Capital value

When considering taxes, all types need to be considered initial fees, capital value, corporate rate, personal income tax, sales tax, property tax, unemployment insurance, workmen s compensation, and nuisance tax. During the constmction phase, several types of taxes may be levied. These include building permits, special fees, assessments, and sewer connection fees. 

Overheads in the chemical-process industries are commonly calculated as a percentage of (I) direct materials cost, (2) direct labor cost, or (3) prime or direct costs. Other methods of allocating overheads are on the basis of (I) plant area, (2) number of employees, (3) capital value, and (4) elec tric power. 

Future capital costs considered in the objective function rely on future capital values - in this scope future inventory values. The planning of future inventory values in all future periods and in all network locations is a complex task. As described in the requirements, future inventory value is determined by the future product values of the products on stock. These product values change, if the included material costs of the product change, which is regularly the case due to volatile raw material prices. The task now is to calculate the future inventory value throughout the value chain network and product steps considering the raw material price forecast for the planning horizon. The problem is illustrated in fig. 57. 

The central issue in any stock offering is price. In traditional, profitable companies price is usually measured as a price/earnings ratio. Since biotech companies rarely are profitable, price is evaluated using the capitalized value of the outstanding stock, i.e., price per share times the total number of shares, compared to other companies at similar stages of development with comparable upside potential. This "market cap" number (either private or public) is what sophisticated biotech investors look to in measuring whether an offering price is fair. Two measures used are postmoney and premoney values. 

In the recent past the capital value of the physical plant normally dominated the balance sheet. Today a number of companies have to include a greater provision to cover the potential costs of remedying problems or liabilities, associated with the plant such as land contamination or problems associated with either the use or abuse of the product or byproducts. Whilst in certain well-publicised cases these costs are indeed very substantial, many other companies are blighted by the possibility of the costs. Much modem regulation, such as Control of Major Accident Hazards (COMAH), Integrated Pollution... 

To measure the full cost of bringing a new drug to market, all outlays required to achieve the successes (including spending on projects that fail) must be compounded (or capitalized) at an interest rate equal to the cost of capital, to their present value (or capitalized value) at the date of market approval. For example, 1 million invested 1 year ago should be worth 1.1 million today if the cost of capital for that investment was 10 percent per year. 

For example, when started up, a plant has to bear double the cost of an outlay incurred five years before start-up ifthe rate of interest is 15%. Conversely, a revenue five years after start-up will only carry half the weight, and one ten years after start-up will be virtually insignificant. The capital value Kof a. project is therefore the sum of the net values ... 

To compare different projects, a useful life of ten years is usually assumed for chemical plants. An investment is only beneficial if its capital value is equal to zero or is positive. The internal rate of return method (discounted cash flow, DCF) aims to find the rate of interest which will result in a capital value of zero, that is, the rate at which the net values of the incoming and outgoing payments are equally large (the internal rate of return). The internal rate of return po is determined by equating the above capital value function with zero ... 

In any assessment of risk due to volcanic activity, the number of lives at stake, the capital value of the property and the productive capacity of the area concerned have to be taken into account. Evacuation from danger areas is possible if enough time is available. However, the vulnerability of property is frequently close to 100% in the case of most violent volcanic eruptions. Risk is a complex function of the probability of eruptions of various intensities at a given volcano and of the location of the site in question with respect to the volcano. 

Typical operating line plots are shown in Fig. 15.30 and 15.31. The optimum conditions are obtained from the figures and used to obtain the lowest cost design. Since both capital and operating costs are involved, these must be reduced to a common annual cost (Allen et ah, 1967). The annual capital value varies from 5 to 40% of total cost depending on the application and the relation to EBRT as shown in Fig. 15.32. Other cost data based on operating fixed-bed GAC adsorption systems are available (Adams and Clark, 1991). 

This determines the total social capital value based on the total amormt of knowledge and information available to the entrepreneur as a member of the network. 

The Land Acquisition Act of 1894 empowered state governments to acquire land for any public purpose project. It provides three methods for arriving at the value of land, which were (i) government approved rates, (ii) capitalized value of average annual income from the land, and (iii) prevalent market rate based on the land transactions data. The process of land acquisition under this Act is illustrated in Fig. 34.4. As the figure shows, much depended on the District Collector s satisfaction. 

The largest element of the economic benefit comprises die journey benefits (in terms of reduced wait, in-vehicle or interchange time, improved comfort, quality of service and safety etc) as perceived by the existing public transport users as a result of the capital investment Non-user benefits (that is benefits to non-public transport users such as car drivers passengers) normally account for a small share of the total economic benefit for LUL projects. This is because a large proportion of the projects appraised are either relatively small scale in capital value or perceived to have limited influence on overall modal share between public and private transport particularly during the peak. 

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