Search

The monetary gain resulting from the purchase of new manufacturing process equipment can be analyzed by a number of accepted financial methods. The most common are: degree of necessity, payback period, and rate of return. These will be reviewed and demonstrated by the use of a common example. The objective is to provide an individual with a clearly understood set of tools so that the financial merits of a new process, such as a microwave process, can be effectively presented for a management decision.

Payback period is an important and widely-used measure of the economic attractiveness of an investment opportunity. It is an easy concept to understand and is readily computed by a variety of methods. The difficulty, however, is that these methods give misleading results. Nevertheless, payback period determination may be considered an effective intermediate step in the computation of the after-tax rate of return. The conversion techniques must, of necessity, be simple in order to encourage the use of rate of return as the decision criterion rather than payback period. The relationships between payback period as defined here and rate of return are developed for both the before-tax and after-tax situations. If the tax consequences are to be considered, the tax rate and depreciation method must be known in addition to payback period and useful life. The equations derived for computing the rate of return are plotted for selected values of the parameters, and the resulting curves provide a simple mean...

Considerable difficulties have been encountered in the past when trying to control automatically batch processes such as chemical pulping, alcohol fermenting and sugar production. The usual reasons for the difficulties have been that the practical reaction model is unknown, or that it is not possible to measure the required parameters to use the model, or that the control equipment used has restricted too much the use of the model. Various types of analysers have also been tried for analysing the circulating liquor in chemical pulping in order to determine the degree of delignification on which to base the automatic control. The problems which have hindered the success of those schemes are typical and well known: the problem of getting a representative sample because the reaction is not evenly distributed in the digester, the problem of getting a high enough sampling rate and of course the analysers themselves, their complexity for a mill environment and the need for frequent calibration and maintenance. This paper describes the control problems of sulphate batch cooking, solving these problems with the Autocook computer system and practical results from working installations. The Autocook system simulates on-line the lignin dissolving reaction-and controls the charging of the digesters, production rate, product quality and steam consumption of the digester house. Experience from present installations shows that the Autocook system has payback period of less than one year.

This study focuses on production of biogas as an alternative energy by using biodegradable wastes (BWs) in view of solving waste management at household level. The research was conducted on ARTI model compact biogas plant of 1 m3 digester and 0.75 m3 gasholder in focusing the management of daily collected biodegradable wastes (1-2 kg) produced from households. Both laboratory and field analyses were carried out. Methane content in biogas was determined by Biogas Analyzer Gas Board-3200P. Average maximum of about 235 l gas was recorded per day with corresponding to 65 min/day burning hour with the gas flame of energy value 1.55 MJ/h. According to the plant owners, the burning period of the gas was approximately 2 h/day during the spring and pre-monsoon seasons. The average gas production (per kg) from fresh waste materials was approximately 60 l. The use of high moisture containing cellulosic waste materials and incomplete digestion due to lower digester temperature were the major causes of lower gas yield. The proportion of methane exceeded by carbondioxide in the beginning but then after gradually methane exceeded carbondioxide and reached 56.43% on an average. Although fertilizer value in terms of NPK increased gradually but it remained below 1% except K, which was found to be 1.22%. Simple payback periods of 4.81, 7.57 and 7.20 years were found in kerosene, firewood, and LPG substitutions respectively. Key words: alternative energy; biogas analyzer; compact biogas plant; methane; simple payback period DOI: 10.3126/njst.v11i0.4140Nepal Journal of Science and Technology 11 (2010) 167-172

Chance Constrained (C sup 2) Programming and Linear Programming under Uncertainty (LP(U sup 2)) are joined together in order to deal with different risks and uncertainties which are commonly encountered in capital budgeting. This includes payback period protection via chance constraints formulated to cover (or bound) a possible loss of future opportunities during the payback period. It also includes liquidity requirements formulated preemptively via (LP(U sup 2)) to provide protection against possible cash (or liquidity) shortages at specified times. The case of arbitrary discrete distributions is examined and new formulations are developed which model economic, statistical, and technological decision interdependencies. Relations to geometric programming are indicated prior to reducing these formulations to zero-one integer programming (deterministic) equivalents. Duality relations obtained from these formulations provide separate evaluators for yield, risk, portfolio and liquidity effects of cash investment. Finally, relations to 'Balas-type' subsidy and penalty adjustments are noted.

The quail is one of the poultry producing eggs and meat. Its existence can be as supporting the availability of cheap animal protein. However, the price of quail eggs is relatively fluctuating. The existence of price fluctuations will affect the income of breeders therefore it is of course fluctuating the price should be a concern for businessmen to conduct financial feasibility analysis of the business, so as to make the efficiency of quail cultivation business layer. So this study aims to analyze the financial feasibility of quail farming business in Serdang Village, Tanjung Bintang Subdistrict, South Lampung. This research uses quantitative descriptive method by collecting primary data through direct interview and survey as well as secondary data obtained from various literatures. Then the analysis used in this study is the analysis of the calculation of investment (capital), analysis of production costs, sales revenue analysis, profit and loss analysis, R/C ratio, break even point, and payback period analysis. The conclusion of this research is the business of quail cattle is feasible. This is shown from the results of feasibility analysis using r/c Ratio and break event point analysis which is earned value > 1 and break event point production and price actual production value and price which means the business is profitable. Keywords: Quail, Financial Study, Business Feasibility

This study aims to analyze financially (net present value, revenue cost ratio, internal rate of return, break event point, return on investment and payback period) feasibility of kampung super chicken farming Mr. Suparlan in Jojog village, district Pekalongan, East Lampung regency. The data used in the form of quantitative and qualitative data sourced from the primary data and secondary data which is then analyzed descriptively. Based on the analysis, it is known that kampung super farm is financially feasible to cultivate. This is indicated by the positive value of net present value (NPV) of Rp 186,568,517, revenue ratio (RCR) 1.59, internal rate of return (IRR) of 135.82%, return on investment (ROI) of 43%, and the value of payback period (PP) of 0.50. Keywords: financial feasibility, kampung chicken, chicken farm

The Payback Period has been dismissed as misleading and worthless by most writers on capital budgeting at the same time that businessmen continue to utilise this concept. This paper seeks to identify the problems which businessmen try to solve by use of the payback period, so that better tools can be provided for solving these, since neither the present value nor the internal rate of return does so. In the course of the analysis the payback concept is considered in its role as a criterion versus a payback constraint, payback and liquidity of capital assets and the liquidity requirements of the firm, payback as a break-even concept, and payback as a crude measure of the rate of resolution of uncertainty. While payback is not advocated for capital investment decisions, the reasons for its popularity need to be understood before it is possible to develop superior alternatives.

In a recent issue of this Journal, Makinen1 presented balance-of-payments payback periods for investments abroad by the U.S. automobile industry. This note will (1) question the usefulness of single-industry payback computations for national policy purposes, and (2) argue that certain assumptions in Makinen's approach vitiate his numerical results. For both sets of reasons, policies based on these findings might do more harm than good.