• Title/Summary/Keyword: Internal rate of return

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A Study on Feasibility Analysis of Sewer Rehabilitation (하수관거 정비사업의 타당성 분석에 관한 연구)

  • Han, Ihnsup;Chang, Daehwan;Woo, Byungha;Lim, Chulhwan
    • Journal of Korean Society of Water and Wastewater
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    • v.23 no.1
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    • pp.89-96
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    • 2009
  • Feasibility which is complimented before Social Overhead Capital Project and National Policy Project is analyzed by economic and political benefits. The projects will be performed if the benefits are bigger than the project cost. In this study, feasibility was examined at various viewpoints on sewer rehabilitation projects implemented with private capitals. To achieve the feasibility analysis, the B/C (Benefit/Cost Ratio), IRR (Internal Rate of Return) and the returns ratio of the Build Transfer Lease project implemented in 2007 at W city were estimated. At the same time, the correlation with B/C and benefit sensitivity of concessionary rate fluctuation were analyzed to evaluate the efficiency and feasibility of the seven sewer rehabilitation projects promoted by a local autonomous entity.

A Study on the Economic Feasibility Analysis of Cosmetics Beauty Industrialization Center

  • Kim, Ji-In;Park, Jeong-Min
    • Journal of the Korea Society of Computer and Information
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    • v.25 no.2
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    • pp.221-229
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    • 2020
  • As the cosmetics beauty industry grows into a key next-generation industry, the establishment of an industrialization center is needed, but failure to verify the adequacy and feasibility of the investment could lead to financial burdens. In this study, the project costs and facilities of an industrial center are reviewed to analyze its economic feasibility based on the cost estimates, revenue estimates, estimated profit or loss calculations, and estimated operating cash flows. The profit estimation criteria were analyzed by applying 90 per cent of expected orders for research projects (24 billion won) and 12 per cent of rental rates for testing equipment (4.5 billion won for construction), and the benefit/cost ratio is higher than 1.02 per cent and the net present value is higher than '0' won, and the internal rate of return is also more than 5.06 per cent for all three analytical methods. Therefore, in order for the construction of a cosmetics beauty industrialization center to be economically feasible, it is necessary to maintain research project orders of more than 90 percent and return on equipment rent of more than 12 percent, and a strategic approach is needed to diversify business profits.

Cardiopulmonary Resuscitation: New Concept

  • Lee, Kwang-Ha
    • Tuberculosis and Respiratory Diseases
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    • v.72 no.5
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    • pp.401-408
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    • 2012
  • Cardiopulmonary resuscitation (CPR) is a series of life-saving actions that improve the chances of survival, following cardiac arrest. Successful resuscitation, following cardiac arrest, requires an integrated set of coordinated actions represented by the links in the Chain of Survival. The links include the following: immediate recognition of cardiac arrest and activation of the emergency response system, early CPR with an emphasis on chest compressions, rapid defibrillation, effective advanced life support, and integrated post-cardiac arrest care. The newest development in the CPR guideline is a change in the basic life support sequence of steps from "A-B-C" (Airway, Breathing, Chest compressions) to "C-A-B" (Chest compressions, Airway, Breathing) for adults. Also, "Hands-Only (compression only) CPR" is emphasized for the untrained lay rescuer. On the basis of the strength of the available evidence, there was unanimous support for continuous emphasis on high-quality CPR with compressions of adequate rate and depth, which allows for complete chest recoil, minimizing interruptions in chest compressions and avoiding excessive ventilation. High-quality CPR is the cornerstone of a system of care that can optimize outcomes beyond return of spontaneous circulation (ROSC). There is an increased emphasis on physiologic monitoring to optimize CPR quality, and to detect ROSC. A comprehensive, structured, integrated, multidisciplinary system of care should be implemented in a consistent manner for the treatment of post-cardiac arrest care patients. The return to a prior quality and functional state of health is the ultimate goal of a resuscitation system of care.

Factors Affecting Bankruptcy Risks of Firms: Evidence from Listed Companies on Vietnamese Stock Market

  • TRUONG, Thanh Hang;NGUYEN, La Soa
    • The Journal of Asian Finance, Economics and Business
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    • v.9 no.3
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    • pp.275-283
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    • 2022
  • This study aims to investigate the influence of internal factors on the bankruptcy risk of an enterprise through a sample of 439 companies listed on the Vietnamese stock exchange. The research collected secondary data from annual audited financial statements from 2008 to 2019 of listing companies. Using two different regression models with two dependent variables, six independent and control variables, we discovered that three of the model's six factors, namely return on total assets, current payment rate, and financial leverage, influence the risk of bankruptcy and account for 86.78% of the variations in firm bankruptcy risk. Financial leverage has the opposite effect on the Z-score index, increasing the risk of bankruptcy of listed firms. Return on total assets and current ratio have a positive impact on the Z-score index, reducing the risk of bankruptcy of listed companies. The findings also revealed that there is no evidence that the size of a corporation, its fixed asset investment ratio, or the size of an auditing firm have an impact on the Z-score index. These findings provide crucial evidence for business owners and managers, as well as shareholders making future capital investment decisions. Our findings can be applied to other businesses in Vietnam and similar jurisdictions.

Preliminary Evaluation of a Proposed Marine Ranching Project in Korea (우리 나라 바다목장화 사업의 예비적 경제성 평가)

  • 표희동
    • The Journal of Fisheries Business Administration
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    • v.29 no.2
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    • pp.199-216
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    • 1998
  • An economic appraisal of a proposed marine ranching project is analysed using capital budgeting model such as net present value(NPV) and internal rate of return( IRR) as well as sensitivity analysis and goal seeking model. Of the factors for economic appraisal, direct benefits are to be determined by estimated harvest, prices and costs incurred by catching fishes, and indirect benefits include the additional economic effect of recreational fishing. And judging the worth of these project options depends upon the choice of discount rate of which 8.5% is recommended here. On the basis of estimated production, prices and costs the project is expected to yield NPV=615 million won and IRR=8.8%, which is quite accepted for an economic feasibility, under the first scenario, and NPV= -127 million won and IRR=7.93%, which is rejected, under the second scenario. Sensitivity analysis has been performed by calculating the switching value and sensitivity indicator in respect of the main project parameters. The results suggest that the project NPV and IRR are especially sensitive to fishes(rock fish and other rock fish) prices and fixed costs. Finally goal seeking analysis is carried out in order to reach a desired level of performance like NPV=0 in respect of the amount of hatchery-reared juverniles, the prices and the discount rate.

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A study of real estate investment value and analytic technique -mainly by case study of real estate development projects- (부동산 투자가치와 사업타당성 분석기법 연구 -개발사업 사업타당성 분석 사례연구를 중심으로-)

  • Lee, Taek-Soo;Lee, Joo-Hyung
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.13 no.12
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    • pp.6128-6134
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    • 2012
  • In so many real estate development projects, there were strong needs to have a powerful tool to check feasibility of those projects. But there were not enough tool and measure to cover risk of real estate development and construction. Therefore I tried to find a real tool to measure investment value of development properly and efficiently, by means of case studies of many real estate development projects. Finally I found a fact that no tools of investment value analysis are perfect and efficient to hedge all kinds of risks in projects. Especially NPV(Net Present Value) and IRR(Internal Rate of Return) were not sufficient by themselves to measure investment value. So I found out that MIRR(Modified IRR), XIRR(X-IRR), ARR(Average Rate of Return), PP(Payback Period) and so on, would be supplementaries of proper and efficient investment value analysis.

Fishermen's Perception and Economic Feasibility of Inland Waters Ranching Project : Focusing on the Branches of Geum River (내수면목장화사업의 어업인 인식도 및 경제효과 : 금강 지천을 중심으로)

  • Hwang, Jin-Wook
    • The Journal of Fisheries Business Administration
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    • v.53 no.2
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    • pp.1-20
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    • 2022
  • This study is aimed to analyze fishermen's perception and the economic feasibility of inland waters ranching project on the branches of Geum River. Analysis of fishermen's perception on the branches of Geum River showed that fishermen had an affirmative response on the inland freshwater ranching project related issues such as fisheries resources enhancement, necessity of project, economic achievement as so on. The model of inland waters ranching project on the branches of Geum River is designed to fisheries resources enhancement, habitat compositiom, ecology tours, use and management of resources. The results of the economic feasibility of inland waters ranching project on the branches of Geum River were internal rate of return (IRR) was 18.43%, a benefit-cost ratio was shown to be 1.54, net present value (NPV) was 4,929 thousand won, which indicates the economic feasibility of inland waters ranching project.

Economic Assessment of Biomass Heating for Rural Application (바이오매스를 이용한 농업용 난방계획의 경제성 검토)

  • Hong, Seong-Gu
    • Journal of The Korean Society of Agricultural Engineers
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    • v.47 no.2
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    • pp.45-52
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    • 2005
  • Biomass is one of the most competitive renewable energy resource and can be used for heating for rural applications. A economic assessment was made of biomass heating, using the tool BIOH2000 from $RETScreen^{\circledR}$ International Clean Energy Decision Support Centre. For a 260kW heating system for 50 farm houses, the assessment showed a very promising results. Internal rate of return was $19.7\%$ and year-to-positive cash flow was 5.1 years. Relative price of biomass over fossil fuel significantly affected the economic feasibility of the project. Heating demand was directly related to annual demand of biomass and economic feasibility. Relative cost of distribution pipe over the total initial costs also affected the economic feasibility of the project. The economic feasibility was expected to be improved by the probable greenhouse emission reduction credit and reduction of initial costs through utilizing existing heating system for peak or back up heating system.

The Evaluation of the Net Present Value and the Derivation of the Internal Rate of Return with the Alternatives (대체안의 순현재가치 평가와 내부수익율 유도에 대한 연구)

  • 박상민;이근희
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.17 no.29
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    • pp.30-36
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    • 1994
  • This paper has provided a systematic technique, the evaluation of the distribution with the NPV ana the derivation of the IRR in the investment alternatives, for the cost estimating analysts. The proposals of investment alternatives are included the venture capital under risk and probabilities at each events, within the cash inflows are occuring at random timing. Therefore. we have considered the followings : 1) the first cash outflow is deterministic. 2) the cash inflows are random variables with known distributions. 3) the lengths of the time intervals between the cash inflows are independently distributed and independent of the cash inflows. In this paper. the first two moments of the distribution, the Laplace Transforms and the convolutions are computed for both independent cash inflows and mutually exclusive alternatives as in the case of quite correlated cash inflows.

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The Evaluation of the Net Present Value and the Derivation of the Internal Rate of Return with the Alternatives (대체안(代替案)의 순현재가치(純現在價値) 평가(評價)와 내부수익률(內部收益率) 유도(誘導)에 대한 연구(硏究))

  • Park, Sang-Min;Lee, Geun-Hui
    • Journal of Korean Society for Quality Management
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    • v.17 no.1
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    • pp.82-88
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    • 1989
  • This paper has provided a systematic technique, the evaluation of the distribution with the NPV and the derivation of the IRR in the investment alternatives, for the cost estimating analysts, The proposals of investment alternatives are included the venture capital under risk and probabilities at each events, within the cash inflows are occuring at random timing. Therefore, we have considered the followings ; 1) the first cash outflow is deterministic, 2) the cash inflows are random variables with known distributions, 3) the lengths of the time intervals between the cash inflows are independently distributed and independent of the cash inflows. In this paper, the first two moments of the distribution, the Laplace Transforms and the convolutions are computed for both independent cash inflows and mutually exclusive alternatives as in the case of quite correlated cash inflows.

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