2013. This trend is shown not only on average across firms, but also within firms over time after alternative explanations are accounted for. To corroborate a link with firm time horizons, we estimate the relationship between an implied discount rate ("IDR") and factors relevant to firm long‐term strategy. We find that IDR is correlated in expected ways with firm investments, management incentives, financial health, ownership, and external pressures—measures that have been argued to correlate with firm time horizons. This article represents one of the first attempts to document market‐wide evidence of shortening firm time horizons. These changing horizons bear important implications for firm strategy. Managerial Summary : Whether U.S. firms have become more short‐term oriented remains an active debate among managers, investors, researchers, and policymakers. In this study, we report that investors have been increasingly discounting the expected future returns of public firms over the last three decades. We find that a firm's discounting rate is explained by signals of its long‐term strategy, including investment decisions, ownership structure, financial health, executive compensation scheme, and short‐term pressures from the external environment. Our findings indicate a market‐wide contraction of firm time horizons, highlighting firm characteristics that suggest how and why firms differ in their time horizons. These demonstrated relationships may help guide firms in devising investment strategies as well as external communications to attract investors that share a firm's preferred time horizon. [ABSTRACT FROM AUTHOR]
- Published
- 2023
- Full Text
- View/download PDF
125. The stability and downside risk to contrarian profits: Evidence from the S&P 500.
- Author
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Forbes, William, Kiselev, Egor, and Skerratt, Len
- Subjects
DISCOUNTED cash flow ,STANDARD & Poor's 500 Index ,STATISTICAL power analysis - Abstract
A large literature now reports the evidence for the profitability of contrarian trading strategies. We investigate the stability of such contrarian trading strategies and their ability to generate large, potentially ruinous, losses for their users. Specifically, we ask, are the annual profits earned by contrarian strategies sufficiently stable and loss‐free to keep their adherents in the game and capable of reaping returns to such long‐run trading strategies? We present tests with more statistical power than hitherto, reflecting practical aspects of the operation of contrarian strategies. Specifically, the strategies are implemented only for years in which the mean return of stocks in the buy portfolio exceeds that of the sell portfolio; in addition, for each strategy, we calculate the Calmar ratio as a measure of downside risk. Using the constituents of the S&P 500 index for the years 1990–2017 inclusive, we examine a variety of simple, ratio‐based strategies and more complicated strategies based on formal valuation models. Overall, our evaluation makes us sceptical about the reliability of contrarian strategies as currently formulated. But of those strategies available, those based on discounted cash flow seem most likely to be profitable. [ABSTRACT FROM AUTHOR]
- Published
- 2023
- Full Text
- View/download PDF
126. A STRATEGIC MODEL FOR SUSTAINABILITY BASED ON THE DCF MODEL.
- Author
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RODRÍGUEZ REYES, LUIS RAÚL
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SUSTAINABILITY ,DISCOUNTED cash flow ,BUSINESS enterprises ,STOCKHOLDER wealth ,EXECUTIVE ability (Management) ,FINANCIAL performance - Abstract
Copyright of Journal of Management for Global Sustainability is the property of Ateneo de Manila University 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.)
- Published
- 2023
- Full Text
- View/download PDF
127. Profitability dynamics of offshore wind from auction to investment decision
- Author
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Malleret, Simon, Jansen, Malte, Laido, Ahti Simo, Kitzing, Lena, Malleret, Simon, Jansen, Malte, Laido, Ahti Simo, and Kitzing, Lena
- Abstract
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.
- Published
- 2024
128. LEASING YOUR REAL ESTATE: WHAT YOU NEED TO KNOW.
- Author
-
BIRNKRANT, REUVEN
- Subjects
REAL property ,SALE of business enterprises ,BUILDING leases ,LEASES ,DISCOUNTED cash flow ,EMINENT domain - Abstract
This article discusses the importance of properly structuring a ground lease for carwash operators. It explains that a ground lease involves leasing land from a landlord while owning the buildings and improvements on the land. A well-structured lease allows the operator to obtain financing and use the buildings as collateral. The article emphasizes the need for a long lease term, as it affects the value of the business and the ability to obtain financing. It also highlights other factors to consider in a lease, such as rent increases, lease structure, delivery condition, insurance requirements, and assignment and sublease rights. The article concludes by emphasizing the importance of seeking legal counsel when negotiating and entering into a long-term lease. [Extracted from the article]
- Published
- 2024
129. Risk estimation using sensitivity analysis of an investment project.
- Author
-
Raeva, I. and Chakarov, B.
- Subjects
- *
INVESTMENT analysis , *DISCOUNTED cash flow , *SENSITIVITY analysis - Abstract
The essence of the sensitivity analysis of an investment project, consists in a comparative analysis of the influence of different factors on an investment's key indicator – its effectiveness. This analysis tries to assess the impact of changes in input data on the final characteristics of the project. A credible sensitivity analysis typically follows these steps: (1) Identifying the key indicator that measures the effectiveness of the investment; (2) Determining the factors which are in a state of uncertainty; (3) Establishing the nominal and limit (lower and upper) values of the uncertain factors, selected at the second step of the procedure; (4) Evaluating the key indicator for all selected limit values of the uncertain factors; (5) Plotting the sensitivity graph for all uncertain factors (Spider Graph). This method is a good illustration of the influence of individual factors on the success of the project. In the process of sensitivity analysis, the risk does not change immediately. Instead, the resilience of the project to changes in the parameters is determined. The higher the resistance to changes, the lower its risk. Thus, the project with the lowest NPV sensitivity to parameter changes is considered less risky. In the current paper is presented a method for risk evaluation by analyzing the sensitivity of an investment project. Also, the sensitivity of the project to the change in the discount rate E and the cash flows CFi is determined. Then, the probability of NPV being less than a certain value K is examined. Finally, a spider graph is created. [ABSTRACT FROM AUTHOR]
- Published
- 2022
- Full Text
- View/download PDF
130. Coskewness Risk Decomposition, Covariation Risk, and Intertemporal Asset Pricing.
- Author
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Kalev, Petko S., Saxena, Konark, and Zolotoy, Leon
- Subjects
FINANCIAL risk ,DECOMPOSITION method ,MATHEMATICAL models of rate of return ,TIME -- Economic aspects ,PRICES -- Mathematical models ,DISCOUNTED cash flow ,RISK premiums - Abstract
We develop an intertemporal asset pricing model where cash-flow news, discount-rate news, and their second moments are priced by the market. This model generalizes the market-return decomposition framework, showing that intertemporal considerations imply a decomposition of squared market returns (coskewness risk). Our model accounts for 68% of the return variation across portfolios sorted by size, book-to-market ratio, momentum, investment, and profitability for a modern U.S. sample period. Further, our findings highlight the importance of covariation risk, that is, the risk of simultaneous unfavorable shocks to cash flows and discount rates, in understanding equity risk premia. [ABSTRACT FROM AUTHOR]
- Published
- 2019
- Full Text
- View/download PDF
131. An integrated valuation model for payer and investor.
- Author
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Nuijten, Mark and Capri, Stefano
- Subjects
DISCOUNTED cash flow ,MEDICAL economics ,METASTATIC breast cancer ,VALUATION ,PRICES - Abstract
In order to optimize positioning and associated drug price for both payer and investor, it is for a company essential to forecast the potential market access attractiveness for the new drug for different indications at the early onset of the clinical development program. This analysis must include the constraints from the perspective of the payer, but also the biotech companies, who require a minimum drug price to satisfy their investors. This paper aims to provide an Integrated Valuation Model for payer and investor, bridging concepts from health economics and economic valuation reflecting the perspectives of the payer and the investor for a drug in early clinical development phase. The concept is illustrated for a new hypothetical drug (Product X) in advanced breast cancer in 1-line, 2-line, and 3-line position. The Integrated Valuation Model includes the outcomes of the budget impact model, pricing matrix model, and cost-effectiveness model reflecting the payer's perspective. These models are interacted and linked with a discounted cash flow model in order to reflect also the economic value from the investor's perspective. The maximum price in 1-line position is €269.7 for the payer and the minimum price is €14.7 for the investor, which are unit prices per administration corresponding with treatment regimens for the comparative treatments. In 2-line position, the maximum price is €274.1 for the payer and the minimum price for the investor increases to €184.5 for the investor because of the smaller market size in 2-line position, which leads to a smaller pricing corridor to satisfy both payer and investor. Consequently, Product X has market access attractiveness for both payer and investor in 1-line and 2-line position. However, the minimum price €942.7 in 3-line position for the investor is higher than the maximum price €283.3 for the payer, which means there is no market potential. The practical strategic application of the Integrated Valuation Model is optimization of positioning and price of Product X. Hence, it can be a transparent tool in early-stage development of a compound based on upfront assessment of market access attractiveness for the payer and the investor. [ABSTRACT FROM AUTHOR]
- Published
- 2022
- Full Text
- View/download PDF
132. Prinosni vs tržišni modeli vrednovanja preduzeća.
- Author
-
Saković, Dušan
- Subjects
DISCOUNTED cash flow ,JUDGMENT (Psychology) ,VALUATION ,APPRAISERS ,DIVIDENDS - Abstract
Copyright of Financing is the property of Financing 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.)
- Published
- 2022
- Full Text
- View/download PDF
133. Cashing-In on the Energy Transition?: Assessing Damage Evaluation Practices in Renewable Energy Investment Disputes.
- Author
-
Fermeglia, Matteo
- Subjects
RENEWABLE energy sources ,INTERNATIONAL law ,DISPUTE resolution ,RENEWABLE energy industry ,GOVERNMENT policy on climate change ,CLIMATE change - Abstract
Damages assessment in investor-State dispute settlement (ISDS) entail major financial, behavioural, and political consequences upon host States. In fact, damages unreflecting the actual value of investments in energy assets can over-induce investments on the investors' side and curtail host States' regulatory space against the unfolding climate change crisis. This contribution investigates the practice of ISDS tribunals on damages assessment in cases dealing with the rollback of support schemes for renewable energy infrastructures brought against Italy and Spain. It acknowledges a narrow, yet consistent approach to quantum , which foregoes elements of balancing and equity in applying the general standard of full reparation enshrined under public international law. Hence a change of paradigm is advocated, whereby ISDS tribunals engage deeply with both the inherent elements of renewable energy investments as well as the ongoing regulatory constraints posed by the dire need to adopt more stringent climate policies domestically. [ABSTRACT FROM AUTHOR]
- Published
- 2022
- Full Text
- View/download PDF
134. An Economical Boil-Off Gas Management System for LNG Refueling Stations: Evaluation Using Scenario Analysis.
- Author
-
Kim, Hyun-Seung and Cho, Churl-Hee
- Subjects
- *
FUELING , *NATURAL gas , *LIQUEFIED natural gas , *GREENHOUSE gas mitigation , *DISCOUNTED cash flow , *NET present value - Abstract
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]
- Published
- 2022
- Full Text
- View/download PDF
135. THE EFFICIENCY OF INDIVIDUAL AND PUBLIC SPENDING ON HIGHER EDUCATION IN OECD COUNTRIES AND IN UKRAINE.
- Author
-
Hryhorash, Olha, Bocharov, Dmytro, Bondar, Anastasiia, Zhuravka, Olena, Mordan, Yevgeniya, and Teslenko, Tetiana
- Subjects
HIGHER education ,HIGHER education costs ,HIGHER education & state ,DISCOUNTED cash flow ,EDUCATION costs ,SOCIOECONOMIC factors ,U.S. state budgets - Abstract
The article is devoted to the analysis of the efficiency of higher education funding from the perspective of higher education applicants (cost of education) and from the perspective of the state (budget expenditures, investments in preparation of specialists). The article contains the main indicators of socioeconomic development of the OECD countries and Ukraine. The analysis has shown that in Ukraine the amount of higher education expenditures as a percentage of GDP has an average value compared to the OECD countries, while this amount in monetary terms is significantly lower than in other countries. The efficiency of higher education costs for the individual and expenditures for the state in the OECD countries and in Ukraine have been evaluated. The efficiency of individual costs of higher education is calculated using the discounted cash flow method, applied to the cost of education and the difference in wages between qualified and unqualified personnel. The efficiency of public spending on higher education (investment in the training of specialists) is calculated using the discounted cash flow method applied to the share of public spending on higher education and GDP growth generated by labor with better skills. The results of the calculations have shown that the efficiency of state expenditures on higher education is higher than the efficiency of individual costs. [ABSTRACT FROM AUTHOR]
- Published
- 2022
- Full Text
- View/download PDF
136. Optimal pricing, ordering, and credit period policies for deteriorating products under order-linked trade credit.
- Author
-
Tsao, Yu-Chung, Fauziah, Hanifa-Astofa, Vu, Thuy-Linh, and Masruroh, Nur Aini
- Subjects
CREDIT control ,DISCOUNTED cash flow ,PRICES ,COUNTERPARTY risk ,VALUE (Economics) - Abstract
In the modern global economy, trade credit financing is typical in business transactions for both sellers and buyers. The seller offers a credit period to attract new buyers or stimulate demand, and the buyer takes the opportunity to accumulate revenue. To obtain this benefit, the seller prefers trade credit policies that are dependent on the quantity ordered, referred to as order-linked trade credit. The buyer can obtain the benefits from a fully delayed payment if their order is sufficiently large. Similarly, the seller can sell many products while granting a credit period. Otherwise, the buyer receives only partial trade credit, and the seller can take the opportunity of both cash and credit payments. In this study, an economic order quantity (EOQ) inventory model for deteriorating products, under default risk control-based trade credit, is formulated using a discounted cash flow approach. The seller offers to the buyer order-linked trade credit with price-and credit-period-dependent demand. The optimal selling price, credit period policies, and replenishment cycle time are determined simultaneously, while maximizing the present value of the seller's total profit. Moreover, this research provides numerical examples and sensitivity analysis to illustrate the theoretical results, solution procedure, and gain managerial insights. 200 words. [ABSTRACT FROM AUTHOR]
- Published
- 2022
- Full Text
- View/download PDF
137. Maritime fuels of the future: what is the impact of alternative fuels on the optimal economic speed of large container vessels.
- Author
-
Kouzelis, Konstantinos, Frouws, Koos, and van Hassel, Edwin
- Subjects
ALTERNATIVE fuels ,LIQUEFIED natural gas ,DISCOUNTED cash flow ,HEAVY oil as fuel ,FREIGHT & freightage rates ,MARINE natural products - Abstract
This study aims to determine the most appropriate alternative fuel technology to comply with possible different imposed emission regulations while ensuring optimal business performance. In this context, the most suitable alternative fuel technology minimizes the required freight rate while maximizing overall performance on technological, environmental, and other criteria. A decision support tool was developed combining the overall performance of alternative fuels based on technological, environmental, and other criteria via a simple multiattribute rating technique model with a financial model based on discounted cash flow analysis. In this model, also an optimization model is implemented to minimize the required freight rate by optimizing for economic vessel speed. This model provides quantified insights into the financial and operational effects of transitioning via either a 'market-based measure' regulatory scenario or an 'emission cap' scenario if current fuels do not reach the zero-emission targets in the future. Based on the analysis, it can be concluded that upgraded bio-oil, Fischer–Tropsch diesel and liquefied bio-methane can be considered the 'most promising' alternative maritime fuels of the future. Current fuels such as Heavy fuel oil and Liquified natural gas remain the 'most probable' to retain dominance without regulations. If there is a transition toward these alternative fuels, this will also lead to a shift toward lower sailing speeds. [ABSTRACT FROM AUTHOR]
- Published
- 2022
- Full Text
- View/download PDF
138. ASPECTE TEORETICE PRIVIND UTILIZAREA FLUXURILOR DE NUMERAR ACTUALIZATE.
- Author
-
ŢÎRLEA, Mariana Rodica and BIRCA, Iulita
- Subjects
DISCOUNTED cash flow ,BUSINESS planning ,CORPORATE finance ,MERGERS & acquisitions ,CASH discounts ,WILLINGNESS to pay - Abstract
Copyright of Strategic Universe Journal / Univers Strategic is the property of Dimitrie Cantemir Christian University, Institute for Security Studies 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.)
- Published
- 2022
139. Economic replicability tests: an "out-of-the-box" implementation.
- Author
-
Charalampopoulos, George, Katsianis, Dimitris, and Varoutas, Dimitris
- Subjects
REAL options (Finance) ,DISCOUNTED cash flow ,NEXT generation networks ,SUSTAINABLE investing ,WHOLESALE prices - Abstract
Regulation of Next Generation Access Networks (NGANs) has been one of the most debated topics throughout the European Union (EU). Now it seems to be seeking to strike a new balance, between promoting NGANs investments and, simultaneously, preserving the current level of competition. This much-sought reconciliation was attempted with the release of European Commission (EC)'s Recommendation 2013/466/EU on consistent non-discrimination obligations and costing methodologies for the promotion of competition and the enhancement of the broadband investment environment. The Recommendation, among others, defines the use of Economic Replicability Tests (ERTs), on the basis of a Discounted Cash Flow (DCF) approach, as the proper methodological tool to determine whether the dominant firm (i.e., incumbent operator) engages in a discriminatory behavior. The aim of this paper is twofold; first to investigate the impact of long-term access pricing agreements on ERT conduct as defined in Recommendation 2013/466/EU; second, in the light of the review of the aforementioned Recommendation, to attempt a non-conventional implementation of the test. The latter manifests itself via the potential use of Real Options Theory (ROT) within the ERT formulation on top of DCF results. The main objective is to investigate whether the fixed part of the wholesale access price - if the latter is seen as a two-part tariff - can actually be included in the calculation process to the contrary of what Jaunaux and Lebourges [39] suggest. [ABSTRACT FROM AUTHOR]
- Published
- 2022
- Full Text
- View/download PDF
140. VIABILIDADE ECONÔMICA DA IMPLANTAÇÃO DE UMA INDÚSTRIA DE POLPA DE AÇAÍ NA AMAZÔNIA.
- Author
-
Malato Praxedes, Adalberto, de Castro Corrêa, Alessandro, Gonzaga Corrêa, Danielle Cristina, and dos Santos, Marcos
- Subjects
CAPITAL assets pricing model ,INTERNAL rate of return ,NET present value ,DISCOUNTED cash flow ,MONTE Carlo method - Abstract
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.)
- Published
- 2022
141. Valuing an agricultural technology startup using real options.
- Author
-
Wilson, William W., Vetsch, Lee, and Bullock, David W.
- Subjects
AGRICULTURAL technology ,DISCOUNTED cash flow ,VALUE engineering ,DECISION trees ,NEW business enterprises - Abstract
There has been substantial growth in investments for startup firms to develop agricultural technology. Although investing in startups can produce significant returns, the risk of failure is high, and the commercial strategies are largely unknown. Traditional valuation methodologies, such as discounted cash flow (DCF) and multiples, are not well suited for startups. Real options provide a methodology to quantify the value of growth opportunities and managerial flexibility, two critical features of startups. This study develops a model that integrates decision trees and a stochastic binomial lattice to quantify the value of growth opportunities and managerial flexibility in a prerevenue AgTech startup. Utilizing a binomial lattice and decision trees allows for the quantification of private and market risk. The result is a valuation that quantifies the upside optionality that other methodologies disregard. [EconLit Citations: O32, O34, Q140, Q16, C6, G11]. [ABSTRACT FROM AUTHOR]
- Published
- 2022
- Full Text
- View/download PDF
142. Valuation Of Mining Low Coal Calories Using Real Option Analysis.
- Author
-
Sri Parwati, Yuani and and Tamara, Dewi
- Subjects
COAL mining ,DISCOUNTED cash flow ,REAL options (Finance) ,NET present value ,COAL sales & prices - Abstract
The purpose of this research is to calculate the valuation of coal mining projects, especially low-calorie coal using the Real Option and Discounted Cash Flow methods for comparison. Research has been carried out in PT. Pesona Khatulistiwa Nusantara (PT.PKN), which one has low-calorie coal reserves in four mining areas, and currently has production in two mining areas. At the opening of the two previous sites, the feasibility calculation was carried out using the Discounted Cash Flow method, which this method did not describe the movement of coal prices that occurred in the future so that management was not flexible in setting strategies to dealing with fluctuating coal prices. Where in that period there was a continuous decline in coal prices from 2011 to 2016. Currently PT. PKN plans to open a new mining area, namely at the Ardimulyo Mine Operation (AMO) site, to get a more detailed analysis the valuation of this AMO project will be calculated using Real Option to accompany the calculation with discounted cash flow. The calculation using the real option method (without abandon) shows the NPV value below the discounted cash flow method, while the exit option/abandonment value increases as the selling price of coal decreases. So it is recommended to run an exit option/abandonment when the selling price of coal is not economical. [ABSTRACT FROM AUTHOR]
- Published
- 2022
143. Shares Valuation of Indonesian Telecommunication Companies using the Discounted Cash Flow Approaching the Relative Valuation Method.
- Author
-
Kartawinata, Budi Rustandi, Akbar, Aldi, and Pradana, Mahir
- Subjects
TELECOMMUNICATION ,DISCOUNTED cash flow ,STOCK prices ,VALUATION ,QUANTITATIVE research - Abstract
The company's stock price growth in the telecommunication sector is fluctuating, it is necessary to calculate the intrinsic value of the share price which can provide information to investors. The purpose of this study is to analyze the stock price valuation of telecommunication companies listed on the Indonesia Stock Exchange by reducing discounted cash flow. From this research, it can be seen whether the stock price of the telecommunication company is at a reasonable, cheap, or expensive level. This study uses descriptive quantitative methods with stock price data of telecommunication companies that are members of the Indonesia Stock Exchange. The results of this study show that the stock prices of telecommunication companies in Indonesia are in a reasonable position. And this is very useful information for both investors and issuers in terms of determining the actions to be taken to get good results in their business activities. [ABSTRACT FROM AUTHOR]
- Published
- 2022
144. Impact of the net-metering policies on solar photovoltaic investments for residential scale: A case study in Brazil.
- Author
-
Leite, Nathalia Hidalgo, Guzman Lascano, Cindy Paola, Valente Morais, Hugo Gabriel, and Pereira da Silva, Luiz Carlos
- Subjects
- *
DISCOUNTED cash flow , *ENERGY levels (Quantum mechanics) , *RENEWABLE energy sources , *INTERNAL rate of return , *NET present value - Abstract
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]
- Published
- 2024
- Full Text
- View/download PDF
145. The economic value of sustainability certification for sugarcane farms.
- Author
-
de Santana Rangel, Henrique, Conceição, Elimar Veloso, and Lopes Santos, David Ferreira
- Subjects
- *
SUSTAINABLE development , *DISCOUNTED cash flow , *AGRICULTURAL processing - Abstract
Certifications related to sustainability in agribusiness are a crucial tool for promoting agricultural processes with a higher level of socio-environmental responsibility. However, their economic impact on small and medium-sized rural properties remains a topic of discussion. This research, with its comprehensive approach, aims to assess the economic potential generated by Bonsucro certification, an innovation process in sustainability. This process introduces pioneering evaluation criteria to meet the specific sustainability demands in the sugarcane sector on small and medium-sized properties. The approach was quantitative, using the Discounted Cash Flow method supported by Monte Carlo Simulation, where four scenarios were developed considering the small and medium producers without certification and with Bonsucro certification. The results obtained not only allow for obtaining the Economic Value of certified and non-certified producers but also for profiling the modal producer (who possesses traditional characteristics of the region), identifying convergence variables that are common characteristics among them and that impact land management, such as education, average age, investment capacity, among others. The findings demonstrate that small and medium-sized rural properties certified by Bonsucro create more economic-financial and sustainable value than uncertified rural properties. These findings can serve as a powerful motivator for private entities and associations of rural producers to implement certification, thereby empowering small and medium-sized rural producers to address relevant issues that have impacted the sustainability of sugarcane production, bringing significant results in terms of economic viability and socio-environmental impact. [ABSTRACT FROM AUTHOR]
- Published
- 2024
- Full Text
- View/download PDF
146. Shareholders Appraisal Rights and Valuation
- Author
-
Lessambo, Felix and Lessambo, Felix
- Published
- 2021
- Full Text
- View/download PDF
147. Enterprise Value Assessment as an Evaluation Criterion of a Merger
- Author
-
Květová, H., Vrbka, J., Šuleř, P., Kacprzyk, Janusz, Series Editor, Gomide, Fernando, Advisory Editor, Kaynak, Okyay, Advisory Editor, Liu, Derong, Advisory Editor, Pedrycz, Witold, Advisory Editor, Polycarpou, Marios M., Advisory Editor, Rudas, Imre J., Advisory Editor, Wang, Jun, Advisory Editor, Ashmarina, Svetlana Igorevna, editor, Horák, Jakub, editor, Vrbka, Jaromír, editor, and Šuleř, Petr, editor
- Published
- 2021
- Full Text
- View/download PDF
148. A Comprehensive Valuation Metrics
- Author
-
Moro-Visconti, Roberto and Moro-Visconti, Roberto
- Published
- 2021
- Full Text
- View/download PDF
149. Startup Valuation
- Author
-
Moro-Visconti, Roberto and Moro-Visconti, Roberto
- Published
- 2021
- Full Text
- View/download PDF
150. Maximizing Returns and Minimizing Risks in Hybrid Renewable Energy Systems: A Stochastic Discounted Cash Flow Analysis of Wind and Photovoltaic Systems in Brazil
- Author
-
Antonio Perrelli, Eduardo Sodré, Vinícius Silva, and Alex Santos
- Subjects
renewable energy ,hybrid systems ,HRES ,discounted cash flow ,wind energy ,solar energy ,Technology - Abstract
The use of renewable energy sources has become strategic in the production of electricity worldwide due to global efforts to increase energy efficiency and achieve a net zero carbon footprint. Hybrid systems can maximize stability and reduce costs by combining multiple energy sources. A conventional metric, such as the levelized cost of energy (LCOE), that is appropriate for assessing the cost-effectiveness of an option may not be appropriate when evaluating the economic feasibility of hybrid systems. This study proposes a stochastic discounted cash flow model (DCF) to assess the economic viability of a hybrid renewable energy system (HRES) in Brazil. The objective is to determine the combinations that will provide the highest 50th percentile internal rate of return (IRR) and the lowest coefficient of variation (CV). Model variables include capital expenditures (CAPEX), operation and maintenance (O&M) costs, sectoral charges, taxes, and long-term energy production metrics. The results demonstrate that the synergies modeled contributed to the higher economic outcomes for the HRES obtained by combining both energy sources rather than opting for a stand-alone configuration. A wind-dominant combination of 60% wind was able to increase the 50th percentile of the IRR, while a solar-dominant combination of 65% solar minimized the CV.
- Published
- 2023
- Full Text
- View/download PDF
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