• Industrial Engineering and Management Systems
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• 제9권2호
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• pp.121-130
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• 2010

In today's uncertain economic environment, economic risk is inherent in making large investments on manufacturing facilities. It is, therefore, practically meaningful to divide investment over multiple periods, reducing the risk of investment. Then, the cash-flow over the entire planning horizon would comprise positive inflow and negative outflow. In this case, in general, evaluation by internal rate of return (IRR) is not feasible, because multiple IRRs are involved. This paper deals with a problem of evaluating profitability, as well as risk, of investment alternatives made in multiple times of investment over the entire horizon. Typically, an additional investment is required after the initial one, for expanding manufacturing capacity or other reasons. The paper pays attention to a unit cash-flow over two periods, decomposing the total cash-flow into a series of unit cash-flow patterns. It is easy to evaluate profitability of a unit cash-flow by using IRR. The total cash-flow can be decomposed into the series of two types of unit cash-flows: an investment type one (negative-positive) and the borrowing type one (positive-negative). This paper, therefore, proposes a method in which only the borrowing type unit cash-flow is eliminated in the series by converting total cash-flow using capital interest rate. Then, a unique IRR can be obtained and the profitability is evaluated. Thus, the paper extends the method of IRR so that it may help decision making in complicated cash-flow pattern observed in practice.

• 산업경영시스템학회지
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• 제41권2호
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• pp.47-55
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• 2018

The Korean Ministry of Education (MOE) required cash flow statements, instead of fund statements, as a component of the financial statements of the Industry-Academic Cooperation Foundations (IACF) when it revised IACF accounting rules in 2012. While the fund statements were aligned its accounts to the operating statements' accounts level, the newly adopted cash flow statements' accounts retreated to two levels higher than those of the operating statements. It may be resulted from the consideration that IACFs' burden of preparing cash flow statements especially in direct method. To help IACFs prepare the cash flow statements, MOE's guidance on IACF accounting rules introduced cash flow statement preparation method and presented a practical example, but it did not check whether the accounts of the cash flow statement were reconciled to the accounts of corresponding balance sheet and operating statement. That means that the guidance still lacks how to assure it was accurately prepared. Our study proposed cash flow statement preparation using reconciliation method which reconciles cash flow statement accounts' amounts to balance sheet and operating statement accounts' amounts with integrity checking and also provided a practical example by using the same case in MOE's guidance on IACF accounting rules to help IACF accounting personnel to prepare a cash flow statement efficiently.

• The Journal of Asian Finance, Economics and Business
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• 제7권8호
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• pp.87-94
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• 2020

The paper aims to investigate the impact of presenting statements of cash flow using the direct method and the indirect method on loan decision by credit officers at Vietnamese banks. The data was collected from 150 credit officers of commercial banks in Vietnam based on the questionnaire about making loan decision when the cash flow statement is presented in different methods, namely, direct and indirect methods. This research uses T-tests to check whether using the direct or indirect method affects the accurate calculation of loan criteria, affects the loan decision by credit officers, and compare these two methods in the aspects of information provision. The research has pointed out that: 1) the direct method helps the calculation of indicators related to loans more accurately; 2) credit officers say that, while the direct method of presenting cash flow statement provides clearer information, the use of either the direct method or the indirect method does not affect the banks' loan decision. Since then, the author recommends that cash flow statements should be provided with information in a direct method to present the information needed for loan decision more accurately so as to improve the quality of cash flow statement.

• 산업경영시스템학회지
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• 제31권4호
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• pp.177-187
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• 2008

It is very important to select optimal investment alternative. The common method of economic evaluation is to compare of NPV, FW, AE by MARR, or the rate of return for the cash flow of alternatives. This method is undergoing by assumption that cash flow can be always evaluated by MARR, but the cash flow is not always increased or discounted like MARR. So this paper suggests a model on an economic analysis and evaluation regarding to various cash pattern, that is helpful for the person in the field to use easily.

• The Journal of Asian Finance, Economics and Business
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• 제9권3호
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• pp.53-63
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• 2022

Despite the relationship between cash flow, financial management, and project performance, no study examined the mediating role of financial management on the relationship between cash flow and construction project performance, especially in Kuwait. The goal of this study was to examine the impact of cash flow fluctuations on construction project performance, as well as the role of financial management in mediating this relationship. To accomplish these goals, the researcher employed a descriptive-analytical method to create a questionnaire of 31 items. The study's sample was chosen at random and includes (181) project managers and firm owners from contractors' companies in Kuwait. The study found a statistically positive and significant effect of cash flow variation on project performance from the perspective of Kuwaiti contractors at the significance level (0.05), as well as a mediated role of financial management in the relationship between cash flow variation and project performance. The research came up with a number of recommendations based on the findings, including the need for contractors to have a better understanding of cash flow to arrange project activities correctly and efficiently. Further studies may be included into the effect of cash flow forecasting (planning) and financial management (control) on various construction activities.

• 국제학술발표논문집
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• The 5th International Conference on Construction Engineering and Project Management
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• pp.141-144
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• 2013

This paper presents a system called a Cash-flow based Construction Schedule Optimization system(CfSO). The existing CPM effectively handles schedule and cost management. However, funding strategy should be considered to obtain maximum profit and to progress a project favorably. One of measures is to coordinate the contract terms between owner and subcontractors (or suppliers). Contractor may decrease the interest cost attributed to project financing by adjusting the timing of cash-inflows and cash-outflows. It is an excellent method maximizing profits. This paper presents a method to estimate the amount of a cash-flow occurred periodically by integrating the terms of contract into scheduling. The proposed method is implemented as a system prototype in Microsoft Excel. This system provides a user an automated tool that identifies an optimal schedule that secures maximum profit by adjusting start and finish times of non-critical activities' free-floats without affecting on the project completion time. This system supports a project manager to establish an optimum project schedule and identifies profitable contractual conditions against to a construction owner.

• 보건행정학회지
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• 제15권4호
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• pp.81-109
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• 2005

According to many recent studies suggesting that cash flow analysis method tends to be more effective than traditional financial index analysis method to predict corporate bankruptcy, this study applies the cash flow analysis method to hospital business to identify the significant variables which can distinguish between superior hospitals and bankruptcy hospitals. The author analyzed recent 3 years, i.e. from the year of 2000 to the year of 2002, financial statements of 31 bankrupt hospitals In 2003, and the same number of superior hospitals through using Multiple Discriminant Analysis and Logit Analysis. The results are belows; First, the study releases that Logit Analysis is more likely to be effective than Multiple Discriminant Analysis. Second, this research also shows that traditional financial index analysis method is more superior compare to cash flow analysis method for hospital bankruptcy predict model. Finally, this study suggest that the significant variables, which can distinguish superior hospitals from bankrupt hospitals, are Operating/Current Liabilities$(Y_2)$, CFO/Equity$(Y_5)$ for cash flow analysis method and Net Worth to Total Assets Ratio$(X_1)$, Quick Ratio $(X_3)$, Return on Assets$(X_6)$, Growth Rate of Patient Revenues$(X_{16})$ for traditional financial index analysis method.

• 한국건축시공학회:학술대회논문집
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• 한국건축시공학회 2012년도 춘계 학술논문 발표대회
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• pp.303-305
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• 2012

This paper presents a system called a Cash-flow based Construction Scheduling Optimization (CfSO). The existing CPM is biased on schedule and cost management. For a profitable and successful project management, the cash-flow which occurred actually by contractual conditions should be considered in the project scheduling. Therefore, this study provides a method to estimate the amount of a cash-flow occurred periodically by integrating the terms of contract into scheduling. The proposed methodology is implemented as a system prototype in Microsoft Excel. CfSO helps a site manager as a decision-maker to establish a optimized project scheduling and decide profitable contractual conditions against a construction owner.

• 한국산림과학회지
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• 제109권1호
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• pp.72-80
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• 2020

목재수확작업의 경제성을 분석하기 위한 방법은 기계비용법(machine rate method)과 현금흐름법(cash-flow method: CFM)으로 구분할 수 있다. 본 연구에서는 CFM을 이용하여 낙엽송 임분에서 HAM300 전간집재작업의 경제적 타당성 분석을 실시하였다. 즉, 연간 작업일수(50, 100, 150, 200일/년)와 작업 생산성 변화(효율성 40% 개선 효과)에 대하여 집재작업의 경제적 타당성을 평가하고자 하였다. 분석방법으로는 순현재가치법(net present value: NPV)과 자본회수기간법(pay-back period)을 이용하였다. 연간 작업일수가 150일 이상인 조건에서 NPV의 값이 0보다 크기 때문에 경제적 타당성이 충분한 것으로 나타났으며, 이 때 자본회수기간은 3.65년 이하로 분석되었다. 작업생산성(㎥/scheduled machine hour)이 40% 증가하는 시나리오에서는 연간 작업일수가 100일인 조건에서도 현금흐름이 안정적이며, 경제적 효과가 큰 것으로 나타났다. 하지만, 연간 작업일수가 50일 이하인 경우에는 집재작업의 수익성이 악화되어 투자에 대한 의사결정이 어려운 것으로 분석되었다. 결과적으로, HAM300 집재작업은 수익성이 있는 작업조건(연간작업일수: 100일 이상, 연간작업량: 5,000 ㎥)이 지속적으로 확보가 가능하다고 판단되는 작업조건에서 투자에 대한 결정이 이루어져야 한다.

• 디지털융복합연구
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• 제10권7호
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• pp.11-22
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• 2012

지식정보경제에서 무형자산은 부와 성장을 결정하는 중요한 역할을 한다. 특히 기업이 보유한 무형자산 중 대표적인 특허에 대한 평가가 많은 주목을 받고 있다. 중소벤처기업의 활동이 경제의 큰 부분을 차지하면서 이들이 보유한 특허의 가치를 어떻게 평가할 것인가에 대한 문제가 실무 및 학계에서 큰 관심의 대상이 되고 있다. 중소벤처 기업에 대한 인수 합병, 투 융자 등에서 가장 중요하게 고려되는 것이 특허가치에 대한 평가이기 때문이다. 이러한 필요성에 의해 본 연구에서는 특허가치평가를 위해 평가대상기업 재무제표를 이용하여 매출총이익으로부터 영업이익을 계산한 후 법인세, 자본비용을 고려하고 감가상각비는 증감함으로써 초과이익을 계산하고 현가계수를 곱하여 현재가치를 구하게 되며, 여기에 기여도를 곱함으로써 궁극적인 무형자산 가치를 구하게 되는 DCF모형과 사례분석을 제안하였다.