Budgeting Techniques Research Articles

Evaluation of Beekeeping and Financial Benefits of Modern Beehive Adoption in Kitui County, Kenya

Beekeeping has developed into a multimillion export earning activity in countries like China and USA. These countries have embraced modern apiculture where beekeepers use modern beehives. The adoption of modern beehives is still a new idea in Kenya as most beekeepers use traditional log hives leading to low economic benefits from the beekeeping sub-sector. Traditional beehives produce low amounts of honey that is of low quality. Kitui county is within the arid and semi-arid climatic region in Kenya where the regular crop husbandry agriculture fails most of the seasons. Apiculture has been proved to offer substantive livelihood diversification strategy in such places. However, most of the beekeepers in the region continue to use traditional hives resulting to little economic benefits. This study sought to evaluate the performance of beekeeping and the financial benefits of using modern beehives in Mwingi Central Sub-County of Kitui County, Kenya. The study objectives were; (i) to investigate bee farming (apiculture) in Mwingi Central Sub-County (ii) to evaluate the financial benefits of adopting modern bee farming in the study area. Data was mainly collected through administering questionnaires to 110 sampled beekeepers from Mwingi Central. The collected data was analyzed using the Statistical Package for Social Sciences version 25. The results proved that traditional log hives were the most common bee hives used in the area with quite few modern hives (langstroth hives) in use. Low honey bee occupation rate was observed in the log hives. Income from beekeeping was consequently low. The partial budgeting technique proved that adopting modern bee hives bring more financial benefits compared to use of log hives. The study recommends among other things; the county government should partner with non-governmental organizations to facilitate more adoption of modern bee hives by giving loans and donations and that there should be more training on modern apiculture to the beekeepers in the study area.

The Impact of E-Wallets on Consumer Spending Behavior and Financial Management

This study examines how e-wallets in Riyadh, Saudi Arabia, are influencing consumer buying patterns and money management. The study, which is based on Saudi Vision 2030, which prioritises financial inclusion and economic diversification, looks at how e-wallets affect young to middle-aged users' financial discipline, impulsive buying habits, and purchase decisions. The users' ages range from 22 to 35. Data was collected from 750 individuals using a cross-sectional survey strategy, and descriptive and inferential statistical techniques, such as regression analysis, were used for analysis. The results show that e-wallet adoption has a statistically significant positive impact on consumer purchasing patterns and money management. Convenience, real-time transaction capabilities, and spending tracking tools are some of the e-wallet characteristics that encourage both impulsive purchases and better budgeting techniques. According to the correlation analysis, there is a 0.734% increase in consumer buying behaviour and a 0.603% improvement in financial management for every 1% increase in e-wallet use. Because of their convenience of use and promotional incentives, e-wallets have the potential to simplify financial transactions, but they also provide a risk of excessive spending. In order to reduce the hazards associated with impulsive spending, the study's conclusion highlights the significance of increasing consumer knowledge regarding appropriate e-wallet usage and financial education. Enhancing technology infrastructure, improving e-wallet features for increased user pleasure, and creating regulations that strike a balance between innovation and consumer safety are some of the recommendations. In line with the goals of Vision 2030, these findings advance knowledge of the changing dynamics of digital payments and its consequences for financial inclusion, personal finance, and overall economic growth. This study offers useful information to help stakeholders—such as customers, financial institutions, e-wallet providers, and legislators—make the most of digital payment systems and encourage prudent financial practices. To further enhance the conversation on digital payment ecosystems, future studies should examine sector-specific adoption trends and longitudinal effects.

COVID-19 pandemic and food security: Strategic agricultural budget allocation in Indonesia

The COVID-19 pandemic has exposed significant vulnerabilities in Indonesia's food security, highlighting the need for more strategic agricultural budget allocation. This study addresses the issue of inadequate budgeting techniques that fail to effectively support food production and distribution during crises. The primary objective is to develop a tailored framework that optimises budget allocations to strengthen Indonesia's food security in the face of socio-economic and geographical challenges. Using a multi-dimensional research approach, the study involves key stakeholders from the Ministry of Agriculture, the Ministry of Finance, and the Ministry of National Development Planning, employing methods such as in-depth interviews, focus group discussions, and data collection from primary and secondary sources. The research utilises the Analytical Hierarchy Process (AHP) with the Expert Choice 2000 program to systematically evaluate decision-making options. Findings reveal the necessity of a resilient framework that balances short-term emergency responses with long-term strategies, focusing on increasing production capacity, improving seed quality, expanding land availability, and adopting advanced agricultural technologies. The study contributes to the policy landscape by offering a structured agricultural budgeting framework and policy recommendations aimed at mitigating disruptions, enhancing productivity, and supporting sustainable agricultural practices. It also emphasizes the importance of sensitivity analysis in budget planning to inform strategic decisions. The study recommended targeted investments in production capacity, a reevaluation of rice import regulations, and the adoption of innovative technologies to ensure a resilient and sustainable food system in Indonesia.

Development and implementation of cost control strategies in oil and gas engineering projects

This review delves into the development and implementation of cost control strategies in oil and gas engineering projects, an area critical for maintaining project viability and profitability amidst fluctuating market conditions. Effective cost control is essential in the oil and gas sector, where projects are often capital-intensive and subject to economic and operational uncertainties. This review examines various cost control methodologies and their application throughout the project lifecycle, from initial planning and budgeting to execution and closure. The paper highlights key cost control strategies, including detailed project cost estimation, budget forecasting, and variance analysis. It discusses the use of advanced project management tools and technologies, such as software for real-time cost tracking and predictive analytics, which enhance decision-making and financial oversight. The review also covers the importance of risk management practices in identifying and mitigating potential cost overruns, emphasizing the role of contingency planning and risk assessment in maintaining financial control. Case studies demonstrate how successful implementation of these strategies can lead to significant cost savings, improved project efficiency, and enhanced financial performance. The challenges associated with cost control, including dealing with unexpected price fluctuations, scope changes, and regulatory compliance issues, are also addressed. Solutions to these challenges, such as adopting flexible budgeting techniques and leveraging data-driven insights, are discussed. The review concludes with recommendations for refining cost control practices in oil and gas engineering projects, including the need for continuous monitoring and adjustment of cost control measures, integrating cost management with overall project strategy, and fostering collaboration among project stakeholders to ensure alignment and accountability.

PROFITABILITY ANALYSIS OF RICE MILLING AND MARKETING IN BAUCHI STATE, NIGERIA

The study analysed the profitability of rice milling and marketing in Bauchi State, Nigeria. Multi-stage sampling procedure was used for the selection of respondents. The respondents comprised rice processors (millers) and marketers. Data were collected using questionnaire and analysed using descriptive statistics, farm budgeting techniques and multiple regression analysis. The findings revealed that majority (87.5%) of the millers and all (100%) of marketers were male and married with a mean age of 39 and 44 years respectively. However, 43.8% of the millers and 40% of the marketers had a family size of between 6-10 people per household with majority (62.5%) of the millers having tertiary education. The analysis also shows that half (50%) and more than half (53%) of the millers and marketers had a marketing and milling experience of between 11-20 years. The result of the budgeting model revealed that millers had a net income of N714 per bag with a return per naira of N1.46 and marketers had a net income of N1, 672 per bag with a return per naira of N 0.12. The results of the regression analysis revealed that years of milling experience and education level were the factors influencing rice milling while household size and membership of association were significant factors influencing rice marketers’ income. However, high cost of diesel (96.7%) and transportation cost (95%) were the major constraints faced by the millers and marketers in the study area. The study concluded that, milling and marketing of rice is a profitable ventures in the study area. It is therefore, recommended that government together with stakeholders should provide adequate infrastructure and introduce favorable policies to strengthen the rice value chain in the study area.

Medium-term economic impacts of cover crop adoption in Maryland

Cover cropping has the potential to generate private economic benefits to farm operations as well as larger-scale environmental benefits to the broader community. However, cover crop adoption remains limited in the United States (US) (i.e., 4.7 % in 2022 (USDA-NASS, 2024)), primarily due to uncertainty in economic outcomes, with several studies showing potentially negative net returns from cover crop use in the short-term (1–3 years). This study investigates the medium-term (5–7 years) economic impact of cover crop adoption using plot-level data from field experiments in the state of Maryland. The empirical analysis employs ordinary least squares (OLS) statistical models and partial budgeting techniques to achieve the study objective. Our results show that cover crops do not have a statistically significant effect on crop yield, fertilizer costs, or pesticide costs, but we find that cover crop use statistically increases field operation and seed expenses. As a result, the private net return from cover crop adoption in the medium term is generally negative based on the Maryland field trial data used in the analysis. Specifically, the average net return per acre with cover crops is approximately $60-$90 lower for corn and around $60 lower for soybeans compared to fields without cover crops. This empirical finding suggests that public support through incentive payments may help further incentivize cover crop adoption in the US, which can then provide environmental and ecosystem services that are of benefit to the general public.

Capital budgeting techniques and financial performance: a comparison between SMEs and large listed firms

Capital budgeting techniques and financial performance: a comparison between SMEs and large listed firms

Capital Budgeting Methods and Practices: Evidence from Privately Owned Firms in Pakistan

The aim of this research paper is to study the degree of using capital budgeting methods on choosing the appropriate project for investment by privately owned firms in Pakistan. We surveyed 58 chief executive officers (CEOs) of privately owned firms. Our survey contained fifteen questions to explore capital budgeting and cost of capital. The study covers the period from September, 2018 to May, 2019. Firms rely heavily on IRR as a project evaluation method. According to cost of capital methods, average historical rate of return on common stock is mostly used by the firms. The regression test showed significant relationship between firm characteristics with respective to the use of capital budgeting techniques and cost of capital methods.

ИСПОЛЬЗОВАНИЕ ПОПРОЦЕССНОГО БЮДЖЕТИРОВАНИЯ В ЦЕЛЯХ КОНТРОЛЯ ЗАТРАТ И ПОВЫШЕНИЯ ЭФФЕКТИВНОСТИ БИЗНЕС-ПРОЦЕССОВ КОМПАНИИ

The article discusses the issues of organizing sound budget planning of company expenses. Particular attention is paid to the problem of forming budgets for indirect costs. As a tool for determining their value, the ABB method (Activity based budgeting) is proposed, based on a functional cost analysis of costs and an assessment of the planned amount of resource consumption, depending on the level of each type of activity necessary to implement the production program and achieve a given level of income. Recommendations are given for the implementation of process-based budgeting techniques. The advantages of using the ABB method for the purposes of effective control of resources and financial results of activities are highlighted.

Financial Feasibility Analysis of XYZ Company Market Expansion Plan to Kalimantan

XYZ Company, a B2B manufacturer of Songkok in Gresik, East Java, plans to expand its market by establishing a new distribution warehouse in Banjarmasin, Kalimantan. This strategy aims to leverage the growing demand for Songkok in Kalimantan, which has a significant Muslim population. The primary goal of this study is to evaluate the financial feasibility of purchasing versus renting the new warehouse for this investment plan. The financial feasibility analysis was conducted in multiple stages. Pro forma financial statements were constructed for both scenarios, incorporating historical data of the company's financial statements, industry benchmarks, and growth assumptions from management interviews. Free Cash Flow to the Firm (FCFF) and terminal cash flows were calculated using the Weighted Average Cost of Capital (WACC). Capital budgeting techniques were then used to evaluate financial feasibility, including Net Present Value (NPV), Internal Rate of Return (IRR), and Discounted Payback Period. Risk assessment was performed through sensitivity analysis and Monte Carlo simulation. Results indicate that the renting scenario, with an initial investment of IDR 242 million, has a higher NPV and IRR than the purchase scenario, which requires an initial investment of IDR 944 million. The renting scenario also offers a faster-discounted payback period of 2 years and one month, making it more feasible. Risk assessment shows moderate risk, with an 83% probability of achieving a positive NPV. The financial feasibility analysis recommends renting the new warehouse in Banjarmasin. This option provides a quicker payback period, higher NPV and IRR, and positive risk assessment results. Investing in this project will enhance XYZ Company's market presence in Kalimantan, cater to the growing demand for Songkok, and achieve sustainable growth and profitability.

Analysing Growth Trend, Profitability and Resource Use Efficiency of Summer Mungbean in Eastern Haryana

Background: Mungbean [Vigna radiata (L.) Wilczek] is the most extensively sown crop among commonly produced Asiatic Vignas, viz., urdbean, mungbean, mothbean, ricebean and azukibean. In Haryana, the crop covered 28.5 thousand ha area with annual production of 19.6 thousand tonnes having productivity of 688 kg ha-1 in 2020-21. To prevent the perils of mono-cropping (paddy-wheat system) in the state, there is a need for deep transformation through inclusion of pulses like summer mungbean, in the existing cropping system. Hence, the present investigation critically examines the growth trends, economics and efficiency of resource use in summer mungbean cultivation in eastern zone of the state. Methods: This study uses both primary and secondary source of data. The primary data was collated from 80 summer mungbean growers using multi-stage random sampling technique. The secondary data was retrieved from various published and unpublished sources for a period of 30 years from 1991-92 to 2020-21. For measuring the growth trends and instability in the area, production and productivity of mungbean, compound annual growth rate (CAGR) and Cuddy-Della Valle index (CDVI) were computed. Simple budgeting technique was employed for calculating the economics of summer mungbean. For resource use efficiency, Cobb-Douglas production function was used. Result: The results show a positively significant growth rate in mungbean area, production and productivity but with irregular trends. The instability in mungbean production is more pronounced in Haryana than India and is mainly attributed to area instability, while it is because of productivity instability at the country level. The mungbean is a profitable enterprise in summer season as the net returns realized to the tune of ₹ 26024 ha-1 with benefit-cost ratio of 1.43 in the study area. Further, the efficiency of resourceuse in summer mungbean exhibits increasing returns to scale. Hence, the inclusion of mungbean cultivation in summer season is profitable.

Economic efficiency of rice production among the small-scale women farmers in the Federal Capital Territory, Nigeria

This study evaluated the economic efficiency of rice production among the small-scale women farmers in the Federal Capital Territory, Nigeria. A multi-stage sampling technique was used to select 100 small-scale women rice farmers. The primary data were collected with the aid of a well-designed and well-structured questionnaire. The data were analyzed using descriptive statistics, farm budgeting technique, financial analysis, the Stochastic production frontier efficiency model, and the Tobit dichotomous regression model. The results show that 88% of women rice farmers were below 50 years old. The mean age was 44 years. Averagely, they were small-scale farmers with 1.31 hectares of farm land. The labor input in man-days constituted the highest percentage of about 50.8% of the total costs of activities involved in rice production. The net farm income and gross margin ratio was estimated at 416,800 Naira and 0.63 respectively. This shows that the rice production by women farmers was profitable and worthwhile. The mean allocative, economic, technical efficiency scores were 50.3%, 50.8%, and 51.20% leaving the efficiency gaps of 49.7%, 49.2%, and 48.8% for improvement respectively. The significant factors influencing the economic efficiency of the rice production among women farmers include the following: – farm size, labor input, household size, seed input, fertilizer input, chemical input, farm experience, and access to credit. The major constraints encountered by women rice farmers include the following: inadequate credit facilities (1st), high cost of labor (2nd), high cost of fertilizers (3rd) and high cost of herbicides (4th). The study recommends that farm inputs such as improved seeds, fertilizer input, chemical input and herbicides should be made available to women farmers at affordable prices. Credit facilities devoid of rigorous administrative procedures at low interest rate should be made available to women farmers Keywords: economic efficiency, rice production, Tobit regression model, small-scale women farmers, Abuja, Nigeria

Comparative Analysis of Open v/s Protected Cut Flower Rose Farming in Karnataka, India

In India, the floriculture industry is the second largest in the world, trailing only China. The total area under flower crops during 2023-24 was 285,000 hectares; production of loose flowers was estimated to be 21.52 lakh metric tons, and cut-flowers were 645 metric tons. Both fresh and dried cut flowers lead floriculture exports from India. (NHB, 2023-24). Among the plethora of flowers, the rose stands out as a plant with hundreds of species and thousands of cultivars, many of which are native to Asia. These roses are not only extensively used in commercial perfumery and pharmaceuticals but also as commercial cut flower crops. In the current era of commercialization, rose cultivation has expanded to both protected and open-field methods. Therefore, this study was undertaken to analyze the Comparative Analysis of Open vs. Protected Cut Flower Rose Farming in Karnataka. The study was based on primary data collected from 40 farmers each from both the districts, namely Chikkaballapura and Bengaluru Rural. The data were analysed using cost and return analysis and capital budgeting techniques. The results obtained from this study indicated that the cultivation of roses was profitable under open and protected fields. But comparatively, the rate of return obtained from protected cultivation was higher, i.e., 54 per cent with a 1.58 B:C ratio, than open-field cultivation, i.e., 47 per cent with a 1.21 B:C ratio. Therefore, efforts should be made to educate the traditional rose farmers to adopt a better package of practices followed by protected farms and encourage them by providing cheaper institutional credit and subsidies.

A Study on Capital Budgeting Techniques and preparation of DCF Model of NVIDIA Corporation

This study delves into the application of capital budgeting techniques in Nvidia Corporation, a global leader in graphics processing units (GPUs) and artificial intelligence (AI) technologies. Through secondary data analysis sourced from various reputable sources including webpages, case studies, and annual reports, the study aims to evaluate the impact of capital budgeting techniques on investment decision-making, assess the profitability of Nvidia, calculate its Net Present Value (NPV), and provide actionable suggestions for enhancing profitability and diversifying investment decisions. Additionally, a Discounted Cash Flow (DCF) model is prepared to forecast future performance and guide strategic planning. Limitations such as incomplete information, biased sources, and limited data availability are acknowledged, yet the study offers valuable insights into the strategic financial management of a technology giant like Nvidia.

IMPACT OF CASHLESS POLICY ENFORCEMENT AND NAIRA REDESIGN ON FRESH CATFISH MARKETING IN MAKURDI LOCAL GOVERNMENT AREA OF BENUE STATE, NIGERIA

The study examined the impact of Cashless Policy Enforcement and Naira Redesign on Fresh Catfish Production and Marketing in Makurdi Local Government Area of Benue State, Nigeria. Multi-stage sampling procedure was employed to select 100 respondents for the study. Data were collected with the aid of structured questionnaire and analyzed using descriptive statistics and farm budgeting techniques. The result revealed that fresh catfish producers were in their productive age with mean age of 34years. Majority (76%) of the fresh catfish producers were males and 84% married. The average household size and farming experience were 5 persons and 6 years, respectively. The results of the profitability analysis of catfish marketing in the study area before and during the cashless policy enforcement and Naira redesign revealed that before the policy, the catfish producers’ total variable costs and total fixed costs were N1701379 and N665689.22, respectively, making a total cost of N2367068.22. The results further revealed that total revenue of N2659284.66 and a net farm income of N292216.440 were realised. The profitability ratio shows that for every one naira invested, the catfish producers made about 89 kobo. However, the result revealed that, amid the cashless policy enforcement and Naira redesign, the total variable cost and total fixed cost were N827791.66 and N712688.47, respectively, making a total cost of N1540475.13. The results revealed total revenue of N1650800 and a net farm income of N110384.87. The profitability ratio shows that for every one naira invested, the catfish producers made about 92 kobo. The result of the impact of catfish marketing on the income level of the marketers in the study area before and during the cashless policy enforcement and Naira redesign revealed that before the policy, 30%t of the catfish marketers had an income of over N300, 000. However, during the policy, only 26% of the catfish farmer marketers had an income of over N300, 000 and 15% had an income of less than N50, 000. The result of the constraints to catfish marketing before and during the cashless policy enforcement and Naira redesign revealed that before the policy, the most constraints to catfish marketing were high electric charges (12.3%) and lack of credit facilities (9.1%). However, during the policy, the most constraints to catfish marketing were inadequate capital (8.3%), seasonality of commodity (7.8%), high cost of feed (7.4%), high cost of production (7.3%), high cost of labour (7.3%) and low demand of product (7.0%). The study concluded that Catfish production and marketing in the study area was more profitable before the cashless policy enforcement and Naira redesign. The study recommended that provisions for agricultural incentives such as short and long-term loans, with a single digit interest rate for the marketers in order to solve the problem of lack of credit facility. Also, Marketers should form marketing cooperatives to increase their access to credit from financial institutions and hence alleviate the problem of inadequate capital.

Impact of Drip Irrigation in Sugarcane Cultivation in Mandya District of Karnataka, India

This study investigates the impact of drip irrigation on sugarcane cultivation in Mandya district, Karnataka, considering the challenges posed by traditional flood irrigation methods and the increasing demand for water resources. The research compares the adoption of drip and flood irrigation, analyzing socio-economic characteristics, cropping patterns, and the comparative economics of sugarcane cultivation under both methods. Externality concept and Partial budgeting technique was emphasized to estimate the additional benefit derived from drip irrigation over flood irrigation. The study reveals that drip irrigation leads to higher water use efficiency, improved crop quality, and environmental sustainability. The adoption of drip irrigation in sugarcane cultivation results in significant economic benefits, with higher net returns and increased yields then farmers following flood irrigation. The findings highlight the positive externality associated with drip irrigation, contributing to water conservation, reduced labor costs, and increased agricultural sustainability with an additional benefit of around Rs. 41,000 derived due to drip adoption over flood irrigation in Sugarcane cultivation. As Karnataka faces evolving challenges in agriculture, the widespread adoption of drip irrigation emerges as a pivotal factor in ensuring the prosperity of sugarcane cultivation and addressing environmental concerns.

Strategic Evaluation and Economic Impact of Fibre Optic Infrastructure

Metrolink, LDA as the largest telecommunications company in Timor-Leste, is continuously investing to grow its company and serve the growing needs of its customers with a profit-oriented vision. This research aims to find out the viability of the investment plan that will be implemented at Metrolink, LDA. The investment plan is the construction of a project in Silawan-Batu Gade-Liquica-Dili that is to expand the network. With a total investment of USD 3,000,000 coming from equity at an interest rate of 9% in 2023. Capital budgeting is a process in which a company analyses a project and decides which projects will be included in its financial budget. The type of research that is conducted is descriptive research and this research will perform qualitative analysis to analyse the problems that occur. While the data is in the form of quantitative data. Evaluation of investment eligibility on the project This uses capital budgeting techniques which it uses to find out whether or not an investment proposal is eligible. With the payback period analysis tool, net present value. The two analytical tools are also used by Metrolink, LDA to measure whether the project is adequate or not. From the results of the analysis and the plan of the project Silawan-Batu Gade-Liquica-Dili. Obtained a payback period of 2 years 7 months from the target Metrolink, LDA is 5 years, Net Present Value of USD 3.358.050 of the target that is defined Metrolinks, the result is positive. It shows that the financial investment plan project is not worthy to be implemented.

ECONOMIC EFFICIENCY AND PROFITABILITY ANALYSIS OF CATFISH (Clarias gariepinus) PRODUCTION IN KADUNA STATE, NIGERIA

This study evaluated economic efficiency and profitability analysis of catfish (Clarias gariepinus) production in Kaduna State, Nigeria. The sampling design employed for this research was a multi-stage sampling technique. A total sample size of 140 catfish farmers was selected. Primary sources of data were used and the data were obtained by administering a well-designed and well-structured questionnaire to the respondent. Data were analyzed using descriptive statistics, farm budgeting technique, gross margin analysis, financial analysis, stochastic production frontier efficiency model, Tobit dichotomous regression model, and principal component model. The results show that about 70% of the catfish farmers are male, and the average age of catfish farmers was 39 years. The kinds of fish pond used include concrete, earthen, tarpaulin, cage, and plastics, the capacity of fish pond was 1706 fingerlings. The gross margin and net farm income was 886,250,51 Naira and 865, 021.37 Naira per production cycle respectively. This implies that catfish production is profitable. The mean economic, technical and allocative efficiencies are 36.97%, 61.89% and 59.73% respectively. This left inefficiency gaps of 63.03%, 38.11% and 40.27% for improvement. The significant factors influencing economic efficiency of catfish production include age, farming experience, educational level, fish feed, drugs, fingerlings, and pond size. The constraints facing catfish farmers include lack of credit facilities, high cost of fingerlings, high cost of feeds, problem of pests, diseases, and predators, lack of access to markets, and lack of access to land. The study recommended that credit facilities should be provided for catfish farmers at low interest rate devoid of cumbersome administrative procedures. The fish feeds, fingerlings, drugs, and chemical inputs should be provided for catfish farmers at affordable prices.

Campus sustainable energy management initiatives at Goa Institute of Management

Learning outcomes The learning outcomes of this study are to identify and discuss ways in which energy consumption in a residential educational institute can be reduced by improving demand-side energy management for sustainable development; summarise the challenges that an institute faces in transitioning to a more environmentally friendly mode of operations concerning energy management; illustrate the difference between operating expense and capital expenditure methods used for solar rooftop projects from the perspective of Goa Institute of Management (GIM); and analyse different project proposals for solar rooftop power generation energy using capital budgeting techniques. Case overview/synopsis Dr Ajit Parulekar, director at GIM, was evaluating the steps taken over the past few years for sustainable energy management to understand their impact and consider ways in which to take the environmental sustainability agenda forward. One of the projects that he was considering was the rooftop solar power plant. GIM had received proposals from several different vendors and evaluated three proposals out of these. He needed to decide on the capacity of the rooftop solar power generation and the type of contract that he should get into for the implementation of the project. This case study describes the differences and highlights the advantages and disadvantages of all the mentioned models with respect to GIM. Complexity academic level This case study is suitable for post-graduate level management students, as well as for undergraduate-level finance and management students. Supplementary material Teaching notes are available for educators only. Subject code CSS4: Environmental management.

The comparative financial feasibility analysis and the environmental impacts of sugarcane-based bioethanol production in South Africa

The objective of this paper was to determine the financial feasibility and environmental implications of bioethanol production from sugarcane in South Africa. The financial feasibility objectives was achieved using two capital budgeting techniques, namely, the Net Present Value (NPV) and Benefit-Cost Ratio (BCR) under four scenarios considerations: all sugarcane is used for biofuel production (I), all sugarcane destined for the sugar export market is used to produce bioethanol, II), All sugarcane is crushed into cane juice which is then transported into the refinery (III) and IV) Export designated sugarcane is transported by farmers to the refinery in the form of a cane juice. The environmental implications were determined using the Input-output and multiplier analysis. The NPV and BCR) results indicated that it is not feasible to produce bioethanol from sugarcane without a government subsidy. The production of sugarcane-based bioethanol however had environmental benefits as it was estimated to results to an average Green House Gases (GHGs) emission reduction of 28% related to petrol, of which 84% of the GHGs emission savings was from Carbon Dioxide (CO2). For bioethanol production to be financially feasible the financial support from private investors and government is recommended in subsidising the cost of feedstock.