Investment valuation and the performance of companies with modified internal rate of return: A simulation Markov chain

Sarsour, Wajeeh Mustafa; Sabri, Shamsul Rijal Muhammad

doi:10.1063/5.0075796

Cited by 3 publications

(1 citation statement)

References 17 publications

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“…The profitability is typically expressed by calculating standard metrics, such as the net present value (NPV) or the internal rate of return (IRR) (Sarsour & Sabri, 2021). In a third and final step, the most profitable investment, if any, is selected.…”

Section: Investor Decision Makingmentioning

confidence: 99%

Influence of Stocks Intrinsic Valuation on Investment Decision Making: A Literature Review

Mensah¹,

Peprah²,

Owusu-Sekyere³

et al. 2022

IJARBSS

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All over the world, investment decisions are regarded as critical decisions. Investors prior to the investment decision would like to know the possible risk and returns associated with the kind of investment to be undertaken. Investors make an excellent investment decision based on facts and figures. Since an investor cannot just by looking at a stock say whether it is overvalued, undervalued or at a fair value. This study is based on a literature review determining the intrinsic value of a stock using the Discounted Cash Flow model, with a particular emphasis on the Internal Rate of Return (IRR) and Net Present Value (NPV) approaches, and their influence on investment decision-making. This study recommends that for investors to make a profitable investment decision, they must focus on investments with intrinsic value equal or higher than the market price of stocks.

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Section: Investor Decision Makingmentioning

confidence: 99%

Influence of Stocks Intrinsic Valuation on Investment Decision Making: A Literature Review

Mensah¹,

Peprah²,

Owusu-Sekyere³

et al. 2022

IJARBSS

View full text Add to dashboard Cite

show abstract

A Digitized Tool for Well Candidate Selection for Matrix Acidizing in Sandstone Reservoir

Okologumw,

Onyeoru

2023

Day 3 Wed, August 02, 2023

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Matrix acidizing is a well-stimulation that has evolved and is still used to increase productivity when the productivity index drastically decreases and the production rate declines. A candidate well-stimulation selection method and software are suggested in this work. The process is based on technical, workover complexity, production decline curve analysis (for future forecasting), and economics since candidate selection must be rigorous. Production data from four onshore Niger Delta stimulation candidate wells were used to validate the software developed. R-factor, productivity index, and flow efficiency were the technical parameters used, and eleven (11) indicators were used for workover complexity evaluation. The future forecast was done using the production decline curve analysis and different economic indicators such as the Internal Rate of Return (IRR), the Net present value (NPV), and the Payback time. Profitability Index (PI) was used for analysis and make decisions. All wells analyzed in this study met the technical parameter criteria, making each well a potential candidate; hence, further studies can be conducted. From further reviews based on the author selection criteria carried out with regard to production trend (decline curve analysis) and economics, it was seen that WELL XX-01 was ranked first due to its shortest payback time of 2.0899 months and highest NPV of $23,636,983, WELL XX-03 was ranked next, having a payback of 2.2472 months and an NPV of $9,627,221, WELL XX-02 was ranked following having NPV of $7,260,917 and a payback of 2.2560 months and lastly, WELL XX-04 having a payback time of 2.3615 months and NPV of $6,777,548.

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Investment Decision Based on Analysis of Mathematical Interrelation Between Criteria Irr, Mirr, Pi

Yankovyi¹,

Kozak²,

Lyzun³

et al. 2022

ФКДПТП

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Analysis of the advantages and disadvantages of indicators of the internal rate of return and the modified internal rate of return as criteria for the effectiveness of an investment project. The mathematical and graphic apparatus for studying the functions and dependencies between the economic characteristics of future financial and production activities of entrepreneurial activity was used in the process of the analysis of the most important indicators of the effectiveness of the investment project. The characteristics of the criterion of the internal rate of return are studied on the basis of the properties of the function which describes the dependence of the net present value of the project on the value of the discount rate. The main advantages of the modified internal rate of return in comparison with its unmodified analogue are revealed. The inequalities between the indicated indicators are mathematically proved, their influence on the stability (safety) characteristics of the investment project is analyzed, and the interrelation of the criterion of the modified internal rate of return with the value of the profitability index is shown. The scientific novelty consists in the mathematical proof of the interrelation between the indicators of the internal rate of return and the modified internal rate of return, as well as the interrelation between the criterion of the modified internal rate of return and the profitability index of the investment project. Theoretical conclusions and suggestions can be used in the investment analysis of future financial and production projects in the domestic economy, which opens up the possibilities of rational use of resources in entrepreneurial activity at all levels of business process management.

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Investment valuation and the performance of companies with modified internal rate of return: A simulation Markov chain

Cited by 3 publications

References 17 publications

Influence of Stocks Intrinsic Valuation on Investment Decision Making: A Literature Review

Influence of Stocks Intrinsic Valuation on Investment Decision Making: A Literature Review

A Digitized Tool for Well Candidate Selection for Matrix Acidizing in Sandstone Reservoir

Investment Decision Based on Analysis of Mathematical Interrelation Between Criteria Irr, Mirr, Pi

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