Modified Internal Rate Of Return Research Articles

Biological and economic feasibility of cultivating the mangrove cockle Anadara tuberculosa (Sowerby, 1833) in a shrimp farm reservoir with estuarine influence in Santa Elena, Ecuador

The extraction of Anadara tuberculosa, a commercially valuable species in the tropical Eastern Pacific mangroves, presents significant ecological risks. To mitigate these risks, captive production of A. tuberculosa is crucial. This study examines the somatic conditions of laboratory-produced A. tuberculosa spat and their cultivation on a pilot scale in a canal-reservoir of a shrimp farm. Spat measuring 6.2 ± 0.9 mm were placed in baskets and cultured in suspension at a density of 776.6 ± 26.0 cockles (0.54 cockle per square centimeter). Environmental variables at the culture site were monitored. After 24 months of culture, the cockles reached a size of 44.7 ± 0.6 mm with a survival rate of 65.0 ± 0.6%. These production results were extrapolated to evaluate the economic viability of production in a shrimp farm canal-reservoir with estuarine influence. The proposed economic model yielded 325,000 market-ready Anadara tuberculosa mangrove cockles (in five culture cycles) with an estimated net present value (NPV) of $22,914.00. The modified internal rate of return (MIRR) reached 15.20 percent, and the cost-benefit ratio was $1.96. Economic projections indicate that the initial capital investment could be recovered within five years and one month (payback). This research provides evidence of the biological feasibility, including somatic growth, survival rates, and the relationship with environmental variables at the site, as well as the economic feasibility of cultivating A. tuberculosa in a canal of a shrimp farm with estuarine influence. The findings offer valuable insights for scaling up aquaculture production and initiating restoration processes for this species.

Application Analysis of Main Project Evaluation Tools

With the development of financial economy, the toolbox of project appraisal has become more and more abundant, and many decision makers do not know how to choose the most appropriate tool when they are faced with a large number of project appraisal tools when evaluating a project. In the project evaluation toolbox, Net Present Value (NPV), Internal Rate of Return (IRR), Modified Internal Rate of Return (MIRR), and Economic Value Added (EVA) are the four most widely used project appraisal tools nowadays, which are required by almost all decision makers in project appraisal. This paper provides an overview of the concepts, forms, limitations, and applications of NPV, IRR, MIRR, and EVA with the aim of providing the audience with a general understanding of these four program evaluation tools. Based on this, the paper further discusses a comparison of the application of these four project appraisal tools in different situations, showing the differences in their applicability in different situations. The purpose of this paper is to provide decision makers with some basis for the selection of appraisal tools.

Research on investment project evaluation: Comparative analysis based on NPV and IRR

Whether a project is viable, determining whether a project is viable requires some metrics. The indicators that are most frequently utilized are the Net Present Value (NPV) and the internal rate of return (IRR). They are very representative and scientific. The same decision can be made by applying both in independent and non-independent projects When there are many contradictions between NPV and IRR, it is necessary to introduce new indicators to continue to judge the project, such as △IRR, incremental IRR method, modified IRR (MIRR) method, selective IRR method, payback period method, Equivalent Annual Annuity (EAA) method and static analysis method. The investment is selected by comparing the internal rate of return △IRR with the benchmark rate of return (ic) or the social discount rate. The MIRR approach determines the IRR of each scheme, compares it to ic, chooses the scheme that have IRR is larger than or the same as ic, and then determines the incremental IRR of the two neighboring schemes to make the choice. In addition to the investment payback period approach and the selective internal rate of return method. EAA method is in the comparison of investment projects, investors should choose the project with higher EAA when comparing. In the process of investment projects, different enterprises can adopt static analysis method to carry out project investment, but there are two forms of static analysis method, such as payback period method and basic income method. Using reasonable indicators and methods to evaluate the investment project, so as to select the best project.

On Estimating the Parameters of the Generalised Gamma Distribution based on the Modified Internal Rate of Return for Long-Term Investment Strategy

The generalised gamma distribution (GGD) is one of the most widely used statistical distributions used extensively in several scientific and engineering application areas due to its high adaptability with the normal and exponential, lognormal distributions, among others. However, the estimation of the unknown parameters of the model is a challenging task. Many algorithms were developed for parameter estimation, but none can find the best solution. In this study, a simulated annealing (SA) algorithm is proposed for the assessment of effectiveness in determining the parameters for the GDD using modified internal rate of return (MIRR) data extracted from the financial report of the publicly traded Malaysian property companies for long term investment periods (2010–2019). The performance of the SA is compared to the moment method (MM) based on mean absolute error (MAE) and root mean squares errors (RMSE) based on the MIRR data set. The performance of this study reveals that the SA algorithm has a better estimate with the increases in sample size (long-term investment periods) compared to MM, which reveals a better estimate with a small sample size (short-time investment periods). The results show that the SA algorithm approach provides better estimates for GGD parameters based on the MIRR data set for the long-term investment period.

Can carbon payments improve profitability of traditional conventional and organic cocoa agroforests? A case study in the Eastern Region of Ghana

This study investigates the carbon (C) sequestration of traditional cocoa agroforestry systems in the Eastern Region of Ghana and the theoretical impact of CO2 emission rights trading on their profitability. The study was conducted in four villages of Suhum Municipality, two each with either conventional or organic cocoa cultivation systems. Profitability was calculated using net present value of net cashflow (NPV), benefit cost ratio (BCR), and modified internal rate of return (MIRR). Carbon revenues were calculated using CO2 emission trading rights prices ranging from 7.5 € tCO2eq.−1 (average EU trading price) to 42 € tCO2eq.−1(estimated social cost of CO2 release). We tested the sensitivity of profitability indicators with three scenarios: 300% increase in interest rates, 20% yield reduction, and 10% increase in cost. NPV without CO2 payment for conventional agroforest was 20% higher than that of organic agroforest. Contrarily, BCR for the organic system was 30% larger than for the conventional counterpart. Profitability indicators for both systems were most sensitive to the 300% interest rate. The average C sequestered was 153 ± 13 t ha−1 whereby soil contributed the largest fraction with an average of 88 ± 11 t ha−1. Total C sequestered in the organic system was 30% higher than in the conventional system. In conclusion, CO2 payments can improve the attractiveness of organic cocoa cultivation for farmers, although the paid price must be oriented to the estimated social costs caused by CO2 release rather than the currently used trading price in the EU.

Management of the development of a metallurgical company on the basis of the algorithm of the pre-investment analysis

The article is devoted to the development of methodological approaches to assessing the effectiveness of investments in innovations and repairs of Russian metallurgical companies based on an analysis of the state of innovation and technological potential in order to maintain competitiveness in the face of tougher sanctions. The analysis of sources and directions of investments and comparison of the current internal rate of return in the leading companies in the metallurgical sector were carried out: Severstal, MMK, NLMK, EVRAZ; their investment activity was studied and the predominant selfinvestment in the development of companies and interest in financial parameters and global trends were confirmed to the detriment of the material component of production. The problem of disunity of owners, managers of the main production, repair facilities and top management in making investment decisions is detailed and methods for its solution are proposed through the use of a company's preinvestment analysis algorithm based on the methodology of predictive analysis of large data arrays. The methodological basis is the theory of strategic management and investment analysis. Methods: classification, comparison, grouping, economic and mathematical modeling, predictive analysis and algorithms. The methodology for evaluating investment projects using the modified internal rate of return (MIRR) has been refined. An algorithm for analyzing the investment environment of metallurgical companies is proposed based on taking into account the service life of equipment and ranking it depending on the need for repair or renewal. The updated analytical tools will be of interest to industry enterprises, corporations and government agencies in substantiating the strategy of innovative development. The developed approaches are of scientific interest in the study of contradictions between production, top management, owners of metallurgical companies and the state.

Techno-economic performances of active condensation in a medium-scale biomass-fired district heating unit

This work compares the economic viability of active and passive condensation in a medium-scale biomass combustion plant considering the variability of the return temperature and heat demand over the year. A typical District Heating plant with a total installed power of 9.5 MW th is considered. The economic feasibility is evaluated by means of the Net Present Value (NPV), Discounted Payback Period (DPP), and the Modified Internal Rate of Return (MIRR). Compared to passive condensation, the NPV of an active condensation plant is 66% higher and reduces the primary energy consumption by more than 50%. However, a higher initial investment and a higher DPP are calculated. Assuming constant return temperature and average heat demand over the year lead to an overestimation of the NPV by more than 110% for an active condensation plant and by more than 160% for a passive condensation plant. The NPV, DPP and MIRR are strongly impacted by a variation of the return temperature of the network.

Comparative analysis of the most important economic criteria for the company’s investment projects

The theoretical aspects of company’s investment management are discussed. The properties and characteristics of seven main economic criteria-indicators of investment projects, in particular, net present value, profitability index, simple and modified internal rate of return, simple and discounted payback period, efficiency coefficient are considered in detail. The aim of the study is a critical comparative analysis of the most important economic criteria of the company’s investment projects, such as internal rate of return (IRR) and modified internal rate of return (MIRR), their advantages and disadvantages, as well as further development of objective theoretical ideas about properties and relationships criteria for future investments, in particular, between the profitability index (PI) and the modified internal rate of return (MIRR).The economic and mathematical properties of the function describing the dependence of the net present value on the value of the discount rate are studied. The attention of project analysis specialists and top managers of companies is drawn to the shortcomings of the internal rate of return, which, in certain cases, due to the peculiarities of the calculation carries a potential threat of artificially overestimating the efficiency of an investment project. This fact is a significant basis for a complete rejection of using this indicator as a quantitative characteristic of the effectiveness of future production and financial projects. It is proposed to use exclusively the criterion «modified internal rate of return» as an indicator of efficiency of an investment project, which is completely objective, universal and can serve as a basis for calculating the profitability index. A formula of the functional interrelation between the value of the modified internal rate of return and the profitability index of the future production and financial projects of the company is derived.

Dice manufacturing company: the acquisition decision

Learning outcomes The learning outcomes of this paper is as follows: understand the issues that faced private Egyptian textile producers following the January 2011 revolution and how that impacted their business model. Evaluate whether Dice’s inorganic expansion through acquiring Alex Clothing Company is a sound strategic decision given the economic uncertainty in Egypt. Analyze the acquisition decision through projection evaluation techniques, including net present value (NPV), internal rate of return (IRR) and modified IRR (MIRR), to measure whether the acquisition will add value to Dice. Discuss non-financial issues post-acquisition that are not captured by traditional capital budgeting and project evaluation techniques. Case overview/synopsis Dice Manufacturing Company, an established and successful textile manufacturing family business, is facing an important investment decision with regard to inorganic expansion through the acquisition of Alex Clothing Company and its subsidiary United Dyers. The case is intended to be discussed in an undergraduate corporate finance class. The case setting is inside Dice Manufacturing Company, where one of the founders, Nagy Toma and his CFO Victor ElMalek are analyzing the acquisition decision in January 2015. The protagonist is Victor ElMalek, who has to recommend a course of action for the company owners. The case allows students to apply capital budgeting and project valuation methods to make a decision on whether the acquisition brings value to Dice and to analyze issues management can face post-acquisition. The case follows through the history of Dice, presenting its business model and changes that accompanied the 2011 revolution. It then moves on to outline the acquisition opportunity and provides data for students to analyze through traditional project valuation techniques, including NPV, IRR and MIRR. Complexity academic level Undergraduate. Subject code CSS 1: Accounting and Finance. Supplementary materials Teaching notes are available for educators only.

Profitability, risk and cash flow deficit for beginning cow–calf producers

PurposeThe purpose of this study is to estimate the amount of cash flow deficit, if any, needed to maintain the operating costs and service debt of a startup cow–calf enterprise. The study compares long-term profitability and risk between starting small and building a herd to full carrying capacity or by starting at desired herd capacity.Design/methodology/approachA dynamic cattle growth model was developed to capture expanding and maintaining the desired herd size. Discounted cash flow (DCF) models over a 15-year period were calculated to estimate net present value (NPV), modified internal rate of return (MIRR) and cash flow deficit to keep the business operating and service debt. Simulation analyses were conducted considering price and production risk.FindingsStarting at the desired herd size was preferred, according to NPV/MIRR and cash flow deficit, but the differences were not substantial. Assuming the operation is liquidated at book values, there was a 36.3% probability of this enterprise having a zero or positive NPV. If the conservative terminal value assumption is relaxed up to feasible market values, the cow–calf enterprise is economically attractive at an estimated 2.4% opportunity cost of capital. However, the producer would experience a cash flow deficit during the first seven years, which was simulated to be $14,892 and $15,985 annual for both strategies.Originality/valueInnovative methods used in this study include varying the annual opportunity cost of capital as a function of financing decisions, stochastic prices by cattle type and stochastic weaning weights that are a function of a dynamic cattle model.

Bioeconomic analysis of the production of marine shrimp in greenhouses using the biofloc technology system

This study analyzes the investment in Penaeus (Litopenaeus) vannamei shrimp production in greenhouses using the biofloc technology system (BFT). Considering bioeconomic variables, a sensitivity analysis was performed with data collected over the course of 10 years to evaluate program efficiency. The parameters considered include a stocking density of 400 shrimp/m2, which reached a productivity rate of 3.84 kg/m2 (69,120 kg/year—three cycles), a final mean weight of 12 g, and a feed conversion rate of 1.3. The results obtained had a net present value (NPV) of US$ 904,947.21, net future value (NFV) of US$ 2,401,094.35, equivalent annual value (EAV) of US$ 148,861.38, payback (PB) of 2 years and 4 months, discounted payback period (DPP) of 2 years and 10 months, profitability index (PI) of 2.59, internal rate of return (IRR) of 41.23%, and a modified internal rate of return (MIRR) of 21.25%. However, shrimp with a final mean weight of 15 g resulted in an NPV of US$ 2,522,150.62, NFV of US$ 6,692,016.44, EAV of US$ 414,886.98, a PB of 1 year and 2 months, DPP of 1 year and 2 months, PI of 5.43, IRR of 89.13%, and an MIRR of 30.57%. The Monte Carlo simulation (MCS) concluded that the probability of NPV being negative is 0. The analysis confirms that P. vannamei production using the BFT system is a financially sustainable activity.

Visual Presentation of MIRR and MNPV Calculations

Project cash flows and modified cash flows are presented in an illustrative graphic within Excel for the live or virtual classroom. Further, the graphic computes and displays the relevant modified internal rate of return (MIRR) and modified net present value (MNPV), with associated formulas. The presentation allows for a discussion of the reinvestment assumption attributed to the internal rate of return (IRR) and the net present value (NPV) calculations.

Discounted cash flow valuation of conventional and cage-free production investments

This study compares profitability and risk of conventional and cage-free egg production in the United States. Evaluating cage-free production is particularly relevant given ongoing consumer driven changes and new cage-free legislation. Results show that while the Modified Internal Rate of Return (MIRR) for conventional production is above an estimated industry opportunity cost of capital, cage-free production’s MIRR does not fully satisfy investors’ expectations. The MIRR of cage-free investment, between 5.6% (deterministic model) and 8.0% (stochastic) per 15-month flock, is below the 9.4% opportunity cost of capital. In addition, the simulations show that there is a 90% probability of conventional production’s MIRR falling between 18.5 and 20.3% per 15-month flock, and cage-free egg production’s MIRR ranging from 6.8 to 9.4%. In order for cage-free to be as equally profitable as conventional production, cage-free egg prices at the farmer gate should be 74% over conventional egg prices. Such high cage-free egg prices are highly unlikely to occur given recent cage-free price premia and consumer willingness to pay estimates from recent research. This study provides a framework egg producers can use to evaluate the potential effects of changes in their portfolio of products (i.e. conventional and cage-free mix) as they accommodate production schedules in this evolving industry.

Environmental, technical and financial feasibility study of domestic solar water heating system in India

The basic aim of this research work is to investigate the environmental, technical, and financial viability of evacuated tube type solar water heating (SWH) systems at different geographical locations across seven cities of India. The RETScreen SWH project model is used to evaluate the energy production and savings, solar fraction, costs, greenhouse gas (GHG) emission reductions, financial viability and risk factors for the SWH projects at the various locations. The financial viability of the SWH project is demonstrated by the parameters like simple payback period (SPP), equity payback period (EPP), internal rate of return (IRR), and modified internal rate of return (MIRR). The study shows that all sites have more than 60% of solar fractions and the gross GHG emission reduction for 25 years of project life is 739 tCO2. The payback period obtained for seven occupants for the typical household is between 7 and 10 years except for Delhi and Indore. It can be also concluded that at least 50% incentives must be provided by the government to make such installation feasible.

Which is the most competitive solar power technology for integration into the existing copper mining plants: Photovoltaic (PV), Concentrating Solar Power (CSP), or hybrid PV-CSP?

Given that most of the mines in Chile are situated in regions with high solar resources, solar power could play a significant role as an alternative solution to satisfy the electricity demand in the mining industry. This paper aims to investigate the feasibility of integrating solar power technology into copper concentrate plants (CCPs). Three commercial technologies (PV, CSP, and hybrid PV-CSP) are considered for integration into four existing CCPs of different sizes and located in different regions. To provide comprehensive analysis, the design, performance and economic assessment of 12 cases are carried and the investment costs are estimated taking into account characteristics of the Chilean market as well as the effect of scale.The performance analysis reveals a strong influence of the degradation rate on the electricity production of solar power plants. The first-year capacity factor of the CSP units is around 68% while it is around 32% for the case of PV units. Due to the degradation in the performance of the components, the lifetime-averaged capacity factor is about 9% lower than that of the first year.The economic assessment indicates that PV is the most suitable technology for integration into the CCPs. The Levelized Cost of Electricity (LCOE) of PV-CCPs ranges from 35.53 to 44.40 USD/MWhe, depending on the size and the location of the plant. The LCOE for the cases of CSP-CCPs and PV-CSP-CCPs ranges from 127.08 to 168.88 USD/MWhe and from 91.89 to 118.91 USD/MWhe, respectively. The modified internal rate of return (MIRR) of the PV-CCPs ranges from 8 to 9%, it discounted pack-back period (DPP) ranges from 5 to 6 years. The DPP PV-CSP-CCPs ranges from and from 15 to 23 years respectively. Overall, the CSP-CCPs are not atractive investments due to high LCOE, longer DPP, and MIRR. However, the sensitivity analysis revealed that its LCOE could be lowered by reducing the investment costs. For instance, a reduction of about 10% in the LCOE is possible if the specific investment costs of the TES is cut to about 10UDS/kWth.

INDICATORS OF EVALUATION OF EFFICIENCY OF DEVELOPMENT OF HOTEL ENTERPRISES

The purpose of the article is to determine the system of indicators for assessing the effectiveness of hotel enterprises. It is determined that the main criterion of the value of the investment project is the criterion of net discounted income. It is noted that the modified internal rate of return (MIRR) eliminates the lack of internal rate of return of the project, which occurs in the case of repeated outflows. It is noted that today there is no single approach to assessing the effectiveness of investment in hotel enterprises in accordance with the forms of ownership and their size, which is due to the need to ensure compliance with performance evaluation criteria and a system of indicators. Statistical and dynamic indicators of investment evaluation are considered Indicators are analyzed: simple (accounting) rate of return on the project (ARR), payback period (PP) Performance indicators taking into account the time factor are considered: discounted payback period (DPP), net discounted income (NPV), discounted profitability index (DPI), internal rate of return (IRR) and some others. The disadvantage of the discounted payback period has been identified - it does not take into account subsequent cash inflows, and therefore may serve as an incorrect criterion for the attractiveness of the project. The main advantages of static and dynamic indicators of investment project efficiency assessment are determined. It is noted that one of the main criteria of investment advantage of a project is profit maximization. Break-even analysis allows you to calculate the volume of sales at which the company's income equals costs. It is proposed to use the indicator modified internal rate of return (MIRR) It is determined that the most popular methods of assessing the effectiveness of the investment project today are the definition of such static indicators as simple rate of return, simple payback period and dynamic indicators, namely: discounted payback period, net present value, profitability index, internal rate of return and modified internal rate profitability. The most accurate results are given by dynamic indicators, as they take into account the value of money over time. Although dynamic methods are more accurate, all the considered methods of evaluating the effectiveness of the investment project have their pros and cons.

Economic feasibility of small-scale mabé pearl production in Tonga using the winged pearl oyster, Pteria penguin

Mabé pearl culture is an increasingly important rural livelihood in south Pacific countries as it offers a low-cost, low-tech alternative to round pearl culture. Mabé pearl production can be achieved by local people with appropriate training, and the products offer further livelihood opportunities through value-adding and local production of jewellery and handicraft items. The Kingdom of Tonga is unique among south Pacific pearl producing countries in focusing primarily on mabé pearl, not round pearl, culture using the winged pearl oyster, Pteria penguin. The Tongan mabé pearl sector has developed rapidly over recent years and is sustained by routine hatchery production of spat and recently improved pearl culture methods. This study determined establishment and operational costs of a subsistence-level mabé pearl farm in Tonga and developed an economic model to assess potential profitability of such operations. The representative mabé pearl farm modelled in this study targeted annual mabé pearl production from 100 oysters. Estimated capital cost (US dollars; USD) was USD 2,027 and major production costs were labour (29%), marketing (24%), and capital purchase and replacement (16%). Annual production of 231 saleable mabé pearls generated a net present value (NPV) of USD 107,101. The modified internal rate of return (MIRR) and benefit-cost ratio of the modelled mabé pearl farm were 20.46% and 4.86, respectively, with a payback period of 4 years. Given the average annual income in Tonga is USD 4,020, the modelled mabé pearl farm offers significant economic opportunity (USD 9,338 annual profit after all costs, including owner/operator wages) and supports additional socio-economic benefits for rural communities involved in downstream activities relating to handicraft and jewellery production, and tourism. The findings of this study assist stakeholder understanding of costs, risks and production levels required for profitable mabé pearl production.

Own Grain Storage Structures: Is It Worth Investing?

Grain storage is strategic for agribusiness and therefore, it is important to consider the usefulness and benefits of its implementation. This study aims to identify the economic and financial viability of investing in grain storage structure at farm level using capital budgeting techniques. Considering the particularities of farms in the Midwest region of Brazil, the following investment valuation techniques were used: Net Present Value (NPV), Equivalent Uniform Annual Worth (EUAW), Internal Rate of Return (IRR), Modified Internal Rate of Return (MIRR), Discounted Payback (DP), Profitability Index (PI), Benefit/ Cost Ratio (B/C), Sensitivity Analysis and Monte Carlo simulation. The results of NPV and EUAW were positive. The results of IRR was 14.08% and MIRR was 11.39%, with a payback of 11.81 years, an PI of US$ 1.31 and a B/C ratio of 3.16. From the risk analysis, it can be inferred that the investment is low risk since there is a 99.97% probability of NPV being greater than zero. Therefore, grain storage is a potentially viable alternative for increasing the competitiveness and wealth of Brazilian farmers, even in the context of an emerging economy.

ECONOMIC VIABILITY OF FOUR CHARCOAL PRODUCTIVE SYSTEMS FROM MINAS GERAIS STATE

ABSTRACT This work analyzed the economic viability of four charcoal productive systems from Minas Gerais state, namely: fornos-fornalha, rabo-quente, encosta and superfície. The evaluated systems have an estimated productive capacity of about 100 cubic meters of charcoal per month. Implementation and maintenance expenses and productive parameters were obtained in the literature and from local producers of Lamim (MG), a productive center in the state, during the year of 2018. Silvicultural costs were not considered, only the wood purchase. For the economic evaluation, Net Present Value (NPV), Modified Internal Rate of Return (MIRR), Payback, capex and opex were analyzed, and it was also evaluated the systems’ economic sensitivity to charcoal price and gravimetric yield variations. The main results showed that all the systems were economically viable by NPV criteria; only rabo-quente system was not viable by MIRR criteria; fornos-fornalha system presented the best economic results, greater capacity of net revenues and free cash flow generation, and lower operational expenses. This productive system was also less sensitive to charcoal price fluctuations and to its charcoal yield reduction. Given this fact, its insertion may be attractive in the productive reality of small and medium producers. In addition, the possibility of selling charcoal fines resulted in improvements in economic indicators, especially for traditional production systems: rabo-quente and encosta.

Technical, financial, and environmental feasibility of solar water heater for residential, commercial, and industrial application: A theoretical approach

This paper aims to evaluate the techno-economical and environmental viability of the solar water heater (SWH) system applications in residential, commercial, and industrial sectors of India through the RETScreen Expert Clean Energy Management Software. The three different geographical locations have been selected, namely Leh, Amethi (Jais), and Ludhiana districts for residential, commercial, and industrial case studies respectively. The three different locations have been chosen for each case study to exhibit the applicability and performance of SWH systems at different geographical locations of the Indian climate. The performance of SWH models is evaluated by a solar fraction (SF). The average values of SF obtained are 74, 64.48, and 13 correspondings to residential, commercial, and industrial models. It is also found that the cumulative value of greenhouse gas emission reduction (GHGR) potential for residential, commercial, and industrial sectors is 155.9 tCO2, 2419.3 tCO2, and 492.3 tCO2 per year for 25 years of project life. The cumulative value of the annual energy saving of each model is also calculated as 111.3 MWh, 1728.6 MWh, and 313.8 MWh. The financial viability of the models is presented by parameters like Simple Payback Period (SPP), Equity Payback Period (EPP), Internal Rate of Return (IRR), and Modified Internal Rate of Return (MIRR). The average value of SPP for models is 4.83 yr, 8.99 yr, and 3.90 yr corresponding to residential, commercial, and industrial models. The average value of the IRR of each model is also as 30.36%, 27.89%, and 38.77%.