NPV

This paper examines the extent or usage of capital budgeting techniques in Small and Medium Enterprises (SMEs) and the effect of non-financial factors on the choice of capital budgeting techniques adopted by SMEs. A qualitative research method of content analysis as well as an econometric quantitative analysis have been employed for this study. The study has been conducted in several divisional councils within the district of Colombo, Sri Lanka. Stratified random sampling has been used to collect a sample of SMEs from each divisional council within these divisions. Information has been gathered through questionnaires and personal interviews. Results of the study reveal that Payback Period (PBP) is the dominant capital budgeting technique used in SMEs. Results of the Multinomial logistic regression indicate that the probability of selecting Net Present Value as the capital budgeting technique is higher in foreign SMEs and in SMEs who operate in the industry for 11 to 15 years. Furthermore, being a SME decision maker with less than 10 years of experience increases the probability of selecting PBP as the capital budgeting technique. Finally, qualitative techniques used in this study indicate that cost, time and knowledge are the main reasons that deter SMEs from using capital budgeting techniques.

A B S T R A C T The design of an optimal sand control method and production management is a complex problem due to the simultaneous influence of various factors. Typical effective variables for choosing an optimum sand control method include geological, technical, economical, and expert's experience on similar projects. Some technical factors, which affect the optimum method, are the type of exclusion, gravel size of gravel pack and pre-packed screen, slot width and liner slot length, and productivity index reduction. The situation could be more complicated due to the uncertainty associated with various contributing factors. Therefore, it is crucial to develop a novel approach in order to select the best sand control method with a maximum level of confidence. In this study, to select an optimal sand control method, Multi Criteria Decision Matrix (MCDM) techniques including Analytic Hierarchy Process (AHP), Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) and, ELimination and Choice Expressing REality (ELECTRE) are used. To simulate fluid flow, an integrated model of reservoir, well, and surface facility is used based on actual oil field data collected from the south of Iran. Then, Design of Experiment (DOE) and Response Surface Methodology (RSM) are applied to optimize the controllable variables of the best selected sand control method by MCDM. Finally, Monte Carlo Simulation (MCS) is applied to perform sensitivity and uncertainty analysis in order to determine the crucial factors that control net present value (NPV). The results show that the best sand control method based on AHP, TOPSIS, and ELECTRE is the slotted liner. After that, three different methods of pre-packed, gravel pack, and wire wrapped are respectively the most efficient sand control methods based on an average score of all the MCDM techniques. The results also indicate that although the pre-packed screen has the highest NPV, it is not the best sand control method due to the influence of other efficient criteria. The result of sensitivity analysis using MCS in terms of contribution to total variance shows that slot width, slot density, and slot height controls 60.5%, 38.8%, and 0.7% of the NPV variation within the range of factors, respectively.

Adalah proceeds atau cash flows yang didiskontokan atas dasar biaya modal (cost of capital) atau rate of return. Yang diinginkan.Dalam metode ini pertama-tama dihitung adalah nilai sekarang (present value) Dari proceeds yang diharapkan atas dasar " discount rate " tertentu. Kemudian jumlah " present value " (PV) dari keseluruhan proceeds selama usianya dikurangi dengan PV dari jumlah investasinya (initial investment). Selisih antra PV dari pengeluaran modal (capital outlay atau initial investment) dinamakan nilai sekarang netto. (Net Present Value) Metode Internal Rate of Return (Yield Method) Adalah tingkat bunga yang kan menjadikan jumlah nilai sekarang dari proceeds yang diharapkan akan diterima (PV of future prodeeds) sama dengan jumlah nilai sekarang dari pengeluaran modal (PV of capital outlays) Pada dasarnya " internal rate of return " harus dicari dengan cara " Trial and error " dengan serba coba-coba. Pertama-tama menghitung PV dari proceeds dari suatu investasi dengan menggunakan tingkat bunga yang dipilih menurut sekehendak kita. Kemudian hasil perhitungan itu dibandingkan dengan PV dari outlaynya. Kalau PV dari proceeds lebih besar dari pada PV dari investasi atau outlaynya, kita harus menggunakan tingkat bunga yang lebih tinggi lagi. Metode ini untuk membuat peringkat usulan investasi dengan menggunakan tingkat pengembalian atas investasi yang dihitung dengan mencari tingkat diskonto yang menyamakan nilai sekarang dari arus kas masuk proyek yang diharapkan terhadap nilai sekarang biaya proyek atau sama dengan tingkat diskonto yang membuat NPV sama dengan nol. Penerimaan atau penolakan usulan investasi ini adalah dengan membandingkan IRR dengan tingkat bunga yang disyaratkan (required rate of return). Apabila IRR lebih besar dari pada tingkat bunga yang disyaratkan maka proyek tersebut diterima, apabila lebih kecil diterima. Kelemahan secara mendasar menurut teori memang hamper tidak ada, namun dalam praktek penghitungan untuk menentukan IRR tersebut masih memerlukan penghitungan NPV Apabila terdapat satu proyek yang independen maka NPV dan IRR akan selalu memberikan rekomendasi yang sama untuk menerima atau menolak usulan proyek tersebut, namun apabila ada proyek-proyek yang mutually

Krebo Jantan Restaurant has plans to conduct business development in the field of food. Krebo Jantan Restaurant has a problem as to whether its business development plan can provide feasibility for future growth of the company. The purpose of this study is to determine the feasibility of the business plan for the development of food business with the limits of research on the assessment of market aspects & financial aspects. Objects in interviews and questionnaires are business owners and residents around the place of business. Data on market aspects were analyzed using Strengths, Weaknesses, Opportunities, Threats (SWOT) Methods, and financial aspect using Net Present Value (NPV) Method, Internal Rate of Return (IRR) Method and Payback Period (PBP) Method. The results of the research on the Market Aspect show that Krebo Jantan Restaurant has Strengths, Weaknesses, Opportunities, and Threats that have been analyzed and anticipated the impact of the risks well. On the Financial Aspect the results of the Net Present Value (NPV) Method indicate cash collected from year to year if assessed in the present circumstances with a positive value at the end of the 5th year of Rp 29,577,421, -, the Internal Rate of Return (IRR) Method shows the ability of the company's business to provide an average annual return/dividend of 20.494% and the Payback Period (PBP) method indicates the company's ability to return all investment costs for 4 years and 8 months. Based on the results of financial analysis shows that all financial feasibility criteria are met so that business development is feasible to be carried out under normal conditions.

Global agriculture is currently challenged to provide increasing supplies of food for a growing population due to the changing trends of insect attacks and climatic conditions. There is overwhelming evidence that the use of chemical pesticides have created many other serious problems like ecological backlashes in pest species, environmental pollution and degradation, threat to biodiversity conservation, loss of beneficial fauna (predators, parasites, pollinators etc) and human beings in particular. Keeping in view, the new generation of pesticides have attracted attention in pest management in recent years, Biorational pesticides as “third-generation pesticides” are derived from some natural source and impose minimum or no adversarial threats on the environment or beneficial organisms. Some examples of biorational pesticides are the microbial pesticide Bacillus thuringiensis (Kurstaki), neonicotinoids, avermectins, phenlpyrazoles, spinosyns, pyrroles, oxadiazines and various groups of insect growth regulators. With a narrower target range of pests, they also tend to have a more specific mode of action. This new class of pesticides are often designed to control a pest population to a manageable level rather than completely eradicate a target pest. These products have great potential for replacing the persistent conventional insecticides, confirming effective cost-benefit ratio, tackling ecological backlashes and ensuring food security with safe environment. The field of biorational pesticides is deep; consequently they are a source of both optimism and concern. However, these bio-products are not only winning the reliability of the market and end user; but also demonstrating their worth and potential in sustainable integrated pest management (IPM) program.

The purpose of this study is twofold. Firstly, it is a question of assessing the determinants of the willingness to pay (WTP) of farming households in Thian, a village located in northern Benin, exposed to the risk of anemia, to benefit from an agro-food innovation aimed at reduce these risks : dehulling and iron fortification of sorghum. Secondly, there was talk of evaluating the financial profitability of this innovation. To do this, socioeconomic and financial data were collected from 90 chef-kitchens prepared to adopt the innovation, the operator in charge of shelling and fortification services, the supplier of shelling equipment and the supplier of iron. The contingent valuation method was used to collect respondents' WTP and the linear regression model to identify the determinants of these WTP and calculate their mean value. In addition, the cash flow method was used to assess the financial profitability of de-hulling and fortification services. The results reveal that the WTP (whose average is 24.4 FCFA) is negatively influenced by the fact that the respondent belongs to the pilot phase of the project and the average quantity of sorghum devoted to the consumption of dibou (sorghum paste). In a context where the monetary discount rate is 12%, mechanical shelling and iron fortification of sorghum as an economic activity is not profitable.

Abstract: Real options approach is a method of evaluating and managing strategic investments decisions in an uncertain business environment. Current era is characterized by increased uncertainty because of changed market conditions, globalization, increased competition, emerging technologies etc. The typical approaches to project investment evaluation are based on DCF based measures like NPV and IRR. However it demonstrates weaknesses in dealing with uncertainty, complexity, and flexibility. The techniques only ...

The contractor’s decision about placing a bid in a tender procedure and
further construction project execution is usually based on predicted financial and economic effects of the decision and on the certainty of their occurrence. Sales and costs are estimated in advance, as well as, incomes and expenditures. Based on that net present value (NPV)
and the required level of liquidity which is necessary to complete the project in the assumed period are calculated. The paper presents the influence of selected parameters arising from the contract between
the client and the general contractor, from the subcontracts, from the contracts with suppliers and employees – on the financial result of a single construction project. The time schedule of erecting multi-story apartment building, the direct and indirect costs are the base for
modelling cash flow and profitability of the project. Following variables are assumed: discount rate, terms of payments in the contracts signed by a general contractor with a client and suppliers and the level of retention money kept by a client till the completion stage of the project.
The sensitivity analysis is prepared in order to find how the aforementioned variables influence profitability, NPV and the
required level of a contractor’s liquidity. This kind of analysis is one of the basis allowing for evaluation of the risk of possibly wrong decision, i.e. accepting the project for execution but leading to losing the contractor’s liquidity and further to financial loss.

Indonesia merupakan negara yang terus berkembang, seiring dengan pertumbuhan penduduk moda transportasi juga kian meningkat dari tahun ke tahunnya. Dewasa ini berbagai kota-kota besar tidak lepas dari permasalahan yang berkaitan dengan transportasi umum. Salah satunya yaitu kawasan Malioboro yang terletak di kota Yogyakarta. Besarnya pengunjung Malioboro yang datang setiap hari membutuhkan fasilitas tempat parkir dengan kapasitas yang besar pula. Munculnya berbagai dampak pada penyedia tempat parkir, perlu dilakukan pengkajian kemungkinan dibangunnya ruang parkir baik oleh pihak pemerintah maupun pihak swasta untuk meningkatkan fasilitas umum dan investasi jangka panjang. Tujuan dari penelitian ini mengetahui karakteristik parkir dan memperkirakan kebutuhan kapasitas parkir serta menganalisis kelayakan rencana gedung parkir TKP II Malioboro dari segi finansial. Data yang diperlukan untuk penelitian ini terdapat 2 (dua) macam data yaitu data primer dan data sekunder. Data primer didapatkan dengan survei secara langsung dilapangan berupa volume dan akumulasi kendaraan parkir, sedangkan data sekunder didapatkan berupa data-data pembangunan parkir Abu Bakar Ali sebagai acuan dalam desain dan analisis kelayakan rencana gedung parkir TKP II Malioboro.
Penelitian ini dimulai dari pengumpulan data langsung di TKP II Malioboro, dengan menghitung volume dan kapasitas kendaraan masuk pada hari terpadat selama jam operasi. Sehingga didapatkan kapasitas dan kebutuhan parkir yang digunakan sebagai acuan desain layout dan cashflow perencanaan gedung parkir. Dalam analisis kelayakan finansial penelitian ini menggunakan metode net present value (NPV), internal rate of retrun (IRR), payback period (PP) untuk mengetahui lama kembalinya modal yang dikeluarkan dan menganalisis sensitivitas untuk mengetahui akibat dari perubahan parameter-parameter produksi terhadap perubahan kinerja sistem produksi dalam menghasilkan keuntungan. Berdasarkan data hasil pengamatan kapasitas parkir eksisting sepeda motor sebesar 449 stall dan kendaraan ringan sebesar 96 stall, parkiran TKP II Malioboro melebihi daya tampung yang tersedia yaitu dengan akumulasi tertinggi sepeda motor 563 kendaraan/jam dan kendaraan ringan sebesar 110 kendaraan/jam.
Dari hasil analisis parkir dan perencanaan gedung parkir didapatkan volume parkir sepeda motor maksimal 1714 kendaraan dengan durasi rata-rata parkir 2.30 jam sedangkan untuk kendaraan ringan kendaraan ringan maksimal 394 kendaraan dengan durasi rata-rata parkir 1.92 jam. Sehingga didapatkan kapasitas tampung kendaraan baru yaitu terdapat 3 lantai dengan luasan bangunan 30 x 80 m² terdiri dari parkir sepeda motor sebanyak 1920 stall dan kendaraan ringan 182 stall. Hasil perhitungan cashflow dengan tarif parkir sepeda motor Rp. 2.000,- dan kendaraan ringan Rp. 5.000,- dan harga sewa ruko Rp. 75.000.000/unit per tahun serta pasar Rp.2.500.000/m2 per tahun dengan kenaikan tarif menurut pertumbuhan ekonomi 5% dalam kurun waktu 30 tahun, maka dengan MARR = 13.55%  dihasilkan nilai IRR = 23.91 %, sedangkan nilai NPV= Rp.15,884,862,213.28,- dan payback period pada tahun ke-8 yaitu pada tahun 2025, sehingga gedung TKP II Malioboro dan fasilitasnya layak untuk dibangun.

Current project valuation framework under the Net Present Value (NPV) method has been proved to be
incomplete, as it fails to accurately account for uncertainty. Traditional financial tools fail because they
neglect to account for the value of flexibility. The standard NPV approach assumes that project risks
remain constant over the life of the strategy. It, also, fails to factor in the full range of opportunities that a
new and innovative strategy may create for a firm in the future. We show how one can use Real Option
methodology in order to determine optimal financial path to fund new technology deployment within a risky
environment. Moreover, in this paper we demonstrate, with the use of a simple numerical example, how the
Real Options methodology can be implemented within an IT project deployment.

The development of effective and safe drugs for a growing Alzheimer disease population is an increasing need at present. Both experimental and clinical evidence support a beneficial effect of proline-rich polypeptides in a number of neurodegenerative diseases, including Alzheimer disease. Experimental data have shown that proline-rich polypeptides isolated from bovine neurohypophisis possess neuroprotective and neuromodulatory properties in mice with aluminum neurotoxicosis or neuronal damage caused by venoms and toxins. Proline-rich polypeptides from ovine colostrums, so called Colostrinin, have been shown to produce cognitive improvement in an experimental model and in patients with Alzheimer disease. However, the precise mechanism underlying the neuroprotective action of proline-rich polypeptides is not very well established. Moreover, studies pointing at a neuroprotective effect of proline-rich polypeptides from bovine neurohypophisis in humans have not been reported thus far. T...

Kajian investasi adalah kegiatan analisis untuk menilai manfaat dan biaya dari suatu investasi, dan dapat dijadikan justifikasi investasi. Penilaian investasi yang tradisional menggunakan pendekatan finansial dimana manfaat dan biaya yang ada dikuantifikasi dalam sejumlah nilai uang dan kemudian dibandingkan besar nilainya. Hal inilah yang dilakukan pada metode penilaian investasi dengan NPV dan ROI. ROV (Real Option Valuation) adalah sebuah alternatif penilaian investasi secara finansial. Berangkat dari filosofi yang sama dengan Financial Option, ROV memiliki keunggulan dalam menangani fleksibilitas, resiko, dan volatilitas yang mungkin terjadi dari sebuah investasi. Dengan demikian ROV dinilai lebih mampu menghargai sebuah investasi yang memiliki karakteristik tersebut. Penilaian investasi dengan ROV lebih mampu mengapresiasi investasi dibanding metode finansial tradisional, seperti yang ditunjukkan hasil NPV ROV pada kasus investasi Push E-mail yang lebih besar daripada NPV biasa...

Using human heart-type fatty acid-binding protein (H-FABP) as an early cardiac marker to confirm or exclude a diagnosis of acute myocardial infarction (AMI) soon after admission requires a rapid assay system. Due to the requirement of skillful technicians and complicated assay procedures, most immunochemical assays for H-FABP are of limited use for routine clinical practice. In the present study, we