• Journal of Korean Society of Industrial and Systems Engineering
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• v.31 no.3
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• pp.74-79
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• 2008

The reinvestment assumption of the internal rate of return(IRR) method may not be valid in an engineering economy study. This situation, coupled with the computational demands and possible multiple interest rate associated with the IRR method, has given rise to other rate of return methods, such as the external rate of return(ERR) method, that can remedy some of these weaknesses. But ERRs are not used generally. We present another rate of return including all attributes of the minimum attractive rate of return(MARR).

• Journal of Korean Society of Industrial and Systems Engineering
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• v.38 no.3
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• pp.95-99
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• 2015

The IRR(internal rate of return) is often used by investors for the evaluation of engineering projects. Unfortunately, it has serial flaws: (1) multiple real-valued IRRs may arise; (2) complex-valued IRRs may arise; (3) the IRR is, in special cases, incompatible with the net present value (NPV) in accept/reject decisions. The efforts of management scientists and economists in providing a reliable project rate of return have generated over the decades an immense amount of contributions aiming to solve these shortcomings. Especially, multiple internal rate of returns (IRRs) have a fatal flaw when we decide to accep it or not. To solve it, some researchers came up with external rate of returns (ERRs) such as ARR (Average Rate of Return) or MIRR (MIRR, Modified Internal Rate of Return). ARR or MIRR. will also always yield the same decision for a engineering project consistent with the NPV criterion. The ERRs are to modify the procedure for computing the rate of return by making explicit and consistent assumptions about the interest rate at which intermediate receipts from projects may be invested. This reinvestment could be either in other projects or in the outside market. However, when we use traditional ERRs, a volume of capital investment is still unclear. Alternatively, the productive rate of return (PRR) can settle these problems. Generally, a rate of return is a profit on an investment over a period of time, expressed as a proportion of the original investment. The time period is typically the life of a project. The PRR is based on the full life of the engineering project. but has been annualised to project one year. And the PRR uses the effective investment instead of the original investment. This method requires that the cash flow of an engineering project must be separated into 'investment' and 'loss' to calculate the PRR value. In this paper, we proposed a tabulated form for easy calculation of the PRR by modifing the profit and loss statement, and the cash flow statement.

• Journal of Korea Port Economic Association
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• v.38 no.4
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• pp.13-23
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• 2022

In this study, from January 2015 to April 2020, we propose a stochastic volatility model to capture the leverage effect on daily freight yields in the dry cargo market and analyze the freight yields. Estimation involving the Bayesian Markov Chain Monte Carlo method for the leverage effect based on the negative correlation that exists between returns and volatility in stochastic volatility analysis yields similar estimates, and the statistcs indicates significant. That is, the results of the empirical analysis show that the degree of correlation between returns and volatility, and the magnitude and sign of fluctuations differ, which suggests that taking into account the leverage effect in the SV model improves the goodness of fit of the estimates. In addition to the statistical significance of the estimated model's leverage effect, the analysis by log predictive power score presents the estimated results with improved predictive power of the model considering the leveraged effect. These astatistically significant empirical results show that the stochastic volatility model considering the leverage effect is important for freight rate risk modeling in the marine industry.

• Asian-Australasian Journal of Animal Sciences
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• v.15 no.8
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• pp.1110-1114
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• 2002

The animal production sector in Jordan is characterized by shortages of locally produced feedstuffs derived from rangeland, forage plants or from human food crops as by products. This is exacerbated by insufficient rainfall, overgrazing, early grazing and high stocking rate. Thus, subject to these constraints, other technological improvements are highly desirable to meet the needs of crop growth and animal production. Alternative adapted technologies are also desirable in order to meet the increased demand for red meat in relation to population growth along with the changes in the price subsidy for feedstuff. The technologies are those, which have been introduced to the animal production sector, obtained in agricultural research stations besides on-farm demonstrations. They include technologies suited for increasing birth and twining rates, synchronizing the mating period, introducing the early weaning method, and animal feed and sheep production. Economic assessments conducted in this study demonstrate promising results of hormonal and nutritional practices in improving production efficiency of Awassi sheep in Jordan. Jordanian published data between 1991 and 1998 were used. The examined practices were: 1) use of PMSG in estrus synchronization in ewes, 2) introduction of early lamb weaning program, 3) supplementation with $AD_3E$ for ewes and 4) the use of agro-industrial feed block as a feed supplement for grazing lambs. Production data were then subjected to partial budgeting for economical evaluation. The use of PMSG outperformed the control groups in fertility and net returns per ewe by US$ 8.36/ewe. The early weaning of lambs increased the net returns by US$ 3.90/lamb. The injection with vitamin $AD_3E$ showed an average additional net return of US$ 5.66/ewe. Feeding agriculture by-product blocks improved weight gain in the feed block groups and resulted in additional net returns of US$ 3.5/lamb. The economic viability and reproductive performance indicators demonstrate that efforts should be undertaken to disseminate these new practices in the development program.

• Journal of Korean Physical Therapy Science
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• v.9 no.4
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• pp.63-72
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• 2002

Patient satisfaction is an important factor in evaluating the quality of care. Patient satisfaction may be used to evaluate provider services and facilities, and used to predict the patient returns to a facility. The patients d whether the patient returns to a facility or whether the patient recommends the facility to other people may be affected by a variety of factors of patient satisfaction. Low satisfaction may result in poor compliance with the potential of waste of resources and suboptimal clinical outcome. This study is to identify factors of patient satisfaction that will affect patients decision whether the patient returns or not. A self-administered questionnaire survey was conducted in Seoul, Chung-Joo and Bu-Cheon cities, Survey data was obtained from 743 patients who visited the physical therapy practice at university hospitals, general hospitals and clinics. Response rate was 94.4%. The instrument developed by Goldstein et al. (2000) was used and translated into Korean. Several items were added to the instrument. Patient's opinions of service in each domain measured using 5-point Likert-type scales that ranged from strongly disagree to strongly agree. A multiple-regression analytic approach was used to predict overall satisfaction of physical therapy. Age, kindness, scheduling, convenience of parking, privacy, and waiting time predicted the overall satisfaction of physical therapy. The older patients had higher level of satisfaction with physical therapy compared with the younger patients. Patient satisfaction were more affected by access (scheduling and waiting time), administrative technical management (convenience of parking), and interpersonal management (kindness of physical therapists and other staffs) than clinical technical management (physical therapists' skills).

• Journal of the Korean Mathematical Society
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• v.43 no.4
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• pp.845-858
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• 2006

We present two approaches of the stochastic interest rate European option pricing model. One is a bond numeraire approach which is applicable to a nonzero value asset. In this approach, we assume log-normality of returns of the asset normalized by a bond whose maturity is the same as the expiration date of an option instead that of an asset itself. Another one is the expectation hypothesis approach for value zero asset which has futures-style margining. Bond numeraire approach allows us to calculate volatilities implied in options even though stochastic interest rate is considered.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.1263-1268
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• 2021

This study investigates how dramatic increase of university and college graduates affects labor market outcomes. Using a series of seven repeated cross sections of the Vietnam Household Living Standards Surveys, this paper analyzed the changes in the rate of returns to higher education attainment along with the increased supply of university and college graduates due to the higher education expansion throughout the 2002-2014 period. The study utilized a ratio of number of university and college students to the number of upper-secondary pupils within each province as an instrumental variable to calculate the effects of higher education expansion on the labor wage. The study found that, with the basic equations, the coefficients for higher education attainment are statistically significant and have positive values for the whole period. Our instrumental variables were found to be valid. For instrumental variable estimation, the return to higher education in IV earning equations was quite high. The findings of this study suggested that the expansion of the higher education system in Vietnam during 2002-2014 had positive effects on wages for those who increased their education attainment due to the reforms and there was a declining trend of the returns to higher education toward the end of the period.

• Korean Management Science Review
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• v.32 no.1
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• pp.15-33
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• 2015

Under complete information, introducing additional constraints to a portfolio will have a negative impact on performance. However, real-life investments inevitably involve use of error-prone estimations, such as expected stock returns. In addition to the reality of incomplete data, investments of most Korean domestic equity funds are regulated externally by the government, as well as internally, resulting in limited maximum investment allocation to single stocks and risk free assets. This paper presents an investment framework, which takes such real-life situations into account, based on a newly developed portfolio selection model considering realistic constraints under incomplete information. Additionally, we examined the effects of additional constraints on portfolio's performance under incomplete information, taking the well-known Samsung and SK group stocks as performance benchmarks during the period beginning from the launch of each commercial fund, 2005 and 2007 respectively, up to 2013. The empirical study shows that an investment model, built under incomplete information with additional constraints, outperformed a model built without any constraints, and benchmarks, in terms of rate of return, standard deviation of returns, and Sharpe ratio.

• Asia-Pacific Journal of Business
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• v.5 no.1
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• pp.33-41
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• 2014

Since depositors are motivated by returns, it is important for Islamic banks management to understand the extent that rates of return on deposits influence their customers' decision to deposit. The main objective of the study is to explore the degree of influence of conventional bank's interest rate on Islamic bank's profitability and vice-versa. It has been seen from 2005 to 2011 that the rate of interest declared on deposit by conventional banks has a negative impact on profitability of both types of banks in Bangladesh. Rate of profit declared on deposit by Islamic banks is positively related with their profit earned but negatively related with profit earned by conventional banks. We see that rate of interest declared on deposit by Conventional Banks is positively related with their deposit volume but negatively related with Islamic Bank's deposit. On the other hand, rate of profit declared on deposit by Islamic Banks is negatively related with deposit levels of both types of banks. The survey result shows that almost 85% of the respondents are choosing Islamic banks only from their religious point of view and more than 60% of the sampled Islamic bank customers are reluctant to leave the bank even if conventional banks offer better interest rates.

• Journal of the Korean Chemical Society
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• v.15 no.6
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• pp.293-303
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• 1971

The theological properties of aqueous suspensions of Black Hills bentonite were measured by using a Couette-type viscometer. Three kinds of flow units in aqueous bentonite suspension were postulated. Each has a different average relaxation time, one Newtonian. One of the non-Newtonian types is thixotropic, and the other is non-thixotropic. The thixotropic non-Newtonian unit is transformed to a Newtonian unit by shear stress. If the stress is relieved, the transformed unit returns to its original state. Two flow equations were derived by introducing chemical kinetics consideration for such a transition into the generalized theory of viscous flow. One equation describes the "upcurve," a diagram of rate of sheat versus shear stress, obtained by increasing the rate of shear, and the other relates to the "downcurve" obtained by decreasing the shear rate. The equations satisfactorilly describe the experimental thixotropic hysteresis of bentonite suspensions. The equations also were successfully applied to the flow curves of the suspensions containing various amounts of monovalent electrolyte (KCI).