Net Present Value Calculations Research Articles

Vision of Offshore Energy Hub at Faroe Islands: The Market Equilibrium Impact

This study examines the integration of an offshore wind farm and green hydrogen production as a strategy to enhance the Faroe Islands' energy independence and reduce its carbon footprint. Utilizing the EnergyPLAN tool and market economic simulations, including Levelized Cost of Hydrogen and Net Present Value calculations, the research evaluates the economic viability and environmental impact of transitioning to renewable energy sources by 2030. The analysis explores various scenarios, ranging from dedicated offshore wind for in-turbine hydrogen production to platform-based electricity and hydrogen distribution. Results indicate that integrating offshore wind with green hydrogen production can significantly reduce CO2 emissions and dependency on imported fossil fuels. However, financial viability hinges on supportive mechanisms such as investment subsidies. The study's findings suggest that achieving economic feasibility requires strategic policy frameworks. This research contributes to the discourse on sustainable energy planning by offering insights into the dynamics of system integration, market economic simulations, and the role of support mechanisms in facilitating the green transition.

Decentralized production concepts for bio-based polymers - implications for supply chains, costs, and the carbon footprint

This paper presents a multi-dimensional evaluation of decentralized production networks based on modular production plants. The main objective of this evaluation is to examine the effects of different degrees of decentralization in production networks of the chemical industry. Using the production of a biopolymer as an example, the study includes strategic supply chain planning by agent-based simulations, economic evaluation by calculation of net present values and environmental assessment by calculation of carbon footprints. By allowing for dynamic reconfiguration of the decentralized networks over time, it is shown that mobile, modular plant concepts are beneficial to reduce supply chain expenses. Transportation efforts resulting from strategic supply chain planning are reduced by 40 % with increasing degree of decentralization. The profitability of the decentralized networks is dominated by the costs for the production processes themselves as capital and operational expenditures allocate to >50 % of the total costs. Product prices of 3000 to 5500 €2020 per ton are necessary to reach profitability of the decentralized production networks. Regarding the environmental assessment, the carbon footprint of the supply chain accounts for <3 % of the total emissions, which are dominated by the provision of process heat that accounts for 46 to 68 % of the total emissions. Carbon footprint of the decentral production networks can be significantly reduced by a systematic electrification of 90 % of the process heat demand.

The Economic Evaluation of Various Production Scenarios for Zubair Reservoir in the Kifl Field

This work evaluates the economic feasibility of various production scenarios for the Zubair reservoir in the Kifl oil field using cash flow and net present value (NPV) calculations. The Kifl field is an exploratory field that has not yet been developed or assessed economically. The first well was drilled in 1960, and three other wells were later drilled to assess the oil accumulation, so in this research, Different production scenarios were evaluated economically. These scenarios were proposed based on the reservoir model of the Zubair formation in the field. The research methodology used QUE$TOR software to estimate capital expenditures (CapEx) and operating expenditures (OpEx) based on field-level data, production profiles for each scenario, and produced fluid properties. CapEx estimates were mainly based on the number of drilled wells and plateau duration, while OpEx estimates were based on the number of barrels produced from each scenario. Cash flow values were estimated each year in the production interval after subtracting water handling costs, CapEx, and OpEx from the gross revenue of oil produced. The NPV for each scenario was then calculated using a 5% interest rate, and the most economical option was determined by comparing the NPV values of each scenario. Case-3 scenario was identified as the most economical option, with a high NPV value of approximately 612 MM$, an oil production rate of 10 MSTB/d, a Plateau duration of 3 years, a total number of wells of 11, and an Initial water cut of 13 %.

INVESTMENT ANALYSIS OF KARANGAGUNG TUBAN FISHING PORT DEVELOPMENT WITH PPP AVAILABILITY PAYMENT FINANCING

As the largest maritime country, Indonesia holds tremendous potential in fisheries and marine resources, serving as a primary driver for national economic growth. Despite the substantial potential for fishery activities in the Karangagung region, limited infrastructure and government budget constraints hinder the optimization of these activities. This research aims to conduct an investment analysis for the development of a fishery port in Karangagung, utilizing the Government and Business Entity Cooperation (PPP) scheme with Availability Payment financing. The investment analysis methods employed encompass the calculation of Net Present Value (NPV), Internal Rate of Return (IRR), and Benefit Cost Ratio (BCR), considering Availability Payment financing. Additionally, the study will analyze the Life Cycle Cost (LCC) in the development of the Karangagung Fishery Port. Therefore, this research aims to provide a comprehensive overview of both financial and non-financial potential benefits derived from the development of the Karangagung fishery port. Under the Availability Payment scheme, the Project Responsible Party will compensate the Business Entity reasonably for investments, operational costs, and fair profits. They will also be granted permission to provide these services for a specific duration. Upon the conclusion of this period, all assets will become government property. The analysis results indicate that the PPP Availability Payment financing scheme yields a positive NPV, an IRR value of 7.26% with returns in the 24th year, and a BCR value exceeding 1. Hence, this PPP scheme can be deemed feasible for implementation in the Karangagung Fishery Port development project.

ANALYSIS OF INVESTMENT FOR THE DEVELOPMENT OF THE KARANGAGUNG FISH PORT IN TUBAN REGENCY

Karangagung Fishing Port (PPI) in the coastal area of Tuban Regency, Palang District is known as the fisheries base in Tuban Regency, even most of the fish production from the Karangagung PPI fishing port has been marketed to all regions in East Java province. The sustainability of the development of an infrastructure project is very important to consider in the development of infrastructure in the maritime sector, especially the fisheries sector. This research will produce an investment analysis on the development of the Karangagung Fishing Port (PPI) infrastructure project which is expected to increase the productivity of the fisheries sector in the area. The investment analysis method used includes the calculation of Net Present Value (NPV), Internal Rate of Return (IRR), and Benefit Cost Ratio (BCR) with the analysis results of NPV value of 6,648,460,488.00, IRR 6.21% and BCR 1.0178 with an investment period of 25 years. From the results of the investment analysis that has been carried out, the NPV value is positive. then the IRR value or the rate of return on an investment with a value greater than the discount factor plan and the benefit value or BCR is more than 1 and the payback period in year 25 is the same as the investment period of 25 years. So, the feasibility of investment is still said to be feasible to use for handling the work of the Karangagaung Tuban Fishing Port Development.

ANALYSIS OF ELECTION OF INFRASTRUCTURE FINANCING SCHEMES IN THE DEVELOPMENT OF REGIONAL WASTE MANAGEMENT IN THE DISTRICT AND CITY OF PROBOLINGGO

Regional waste management is a crucial aspect in ensuring environmental sustainability and public health in the Probolinggo Regency and City. One of the main challenges in the development of regional waste management is the financing of the necessary infrastructure to achieve these goals. This research aims to analyze the selection of infrastructure financing schemes in the development of regional waste management in the Probolinggo Regency and City. The research methodology involves field surveys, interviews with relevant stakeholders, and economic and financial data analysis. The investment analysis method used includes calculations of Net Present Value (NPV), Internal Rate of Return (IRR), and Benefit Cost Ratio (BCR), considering Availability Payment financing. Additionally, this study will also analyze Life Cycle Cost (LCC) while considering various financing schemes, including government financing schemes (APBN/APBD) and non-government financing schemes such as Public-Private Partnership (PPP) schemes like Build-Operate-Transfer (BOT) and Regional Loans. The results of the analysis show that all financing schemes, both government and non-government, yield viable results. These three schemes are then validated through Focus Group Discussions (FGD) using financial and non-financial criteria. The selected financing scheme is the regional loan, with the second alternative being APBN &amp; APBD. Meanwhile, the BOT Public-Private Partnership scheme is considered as the last alternative financing scheme.

Scheduling Model for a Trigeneration System With Energy Storage Unit: A Hospital Application

Over the last three COVID-19 effective years, it was evident that healthcare has been the most sensitive sector to electricity failures. Therefore, if well developed and implemented, a microgrid system with an integrated energy storage system (ESS) installed in hospitals has great potential to provide an uninterrupted and low-energy cost solution. In this article, we target to show the importance of the installed ESS against the problems that will arise from power outages and energy quality problems in hospitals. Besides, it aims to construct an energy management system (EMS) based on the scheduling model to meet the lowest cost of a system containing solar panels, microturbine, gas boiler, and energy storage units that are repurposed lithium-ion batteries from electric vehicles and thermal storage tank. EMS is a mixed-integer linear program to meet the hospital's electricity, heating, and cooling demands with the lowest cost for every hour. The established scheduling model is run for a hospital in Antioch, Türkiye, with 197 beds, 4 operating rooms, 2 resuscitation units, and 9 intensive care units for every hour based on the data in 2019. With the EMS, approximately 25% savings were achieved compared to the previous energy cost. Furthermore, as the result of the net present value calculation, the payback period of the proposed system is estimated to be approximately seven years.

Multi-criteria assessment of an auxiliary energy system for desalination plant based on PEMFC-ORC combined heat and power

A novel auxiliary energy system for desalination plant based on proton exchange membrane fuel cell (PEMFC)-organic Rankine cycle (ORC) combined heat and power is proposed in this paper. A thermodynamic model of the system is established, and a dynamic net present value (NPV) calculation method under the context of time-of-day tariff is designed. The system output power, economic and environmental evaluation indicators under steady-state and dynamic operation are optimized using NSGA-III and TOPSIS. The parameters sensitivity analysis shows increasing the ORC system saturation pressure and the auxiliary equipment efficiency is beneficial to increase output power and reduce indirect CO2 mass specific emission (MSE). However, excessive pressure and efficiency will lead to a significant decrease in NPV. Under steady-state optimization, the electrical power of the system is increased by 20.1 % compared to the conventional PEMFC system. And when the proposed system operates dynamically, the single-day power generation is 1620 kWh, which is 9.31 % higher than the PEMFC system. The single-day heated seawater production is 110.1 tons and the MSE is 0.105 kg/kWh. The NPV decreases significantly, but the system can pay for itself over its lifetime. Therefore, the proposed system has thermodynamic and economic performance advantages over the conventional PEMFC system.

Feasibility Analysis for Economic Flyover in Bojonegoro District

The traffic jam that occurred in the city of Bojonegoro on the Rajekwesi – MT road section. Haryono, the leading cause of problems in the area, is at intersections and meetings with railroad tracks. Building a flyover is one solution to congestion that occurs at railroad crossings. An economic feasibility study must be carried out to assess the characteristics of a development project. This study aims to determine how much profit and costs are obtained and the extent of its economic feasibility. The project that will be examined in this study is the construction of a flyover in Bojonegoro district. Then, the feasibility of the Flyover construction project is based on the calculation of Net Present Value (NPV), Benefit Cost Ratio (BCR), and Internal Rate of Return (IRR). The results of this economic feasibility analysis There are three alternative route selection that are associated with economic feasibility where the first alternative with NPV: 2,121,743,718,000, BCR: 12.7499 and IRR: 57 then the second alternative with NPV value: 1,733,795,057,000, BCR: 10.3771, IRR: 50% and the third alternative with an NPV value: 1,395,424,941,000, BCR: 6,978 and IRR: 37%. Based on the economic feasibility analysis using process hierarchy analysis, the first alternative was chosen with a score of 0.571. With the construction of the flyover, it is hoped that it can break up the flow of traffic on the Bojonegoro - Cepu - Nganjuk section to encourage economic growth, trade, and regional development in the Bojonegoro district.

Financial Feasibility Study of Perum Damri Serang Branch Business Study on Transport Trajects of Tanjung Lesung and Sawarna National Tourism Strategic Areas

Transportation refers to the act of relocating or transferring an object from one location to another, with the intention of enhancing its utility or enabling its application for specific purposes in the new destination. Public transportation refers to a form of mass transportation that provides passenger services through a collective travel system. This method of transportation is accessible to the general public, operates on predetermined routes, and requires payment for each individual journey. Public transportation operates on a rental or payment system. The primary function of public transportation is to cater to the mobility needs and interests of the community. Survey research encompasses the examination of both extensive and limited populations through the collection of data from representative samples. Its primary objective is to ascertain the relative prevalence, distribution, and interrelationship of variables. In summary, it may be concluded that both routes did not demonstrate financial feasibility within the initial two-year period, considering a discount rate of 12.5%. While the internal rate of return (IRR) study suggests the possibility of long-term profitability, it is crucial to thoroughly evaluate the short-term risks and losses that are brought to light by the benefit-cost ratio (BCR) and net present value (NPV) calculations. When making decisions on the operation of this route, it is necessary to carefully analyze several elements, such as market conditions, competition, and prevailing economic circumstances. Prior to proceeding with or ceasing route operations, it is imperative to conduct a comprehensive study and engage in strategic planning that aligns with DAMRI's commercial objectives.

Building upcycling or building reconstruction? The ‘Global Benefit’ perspective to support investment decisions for sustainable cities

Investment decisions on demolition and reconstruction vs. refurbishment of the existing building stock can extend beyond financial and economic criteria. However, they must involve energy savings, environmental preservation, material consumption, and waste management for sustainable cities. The regulatory framework used in the past decades and the correlated research seem more unbalanced toward the containment of building energy consumption than toward embodied energy (EE) management in production processes and environmental impact management. Foreshadowing the perspective of a more restrictive regulatory framework on EE, such as prohibiting the displacement of materials with residual energy potential, such as waste in landfills, some challenging frontier issues are involved when facing the limits of the economic evaluation methodologies for transformation projects. Thus, this study aimed to propose a reasoning and an operative modality to support urban governance policies and investment decisions involving private and public subjects in the construction sector. Circular economy and life cycle thinking principles, through life cycle costing (LCC) and life cycle assessment (LCA), are assumed and harmonized with the discounted cash-flow analysis (DCFA): (1) monetizing and modeling into the DCFA the EE and the embodied carbon (EC); (2) internalizing the Global Cost and the new ‘Global Benefit’ into the net present value (NPV) calculation; and (3) focusing on the residual end-of-life value calculation from the early design and investment decision stages. The reasoning can be extended to single buildings, the urban scale, or even entire portions of existing buildings in urban areas concerning typological sub-segments. The operative modality is yet to be explored in a concrete application for orienting urban governance policies and sustainable public–private partnerships, including environmental and, thus, social externalities even in the private real estate investment decision process, in the scope of evolving regulations.

Economic And Sensitivity Analysis Stimulation Of Coiled Tubing And Bullhead Combination On A Horizontal Well

Production decreased often occur in Indonesia's oil and gas fields which becomes a problem for oil well exploration. Thus the role of the company demands to be able to re-optimize the flow rate of oil production in the oil and gas field. One of the workover jobs was stimulation. The function of the work was to stimulate the wells mechanically and chemically which aimed to increase the productivity of wells that have experienced a decrease in oil production, in which mechanical stimulation was in the form of coiled tubing units and bullhead used chemical stimulation, namely acidizing and solvent. To prove the economy of the coiled tubing unit and bullhead stimulation work, calculations and analysis of economic indicators such as net present value (NPV), internal rate of return (IRR), and payout time (POT) can be carried out. Where this study aimed to determine the economics of the stimulation project carried out on the horizontal wells of the RD field. The results of the calculation of economic indicators that will be feasible are not like this stimulated workover work project with an investment of US$ 133,053 acidizing coiled ribbing oil price of 68.51 USS/bbl thus the calculation of NPV @ 10% 60631 USS, POT 0.74 months, P1 9, is obtained. 73, IRR 355%, coiled tubing solvent well US$ 185,967.166 NPV@ 10% 98,431 USS, POT 3.94 months, PI 3.69, IRR 103%, bullhead acidizing well US$ 8858.31 value NPV@10% 218029 USS, POT 0.95 months, P1 45.16, IRR 1890% and bullhead solvent USS 72745 value NPV@10% USS 248586, POT 0.94 months, PT 52.53, IRR 1822%. Sensitivity analysis on stimulated workover work is carried out by changing the assumptions with 85% and 115% then the results obtained are the oil price value which is the parameter that most influences the NPV value then oil production, and capex. From the results of profit indicator calculations and sensitivity analysis, it can be concluded that the stimulated workover work in the RD field is all feasible because it meets the eligibility requirements of a project.

Assessment of costs and benefits of green retrofit technologies: Case study of hotel buildings in Sri Lanka

With the rising impact of greenhouse gas emissions, resource depletion, and the global interest in sustainability advancements within all sectors, construction industry practitioners are also interested in incorporating sustainable features and practices into their buildings. Nevertheless, most of the commercial buildings in Sri Lanka had been constructed during the unprecedented urbanization between 1995 and 2010, thus, before sustainable concepts became more prominent. Therefore, existing buildings in Sri Lanka is experiencing ever-increasing energy consumption, resulting in higher utility costs, with which green retrofitting has become imperative, notably in hotel buildings. This study, therefore, conducted an economic evaluation of three existing hotel buildings to establish an account of the cost implications and saving potentials of different green retrofit technologies. The data collected through document reviews and site visits were analysed using net present value and simple payback period calculations. Although number of retrofitting technologies have been incorporated in the selected buildings, more weight has been given to incorporating technologies to achieve energy efficiency and indoor environmental quality. Considering the financial viability, all the implemented green retrofits have a positive return on investment and less than ten years of payback period, except LED televisions. Amongst the implemented retrofits, biomass boilers, energy-efficient chillers, and solar PV systems have the highest energy-saving efficiency, followed by VFDs and LED lighting, while LED televisions have the lowest. The study's findings contribute to industry practitioners identifying the appropriate green retrofits based on the cost implications and savings potential and enhancing the sustainability of the built environments by reducing greenhouse gas emissions and depletion of natural resources.

Calculations of net present value for a small modular fusion power plant

If, as suggested by proponents, fusion small modular reactors (SMRs) can be developed faster than envisaged by the multi-national ITER/DEMO programme, the question remains as to whether such reactors will be a viable commercial proposition. Such viability will depend on a range of factors, including capital costs, income from the sale of electricity and the cost of capital. To investigate these effects, net present values (NPVs) were calculated for a range of scenarios for both first of a kind and Nth of a kind plants supplying electricity to the UK grid beginning in 2040. Calculations have also been carried out to delineate the ‘space’ in which positive NPVs would be obtained. These calculations show that there are combinations of capital costs, electricity prices and costs of capital in which a fusion SMR plant would be financially viable. These calculations, being based on uncertain costs and incomes, are necessarily uncertain. The calculations show that minimisation of capital costs must be a key goal for those seeking to develop a fusion SMR as a commercial proposition.

Expected Commercial Value for New-Product Project Valuation When High Uncertainty Exists

Innovative, bold new-product projects usually have high uncertainties, yet most firms do not handle risk and uncertainty adequately in their financial evaluations. While qualitative factors are usually important in the selection of innovative, higher risk projects, most firms also require some type of financial analysis, the most popular being Net Present Value (NPV). But failing to include risk in NPV calculations yields <italic xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">very optimistic estimates</i> of the project's financial value, which simply lack credibility. On the other hand, simple risk methods, such as the Probability-adjusted NPV, <italic xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">consistently undervalue the project</i> which could lead to incorrect kill decisions on innovative projects … a major problem for the firm seeking more transformational new products. Additionally, estimating realistic probabilities of technical and commercial success for the innovative product is a challenge. <p xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">In this article, the <i>Expected Commercial Value (ECV)</i>, an Options Pricing approach but relatively simple-to-use, is outlined, complete with a true case example. The ECV is a stage-wise model, and thus recognizes that spending decisions for larger new-product projects are incremental, one stage at a time; this mitigates risk, and so <i>increases the economic value of the project</i>, a fact ignored in most financial calculations. The ECV also builds in probabilities of technical and commercial success. <p xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">The challenge of <i>estimating realistic probabilities</i> of success is handled in two ways: a group prediction process based on the Modified Delphi method; and recently-developed probability tables based on empirical research. The values in the probability tables enable the project team to estimates their odds of success (required in the ECV valuation calculation) based on key characteristics of their project.

Real options in health insurance decisions: the Portuguese ADSE system

The choice between two different health insurance providers is, more often than not, taken from a static point of view, measuring costs and benefits at a specific point in time, not considering all the relevant changes that may occur in life and in health conditions. Inspired by the new regulations set in place by the exclusive Portuguese civil servant’s insurance scheme designated by ADSE, this study proposes a novel approach based on real options for an individual that needs to choose between a private health insurance and the apparently cheaper option provided by ADSE. Starting from the net present value approach, we subsequently show that, depending on some life changing events that may occur, it would be more beneficial for the individual to either abandon the health system or enter it at a later date. By incorporating the value of these options in the net present value calculation, decisions taken are not only more flexible, but also more realistic.

ESTABLISHMENT OF TOUR PACKAGES AND FEASIBILITY OF COSTS WITH NPV IN BARITO TOURISM VILLAGE IN MALANG DISTRICT

Tourism is a driver of the economic sector and a solution for the government to increase economic development. Tourism is one of the important sectors in developing a country because it contributes to job creation and state income and promotes the prosperity of a country. The tourism sector has a multiplier impact on the regional economy. One is that it can help increase people's income and alleviate poverty. There are problems in efforts to develop tourism, and researchers make plans for developing tourist village areas by mapping the potential of tourist destinations and packaging in the form of tour packages. Planning for developing tourist areas in rural areas through innovation in making tour packages from the results of mapping tourism potential will boost regional economic growth and strengthen the community to carry out a sustainable development process. The research was conducted using mixed method analysis, namely descriptive qualitative, and quantitative. Calculation data for the design cost of promotion planning and marketing of tourism villages is calculated using financial feasibility analysis. Financial feasibility analysis is carried out by calculating the NPV (Net Present Value). The planning for packaging the Barito Village tour package is named " Local Pride Tour Of Barito," which is grouped into three types. First, based on the theme with the respective names of the Heritage Tour, Artificial Tour, and Socio-Economic Tour packages. Second, based on age groups with the names of each package, Kids Tour, Teenager Tour, Adult Tour. Third, based on special needs, each package is named Religion Tour, Healing With Nature Tour, and Sports Tour, which has two types of packages named Adventure Trail and Gowes to Barito Village. Based on the results of the NPV calculation, the NPV value of the entire tour package is more than zero, so all tour packages in the Barito Tourism Village Area are feasible.

ANALISIS KELAYAKAN FINANSIAL PEMBANGUNAN DERMAGA KUSAMBA DI DESA PESINGGAHAN KABUPATEN KLUNGKUNG DITINJAU DARI ASPEK FINANSIAL

Klungkung Regency has very well developed tourism potential in Bali, one of which is the tourist attraction in Nusa Penida, Nusa Ceningan and Nusa Lembongan. The construction of this pier is one of the Klungkung Regent's visions, namely to build a Golden Triangle Port. It is hoped that this port will be more adequate, orderly, safe and fast. a feasibility study needs to be carried out to provide an overview of the feasibility of building a pier, given the high growth rate of tourism flows so that the construction of this pier can accelerate economic growth and provide a multi-effect for the Klungkung Regency area and its surroundings. The purpose of this research is to find feasibility in terms of financial economic aspects. The primary data collected includes observational data on the research location while for secondary data, namely the unit price for the construction of the ferry pier, the cost of constructing the pier. Analysis of the financial aspect using the Net Present Value (NPV), Internal Rate of Return (IRR), Benefit Cost Ratio (BCR), Annual Equivalent (AE) &amp; Payback Period (PP) methods. Based on calculations and data analysis obtained from the financial aspect, the value obtained Net Present Value (NPV) 12% = IDR 1,196,629,097 &gt; 0 is declared feasible, 15% NPV calculation = IDR – 10,380,292,244 &lt;0 and NPV 18% = IDR -18,008,946,782 &lt;0 is declared not feasible. Internal Rate of Return (IRR) of 12.25% &gt; MARR value of 12%. BCR at an interest rate of 12%, the BCR value is = 1.02. 15% BCR is 0.77 and 18% BCR value = 0.61. the AE value obtained was IDR 6,828,473,886 &gt; 0. PBP value was 15.36 years &lt; n (investment value), so that the construction of the Kusamba jetty in Pesinggahan Village was declared feasible.

Growth and decay: forest landowner impatience factor

From saplings to mature stems, trees grow into new log-size classes expanding in both timber volume and monetary value. Forestland financial decay becomes discernible when timber revenues are discounted to their present-day value. Net present value (NPV) calculations require application of a financial discount rate moderated against the forestland’s macroeconomic inflation rate. The discount rate is significantly determined by the forestland owner’s ‘impatience factor’ uniquely guiding timber harvest rotation timing for each forestland investor. The importance of appropriately defining the impatience factor is discussed in this manuscript. A 15.78 hectare (39.0-acre) forested parcel value is considered, as viewed through the impatience factor lens for various investor classes to appreciate observed variability in discounted asset values and how it influences timber harvest rotation timing. Natural resource managers, investors, and advisors may find the techniques described here helpful in their timber management financial decisions.

Economic Value Estimation of Biogas Utilization in Public Wastewater Treatment Plants of the Republic of Korea

This paper presents economic value estimation of improved biogas utilization systems of public wastewater treatment plants in Republic of Korea. Since a large amount of biogas produced at digestion facilities is being wasted as a by-product, the biogas energy utilization system needs to be enhanced. In this paper, three operating options able to utilize the produced biogas are proposed, and then their monetary benefits are estimated by means of net present value calculation. Real operational data from the public wastewater treatment plant located in Sejong city, Republic of Korea, is used to reflect a variation of the rated daily gas production and its concentration according to the weather and seasons, resulting in calculating more reliable results. Additionally, to minimize the estimation errors due to uncertainties of the gas concentration and the gas selling price, a Monte Carlo simulation considering the variation of critical input data is carried out. As a result, the proposed approach can lead to better decisions in selecting the suitable biogas utilization system by forecasting the ranges of possible economic values.