Value of the project

When the sensitivities are performed the economic indicator which is commonly considered is the true value of the project, i.e. the NPV at the discount rate which represents the cost of capital, say 10%. 

Example 12 Expected Value of Net Profit Let iis consider a contractor who stands to make a net profit of 100,000 on a contract. The cost of preparing the bid on the contract is 10,000. There are four competing contractors, each with a probability pi = 0.25 of obtaining the contract. Thus, each contractor has a probability p2 = 0.75 of not obtaining the contract. Therefore, the expected value of the project is... 

A pilot project generally ensures the complete project is implemented smoothly and a clear understanding of the value of the project is established. Of course, a failure at the pilot stage can lead to cancellation of the overall project. If the pilot is not successful, it is important to analyze the reasons for failure so that any decision to continue or abandon the integration is made rationally. 

Thus the root-mean-square value of the projection is given by... 

Optimization techniques are procedures to make something better. Some criteria must be established to determine whether something is better. The single criterion that determines the best among a number of alternatives is referred to as the performance index or the objective function. Economically, this is the expected profit for a plant design. It may be expressed as the net present value of the project. 

From the results it can be seen that the value of the project is negative for virtually all cases. Only with discount rates below 10% can the financial case be forced above zero - and then only if the lowest conceivable capital cost ( 400 million) and the highest conceivable savings rate ( 50 per year) are simultaneously assumed. Discount rates for major capital projects in the chemical industry are currently 12% or more, and higher (15%+) for high-risk projects. And remember - the project would not result in any measurable environmental improvement. 

The relation between the CCR rates and the pseudorotation phase angle can be calculated using the general formula for /dipole-dipole by converting the values of the projection angles into P and i//ln [47] according to... 

For preliminary estimates, a 15 to 20 percent project contingency should be applied if the process information is firm. As the quality of the estimate moves to definitive and detailed, the contingency value may be lowered to 10 to 15 percent and 5 to 10 percent, respectively. Ejq)erience has shown that the smaller the dollar value of the project, the higher the contingency should be. 

Let us notice that antisymmetrization involves summations over permutations of electron coordinates, whereas the coupling of momenta and their projections involves summations over functions with different values of the magnetic quantum numbers. Since these are independent finite summations, the order in which they are performed is interchangeable we can, in principle, either antisymmetrize, first, and couple, second, or vice versa. In practice, the Pauli principle restricts the possible values of the projections and as a result of these complications it proves to be more convenient to couple first, and antisymmetrize second, with the antisymmetrization not always being done by means of coordinate permutations. 

The number of tensorial operators with different possible values of ranks k,K and appropriate values of the projections is predetermined by the number of possible projections of the second-quantization operators that enter into the tensorial product. This number is equal to (4/ + 2)2. 

All four creation and annihilation operators for electrons in the pairing state (a,/ ) can be expressed via the tensor in (15.38) at various values of the projections v and m. The anticommutation relations (18.8) and... 

The estimate of a climate parameter is obtained by projecting the physiognomic scores of a given sample onto the vector obtained for the climate parameter. The value of the climate parameter is plotted against the value of the projection onto the climate vector in the physiognomic space. A least squares fit is obtained and provides a predictive formula for the given climate parameter. A complete discussion of this technique is given in Wolfe (1995). 

The B2 value calculated from expression (1) depends upon the value of the projection of the magnetic moment, mv Table II demonstrates this dependence for hydrogen nuclei in the compound Me4Sn, when rj = 5000 Hz, and the positions of the perturbed 119Sn satellite lines are defined by the frequency = 24-1 Hz [Fig. 1(b)]. 

For many studies, the salvage value is assumed equal to dismantling costs and is not included in the recoverable value of the project. 

Comparing Fig. 3.6(a) and 3.6(6) we see that in both situations anisotropy with respect to M" is created in the form of alignment, since = mean value of the projection of the angular momentum upon the quantization axis equals zero. There is, however, a substantial difference. For a Q-transition, mainly the sub-levels in the vicinity of M" = 0 are populated, see Fig. 3.6(a) (bottom), whilst the level M" = 0 itself is not depopulated, as follows from (3.10). 

To determine the intrinsic value of the project (as well as an alternative means of comparing several different projects, or even several different versions of the same project), the IRR is calculated as that unique discount rate that makes the NPV equal to zero. The IRR cannot be calculated from a single equation, but must be determined iteratively, and the final stage may be graphical. 

If we are dealing with a 2n state, the possible values of the projection quantum numbers are as follows ... 

Figure 16-8 shows the accumulated amount of money. This first decreases as you spend, but have no income. It then starts increasing, and in a good project it will end well above the zero line. The value at the end - after the last sales - is the value of the project or VP. With your assumptions, you get a value of k 800. An important parameter for each product is the required investment. This is the amount of money you must have available in the dip of the diagram, here k 700. You must have certainty of getting this amount before you start the project. 

If sales are less than expected, the value of the project may become negative (Figure 16-9). If you think the value will be negative, you should either terminate the project or hud ways of improving it sufficiently. 

Now the second part of the exercise the model lets you find out how sensitive the value of the project is to your assumptions. Unless your assumptions are terribly bad, the results can be very useful in deciding on alternative development paths. Factors that are usually considered in the sensitivity analysis are the effects of development time, sales volume, product manufacturing cost and development cost. Calculating their effect may seem a lot of work, but the spreadsheet gives results quickly. 

Figure 16-10 The value of the project (VP) versus time required for development...

A second example (Figure 16-11) shows the effect of sales volume on the value of the project (again, according to our assumptions). We see that the effect is large. Below about 250 000 units sold per year, the value of the project becomes negative for sales above the base case it becomes very profitable. Unfortunately sales are the least predictable part of most product development projects. About three quarters of the projects that fail do so because sales are lower than expected. 

Figure 16-12 shows the four sensitivities that are usually calculated the effects of changes in development time, sales volume, manufacturing cost and development cost. Experience shows that changes are usually more or less linear in these variables, and that the estimation of changes is more reliable than that of the value of the project. 

A controversial problem is the cause of the pronounced asymmetry of some ESR spectra, while others are symmetric or only slightly asymmetric.At least four reasons have been suggested to explain this asymmetry. First, highly pure phenothiazine can be prepared only by using special techniques when the radical is prepared, by chemical methods in particular, small amounts of other radicals (e.g., 3-hydroxy-S ) may be present with the predominant species in the system. Superposition of the signals from the impurities upon the main spectrum may lead to asymmetry. Another source of asymmetry may be the so-called asymmetrical broadening, due to the dependence of the line width on the value of (the projection of the nuclear spin on the direction of the magnetic field).If this... 

The probability of success is the product of the probability of technical success, the probability of regulatory success, and the probability of commercial success. The criteria for these probabilities of success need to be clearly defined and characterized so that future PMTs can translate the impact of project progress and decisions on the value of the projects in the portfolio (see section on portfolio optimization using sensitivity analysis). 

The second goal is to identify characteristics that/ if added to the project characteristics/ would significantly increase the expected value of the project. This type of... 

A configuration in the independent-particle model may be of either the closed-shell or open-shell type. In the former the N electrons occupy all the orbitals of the lowest-energy sets with the same symmetry and principal quantum number , called shells. In the latter some orbitals with particular values of the projection quantum numbers are unoccupied. The... 

Calculate the cumulative net present value of the project, at a discount rate of 12%, using MACRS depreciation with a 7-year recovery term. Also, calculate the discounted cash flow rate of return. 

In the expression for the basis fiinctions, the electronic states which appear in eq. (2) have a well-defined value of the projection of the electronic orbital angular momentum X, even though I itself does not have a definite value, except when the X atom is infinitely lar from the H2.[48] In the pure-precession limit, I would everywhere fixed at its value for the separated halogen atom reactant, namely /= 1. 

Figure 3. Socioeconomic present value of the project (A) one gasifier (B) one...

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