Financial Rate Of Return Research Articles

Feasibility Analysis and Strategies of Anchovy Business Development: Economic Resilience Analysis

This study aimed to determine the feasibility analysis and strategies used in the development of anchovy business in Tarakan City. This type of research is descriptive research using quantitative and qualitative approaches. The population and sample in this study were the Usaha Kembang Turi and this study used primary data. Based on the results of this study it is found that financial feasibility was seen from the R/C ratio of 2.40, BCR (Benefit Rate of Return) of 1.40, FRR (Financial Rate of Return) of 65.11%, PPC (Payback Period of Capital) of 1.54 and BEP (Break Even Point) of basic unit price were 118 units and the basic price of the sales was Rp.2, 340,000. Based on the predetermined eligibility criteria, it could be said that the anchovy business in Tarakan City is feasible to operate. The analysis phase was carried out by looking at the internal and external conditions of the company using situation analysis or SWOT analysis through IFAS (Internal Strategic Factors Analysis Summary), EFAS (External Strategic Factors Analysis Analysis), SWOT diagrams, and SWOT matrices. The results of data analysis showed that the strategies used were the SO strategies (Strength-Opportunity).

Technical and financial analysis of 1 GT Gill net fishing in Teluk Lancar Village, Bantan District, Bengkalis Regency, Riau Province

This research was conducted in February 2023 at Teluk Lancar Village, Bantan District, Bengkalis Regency, Riau Province, to know fishermen's techniques in carrying out fishing activities using gill nets with 1 GT boats and how the business feasibility of fishermen using gill nets with boats 1 GT using the survey method. The results showed that the fishermen's technique of operating gill nets in Teluk Lancar Village measured the water's depth; after that, the net was used and thrown to the right of the ship while moving backward (setting). Furthermore, within 1 or 2 hours, the crew lifted the nets in the water onto the ship and moved forward. Fishermen's investment in business activities is IDR 27,600,000.00. The total costs incurred in fishing business activities amount to IDR 92,190,000.00/year, the income received by fishermen is IDR 113,352,000.00/year, the revenue that fishermen have obtained is IDR 21,162,000.00/year, the results of calculating business feasibility based on the formula Revenue Cost of Ratio (R/C), Payback Period of Capital (PPC), and Financial Rate of Return (FRR) this business is feasible to continue and also develop.

Analysis of Catfish Cultivation Business and its Development Prospects in Koto Mesjid Village Kampar District, Riau Province

Striped Catfish (Pangasius sp) is a freshwater fish that has good prospects for development because it has important economic value, this is because the selling price is quite high and can be marketed in fresh and processed forms. Striped catfish in Riau Province has been developed by the community, especially in Kampar Regency. This research was conducted in Koto Masjid Village, Kampar Regency in November 2021. This study aims to determine the business feasibility and prospects for the development of striped catfish farming. This research uses survey method. Data analysis was carried out on aquaculture with a pond area of 1000 m2. Business analysis is carried out on investment, fixed capital, working capital and profits. Data analysis used to determine the financial feasibility of a business is Revenue Cost of Ratio (RCR), financial Rate of Return (FRR), and Payback Period of Capital (PPC). Respondents in this study were Striped Catfish cultivators, feed entrepreneurs, and hatcheries. The results showed that the catfish farming business was very feasible to be developed both in terms of profit, business feasibility and sustainability aspects. The prospect of developing this business is very good in terms of input, production process, and market demand. In addition, there is still land available for striped catfish cultivation, making it possible for business expansion

ANALISIS KELAYAKAN DAN STRATEGI PENGEMBANGAN BISNIS KEDAI KOPI ATMOSFER KOTA TARAKAN

This study aims to determine the analysis and strategies used in developing the Atmospheric Coffee Shop business in the city of Tarakan. This type of research is descriptive using qualitative and quantitative approaches. The population in this study is Atmospheric Coffee Shops. The data collection used is by means of a questionnaire. Based on the results of the study, the business feasibility analysis for Atmospheric Coffee Shops in the city of Tarakan can be concluded that the BCR (Benefit Cost Of Ratio) is 1.20, FRR (Financial Rate Of Return) is 16.66%, PBP (Payback Period) is 6. Based on the eligibility criteria that have been determined can be said that the Atmospheric Coffee Shop business in the city of Tarakan is feasible to operate. While the stages of analysis carried out are by looking at the internal and external conditions of the company by means of situation analysis in other words, namely SWOT analysis, by going through the stages of IFAS (Internal Factor Analysis Summary), EFAS (External Factor Analysis Summary), SWOT diagrams and SWOT matrices. The results of the data analysis show that the strategy used is an aggressive strategy or SO (Strength-Opportunity) strategy.

Implications of Economic Decision Making to the Project Manager

This paper aims to identify and assess the impact of the project manager's economic decision on a project's outcome. Therefore, this paper focuses on whether a project will be economically and financially viable and will meet the interests of both external and internal stakeholders, especially the project manager's attention. Thus, the objective is to find in the decision-making process how economic decisions can provide and ensure an appropriate level of financial return rate to external and internal stakeholders, such as the project manager. The literature review approach was used to identify this economic decision-making implications on the project's outcomes. Studies show how projects' future is associated with decision making. However, a literature review has shown a shortage of research on the impact of only economic decisions on the project manager and project outcome. This study aims to fill that gap.

Spruce forest stands in a stationary state

We present stationarity criteria for forest stands, and establish embodiments using a Norwegian empirical stand development model. The natural stationary states only slightly differ from the outcome of long-term simulations previously implemented using the same empirical model. Human interference in terms of diameter-limit cutting is introduced. Consequently, stationary states differing from the natural one appear. Standing volume, growth and monetary value appear low but the financial return rate may be significant. Volume yield and financial return clearly contradict each other, the former arising from harvesting large trees, the latter from frequent removal of small trees. An exponential tree size distribution does not appear to comply with the stationarity criterion.

The optimal rate of return for defined contribution pension systems in a stochastic framework

Abstract This paper deals with the problem of the optimal rate of return to be paid by a defined contribution pension system to its participants’ savings, namely the rate that achieves the goal of the most favorable returns on their contributions jointly with the sustainability of the pension system. We consider defined contribution pension systems provided with a funded component, and for their study we use the “theory of the logical sustainability of pension systems” already developed in several previous works. In this paper, we focus on pension systems in a demographically stable state, whereas the productivity of the active participants and the financial rate of return on the pension system’s fund, rates that constitute the “ingredients” of the optimal rate of return on contributions, are modeled by two stochastic processes. We show that the decisional rule defining the optimal rate of return on contributions is optimal in the sense that it is effective in terms of sustainability, and also efficient in the sense that if the system pays to its participants’ contributions a rate of return that is either higher or lower than the one provided by the rule, then the pension system becomes unsustainable or overcapitalized, respectively.

Cost-Benefit Analysis and European Union Cohesion Policy: Economic Versus Financial Returns in Investment Project Appraisal

This paper investigates the role of cost-benefit analysis (CBA) in the context of the European Union (EU) Cohesion Policy. After presenting the EU policy framework and the CBA guidelines adopted by the European Commission, we perform an empirical analysis drawing from a dataset of around 1000 major project applications, submitted during the period 2007–2013 by 22 European countries, and representing almost €180 billion of investment. A distinctive feature of the current CBA approach adopted by the European Commission is that applications for funding must provide a forecast of both the project’s financial rate of return (FRR) and economic rate of return (ERR). While the former represents the financial profitability of the project from a private investors’ perspective, the latter reveals its socio-economic benefits for the whole society. The difference between ERR and FRR mainly depends on the use of shadow prices, the inclusion of externalities and other nonmarket effects in the estimation of ERR, whilst the FRR is based on market prices. We find that, on average, the FRR is slightly negative ($-2.9$%) and the ERR is positive (16.2%). ERR and FRR are positively correlated on average with differences across sectors. We discuss these findings and suggest further research needs.

Study of Arjuna-Type Asteroids for Low-Thrust Orbital Transfer

This paper investigates the accessible low-thrust transfer trajectories for a near-Earth asteroid transfer mission. The target asteroids considered are Arjuna-type asteroids, which are characterized by their Earth-like orbital paths including low eccentricity and low inclination. The asteroid range is characterized by a specific range of semimajor axes and transfer angles to provide an overall assessment of the potential Arjuna transfer domain. A single hovering ion beam spacecraft is employed for the task of asteroid redirection. The method uses a continuous thrust over the duration of the transfer maneuver to redirect the asteroid to an Earth-bound orbit. The transfer model employs a minimized form of Gauss’s variational equations to determine the available trajectories for asteroid redirection. The transfer model employs, in addition to the aforementioned orbital equations, spacecraft thruster and sizing metrics as well as mission cost analysis formulae. The system parameters and orbital transfer paths are assessed with regard to key mission parameters, namely, time frame for redirection, number of orbital revolutions, system mass, propellant mass, thrust, power, system cost, and financial return rate.

Economics of Tea Leaf Production by the Small and Marginal Farmers in Assam

The study was carried out to examine the present status of tea cultivation and the economic feasibility of small growers in tea leaf production. Primary data pertaining to tea leaf production were collected from 60 small and marginal tea grower following simple random sampling without replacement technique by interviewing the farmers with the help of pre-tested structured schedules. The Financial Rate of Return from tea cultivation over Cost A1, Cost B and Cost C was estimated as 42.35 per cent, 34.38 per cent, and 31.66 per cent, respectively which is above the presumed opportunity cost of capital i.e. 10 percent per annum. The average annual constant net cash flows from tea plantation were98, 010, 82, 263 and74, 240 per hectare over Cost A1, Cost B and Cost C respectively. It was also observed that production of tea leaf was more profitable and employment generating in comparison to other selected crops in the study area. The benefit-cost ratio was estimated at 1.11 with a net present worth of Small Tea processing unit was estimated to be23.57 lakhs, considering 15 years of life time. The financial rate of return was arrived at 37.07 per cent which is above the presumed opportunity cost of capital. The annual constant flows of net return for the sample tea processing unit was found to be3.10 lakhs

Financial cost-benefit analysis of investment possibilities in district heating system on wood residues

The purpose of this research is to provide feasibility analysis of a long-term sustainable development concept for district heating based on wood residues. In this paper, the experimental study has been conducted starting from the data collected by field researches in municipality of Trstenik ( town in Serbia with district heating system currently based on heavy fuel oil and lignite). Using the method of Financial Cost-Benefit Analysis, this study evaluates financial efficiency of investment in district heating plant based on wood residues and energy savings in district heating system. Findings show that such investment could be profitable from the financial point of view: Net Present Value of investment is positive, Financial Rate of Return is high (30.69%), and the pay-back period is relatively favourable (7 years). Moreover, the presented SWOT indicates that there are realistic prospects of implementation of district heating based on wood residues. However, this does not mean everything will go smoothly and easily, keeping in mind a number of challenges that each new concept of district heating contains immanently. Nevertheless, the results of this research could provide useful inputs for the decision makers when selecting appropriate models for improving performance of municipal district heating systems.

OPTIMAL MIX BETWEEN PAY AS YOU GO AND FUNDING FOR PENSION LIABILITIES IN A STOCHASTIC FRAMEWORK

AbstractThis paper addresses the financing of public pensions in a stochastic environment. Traditionally, funded and unfunded pension schemes have been viewed as opposite solutions for the first pillar of public pensions. However, more recently countries as Sweden and Poland have explored mixed solutions that combine pay-as-you-go (PAYG) with funding mechanisms. The aims of this paper are to examine the rationality of such a combination using portfolio theory arguments and to find the optimal split of the contributions between the two systems. We first introduce the classical deterministic model leading to the well-known Samuelson–Aaron rule according to which diversification is never optimal. We then introduce different stochastic models in which the main processes (wage growth, population growth, financial rate of return) are random. In particular, we obtain conditions on parameters to justify diversification and explicit optimal sharing between PAYG and funding. We also introduce the possibility of investing in several financial assets and explore the impact of introducing systematic longevity risk.

ANALYSIS MODELS OF PROFITABILITY IN AGRICULTURE

In this article there is developed a synthetic theoretical framework regarding the profitability analysis through economic and financial rates of return using different models, and also it is made a case study on the similarities and differences between various models of rates of return analysis in agriculture. The motivation of choosing this theme is to determine the relationship between financial and economic profitability using Pearson correlation coefficient. The research conducted leads to two main categories of results; on the one hand there is made a qualitative theoretical synthesis on the rates of return in models, on the other hand it is determined the correlation between financial and economic profitability in the agriculture organizations.

Economic analysis of biomass torrefaction plants integrated with corn ethanol plants and coal-fired power plants

Torrefaction technologies convert assorted biomass feedstocks into energy- concentrated, carbon neutral fuel that is economically transported and easily ground for blending with fossil coals at numerous power plants around the world without needs to retrofit. Utilization of torrefied biomass in conventional electric generating units may be an increasingly attractive alternative for electricity generation as aging power plants in the world need to be upgraded or improved. This paper examines the economic feasibility of torrefaction in different scenarios by modeling torrefaction plants producing 136,078 t/year (150,000 ton/year) biocoal from wood and corn stover. The utilization of biocoal blends in existing coal-fired power plants is modeled to determine the demand for this fuel in the context of emerging policies regulating emissions from coal in the U.S. setting. Opportunities to co-locate torrefaction facilities adjacent to corn ethanol plants and coal-fired power plants are explored as means to improve economics for collaborating businesses. Life cycle analysis was conducted in parallel to this economic study and was used to determine environmental impacts of converting biomass to biocoal for blending in coal-fired power plants as well as the use of substantial flows of off-gasses produced in the torrefaction process. Sensitivity analysis of the financial rates of return of the different businesses has been performed to measure impacts of different factors, whether input prices, output prices, or policy measures that render costs or rewards for the businesses.

A Re-Look at Project Sustainability

One of the crucial aspects in Project Management is development of an elaborate system for monitoring project implementation, project operation, project maintenance and project assessment. Project assessment consists of information on the actual and intended benefits from the project over the intended lifetime. Hence, there is a need to understand the concept of project sustainability.Project sustainability is often defined as the capacity of the project to continue to deliver its intended benefits over an extended period of time. These benefits may often be expressed in quantitative terms involving the internal economic or financial rates of return. However, these benefits may also be qualitatively assessed.Sustainability also depends on whether a balance can be achieved in the use of principle forms of capital – namely, human, natural, cultural, institutional, physical and financial. Sustainability is more difficult to define and measure in project design to develop human resources because, qualitative indicators must be taken into account alongside quantitative indicators. This paper discusses the conceptual framework to monitor and evaluate measure Project Sustainability.

ON THE ECONOMIC EFFECTS OF INVESTMENT IN RAILROAD INFRASTRUCTURES IN PORTUGAL

The objective of this paper is to identify the effects of railroad infrastructure investment on aggregate and regional economic performance in Portugal. At the aggregate level, we show that railroad investment crowds in private investment and employment and have strong effects on output. At the regional level, we show that railroad investment affects private investment positively in all regions, employment in only Lisbon and the North, and output in all regions with the exception of Alentejo. The effects are regionally distributed in a rather uneven manner with Lisbon and the North capturing the bulk of the effects. Our results also highlight the relevance of regional spillovers. In terms of the relative effects of comparable railroad investment in the region and elsewhere in the country, we find that the North and the Center benefit more from investment elsewhere while the remaining regions benefit more from local investment. Finally, from a country-wide perspective, railroad investment located in Lisbon generates the largest marginal benefits, which reflect, mostly, the large effects in the Lisbon region itself. By contrast, railroad investment in the remaining regions has a much lower marginal benefit to the country, but these benefits reflect mostly spillovers. This highlights the difficulty in implementing policies that simultaneously maximize aggregate growth and reduce regional disparities.Keywords: Railroad Infrastructure, Public Investment, Regional SpilloversJEL classification: C32, H54, R531. INTRODUCTIONThere is broad agreement in both academic and policy circles on the critical role of public infrastructure investment as a driving force for the economy. Therefore, it is no surprise that such investments are consistently at the center of the policy debate in many countries.1 The Portuguese case is no exception. The policy debate over public investment in transportation infrastructure in Portugal has traditionally focused on road investments. This is true in the context of the development, after 1998, of the highway network system under public-private partnerships and financed by shadow tolls, as well as the more recent Plan for Investment in Priority Infrastructure of 2005. In the last few years, however, the debate has shifted towards a focus on railroad infrastructure investments.This noticeable shift in focus is in good part explained by the fact that, with the sustained investment effort in the past decades on road infrastructures, the country may have reached a stage of rapidly diminishing marginal returns to road investment. While there are still deficits in coverage for national and municipal roads, the extension of highways in Portugal has increased six-fold since 1990 and Portugal now has one of the largest shares of highways in the road network in the EU and one of the largest extensions per capita and relative to its GDP of the OECD. In addition, the current concerns about climate change and the environmental impacts of transportation activities also lead to a greater focus on railroad transportation which is widely perceived as more environmentally friendly. Indeed, the National Program for Climate Change as presented in Instituto do Ambiente (2006) has mandated policies to promote a modal shift towards railroads as a means to reduce energy consumption and associated greenhouse gas emissions. These policies focus primarily on the modernization of the existing network of railways and subways as well as the development of a high speed railway network.The current debate in Portugal about railroad infrastructures has focused on traffic demand, financial rates of return and political considerations, but has been conditioned by the absence of any empirical evidence on the macroeconomic effects of such investments. Indeed, the literature on the macroeconomic effects of public investment in Portugal is scant2 and, in particular, on the macroeconomic effects of railroad investments is non-existent. …

Testing for long-range dependence in stock market returns: a further evidence from MENA emerging stock markets

The financial rates of return from Middle East and North African markets are found to be nonnormal, nonstationary and long-range dependent, i.e. they have long memory. The degree of long-term dependence is measured by Hurst exponents using local Whittle method which is a semi-parametric method that presents robustness to data seasonality and short-range dependence. Our long-term results are consistent with similar empirical findings from American, European and Asian financial markets. Therefore, the article extends the domain of the empirical investigation of the dynamics characteristics of the global financial markets and disproves the hypothesis of perfectly efficient financial markets.

Persistence characteristics of Latin American financial markets

The financial rates of return from Latin American stock and currency markets are found to be non-normal, non-stationary, non-ergodic, and long-term dependent, i.e., they have long memory. The degree of long-term dependence is measured by monofractal (global) Hurst exponents from wavelet multiresolution analysis (MRA). Scalograms and scalegrams provide the respective visualizations of these wavelet coefficients and the power spectrum of the rates of return. The slope of the power spectrum identifies the Hurst exponent and thereby the degree of time-scaling dependence that cannot be determined by Box–Jenkins type, stationarity-based, time series analysis. Our long-term dependence and time–frequency scaling results are consistent with similar empirical findings from American, European, and Asian financial markets. They extend the domain of the empirical investigation of the dynamics and risk characteristics of the global financial markets and refute the hypothesis of perfectly efficient financial markets.

Cost-benefit Analysis and the Rates of Return of Development Projects: An Intenational Comparison

In this paper we analyse data on the rates of return of investment projects sponsored by three international institutions: the European Union, the European Bank for Reconstruction and Development, the World Bank. The focus of the paper is on the evaluation of the variability of ex-ante economic rates of return, of financial rates of return and ex-post or re-estimated economic rates of return. We propose a framework of analysis of rates of return variations across projects, sectors, financing institutions, of the wedge between economic and financial, and of the gap between ex-ante and ex-post returns. In principle the same framework could be used for comparing rates of return variability of development projects across countries, time of approval or exit, or other relevant sampling criterion. We discover a pattern of variations across sectors. And we find that cost-benefit analysis generates larger variability of rates of return than financial analysis.

An International Comparison of the Financial and Economic Rate of Return of Development Projects

In this paper we analyse data on the rates of return of investment projects sponsored by three international institutions: the European Union, the European Bank for Reconstruction and Development, the World Bank. The focus of the paper is on the variability of ex-ante economic rate of returns (ERR), of financial rates of return (FRR, available for EU and EBRD) and ex-post or re-estimated economic rates of return (RERR, available for WB only). We propose a framework of analysis of FRR and ERR variations across projects, sectors, financing institutions, of the wedge between ERR and FRR, and of the gap between ERR and RERR. In principle the same framework could be used for comparing rates of return variability of development projects across countries, time of approval or completion, or any other relevant sampling criterion.