Internal Rate Of Return Research Articles

Solar panel installation feasibility analysis based on techno-economic of PVSyst at Universitas Multimedia Nusantara

Universitas Multimedia Nusantara (UMN) integrates green building principles to enhance environmental sustainability by reducing energy waste and utilizing renewable energy sources. This study conducts a feasibility analysis of installing solar panels in a green open space near building D to supply up to 20% of its electricity needs. PVSyst simulations evaluated different panel orientations (north, south, and east). The results indicated that the installation is currently unfeasible, with a net present value (NPV) of -134,346,450.22 IDR and an internal rate of return (IRR) of -4.64%. The challenges included shading from surrounding buildings, heat buildup, and limited installation space. To improve viability, future installations should focus on sites with minimal shading and explore advanced technologies to enhance efficiency. Additionally, optimizing panel orientation and investigating alternative renewable energy sources suited to UMN’s conditions are crucial. These measures can enhance the effectiveness of solar installations and contribute to overall energy sustainability on campus.

Alpaca Heavy-Chain Antibodies for Cancer Diagnostics – Economic Aspects

Biotechnology companies engaged in cancer diagnostics require high volumes of specialized tools at low cost. Among these, alpaca-derived nanobodies—specifically VHH domains—offer distinct advantages stemming from their unique structural properties. This study evaluates a real-world production initiative using alpaca blood products sourced from Central Russia. The investigation focuses on the application of nanobodies, selected through phage display, for both cancer diagnostics and biomedical research, and assesses the commercial potential of establishing a production facility based on alpaca B-lymphocytes in Russia. The findings indicate that that producing fewer than two distinct nanobody products per year results in economic inefficiency. High investment and development costs make small-scale production unsustainable. In comparison with the average market price of USD 55,000 per product in the United States, equivalent products can be manufactured in Russia at substantially lower cost and offered at competitive price. To strengthen profitability, a collaborative model is proposed, linking a Moscow-based biolaboratory with a farm in Central Russia. Financial projections, including a positive Net Present Value (NPV) and a high Internal Rate of Return (IRR), confirm the project’s economic viability and its attractiveness to potential investors.

Economic Methods for the Selection of Renewable Energy Sources: A Case Study

Governments need to evaluate technologies generating electricity from different sources; levelised cost of energy (LCOE) is a widely used metric. However, LCOE is weak at comparing disparate technologies, especially where they have different operational lifespans. The discrepancy is demonstrated using UK government data to examine a range of technologies, namely combined cycle generation (natural gas and hydrogen), sustainable renewable technologies along with independent data describing nuclear power and tidal range schemes. Three methods of analysis were used: LCOE, the internal rate of return (IRR), and a novel analysis. A new metric, the sustained cost of energy (SCOE), negates some of the LCOE shortcomings such as the application of discounting. SCOE examines a fixed period of continuous generation, using the lowest common length of operating life of the technologies analysed. It appears to be a useful metric, especially when interpreted with IRR. The analyses produce broadly similar ordering of technologies, but the longer-lasting systems with high initial costings perform better in SCOE. Subsidies, carbon tax, or credit schemes are essential government incentives if net zero emissions targets are to be met without overly burdening consumers with rapidly growing electricity rates.

Conversion to Variable Flow Rate—Advanced Control of a District Heating (DH) System with a Focus on Operational Data

This study aims to improve the operational efficiency of district heating (DH) systems by introducing a novel control method based on variable flow rate control, without compromising indoor comfort. The novelty of this work lies in its integrated analysis of flow control and substation configurations in DH networks, linking real-world operational strategies with mathematical modeling to improve energy efficiency and infrastructure costs. Using a case study from Omsk, Russia, where supply temperatures and energy demand profiles are traditionally rigid, the proposed approach utilizes operational data, including outdoor temperature, supply/return temperature, and hourly consumption patterns, to optimize heat delivery. A combination of flow rate adjustments, bypass line implementation, and selective control strategies for transitional seasons (fall and spring) was modeled and analyzed. The methodology integrates heat meter data, indoor temperature tracking, and Supervisory Control and Data Acquisition (SCADA)-like system inputs to dynamically adapt supply temperatures while avoiding overheating and reducing distribution losses. The results show a significant reduction in excess heat supply during warm days, with improvements in heat demand prediction accuracy (17.3% average error) compared to standard models. Notably, the optimized configuration led to a 21% reduction in total greenhouse gas (GHG) emissions (including 6537 tons of CO2 annually), a 55.3% decrease in annualized operational costs, and a positive net present value (NPV) by year nine, with an internal rate of return (IRR) of 25.4%. Compared to conventional scenarios, the proposed solution offers better economic performance without requiring extensive infrastructure upgrades. These findings demonstrate that flexible, data-driven DH control is a feasible and sustainable alternative for aging networks in cold-climate regions.

ENHANCING THE BANKABILITY OF GREEN ENERGY PROJECTS IN KUWAIT

Objective: The purpose of this research paper is to empirically analyse how conventional economic and financial metrics influence investment in solar energy projects in the state of Kuwait. The empirical analysis is based on 13 years of data covering the period from 2010 to 2023. Theoretical Framework: This literature review examines the factors influencing bankability and explores strategies to enhance financial viability. The authors of the research designed a financial model to produce some necessary financial metrics. Method: A multiple linear regression model is used to study the relationship of total solar investment in MWh and six independent variables, such as Weighted average capacity factor, WAAC weighted average cost of capital internal rate of return (IRR), Payback period, and PVOUT. Along with statistical tests such as ANOVA and OLS regression, used to evaluate the strength and significance of the relationship between the dependent and independent variables. Results and Discussion: The result of the analysis identifies only LCOE as the only marginally significant factor influencing investment in solar energy projects in Kuwait, with a negative coefficient (-454.79) and a p-value of 0.0822. Other independent variables, including the weighted-average capacity factor, WACC, payback period, and IRR, are shown to be statistically insignificant, indicating limited influence on investment decisions. Research Implications: This study has limitations that should be acknowledged. First, these findings show that investment in solar energy relies especially on conventional economic and financial investment metrics which are not enough to rapidly advance renewable energy development in Kuwait. Proactive public policy with attractive tools that stimulate investor confidence and promote a sustainable energy transition is not included. Originality/Value: This study provides original empirical evidence on the economic and financial factors influencing investment in solar energy projects in the State of Kuwait. As a relatively underexplored topic in the renewable energy finance literature, particularly within the context of Kuwait.

Integrated Assessment of Rooftop Photovoltaic Systems and Carbon Footprint for Organization: A Case Study of an Educational Facility in Thailand

This study presents an integrated methodology to assess and reduce greenhouse gas (GHG) emissions in institutional buildings by combining organizational carbon footprint (CFO) analysis with rooftop photovoltaic (PV) system simulation. The HM Building at King Mongkut’s Institute of Technology Ladkrabang (KMITL), Thailand, was selected as a case study to evaluate carbon emissions and the feasibility of solar-based mitigation strategies. The CFO assessment, conducted in accordance with ISO 14064-1:2018 and the Thailand Greenhouse Gas Management Organization (TGO) guidelines, identified total emissions of 1841.04 tCO2e/year, with Scope 2 electricity-related emissions accounting for 442.00 tCO2e/year. Appliance-level audits revealed that classroom activities represent 36.7% of the building’s electricity demand. These findings were validated using utility data totaling 850,000 kWh/year. A rooftop PV system with a capacity of 207 kWp was simulated using PVsyst software (version 7.1), incorporating site-specific solar irradiance and technical loss parameters. Monocrystalline modules produced the highest energy output of 292,000 kWh/year, capable of offsetting 151.84 tCO2e/year, equivalent to 34.4% of Scope 2 emissions. Economic evaluation indicated a 7.4-year payback period, with a net present value (NPV) of THB 12.49 million and an internal rate of return (IRR) of 12.79%. The integration of verified CFO data with empirical load modeling and derated PV performance projections provides a robust, scalable framework for institutional carbon mitigation. This approach supports data-driven Net Zero campus planning aligned with Thailand’s Nationally Determined Contributions (NDCs) and carbon neutrality policies.

Economic Assessment of Electric Power Production in a Co-Gasification Combined Heat and Power Plant Using Nigerian and South African Coal, Biomass and Tyre as Fuel

Fossil fuels such as coal and petroleum are the major sources of fuel for energy generation. These two fuels produce gaseous pollutants that are dangerous to the environment. In this study, the economy of a 10 MW Combined Heat and Power (CHP) plant is assessed using Coal-to-solid waste ratios of 1:1 and 4:1 under two financial conditions namely: With Feedstock Costing (WFC) and Without Feedstock Costing (WOFC). The annual feedstock requirement of the plant and feed rate were estimated from the lower heating value of the fuel that was determined from a model equation, and the results were used for the assessment of the power plant. The Net present value (NPV), internal rate of return (IRR), and payback period (PBP) as investment tools, were used to evaluate the venture for 10th, 15th and 20th year. Coal + Pine saw- dust (PSD) mixed at a ratio of 1:1 was the optimum SA and Nigerian feedstocks, while the optimum year was at the 10th year. The annual profit WFC from the Nigerian and SA 1:1 Coal-to-PSD fuel ratio were NGN828,200,058.80 (USA517,625.04) and ZAR87,128,003.27 (USA5,125,176.67). The profits were 13.82 % and 28.40 % higher than that of solitary gasification of coal, respectively. A comparison of the Nigerian coal and Nigeria Coal + PSD WFC, revealed that about 5,106,875.44 kg/Yr of feedstock was saved from Coal + PSD (1:1) which resulted to an increase in the profit by 43.24 % per annum, whereas 3,737,610.81kg/Yr was saved from the South African Coal + PSD which resulted to about 13.82 % compared to solitary gasification of the South African coal. The 1:1 Coal-to-Solid Waste ratio was the optimum blend for all the feedstocks investigated.

Strategic Analysis of Profitability through Business Engineering: Application of the BCG Matrix and Diversification

The article addresses the challenge of improving business profitability through product diversification and strategic resource management, evaluating the feasibility of investment projects in competitive environments. The Boston Consulting Matrix (BCG) and financial analysis were utilized, incorporating indicators such as Net Present Value (NPV), Minimum Acceptable Rate of Return (MARR), and Internal Rate of Return (IRR), applied to historical data and projections from a non-financial company. The results showed that the internal and external BCG matrix analysis yielded scores of 6.45 and 9.5, respectively, identifying the need for aggressive growth strategies. Additionally, the cash flow analysis revealed a positive NPV of 579.15, a MARR of 7.3%, and an IRR of 8.03%, validating the viability of the projects. These findings emphasize that strategic diversification, coupled with management focused on quality and after-sales support, significantly improves profitability and business sustainability. Received: 3 December 2024 / Accepted: 10 March 2025 / Published: 08 May 2025

Evaluating Capital Budgeting Efficiency in Nepal’s Beverage Industry: A Comparative Analysis of Financial Performance and Investment Decision-Making

Capital budgeting is a crucial financial planning process that helps organizations evaluate long-term investment projects to maximize profitability, with this study focusing on Nepal’s beverages industry by analyzing two companies—Sunrise Nepal Food & Beverages Pvt. Ltd. (SNFBPL) and Birgunj Pure Drinking Water Udyog (BPDWU). The primary objective was to assess capital budgeting techniques such as Net Cash Outlay (NCO), Net Present Value (NPV), and Internal Rate of Return (IRR), alongside reviewing financing sources, cost of capital, and tool effectiveness. Using comparative analysis and chi-square hypothesis testing, the study found that SNFBPL had a higher NCO and longer Payback Period (10.03 years) but a superior NPV (NPR 55.6 million) and Profitability Index (1.225), whereas BPDWU exhibited a better IRR (15.16%) and quicker payback (6.63 years), with SNFBPL’s lower cost of capital (11.26%) attributed to leverage. The findings highlight significant differences in NCO and NPV but not IRR, leading to recommendations such as optimizing cost of capital, boosting sales, and prioritizing NPV in decision-making. This study adds value by examining capital budgeting practices in Nepal’s emerging market, offering insights for financial planning in the beverages sector.

Qualitative and quantitative assessment of Sargassum valorisation solutions for the Caribbean.

Qualitative and quantitative assessment of Sargassum valorisation solutions for the Caribbean.

Acid-tolerant microalgae-based winery wastewater treatment: performance evaluation and techno-economic analysis.

Acid-tolerant microalgae-based winery wastewater treatment: performance evaluation and techno-economic analysis.

Economic valuation of a strategy for the animal food distribution business in Costa Rica

The purpose of this study was to develop a strategic plan for Alimentos El Jicote, a Costa Rican company that supplies animal feed for large and small species, with the objective of optimizing decision-making and ensuring its success. The methodology included internal and external diagnostic tools, SWOT analysis, master strategy design, qualitative financial evaluation, and the implementation of the Balanced Scorecard (BSC). The results showed a positive economic performance, with an Internal Rate of Return (IRR) of 10.35%, higher than the cost of capital, and a positive Net Present Value (NPV) over a 10-year horizon. The strategy proposed was to diversify the supply of animal feed products with the best quality and at the best possible price, based on negotiations with more efficient suppliers by increasing storage capacity and the distribution network of the trade. In conclusion, although its financial situation is stable, areas for improvement in the company's profitability, liquidity, and market were identified; thus, the practical implication of the study was based on strategic planning for adaptation to the market, facilitating decisions, maintaining competitiveness, and ensuring long-term sustainability.

Investment Feasibility Analysis of Water Storage Service (WSS) in Urban

This study examines the feasibility of investing in a Water Storage Service (WSS) in Depok City to address the growing demand for clean drinking water. The research evaluates WSS's financial viability and sustainability, considering market, technical, financial, environmental, management, and legal aspects. Using a quantitative approach, the study employs investment evaluation criteria such as Net Present Value (NPV), Return on Investment (ROI), Internal Rate of Return (IRR), Payback Period, and Net Benefit-Cost Ratio (Net B/C). The findings indicate that the WSS initiative is financially feasible, with a positive NPV of IDR 116,553,085,906.00, ROI of 15.3, IRR of 32.06%, and a payback period of 5.7 years. Sensitivity analysis shows that the project remains viable even with a 15% reduction in sales and a 20% increase in operating costs. Despite the promising financial results, several risks were identified, including market, technical, regulatory, and business risks. The implications of this study suggest that WSS can be an effective solution to reduce reliance on bottled water and groundwater, while providing affordable, sustainable water access for Depok’s growing urban population. Future research should explore how WSS can be implemented in other urban areas facing similar water scarcity issues.

Assessing the Economic Viability of Cage Culture in Manasbal Lake, Kashmir, India: Lessons for Future Success

Cage aquaculture has flourished well across the globe. In India, inland open-cage aquaculture has gained prominence. The country has started seeking cage potential in untapped lakes and reservoirs to increase fish production, meet the protein demand, and provide livelihood opportunities to local landless fishers. In this context, the Department of Fisheries, Jammu and Kashmir, started experimental cage farming in Manasbal Lake Kashmir in 2013-14. However, after completing the project in 2016-17, the cage farming practice in the lake was stopped. Considering this, an economic analysis of the experimental cage culture was mandatory to know the reasons for its failure and suggest evidence-based interventions to avoid such shortcomings for other temperate water bodies in the country. The net present value (₹ -713844), benefit-cost ratio (-0.97), internal rate of return (<0%) and negative payback period (-5.94) showed non-economic viability and poor financial performance of the venture in the region. Feed expenses formed the highest cost component of ₹ 302170 (86.27%) among variable costs, followed by permanent human labour of ₹ 2 lakhs (51.53%) among the annual fixed costs. The production of one kilogram of fish required ₹ 220, which remunerated ₹ 120 as revenue. Future research could focus on developing locally-sourced feed ingredients and creating cost-effective floating feed formulations that meet the dietary needs of exotic carps, particularly for cage culture in lakes like Dal, Manasbal, and Wular in Kashmir. Proper utilization of scientific knowledge can help to improve the economic viability of cages in the region. Besides, other livelihood opportunities can also be provided for local fishers by modifying the cage for recreational purposes.

Feasibility Analysis of Clean Water System Investment of Tirta Tuah Benua Drinking Water Company, East Kutai, Kaliorang District

Water is a very vital natural resource and is needed to determine the sustainability of life of all living things on this earth. The problem faced is that the clean water system to residential areas is not smooth, to overcome this, a good clean water distribution network and good clean water system management are needed and are able to serve the clean water needs of residents in the area. In order to realize this, a fairly large investment is needed. One of them is by implementing company investment in the form of increasing the capacity of the raw water supply system. Based on the background mentioned, the title of this study is Feasibility Analysis of Clean Water System Investment at Perumda Air Minum Tirta Tuah Benua Kutai Timur, Kaliorang District. The solution method in this calculation for Feasibility Investment Analysis uses the Net Present Value (NPV) method, the Internal Rate of Return (IRR) method. From the results of the analysis, it was obtained that the NPV value was IDR 4,627,419,730 (NPV> 0). So the investment in developing production capacity and clean water networks at Perumda Air Minum Tirta Tuah Benua, Kaliorang District, is feasible to continue. A positive NPV value or greater than (>0) indicates that the income is greater than the invested value. The IRR value obtained is 15.50% > 10% (the minimum expected interest rate), so the investment in developing the production capacity and clean water network of Perumda Air Minum Tirta Tuah Benua, Kaliorang District is feasible to be implemented.

A Multi-Scheme Comparison Framework for Ultra-Fast Charging Stations with Active Load Management and Energy Storage Under Grid Capacity Constraints

Grid capacity constraints present a prominent challenge in the construction of ultra-fast charging (UFC) stations. Active load management (ALM) and battery energy storage systems (BESSs) are currently two primary countermeasures to address this issue. ALM allows UFC stations to install larger-capacity transformers by utilizing valley capacity margins to meet the peak charging demand during grid valley periods, while BESSs rely more on energy storage batteries to solve the gap between the transformer capacity and charging demand This paper proposes a four-quadrant classification method and defines four types of schemes for UFC stations to address grid capacity constraints: (1) ALM with a minimal BESS (ALM-Smin), (2) ALM with a maximal BESS (ALM-Smax), (3) passive load management (PLM) with a minimal BESS (PLM-Smin), and (4) PLM with a maximal BESS (PLM-Smax). A generalized comparison framework is established as follows: First, daily charging load profiles are simulated based on preset vehicle demand and predefined charger specifications. Next, transformer capacity, BESS capacity, and daily operational profiles are calculated for each scheme. Finally, a comprehensive economic evaluation is performed using the levelized cost of electricity (LCOE) and internal rate of return (IRR). A case study of a typical public UFC station in Tianjin, China, validates the effectiveness of the proposed schemes and comparison framework. A sensitivity analysis explored how grid interconnection costs and BESS costs influence decision boundaries between schemes. The study concludes by highlighting its contributions, limitations, and future research directions.

KELAYAKAN FINANSIAL PERIKANAN TANGKAP PURSE SEINE DI WILAYAH PESISIR BONTANG (Financial Feasibility Of Purse Seine Fisheries In Bontang Coastal Area)

Bontang City, whose territory faces directly to the Makassar Strait and is located in the fisheries management area (WPP 716), is an advantage. One of the potentials in the utilization of fisheries resources that is most dominant and contributes most to improving welfare for the community is fishing with Purse Seine gear. The purpose of this study is to assess the financial feasibility of fishing with Purse Seine gear in Bontang City. This research uses financial analysis method with Net Present Value investment criteria, Internal Rate of Return and Net B/C Ratio, Payback Period, and Return of Investment. The results obtained NPV value in the next thirteen years is Rp 2,317,683,710, IRR of 31%, NBCR 3.06, Payback Period for 3.5 years and ROI of 37.85%.

Complex economics of simple periodic systems

This paper investigates the financial economics of simple periodic systems. Well-established financial procedures appear to be complicated, and lead to partially biased results. Probability theory is applied, and the focus is on the finances of simple periodic growth processes, in the absence of intermediate divestments. The expected value of the profit rate, derived from accounting measures on an accrual basis, does not depend on the capitalization path. The expected value of capitalization is path dependent. Because of the path-dependent capitalization, the return rate on capital is path-dependent, and the time-average return rate on capital differs from the expected value of the return rate on capital for the growth cycle. The internal rate of return, defined through a compounding equation, is path-independent, thereby differing from the expected value of the rate of return on capital. It is shown that within a production estate, the area-average of internal rate of return is not representative of the rate of return on capital. The growth cycle length maximizing the return rate on equity is independent of market interest rate. Leverage effect enters the microeconomics of the growth processes through a separate leverage equation, where the leverage coefficient may reach positive or negative values. The leverage effect on the internal rate of return and the net present value are discussed. Both effects are solvable, resulting in incorrect estimates.

Investment Analysis in Utilizing Carbide Waste as a Material for Making Bricks

The production of acetylene gas uses the main material calcium carbide (CaC2) and water (H2O). The production results in acetylene gas and carbide residue waste. Carbide residue waste is classified as Hazardous and Toxic Material waste and must be sent to a third party with permission to process and utilize the waste. Routine deliveries to third parties are a cost that reduces PT X’s profit. PT X decided to develop a plan to utilize the carbide residue waste internally to reduce waste management costs. Research and studies were conducted to analyze and calculate the feasibility of this project. The primary challenge in implementing this project is assessing the market opportunity, which requires a comprehensive analysis included in the investment analysis section using methodologies such as the business model canvas, Porter’s five forces, capital budgeting analysis, sensitivity analysis, scenario analysis, and Monte Carlo simulation to determine economic feasibility. The research identified an investment project with a Net Present Value (NPV) of IDR 4,665,679,514 and an Internal Rate of Return (IRR) of 23.06% with Payback Period 9.16 years. Sensitivity analysis revealed that the price per unit realization is the most sensitive factor, causing the NPV to turn negative with a swing change of−20%. Scenario analysis showed an NPV of IDR 8,773,737,112 in the worst scenario and IDR 35,822,888,544 in the best scenario, while Monte Carlo simulation indicated a probability of NPV < 0 of 33.43% and NPV > 0 of 66.57%. The investment project analysis results demonstrate the feasibility of implementing this project for the company, with positive economic indicators and reduced waste management costs.

ENHANCING SPARE PARTS SALES BY IMPROVED CUSTOMER SERVICE LEVELS MEASURED BY OTIF (ON-TIME IN-FULL) THROUGH NEW SUPPORT POINTS AND SUPPLY CHAIN DISTRIBUTION DESIGN: A CASE STUDY AT PT XYZ MEDAN BRANCH

It was found that there are no support points at PT XYZ's Martabe Site, which led to a problem with customer service levels measured by OTIF (On-Time In-Full). This situation may delay delivery due to the long distance (367 km or 12 hours by land transportation) between Medan and Martabe. Low OTIF rates correspond with the limited availability of parts at PT XYZ. A company's ability to supply demand with its stock is the availability of parts. Consequently, customers purchase from competitors with parts that are ready on-site. This study has designed new support points based on accurate demand forecasting and a project feasibility assessment based on an Internal Rate of Return (IRR). As a result, new support points guaranteed the availability of parts to make the item In-Full and decrease lead time delivery to make the item On-Time. After building a new support point at the Martabe site, sales increased by 74% and contributed to a 44% growth in sales in the Medan area