Financial Investment Analysis Research Articles

Harnessing Artificial Neural Networks for Financial Analysis of Investments in a Shower Heat Exchanger

This study focused on assessing the financial efficiency of investing in a horizontal shower heat exchanger. The analysis was based on net present value (NPV). The research also examined the possibility of using artificial neural networks and SHapley Additive exPlanation (SHAP) analysis to assess the profitability of the investment and the significance of individual parameters affecting the NPV of the project related to installing the heat exchanger in buildings. Comprehensive research was conducted, considering a wide range of input parameters. As a result, 1,215,000 NPV values were obtained, ranging from EUR −1996.40 to EUR 36,933.83. Based on these values, artificial neural network models were generated, and the one exhibiting the highest accuracy in prediction was selected (R2 ≈ 0.999, RMSE ≈ 57). SHAP analysis identified total daily shower length and initial energy price as key factors influencing the profitability of the shower heat exchanger. The least influential parameter was found to be the efficiency of the hot water heater. The research results can contribute to improving systems for assessing the profitability of investments in shower heat exchangers. The application of the developed model can also help in selecting appropriate technical parameters of the system to achieve maximum financial benefits.

Determining of Well Drilling Sequence for Investment Analysis using Monte Carlo Simulation in Upstream Oil and Gas Company in East Kalimantan, Indonesia

Electrical construction company that experienced in making Well Head Control Panels (WHCP) has difficulties to decide acceptance of investment in WHCP contracts raised with their client in upstream oil and gas company. The difficulty mostly due to uncertainty of client well drilling sequence. The electrical construction company need to financial investment analysis includes material purchasing, shipping, fabrication and delivery of WHCPs need to be done to make sure they make a profit. It is crucial for electrical construction company used correct forecasting method to determine schedule of client’s request. Monte carlo forecasting method is used to predict the well drilling sequence. The well drilling sequence data for 12 months is used to determine 24 months well drilling sequence operation with result 179 wells with normal distribution and 167 wells with triangular distribution.

Finance as a critical component of successful implementation of creative innovations in the modern economic system

The article examines theoretical approaches to the interpretation of certain concepts of the innovation economy in the context of modern transformations, as well as the effectiveness of financing creative innovations. The authors highlighted the problems of innovation transfer and intellectual property management. The paper analyzed the main innovation activity indicators in selected world countries for 2010-2022. It reveals the correlation between innovation financing and economic performance at the macro level. In addition, the authors summarized the essence of the "creative innovations" and "transfer of innovations" categories. They proposed criteria for assessing the effectiveness of innovation potential and defined their nature. The evaluation testing confirmed the possibility of using the proposed criteria. In particular, the key aspects of the formation of adequate financing of creative innovations include financial analysis of investments and risk assessment, marketing strategy and transfer of innovations, as well as monitoring and evaluation of the results of innovation implementation. The authors developed practical approaches to increase the effect of innovation implementation. These approaches allow economic systems to ensure a high level of transfer organization and implementation.

Financial Investment Analysis of the Chinese Film Industry in the Post-epidemic Era

With the deepening of the reform of China's market economy development system and the establishment of the orientation of cultural industrialization development, China's film industry has gained unprecedented opportunities and opportunities for industrial development. At present, China has become the second largest film market in the world. Based on the pursuit of profits in the film industry, a large amount of capital has flooded into the Chinese film industry, and the scale of film investment and financing has been expanding. At the same time, the economic downturn in China and the world since the pandemic in 2020 has put great pressure on the film industry. Therefore, how to better finance film investment in the post-pandemic era has become a big problem. By literature analysis, this paper analyzes the financial investment environment of China's film industry and the development status of China's film finance, finds out the investment path and effectiveness of China's film and draws some suggestions for the future development of China's film finance.

Prediction of Electric Load Neural Network Prediction Model for Big Data

In the background of information network and big data era, the digitalization and information network level of China's financial industry has been improved, and many advanced big data analysis technologies have been derived, among which mobile big data analysis model is the most widely used. Based on the concept of financial investment, mobile big data analysis model can not only improve the accuracy of financial data analysis, but also quickly establish the financial investment evaluation and prediction model, providing a reliable basis for financial investment and financial development strategy. In this regard, the author combines relevant literature and his own work experience to conduct a detailed study on mobile big data analysis model based on financial investment concept. Mobile big data analysis model is a kind of data analysis model established based on big data technology, which has the characteristics of strong data collection ability, high accuracy of data statistics and analysis, and high efficiency of data application. Based on the concept of financial investment, the mobile big data analysis model can not only improve the financial investment analysis function of the mobile big data analysis model, but also improve the financial risk analysis ability of the model, which provides a reliable basis for financial investment and financial risk management. Therefore, the following briefly outlines financial investment, then analyzes the importance of building mobile big data analysis model based on financial investment concept, and finally analyzes the method of building mobile big data analysis model based on financial investment concept and briefly discusses the typical application of the model.

ANALYSIS OF ECONOMIC AND FINANCIAL INVESTMENT VIABILITY: APPLIED TECHNOLOGY IN MILK PRODUCTION

The improvement in the quality of life, together with the reduction of downtime in milk production, is the result of the technology invested and the consequent changes required by the milk production chain. Thus, the present study, carried out on a small property in the northwest of the state of Rio Grande do Sul, verified the feasibility for the acquisition of a new and modern milking model, through the financial analysis of investments. The research is classified as a single case study, with a quantitative approach. The suggested investment has several positive points, such as the possibility of flexibility in working hours and better quality of life for the producer, elimination of outsourced labor, easy handling of milking, definition of strategies, animal welfare, recovery investment and others. On the other hand, there are currently scenarios that hinder this improvement, such as the dependence on a stable electric power network and the maintenance distance in cases of emergency. The property under study is in a business environment conducive to innovation, which aims to improve the quality of life of the producer and increase revenue.

Financial Assessment of Smallholder Oil Palm Production in Unsuitable Areas of Surat Thani Province, Thailand

This study was conducted to provide information on profitability, social status, occupations, sustainability, self-reliance, and risks in small-scale oil palm production in unsuitable areas of Surat Thani, by planted oil palm area Thailand’s largest province. The data were collected from 25 farmers who have newly grown to 25 years old oil palm trees cultivated in unsuitable areas. The data were subjected to financial investment analysis, switching value test, sustainability, and self-sufficiency analysis. The investments in oil palm cultivation were assessed by net present value (NPV), internal rate of return (IRR), and benefit to cost ratio (BCR). The results show that most growers were senior citizens with primary school education, and the average number of family members was 4.1. They had self-invested and used family members as labor (on average 1.6 men/family). The average oil palm yield in unsuitable areas was 3.60 tons/rai/year. Based on 7% discount rate the NPV was equal to 71,215.17 Thai baht, IRR was 38.72%, and BCR was 2.25. These financial indicators show that the overall performance of oil palm cultivation in unsuitable areas is a worthwhile investment, although with high risks on the revenue side. The oil palm growers had moderate levels of sustainability and self-reliance.

Прогнозирование валютной инфляции для анализа инфляционного риска финансовых вложений

The need for improving methods of financial investment analysis in order to reduce risks leads researchers to exploit the modern scientific advancements especially in IT domain. Financial analytics require the ability to model and forecast future value of investigated financial parameters like currency inflation. In this paper, we analyzed the monthly inflation rate of Kazakhstan currency, using historical data from 1995 to 2020 by applying wide spread statistical and machine learning methods. The results show that the proposed research approach generates a solid forecasting accuracy and can be proposed to be included into financial investment analysis methods that could reduce inflation risk.

Design and construction a didactic vending machine

This paper proposes the design and construction of a didactic vending machine, students pretend to be immersed in a work with delivery date as many companies that work for projects do. The project of vending machine to be developed will have as parameters that dispatch four different products, with a control panel, a 16 x 2 LCD screen which shows the cost of the chosen product or product, will have to give change and its data processing is via Arduino, a 3D simulation is carried out to ensure the compatibility of all components, an innovation presented by the prototype to be developed is that it sends a text message when a product is about to run out, with the product description, the number of machine and its location, this provides the supplier with better control over their large-scale machines. A comprehensive financial investment analysis is performed to ensure the viability of the project.

Energy storage behind-the-meter with renewable generators: Techno-economic value of optimal imbalance management

There is a growing body of evidence that energy storage systems can provide significant flexibility to the electricity grid. This study introduces a system comprising an energy storage unit connected behind-the-meter with a large-scale wind power generator. The associated constraints are derived from storage device and wind power parameters, and then implemented to carry out energy arbitrage, manage imbalance of the wind farm, and help the grid during times of peak demand in the winter. A suitable representation of the system components enables the straightforward implementation of energy storage dynamics in a purely linear rolling-planning optimisation framework. A case study is constructed for the simultaneous optimal allocation of energy to maximise profits, followed by a detailed financial investment analysis. It is demonstrated that a business case can be constituted only for the proposed energy imbalance management strategy, which also extends the cyclic lifetime of the storage unit.

Managerial flexibility role on financial investment analysis: a case study of public housing

The limitations of Discounted Cash Flow (DCF) method for capturing the opportunity value phenomenon in the uncertainty of housing investment analysis cause difficulties in the decision-making process for the investors. Flexibility factor becomes the obstacle for investors in project uncertainty. Real Options Analysis (ROA) is an important factor included in the DCF method because it offers managerial flexibility in the uncertainty of housing investment decision making. Flexibility in ROA is a right and investors do not have an obligation to respond to uncertainty in project investment. In this research, the type of flexibility on ROA used is an option to carry out promotional activities. The research results indicate that promotional activities affect the increase in Net Present Value (NPV) so that the benefits are maximized. Comparison of the results of investment analysis between ROA and DCF methods indicates an added value due to the existence of such flexibility. The investment simulation of ROA method was conducted using Monte Carlo method approach. The role of flexibility from the simulation is obtained by increasing the added value by 5.2%, and optimal promotion occurs in the first two years of investment.

Management of investment risks in the system of project financing

Purpose. The aim of the article is to investigate the problem of investment risk management in the project financing system. Methodology of research. The methodological basis of the study is the dialectical method of scientific knowledge. General scientific and special methods are used in the process of research, namely: abstract and logical, deductive and system analyzes – in the study of the peculiarities of project financing implementation; problems of management of investment risks in the project financing system; substantiation of ways of activation of development of project financing in Ukraine. Findings. A literary review and analysis of modern approaches to defining the concept of “project financing” have been carried out. The problematic aspects of the development of project financing in Ukraine are identified and the most common instruments for neutralizing investment risks in project financing are analyzed. According to official statistics, a significant proportion of business entities are found to be operating at a loss or low level of profitability, which negatively affects their creditworthiness and limits access to bank lending. In such circumstances, an important way out of this situation is to activate the development of project financing. Project financing, taking into account investment risks, can be provided by reliable financially sound banks, which have effective risk management, long-term resources, highly qualified specialists in financial investment analysis and consulting. Originality. The reasons for insufficient distribution of project financing in the banking sector of Ukraine have been identified and the directions of its activation have been proposed. Practical value. The findings of the study, which are expressed in the conclusions and proposals, contribute to solving the problem of improving investment risk management in project financing. Key words: project financing; project risks; investment risk; investment climate; investment risk management.

Project-based strategy for teaching photovoltaic considering 3D simulation tools and natural phenomena

A complementary methodology to the teaching of photovoltaic systems is proposed where students can develop a complete project if they were immersed in the industry. The complementary strategy incorporates activities usually not taught which are delivered via web-classroom to develop and reinforce the abilities needed to face the industry once they are graduated. A project-based learning strategy is used to reinforce the teaching on sizing, planning, modeling, installations with international standards, the start-up of a photovoltaic system with a monitoring system. Students carry out a financial investment analysis rarely taught, such as the calculation of the payback period, the internal rate of return and the net present value are made to ensure the project viability. Planning-dimensioning usually is taught analyzing the electrical bill to determine the required sizing capacity without considering the building installed capacity. A three-dimensional dimensioning using the geographic location of a possible installation is proposed to provide better information in terms of losses due to shading or obstacles that may affect an installation. Furthermore, it is proposed to perform an analysis of mechanical stresses on the mounting rail system under natural phenomena such as hurricanes. This type of analysis is not usually taught in classes and it is important since an investment can be lost due to natural phenomena as has already occurred in some solar plants. The proposed activities are aimed to develop self-directed learning skills motivating to do research leading to problem-solving and meaningful activities to work autonomously in a natural and real-life situation. This approach allows the teacher and students to ponder deeply about worthy subjects and issues. Five questions were formulated to verify student satisfaction; the 30 surveyed students have a very positive view of this complementary utilized strategy.

Solvency, Indebtedness, Rates of Return and Investment Impact on Economic and Technical Analysis Indicators (Case Study)

Abstract The purpose of the performed and presented financial analyzes, in the case of the two units, does not allow major discrepancies between the estimated and achieved situation. The authors have based the research on the technical-economic and financial analysis of investments, which sets economic efficiency and investments viability and assumes forecast of revenue, expenses, profit and loss account, balance sheet and cash flow: a) static analysis of indicators; b) dynamic analysis of indicators, c) cost-benefit analysis. Analysis of economic efficiency and sustainability of investments aimes at both static indicators of investment analysis and dynamic analysis of economic efficiency. The goal of research was to improve analyzes and economic indicators for assessing the effectiveness and sustainability of investments and the objectives targeted technical and economic analysis, solvency and viability of investments and the impact of the investment on key indicators of economic and financial technical analysis. Case studies, carried out at S.C. NORD INTERMED CONSULTING GROUP S.R.L. Dorneşti, Suceava county and S.C. ANDIMIR TOP S.R.L. Mihălăşeni, Botoşani county, led to a series of measures to improve the financial analysis of economic efficiency and sustainability of investments.

Applied financial non-linear programming models for decision making

Financial programming portfolio evaluation is a contemporary analysis technique which combines linear and non-linear mathematical programming with financial investment analysis. The study examined an applied model at a case study, which used linear and non-linear programming to forecast profits and investment returns of various alternatives. A unique perspective of the case study was the type of investments ranged from operational (business model) improvement, stock market beta risk analysis, and also low risk bond return on investment. A financial spreadsheet example is presented to demonstrate the applicability of the proposed framework and methodology for decision making in a business.

Tax and Investment Return

Taxation can be considered central to corporate finance theory, where it contributes to the determination of capital structure, dividend policy and valuation of the firm. However, it plays little role in the developments of market finance theory, financial investment analysis or asset and portfolio management. And yet, at least in most of the developed countries, the investments made by savers are subject to often substantial, and at times multiple, taxation. Tax may have a significant impact on the profitability of investments, and it can affect them in a non-uniform manner. Taking taxes into consideration can therefore lead to important changes in investment choices and to the allocation as many resources to dealing with fiscal issues as to the analysis of the intrinsic qualities of the different investments and management of the portfolio. This paper analyses the impact of taxation on investments (financial or non-financial). First, the impact of taxation on the return on investment depends, to a certain extent, on its timing. Second, because taxes on operating and capital losses are not immediately reimbursed, risky investments are generally more ill-treated than safe investments. Third, and most importantly, given the nominalist nature of most tax laws, the effective taxing of the real return, which is what matters to the saver, can turn out to be very heavy, even in a context of moderate inflation such as we have witnessed over the last twenty-five years.Those results are illustrated on the case of France, which has a – deserved reputation of a high tax country. They are nevertheless valid in most countries.

Impact of energy efficiency measures on the economic value of buildings

A main objective of energy policies is to make all levels of the society, from governments to citizen, interested in increasing the energy efficiency of buildings. One of the most important barriers in implementation of energy policies is that the cost of potential energy savings, typically considered being the only financial benefit, does not sufficiently motivate investments. The target is therefore to identify further possible drivers pushing positive reaction according to energy saving action.The paper discusses whether a market-based instrument, capturing the increase of the economic value of energy efficient buildings, can be also used. Methods that quantify the added value due to energy performance, including recommendations on how they can be incorporated in the financial analysis of investments in weatherization, are developed. By applying the proposed methods, the payback period of investments in energy efficiency measures depends on two factors: potential energy savings and the added value to the property. Case studies on some existing condominiums from Romania are analyzed and provide evidence to the research question.The market sensitivity to energy efficiency measures, the possibility of an intangible added value as well as the impact to financial investment decisions is subsequently in the focus.

An empirical study of capital budgeting practices for strategic investments in CIM technologies

In recent years, an increasing number of companies have been struggling to justify strategic technology investments using traditional capital budgeting systems. The existing accounting-based decision models (such as discounted cashflow) are said to be no longer adequate to help evaluate investments in technological innovation, mainly because of the strategic, intangible nature of the benefits involved. As a result, traditional capital budgeting methods have been heavily criticized of discouraging the adoption of advanced manufacturing technologies and thus undermining the competitiveness of western firms. Some authors would argue that the only alternative is to exempt these strategic investments from the control of accounting systems. Others have developed sophisticated methods for performing an integrated strategic and financial investment analysis. At this point, however, it is still unclear which approach is prevalent in practice and which factors contribute to effective investment decisions. This empirical study attempts to shed some light on the problem by examining the capital budgeting practices of firms with regard to strategic investments in Computer-Integrated Manufacturing (CIM) technologies. Questionnaire data are used to provide a better insight into the ways in which manufacturing firms go about controlling major investments in new process technologies. In addition, tentative findings are presented about hypothesized relationships between characteristics of the investment decision making process and the perceived ex post financial performance of CIM investments.