Investment Period Research Articles

Design and Technical-Economic-Environmental Evaluation of a Biorefinery Using Non-Marketable Edible Mushroom Waste

Edible mushrooms are gaining popularity as functional foods, not only for their distinctive taste and subtle flavor but also for their potential health benefits. They are rich in essential nutrients, including carbohydrates, proteins, fiber, minerals, and vitamins. However, it is estimated that up to 30% of total mushroom production generates non-marketable waste, which is currently used as animal feed, fertilizer, or compost. From a circular economy perspective, the objective of this work is to propose a conceptual design for a biorefinery to produce high-value-added products from non-marketable edible mushroom waste and to conduct a comprehensive assessment using modeling and simulation tools for process engineering. The general approach first involves identifying high-potential products, then determining the best processing routes, followed by developing a process flowsheet diagram for a case study (A. bisporus), and ultimately conducting a comprehensive assessment of the biorefinery to evaluate its sustainability. As a result, the proposed biorefinery may produce chitin, citric acid, and fertilizer, demonstrating the technical feasibility of waste valorization in terms of product yields, with positive profitability in terms of the rate of return on investment and payback period, and low environmental impact in terms of water and energy consumption as well as CO2 emissions.

Influence of Institutional Investors' Investment Periods on Earnings Management in Korea: Focusing on the Selection of the Variables Using AI

Influence of Institutional Investors' Investment Periods on Earnings Management in Korea: Focusing on the Selection of the Variables Using AI

Analysis of the Economic-Financial Viability of Setting up a Motorcycle Parts Store in the City of Santa Izabel do Pará

Objective: Analyze the economic and financial viability of implementing a motorcycle parts store in the municipality of Santa Izabel do Pará. Theoretical Framework: Brazil is one of the most entrepreneurial countries in the world, and the activities of small and medium-sized entrepreneurs contribute to the country's economic and social development. However, many businesses end up closing down early on. The success of a new business depends on the development of an adequate plan, which will allow the entrepreneur to evaluate the different factors that make up the venture before even starting it. The business plan is a tool that allows the entrepreneur to organize and plan their ideas to achieve the success of their business. Method: This work was carried out as bibliographical research and a case study, to be applied, of an exploratory nature with a qualitative and quantitative approach, with the carrying out of an unstructured interview with an entrepreneur in the motorcycle parts sector. Results and Discussion: The results of the financial indicators show a favorable scenario for the implementation of the business, with a NPV value of R$ 460,979.24, over a five-year cash flow, an internal rate of return of 153% per year and an estimated return on investment period of 8 months. Research Implications: To carry out a business venture, it is necessary to dedicate many hours of work, in addition to a considerable financial investment. And the financial plan allows the entrepreneur to translate into numbers how viable the implementation of the business is. Originality/Value: Although all financial indicators indicate the viability of the business, after the implementation of the enterprise it will be possible to improve the different sectors of the company and adjust the negative points during the activities, such as, for example, carrying out a satisfaction survey with customers who are buying in the store, aligning negotiations with suppliers in the best way and offering new products.

Time–Frequency Co-Movement of South African Asset Markets: Evidence from an MGARCH-ADCC Wavelet Analysis

The growing prominence of generating a well-diversified portfolio by holding securities from multi-asset markets has, over the years, drawn criticism. Various financial market events have caused asset markets to co-move, especially in emerging markets, which reduces portfolio diversification and enhances return losses. Consequently, this study examines the time–frequency co-movement of multi-asset classes in South Africa by using the Multivariate Generalized Autoregressive Conditional Heteroscedastic–Asymmetrical Dynamic Conditional Correlation (MGARCH-DCC) model, Maximal Overlap Discrete Wavelet Transformation (MODWT), and the Continuous Wavelet Transform (WTC) for the period 2007 to 2024. The findings demonstrate that the equity–bond, equity–property, equity–gold, bond–property, bond–gold, and property–gold markets depict asymmetrical time-varying correlations. Moreover, correlation in these asset pairs varies at investment periods (short-term, medium-term, and long-term), with historical events such as the 2007/2008 Global Financial Crisis (GFC) and the COVID-19 pandemic causing these asset pairs to co-move at different investment periods, which reduces diversification properties. The findings suggest that South African multi-asset markets co-move, affecting the diversification properties of holding multi-asset classes in a portfolio at different investment periods. Consequently, investors should consider the holding periods of each asset market pair in a portfolio as they dictate the level of portfolio diversification. Investors should also remember that there are lead–lag relationships and risk transmission between asset market pairs, enhancing portfolio volatility. This study assists investors in making more informed investment decisions and identifying optimal entry or exit points within South African multi-asset markets.

Research on Energy-Saving Transformation of Rural Residential Building Envelope Structures and Heating Modes in Northeast China

Rural areas in Northeast China present a large demand for heating energy in winter, but there are problems in such areas with poor thermal performance of building envelopes and poor indoor thermal comfort. In addition, coal-fired boilers are still widely used. China’s “Dual-Carbon Goals” and “Clean Heating” policy call for the creation of a green and comfortable living environment for rural residential buildings. This paper considers the impact of the improvement of the thermal performance of envelope structures on the initial investment of the transformation program and the rated power of the ASHP and proposes an energy-saving transformation method to replace traditional coal-fired boilers with the ASHP on the basis of the improvement of the thermal performance of envelope structures. By establishing a typical rural residential building model in Northeast China, this energy-saving method is simulated based on TRNSYS. The results show that the payback period of investment of the transformation method of “envelope structure + heating system” is not superior to that of the transformation method of only improving the thermal performance of the envelope structure, but it has advantages in the comprehensive life-cycle benefits and it has great advantages in improving the satisfaction of rural residents in the use of heating systems.

Analysis Of Financial Statement of Chinese Real Estate Enterprises-Take One Certain Company as An Example

Real estate enterprises play an important role in the economic development of China, which are directly influence the economy. Different from other enterprises, real estate enterprises have the features of high leverage, large capital demand, slow repayment and long investment period. In recent years, the central government has implemented a series of policies, real estate enterprises facing severe financial risks. It’s important for enterprises to identify and prevent the financial risks. As a representative of China's highly leveraged and large-scale real estate enterprises, the company continuously violates the "three lines and four levels" policy when it is implemented. This article analyses the financial risks of this company by collecting the company’s financial statement data from the past five years, using ratio analysis and Z-value model. By researching the data, this article finds that the company has weak debt paying ability, operational ability, and profitability in recent years, also facing high financial risks.

Analisis Perancangan dan Kelayakan Pembukaan Apotek di Kabupaten Cirebon

Fajar Farma Pharmacy is a business operating in the health sector. Fajar Farma sells various health needs, such as medicines and health equipment. Currently, Fajar Farma Pharmacy already has one offline shop to sell its products. Because the income obtained in the last few years is quite satisfactory. To develop the pharmacy business, there are several solutions that can be used to solve problems. Depicted in the fishbone diagram there are 4 problem branches, namely man, facility, market, and method. Based on the problem branch, the solution that will be implemented is opening a new branch due to the existence of a market in Gunung Jati District. Therefore, the owner plans to open a branch shop of Fajar Farma Pharmacy which is located on Jalan Ki Gede Mayung, Gunung Jati District, Buyut Village, Cirebon Regency. In this research, a feasibility analysis was carried out covering 3 aspects, namely market aspects, technical aspects and financial aspects. After carrying out feasibility analysis calculations, the NPV value was IDR 63,638,483, the IRR was 40.61%, the payback period was 3.71 years or 44.55 months. So opening a new pharmacy branch can be said to be feasible. Based on sensitivity calculations, the increase in raw material prices is sensitive at 9.87%, the increase in labor costs is sensitive at 38.42%, while the decrease in demand is sensitive at 7.02%. The results of calculating the feasibility of opening a new branch of Fajar Farma Pharmacy with a MARR of 16.49% show that the NPV is still more than zero, the payback period is still within the investment period, namely 5 years, and the IRR is greater than MARR.

New methods of investment prioritization in the development of cellular networks in Russia

Subject. The article presents a new enhanced method of prioritizing investments in the construction of mobile networks to increase the effectiveness of management decisions. Objectives. The study aims to develop an improved methodology for prioritizing investments in the construction of cellular networks in Russia, taking into account market dynamics. Methods. I apply a comprehensive approach to the exploration of investment prioritization methods, general scientific and special methods of scientific knowledge, like system and functional-structural analysis, observation, classification, analysis of the best practices, synthesis and generalization of existing scientific and practical data. Results. The article offers a new method of investment prioritization based on more accurate forecasting of incremental revenues, considering the impact of the time lag between the change in market share by base stations and the change in market share by revenue. Conclusions. The proposed method relies on the assessment of incremental revenues, considering the impact of the time lag on increasing market share by revenue with an increase in market share for base stations. This factor directly affects the payback period of investments and allows more accurate ranking of regional branches of telecommunications operators, when deciding on investments in network construction for various subjects of the Russian Federation.

European Green Deal: Substantiation of the Rational Configuration of the Bioenergy Production System from Organic Waste

A review of the current state of the theory and practice of bioenergy production from waste allowed us to identify the scientific and applied problem of substantiating the rational configuration of a modular anaerobic bioenergy system, taking into account the volume of organic waste generated in settlements. To solve this problem, this paper develops an approach and an algorithm for matching the configuration of a modular anaerobic bioenergy production system with the amount of organic waste generated in residential areas. Unlike the existing tools, this takes into account the peculiarities of residential areas, which is the basis for accurate forecasting of organic waste generation and, accordingly, determining the configuration of the bioenergy production system. In addition, for each of the scenarios, the anaerobic digestion process is modeled, which allows us to determine the functional indicators that underlie the determination of a rational configuration in terms of cost and environmental performance. Based on the use of the developed tools for the production conditions of the Golosko residential area, Lviv (Ukraine), possible scenarios for the installation of modular anaerobic bioenergy production systems are substantiated. It was found that the greatest annual benefits are obtained from the processing of mixed food and yard waste. The payback period of investments in modular anaerobic bioenergy production systems for given conditions of a residential area largely depends on their configuration and ranges from 3.3 to 8.4 years, which differ from each other by 2.5 times. This indicates that the developed toolkit is of practical value, as it allows the coordination of the rational configuration of modular anaerobic bioenergy production systems with real production conditions. In the future, it is recommended to use the proposed decision support system to model the use of biomass as an energy resource in residential areas, which ensures the determination of the rational configuration of a modular anaerobic bioenergy production system for given conditions.

Techno-economic assessment of swine manure biochar production in large-scale piggeries in China

Biochar production using swine manure (SM) from large-scale piggeries is increasingly needed. However, little is known about the economic feasibility for SM biochar production. Herein, SM biochar production was simulated via Aspen Plus, and techno-economic model was applied to calculate the net present value (NPV), internal rate of return (IRR), and discounted payback period (DPP) for SM biochar production with a processing capacity of 8000 tons SM per year. Results suggest that this project is susceptible to biochar selling price and operation cost. When the biochar price is > 116 USD/ton, the NPV is positive. When the biochar selling price is increased from 154 to 193 USD/ton, the IRR is increased from 11 % to 41 %. The DPP analyses show that the investment payback period for this project is 4.6 years. Moreover, compared to conventional SM treatment routes, valorization of SM into biochar in large-scale piggery in China has a shorter investment period. Finally, this study suggests that swine manure biochar production in large-scale piggeries in China is profitable, deserving investment.

Place‐based tax incentives and minority employment: Evidence from the New Market Tax Credit Program

AbstractIn this paper, we study the impact of the New Market Tax Credit (NMTC) program in the United States on overall jobs and jobs held by minority and rural populations within the 2010–2019 period using a dynamic event‐study analysis. We also investigate if the jobs that can be attributed to the program stayed in program recipient neighborhoods or whether those jobs were occupied by non‐residents. The results show that there is clear evidence that the program increased overall workplace jobs and workplace jobs held by White and minority populations in the program recipient tracts. We also see that a larger share of workplace jobs due to the program went to minorities compared to the job shares held by various racial and ethnic groups at the beginning of the investment period. The results further show that even though the NMTC program increased the number of jobs available in a program recipient tract, the individuals who live outside that tract are holding many of the jobs created. The results also suggest that the program had a negative impact on jobs held by residents in nonmetropolitan tracts.

Storing Electric Energy Generated by a Photovoltaic Installation to Increase Profit from Its Sale—Case Study in Poland

Battery systems enable the sustainable use of energy from renewable energy installations that are characterized by variable time availability. The present study investigated the benefits of implementing an electrical energy storage system to a photovoltaic (PV) installation in the Polish climatic conditions. The impact of such a system on increasing profits from energy sales was verified. The use of storage allows for shifting the process of feeding energy into the grid to later hours when it is more expensive. The production volume and timing of energy generation were considered using the example of a 5 kWp research installation located in the Laboratory of Renewable Energy. The yields and energy prices were analyzed on an hourly basis for the year 2023. The considered system is additionally equipped with a battery with a capacity of 15 kWh. Analyses have shown that this system covers 55.6% of days in a year where the entire daily production from the PV installation can be stored. Additionally, the feasibility of using different energy storage capacities to shift the sale of the maximum energy volume was examined. Also the payback period of investments was considered for four scenarios (from the most expensive devices to the cheapest ones with subsidies). Prices were compared with profits resulting from the use of storage systems of a given capacity, as well as with the lengths of warranties covering the devices.

Synthesis of heat-integrated water networks: Integration of heat pumps

A typical heat-integrated water network (HIWN) synthesis problem aims to minimise freshwater and utility consumption while establishing trade-offs between operating and investment costs by exploring different water and heat integration opportunities. Heat integration between hot and cold water streams is performed to save external heating and cooling utilities required to achieve the target temperatures of these streams. This paper proposes a mathematical programming approach to integrate water-to-water heat pumps into the HIWNs. A simple cascade heat pump system with isobutane as a natural working fluid enables a larger temperature lift between the heat pump source and the sink. The objective function of the proposed mixed-integer nonlinear programming (MINLP) model is to minimise the total annualised cost (TAC). The TAC includes operating costs for freshwater, heating/cooling utilities, electricity, and investment in heat exchangers and heat pumps. A sensitivity analysis is performed to evaluate the economic feasibility of the system by varying the heating/electricity cost ratio and depreciation period for the capital investment. The results show that additional utility savings can be obtained by integrating heat pumps into the HIWNs. For threshold problems, a heat pump is feasible for heating/electricity price ratios from 1.175, and heating utility is replaced by electricity for a 1:1 ratio. However, for pinched problems, the feasibility of the heat pump is shifted to lower heating/electricity price ratios, from 0.3 to 0.5, depending on the annualisation factor for the investment.

An Empirical Analysis of the Asymmetric Association of Public Investment with Private Investment: Revisiting Crowding-In/Out Effect

The crowding-in/out effect of government spending on private investment has been a much-debated topic. As the controversy surrounding this topic persists, the subject is revisited using an improved nonlinear autoregressive distributed lag model for the Indian economy using the sample period 1980–2022. In the framework of the flexible accelerator model, the present study considers the positive and negative shocks in the two public investment series and positive and negative shocks in other macroeconomic variables (such as FDI, lending rate and credit availability to the private sector) as determinants of private investment. The results depict strong nonlinear short-run and long-run cointegrating linkages establishing the tendency of the Indian economy to converge to a long-run and short-run equilibrium threshold. The long-run estimation shows that private investment decreases at a much higher rate when public investment falls as compared to its tendency to rise when public investment increases. Further, contrary to our expectations, public investment in the non-infrastructure sector crowds in private investments, while public investment flowing into the infrastructure crowds out private sector investments, possibly because of the long gestation period of public investments. An important policy implication is to channel investments in the non-infrastructure and infrastructure segments of the public sector that boost private investments aligned with sustainable development goals. Efficient qualitative fiscal and monetary policy measures are recommended to encourage private investments.

Ramadhan effect towards Nifty Shariah indices in India

PurposeThis paper aims to analyse the weekday effect on the Nifty Shariah indices as per the Islamic calendar. The study is intended to know about the return and volatility of these indices during Ramadhan and non-Ramadhan days.Design/methodology/approachThe study focuses on analysing the Nifty Shariah indices and Sensex daily returns collected from NSE India and BSE India, respectively, during the period of 1 August 2016 to 31 July 2022. Descriptive statistics are used to analyse the data, while the Ordinary Least Square method is used to determine the impact of weekdays on the Nifty Shariah indices. Additionally, the study applies the GARCH statistical model to examine the influence of Ramadhan on the returns and volatility of the Nifty Shariah indices.FindingsAll of the Nifty Shariah indices produced positive returns during the overall sample period. According to the study, Tuesday index returns outperform other weekdays. The GARCH model indicated that the coefficient values for the Nifty 50 Shariah and Nifty 500 Shariah indices were negative. Ramadhan has a strong negative effect on volatility, according to this study.Originality/valueThe outcomes of the research are beneficial for investors aiming to exploit daily or weekly price fluctuations, rather than pursuing extended investment periods. Furthermore, fund managers can employ these findings to shape trading strategies, and academics can examine the performance of Shariah indices in the Indian context. This enables devout investors to make significant financial choices, thus advancing ethical values in society and upholding standards of both public and private morality.

Cost-effective sizing method of Vehicle-to-Building chargers and energy storage systems during the planning stage of smart micro-grid

Demand side management (DSM) is a great challenge for new power systems based on renewable energy. Vehicle-to-Building (V2B) and Energy Storage Systems (ESS) are two important and effective tools. However, existing studies lack the sizing method of bidirectional chargers and ESSs. This study has proposed a cost-effective sizing method of V2B chargers and ESSs during the planning stage. By developing a linear model that clusters electric vehicle users based on mobility patterns and employing mixed integer linear programming for day-ahead control strategies, the method minimizes the dynamic payback period of initial investments. Tested in an office park featuring photovoltaic generation, the optimal configuration of 50% V2B chargers and 1 ESS significantly reduces cumulative peak-hour load and peak power by 51.3% and 42.4%, respectively. The price and rated power of EV chargers on the optimal sizing result are also investigated, providing guidance for the design and operation of micro-grid systems. Furthermore, the study suggests further exploration into actual data acquisition, real-time control strategy enhancement, and comprehensive user behavior for broader application.

Shadow capital in venture financing: Selection, valuation, and exit dynamic

Non-venture capital private equity funds (PEs) have become increasingly interested in investing in entrepreneurial firms. We investigate how PEs invest and perform in comparison to VCs, and the implication of PEs’ participation on ventures. We show that PEs are more likely to invest in ventures after typical investment period and when there was substantial capital overhang. PEs prefer the expansion and late-stage ventures. Investment size and valuation are larger/higher with PEs’ participation. We further find that IPOs and secondary buyout are more prevalent among ventures with PE investments. PEs’ participation also allows ventures more time to get ready for exit.

Portfolio risk and return between energy and non-energy stocks

This paper aims to examine the potential for portfolio returns by adding together conventional and energy stocks with varying proportions. We examine the risk and return characteristics of a portfolio comprising energy and non-energy stocks from twenty countries. The period for daily data ranges from 2nd July 1999 to 2nd July 2021. We use multiscale Sharpe and VaR ratios to examine the risk and returns behaviour of a portfolio with varying composition between energy and non-energy stocks across different investment periods. Our results highlight optimal returns for the equally weighted portfolio during normal and crisis periods except COVID-19 during which more proportion of conventional stocks is preferred. Risk estimates advocate an equally weighted portfolio for all periods however risk varies with the holding period. These results carry useful investment implications during short- and long-run holdings of conventional and energy stocks in a portfolio.

Portfolio Optimization with Prediction-Based Return Using Long Short-Term Memory Neural Networks: Testing on Upward and Downward European Markets

AbstractIn recent years, artificial intelligence has helped to improve processes and performance in many different areas: in the field of portfolio optimization, the inputs play a crucial role, and the use of machine learning algorithms can improve the estimation of the inputs to create robust portfolios able to generate returns consistently. This paper combines classical mean–variance optimization and machine learning techniques, concretely long short-term memory neural networks to provide more accurate predicted returns and generate profitable portfolios for 10 holding periods that present different financial contexts. The proposed algorithm is trained and tested with historical EURO STOXX 50® Index data from January 2015 to December 2020, and from January 2021 to June 2022, respectively. Empirical results show that our LSTM neural networks are able to achieve minor predictive errors since the average of the MSE of the 10 holding periods is 0.00047, the average of the MAE is 0.01634, and predict the direction of returns with an average accuracy over the 10 investment periods of 95.8%. Our prediction-based portfolios consistently beat the EURO STOXX 50® Index, achieving superior positive results even during bear markets.

INVESTMENT FEASIBILITY COMPARATIVE ANALYSIS OF GREEN BUILDING AND CONVENTIONAL IN DKI JAKARTA

Sustainable buildings generally demonstrate a friendly environment, save energy and reduce operational costs, thus opening up significant investment opportunities in green buildings of the office property type. It is a shame that currently there are still very few office building developers who apply the green building concept, meanwhile the green building concept provides 31% greater profits than conventional buildings. This study aims to analyze the financial feasibility of four office buildings which are divided into two categories, namely category one (building 1 and Building 3) with a grade A building type and category two (building 2 and building 4) with a grade B building type. Building 1 and building 2 has received green building certification issued by GBCI. Building 2 and building 4 are buildings with a conventional concept. Calculation analysis is carried out using the Net Present Value (NPV), Internal Rate of Return (IRR) and Payback Period (PP) methods. Based on the results of the analysis, from the two categories of building types, the results showed that the NPV of each building was said to be financially feasible with an NPV ratio of 294% (category 1) and 162% (category 2). The IRR obtained exceeds the MARR value, with a comparison of 54% (category 1) and 21% (category 2). The payback period is less than the project investment period, namely 20 years, with a difference of 5 years (category 1) and 3 years (category 2). The office buildings with the highest and best NPV are Building 1 and Building 3 (category 1), so that even though the construction costs and green building design planning costs incurred are higher, in the research object of each building there are quite significant differences in NPV and IRR and It is hoped that all new construction and renovation work carried out by developers can apply the green building concept.