Investment risks

Now that you have determined the likely savings in terms of annual process and waste-treatment operating costs associated with each option, consider the necessary investment required to implement each option. Investment can be assessed by looking at the payback period for each option that is, the time taken for a project to recover its financial outlay. A more detailed investment analysis may involve an assessment of the internal rate of return (IRR) and net present value (NPV) of the investment based on discounted cash flows. An analysis of investment risk allows you to rank the options identified. 

Oil from shale or coal liquefaction can be less expensive than crude oil at current prices, but production costs are higher than developed oil fields. There is an investment risk that crude oil prices could and then liquefaction plants could not compete. Nuclear energy does not have this disadvantage. 

Holzer A (2010) Do pharmaceuticals in the environment present an investment risk In Kiimmerer K, Hemple M (eds) Green and sustainable pharmacy. Springer, Berlin... 

Ian E. Marshall studied political science and economics at Carleton University, Ottawa, and law at Queen s University, Kingston, Ontario. He is currently an international business consultant specializing in anti-corruption work, corporate governance, and country investment risk. Before that, he was Associate General Counsel at an international mining company where he co-authored their Code of Business Conduct and... 

Decision makers in Georgia have to realize that the combination of de facto insolvency of most operating energy companies and uncertainty of the macro-economic trends in Georgia makes it very difficult to attract investors such as international financing institutions and international energy companies. Investors are simply not sufficiently confident that the situation will improve and investment risks will decrease. 

Keywords Oil and gas pipeline economics, pipeline investment risks, risk mitigation... 

A thorough understanding of the individual local markets is a prerequisite for minimizing investment risks due to the high capital intensity of the industry, any decision to invest in an emerging country will automatically have long-term consequences. 

In addition, the lack of local certification bodies imposes significant constraints and risks to organic agriculture in Africa. They increase the costs of certified organic production, as certifiers have to be flown in. So far, only Tunisia has its own European-standard certification bodies (Parrot and van Elzakker, op. cit.). The costs of certification have to be seen as investment costs and hence risks, for if the investment costs are not amortised by the revenues, e.g. in the case of harvest failures or a sudden shortfall of market outlets, investments in certification are lost and hence the respective farmers are prone to a significant investment risk. 

To that. Big Pharma—and many sympathizers among doctors, academics and even the public—adds that it deserves something of a premium for the tremendous risks it takes. The millions of dollars down the drain, the 9,999 molecules that are investigated and 4,999 that are tested that never turn into feasible drugs. It s Lesson One in Basics of Investment, risk versus return. One also wants to do a kind of risk adjustment. The average returns have to be higher, or no one would want to invest, points out Lichtenberg, the Columbia professor. 

A rounded innovation project portfolio should also be distributed according to degree of import (incremental, substantial, breakthrough). Obviously, the magnitude of investment, risk, and potential impact on profit increases as you move up the chain from incremental to breakthrough innovation. 

The high investment risk of developing a hydrogen delivery infrastructure, given technology status and current demand... 

Noncompliance creates a ripple effect far beyond the risks associated with civil or criminal prosecution. Insurance companies and potential investors may consider the company with a poor compliance history to be a poor business or investment risk. Employee recruitment and retention can be jeopardized. Public acceptance of the products that eventually are brought to market may be compromised by the bad publicity associated with noncompliance. Most important, drug development can be delayed or derailed as new products are prohibited from being brought to market. 

In Phase 3, we are performing NPV calculations to determine overall and individual stakeholder investment risks for various fuel and FCV options. Minimizing risks will require managing utilization factors, FCV introduction strategies, and infrastructure options. The NPV analysis is being used to evaluate the effect that potential triggers and drivers may have on the various stakeholders for each fuel chain and FCV option. Potential factors include ... 

Polymer blends provide an avenue for diversifying and expanding the product line for resin producers and suppliers, without significant investment risks. 

We consider independently the different risks specific to nuclear build and different ways to ex ante mitigate them or to shift them away from the producer-investor onto another party when they are relevant in terms of economic and social efficiency. Indeed, if the government assumes a major part of, or all, investment risks, it tends to transform private sector projects into public projects, with the same drawbacks that have been observed with such projects in the past (an immature blueprint, bad planning, soft budgetary constraints, large delays, and so on). 

Finon, D. (2008) Investment risk allocation in decentralised electricity markets. The need of long-term contracts and vertical integration , OPEC Energy Review, Vol. 32, No. 2, pp. 150-83. 

Step 4 Repeat the proeess, that is, eonduct a series of trials, building a frequency histogram with the results, as in Figure 13. Continue until you are reasonably satisfied that the histogram yields a clear portrayal of the investment risk. (There is no universally accepted rule for determining the optimum number of trials. It is clearly less expensive to produce a smaller number of trials, yet a larger number of trials yields more information. Substantial literature is addressed to this interesting problem, but additional discussion is not warranted here.)... 

Grey system theory-based overseas investment risk assessment for mining enterprises... 

OVERSEAS INVESTMENT RISK ASSESSMENT MODEL FOR MINING ENTERPRISE ON THE BASIS OF THE GREY THEORY SYSTEM... 

On the basis of grey system theory and fuzzy comprehensive assessment method, an overseas investment risk assessment model that is suitable for Chinese mining enterprises is to be established by adopting the AHP index weighing. The contents... 

To establish an overseas investment risk assessment index system for mining enterprises. 

With analysis and summary of the significance and characteristics of Chinese mining enterprise s overseas investment, various risks existing in his multinational M A process, an overseas investment risk system for mining enterprises is estabhshed. Its criteria consists of risks in three aspects, that is, risks at preparation period, risks at transaction and risks at deal implementation, while the detailed index consists of 15 secondary indexes. Specifically, the index system is shown as following ... 

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