• Korean small business review
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• v.40 no.3
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• pp.1-24
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• 2018

The purpose of this study is verifying with corporate financial data that the required investment amount flow shows a similar pattern as times passed, in new product development by start-up company. In the previous paper, the same authors proposed the required investment amount flow as a 'New Product Investment Curve (NPIC)'. In this study, we have studied further in various types of companies. The samples used are accounting data of 462 companies selected from 5,873 Korean companies which were finished external audit in 2015. The results of this study are as follows; The average investment period was 3 years for the listed companies, while 6 years for the unlisted companies. The investment payback period was 6 years for listed companies, while 17 years for unlisted companies. The investment payback period of the company supported by big affiliate company (We call 'greenhouse company') was 14~15 years, while 17 years for real venture companies. When we divide all companies into 4 groups in terms of R&D cost and variable cost ratio, NPIC explanatory power of 'high R&D and high variable cost ratio group (Automobile Assembly Business) is best. Among the eight investment cost indexes proposed to estimate the investment amount, the 'cash 1' (operating cash flow+fixed asset excluding land & building+intangible asset, deferred asset change)/year-end total assets) turned out to be the most effective index to estimate the investment flow patterns. The conclusion is that NPIC explanatory power is somewhat reduced when we estimate all companies together. However, if we estimate the sample companies by characteristics such as listed, unlisted, greenhouse, and venture company, the proposed NPIC was verified to be effective by showing the required investment amount pattern.

• International conference on construction engineering and project management
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• 2007.03a
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• pp.119-129
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• 2007

In January 2005, the BTL private investment project was introduced in the Korean construction market as part of the plan to provide high-quality public service and expand the required facilities in a timely manner. Nonetheless, problems such as the low earning rate at the beginning of the business, burden of service compared to the cost of the proposed business, and limitations of the local small and medium-sized companies in relation to their participation in the project arose. The LCC analysis system for the BTL projects was developed as part of efforts toward efficiently investigating the investment eligibility. Specifically, methods for LCC analysis were selected for each stage of the BTL project in relation to the requests of experts for military residential facilities and public educational facilities. Variables were then extracted to derive an accurate analysis value, LCC for the 5 cost items (initial investment cost, operating expenses, maintenance expenses, energy cost, and disposal cost), analyzed, and system enabling comparative analysis for single and multiple initiatives by year and item, developed. Thus, we have to clearly require the accumulation of data to examine the appropriateness of the results of LCC analysis based on data and results.

• Proceedings of the KSR Conference
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• 2008.06a
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• pp.1574-1586
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• 2008

Railway is the most effective transportation than any other traffic. But due to the its expensive maintenance fee and various components like roadbed, rail, rollingstock, electric and signal etc, the construction cost of the railway is usually higher than highway. Such a reason, a lot of cost and period are needed to complete the railway project. In addition that considering the decreasing of the SOC budget, the investment in the railway industry is getting hard than ever. This study analyzed the cost, term of work, freight & passenger transportation demand of the wide area railway electrification project and main line improvement project. And it compared the estimation value and real value of the projects like cost and period etc. And this study surveyed the economic feasibility including factors which are not considered in the feasibility study guide. With those results, This study suggest the project management and evaluation method to enlarge the efficiency of the railway construction project.

• Journal of Energy Engineering
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• v.6 no.2
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• pp.145-151
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• 1997

The R&D investment of power industry has significant influences on the social welfare as well as national economy. It is necessary to analyze how efficient the R&D investment has been performed. The objective of this study is to verify the efficiency of the R&D investment in the domestic power industry. A formula was introduced to by calculate the appropriate amount of R&D investment of monopolistic industry under the regulations which are determined by the proportion of R&D elasticity and price elasticity. It has resulted that there would be no economy of scale as the sales of electricity increases at the same rate of the increasing cost. The R&D investment in the present electricity industry has been performed inefficiently by showing the negative impact on price-cost margin of the intensity of R&D investment, which is the extent of R&D investment to reinforce economy of scale.

• Journal of the Korean Operations Research and Management Science Society
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• v.26 no.4
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• pp.83-97
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• 2001

Net Present Value (NPV) criterion has been the most widely used criterion to evaluate investment opportunities. However, the analysis based on the NPV criterion falls to consider the managerial flexibility of deferring decisions until major uncertainty is resolved. Recently, real options method attracted a lot of attention as a Powerful approach to address the problem. If investment decision is deferred, the value of the investment opportunity increases but opportunity cost increases at the same time. Therefore, it is important to decide the optimal timing how long the decision can be deferred. In this paper, we developed a model deciding the optimal decision timing. Using the real options approach, the model derived the optimal deferring time until a decision is made. Then, the model was applied to a Korean mobile telecommunications company who wants to invest on the wireless resale business. We believe that this model would be very useful to overcome the problem of NPV decision criterion. With this approach, we can make contingent decisions based on the observation of uncertainly resolutions.

• Management Science and Financial Engineering
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• v.21 no.1
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• pp.25-29
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• 2015

Recently much research efforts have focused on how to manage carbon emissions in logistics operations. This paper formulates a model to determine an optimal shipment size with aims to minimize the total cost consisting not only of inventory and transportation costs but also cost for carbon emissions. Unlike the literature assuming carbon emission factors as a given condition, we consider the emission factors as decision variables. It is allowed to make an investment in improving carbon emission factors. The optimal investment decision is shown to be of a threshold type with respect to unit investment costs. Moreover, the findings in this work provide insights on the various elements of the investment decision and their impacts.

• Journal of the Korea Institute of Building Construction
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• v.1 no.2
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• pp.154-164
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• 2001

This research is aiming to specify the requirement of the investment such as intial cost, running cost earning rate to make effective investment considering the purpose of remodeling and economical value of store building enough to meet the initial purpose of remodeling. The review of earning for economical evaluation was performed by the on-site auditing on the structure and function of the building and applying the assessment simulation program, which is to find the possible business model to identify the requirement of building owner through case study. After the research, the following results are obtained. First, it is important that many aspects should be carefully analysis and the best method should be selected as characteristics of remodeling can be defer each other in their implementations. Second, though the remodeling of exist building to promote the functions has been applied, no suitable assessment tool has bee developed for deciding the level of remodeling in the view of economical efficiency so far. Third, the economical benefit was evaluated by analysing annual earning rate which is applied by investment items and recovery period for the investment. More specific date base should be established to apply the suggested economic acessments in business enough ti forecast the future circumstances. More researches should be promoted on the area continuously as well as the integrated economic evaluation of remodeling on existing building.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2002.11a
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• pp.103-109
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• 2002

This research is aiming to specify the requirement of the investment such as initial cost, running cost earning rate to make effective investment considering the purpose of remodeling and economical value of store building enough to meet the initial purpose of remodeling. The review of earning rate for economical evaluation was performed by the on-site auditing on the structure and function of the building and applying the assessment simulation program, which is to find the possible business model to identify the requirement of building owner through case study. After the research, the following results are obtained. First, it is important that many aspects should be carefully analysis and the best method should be selected as characteristics of remodeling can be defer each other in their implementations. Second, though the remodeling of exist buildings to promote the functions has been applied. no suitable assessment tool has bee developed for deciding the level of remodeling in the view of economical efficiency so far. Third, the economical benefit was evaluated by analysing annual earning rate which is applied by investment items and recovery period for the investment. More specific data bate should be established to apply the suggested economic accession in business enough to forecast the future circumstances. More researches should be promoted on this area continuously as well as the integrated economic evaluation of remodeling on existing building.

• The Journal of Society for e-Business Studies
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• v.11 no.1
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• pp.91-112
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• 2006

Unlike typical corporate investments, IT expenditures have direct impact on many aspects of a business, including those that are difficult to quantify. Therefore, financial indicators alone do not do justice to the full effect of an If investment. Proposed in this paper is a methodology to measure the return on IT investments, including non-financial impacts expressed in terms of monetary values. This methodology shows tangible cost as well as hidden cost by analyzing total cost of ownership. The methodology also produces ROI by performing cost benefit analysis including financial and non-financial factors. This paper suggests a more objective validation of If's impact on the business activities. It rationalizes investment priorities and provides a systematic approach to effective IT investment.

• International Commerce and Information Review
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• v.10 no.1
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• pp.375-393
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• 2008

The purpose of this study is to investigate the Chinese investment environment and analyze the actual investment condition of Korean enterprises in China and examine the points at issue. In general, the investment environment in China shows satisfactory progress. China has a multiple and regional extension policy in investment. And the environment for investment changes to insufficiency of company profit, extension of service market, maintenance of legislative system, and insufficiency of preference about foreign company. There are situations of inclining to manufacturing, inclining of region, preference of independence investment, small-sized investment by small and medium enterprises, difficulty of financial assistance, excess of logistic cost, delay of logistic term, difficulty of settlement of legal dispute and difficulty of taking a relative information in investment of Korean enterprise in China. The results of the study indicate mostly that the investment of Korean enterprise into China needs turnover of service trade-tertiary industry, portfolio of investment territory, cooperation with Chinese enterprise through joint venture investment and a large-scale investment for extension of Chinese domestic market.