Opportunity value

With butane priced a world parity and oil at 70/bbl, feedstock prices dominate the production cost. This is illustrated in Figure 8.5 for an OPEN system (all products sold at opportunity value). 

The superiority beta (fi) function was further manipulated to examine the effects it had on associated risk. It was formd that manufacturing a wine of lower consumer utility (higher beta) can, in some cases, reduce the risk at similar aspiration levels. A decrease in risk is always accompanied by a lower opportunity value. This delicate balance between associated risk and opportunity value is an important factor for decision making in economics. 

Opportunity value (or upside potential), which is defined the same way as VaR but on the upside. OV and VaR are illustrated in Figure 12.10 where two projects are compared, one with expected profit of 3 (arbitrary units) and the other of 3.4. The former has a VaR of 0.75, while the latter has a VaR of 1.75. Conversely, the upside potential of these two projects is 0.75 and 3.075, respectively. Considering a reduction in VaR without looking at the change in OV can lead to solutions that are too risk averse. 

The use of several expansion centers surely improves the situation. The averaged value of dipole first polarizability a can be satisfactorily expressed as a sum of transferable group contributions, but the calculations of IND with distributed polarizabilities are rather unstable, probably divergent, and it is convenient to limit the calculation to the first term alone, as is actually done in almost all the practical implementations. Instability and lack of convergence are factors suggesting an accurate examination of the function to fit the opportune values for these distributed a polarizabilities. 

Petroleum economics provides the tools with which to quantify and assess the financial risks involved in field exploration, appraisal and development, and allows a consistent approach with which alternative investments can be compared. The techniques are applied to advise management on the attractiveness of such investment opportunities, to assist in selecting the best options, and to determine how to maximise the value of existing assets. 

The econom/c mode/for evaluation of investment (or divestment) opportunities is normally constructed on a computer, using the techniques to be introduced in this section. The uncertainties in the input data and assumptions are handled by establishing a base case (often using the best guess values of the variables) and then performing sensitivities on a limited number of key variables. 

During training the input layer is adapted as in a regular Kohonen network, i.c., the winning neuron is determined only on the basis of the input values. But in contra.st to the training of a Kohonen network, the output layer is also adapted, which gives an opportunity to use the network for prediction. 

The probabilistic nature of a confidence interval provides an opportunity to ask and answer questions comparing a sample s mean or variance to either the accepted values for its population or similar values obtained for other samples. For example, confidence intervals can be used to answer questions such as Does a newly developed method for the analysis of cholesterol in blood give results that are significantly different from those obtained when using a standard method or Is there a significant variation in the chemical composition of rainwater collected at different sites downwind from a coalburning utility plant In this section we introduce a general approach to the statistical analysis of data. Specific statistical methods of analysis are covered in Section 4F. 

As the nonwoven fabrics industry has matured and technology has become pubHcly available, emphasis in the various sectors of the industry has changed. In the 1990s, some portions of the nonwovens industry are technology driven, whereas others are market driven. A number of firms are proprietary technology based, and others are turn-key plant operations. Some corporations are commodity roU-goods producers, and others are more oriented to niche market, high value-added products. Many nonwoven produces continue the quest for new markets and more opportunities to compete with textiles, paper, and plastics. 

The resulting discoveries may provide a broad range of solutions or products. For example, invention may result from basic research and development efforts directed toward products which ate essential to basic commercial efforts. Alternatively, invention may result in products or appHcations which add value to basic commercial products that ate already in existence. Inventions may also be used to assist an individual or company in commercial efforts toward developing a defensive posture in any given marketplace. When patented, appHcations may also provide an extended opportunity to Hcense or market the patent without the actual production of a product by the inventor. 

Condenser and eboiler AT. The losses for AT are typically far greater than those for reflux beyond the minimum. The economic optimum for temperature differential is usually under 15°C, in contrast to the values of over 50°C often used in the past. This is probably the biggest opportunity for improvement in the practice of distillation. A specific example is the replacement of direct-fired reboilers with steam (qv) heat. 

The desugarization by-product is normally sold as a low value molasses. Pulse method systems also produce a relatively high value betaine-rich (at least 50% on soHds) fraction. The concentrated betaine-rich by-product is used as a custom animal feed, whose European markets are well estabUshed and may provide a future opportunity in the U.S. feed industry. Beet sugar molasses contains from 3 to 6% betaine, by weight, about three-quarters of which may be recoverable as a potential by-product ( 40 50% purity). 

Entrained liquids. Production of small droplets is inherent in the bubbling process, as shown by Fig. 14-90. Values range from near zero to 10,000/cm of vapor, depending on how the vapor breaks through the liquid and on the opportunity for evaporation of the small drops after entrainment. 

The potentiometry sensor (ion-selective electrode) controls application for determination of polymeric surface-active substances now gets the increasing value. Potentiometry sensor controls are actively used due to simple instmment registration, a wide range of determined concentrations, and opportunity of continuous substances contents definition. That less, the ionometry application for the cation polymeric SAS analysis in a solution is limited by complexity of polycation charge determination and ion-exchanger synthesis. 

In this formula, P is present worth or present value, F is future value, i is the interest or discount rate, and n is the number of periods. Economically, there is an additional factor at work in present value, and that factor is pure time preference, or impatience. However, this issue is generally ignored in business accounting, because the firm has no such emotions, and opportunities can be measured in terms of financial return. 

The cumulative total of the benefits (at present value) and the cumulative total of the costs (at present value) should be compared year by year At the point in time when the cumulative present value of benefits begins to exceed the cumulative present value of costs, then the P2 opportunity has reached the payback period... 

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